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recalculate the sample size needed .

recalculate the sample size needed .

the secretary was making reservations 60 times or 19.9%. This estimate can now be used to make the decision on savings that might result by consolidating this task with an in house travel agency

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Shown is an example of work sampling. The entire example can be found on pages 411-412 in the textbook.

Worker Compensation Systems

  • Compensation is the third part of work system design
  • Time-based plans (day pay) versus output-based systems (incentive pay)
  • Group incentive plans: profit sharing & gain sharing
  • Plans put part of a worker’s salary at risk
  • Does the compensation system undermine teamwork?
  • Does plan prevent free-riders not doing their fair share?
  • Does the incentive plan encourage workers to support the long-term health of the organization?

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The third component of work system design is worker compensation systems.

Compensation systems are typically based on either time spent working or on output generated. Time-based systems compensate the employee according to the number of hours worked during the pay period while the output-based (incentive) system link employee pay to performance. Employees on incentive systems are paid based on their output and not on the number of hours they work.

Group incentive plans are designed to reward employees when the company achieves certain performance objectives. Two methods are profit sharing and gain sharing. Profit sharing rewards employees when certain profitability levels are achieved by the company while gain sharing emphasizes the costs of outputs such as improvements in quality and productivity.

There have been some concerns raised with incentive plans:

  • Does the compensation system undermine teamwork?
  • Does the plan prevent free-riders not doing their fair share?
  • Does the incentive plan encourage workers to support the long-term health of the organization?

Although these questions have been raised