Executive, managers, accounting and human resources department is paid on salary.
The sales department is paid based on commission, they must maintain 85% of their contracts and add three new contracts annually. Commission motivates the sales individual to gain new contracts and to maintain relationships with their current customers.
The production department is paid on a piece rate system, for every unit the send to the next station they are compensated. The production staff that sort and store raw materials are paid per box is unpacked and those who pack finished goods are paid per box packed ready for shipment. The piece rate compensation plan motivates the employees to produce more nuts and bolts. The piece rate system also has unintended
…show more content…
The incentive plan motivates managers to watch employees and reprimands any production waste. Managers observe and time employees on each task, if they consistently take longer than the RoundTech standards they are given very little time to work and often quit.
RoundTech pays 50% of medical and dental expenses up to a maximum of $1,000 annually. Additionally, RoundTech allows their employees to purchase additional coverage through RoundTech 's insurance provider at a reduced cost then what they could get privately.
RoundTech invests very little in training and only in development for senior staff. Sales team members are provided training on the process and company, people are responsible for earning their own income through sales. The production department is given two days of on the job training to learn how to operate the machines and then they are left on their own. Managers are not given any training; they are given performance aids developed by the human resources department on how to handle certain situations. RoundTechs primary training investment is doing WHMIS training for all plant staff because it is required by law. Additionally, RoundTech will reimburse a plant worker who takes first aid training up to a limit of