Roundtech Case Summary

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RoundTech Industrial Inc. is a Canadian based nut and bolt manufacturing company. In the last 40 years of operation they have steadily grown the business to grossing six million dollars in revenue with a 32% profit margin. The profit margin has steadily declined over the last few years, primarily as a result of increased customer complaints. RoundTech employees 800 individuals including: production staff, supervisors, managers, sales department, account department, human resources department, and an executive team.

RoundTech compensates their production staff on a piece rate system thus linking employee productivity directly to pay. The recent complaints, particularly regarding quality, are of major concern to the organization. Piece rate

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