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Charlie’s Spot-Out Company Total Rewards


A presented case enlightens a situation with a changed reward strategy at Charlie’s Spot-Out Company. William, a parts washer, was working relatively slow, especially in low periods when there was a relatively small amount of work. Therefore, Charlie implemented a new reward incentive paying per item washed instead of paying per hour worked. This paper aims at examining whether such a system might be extended to other stores and other employees and managers. Also, an alternative solution will be considered to make an essay more objective.

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Extending the Plan to Parts Washers?

Answering the question stated in the above header, it is essential to point out that the majority of employees fail to wash a standard of 25 bread basket-sized parts per hour. Taking this into account, it is beneficial to extend the performance reward system to parts washers. It would help to increase productivity and remuneration to some extent. Also, it would contribute to decreased resource utilization. Hale and Bailey (1998) clearly state that the “reward system is a way to engage people in the business” (p. 73). Therefore, trying to earn more and complete the work earlier, parts washers would enjoy their work that is, in turn, rather significant.

However, it should be explained to washers that their work should be performed with a high-quality. Furthermore, the mentioned problem related to the fact that supervisors had to spend time each hour to count and inspect the number of pieces washed might be eliminated by a specific table of performance. In particular, each employee might complete hourly surveys to facilitate supervisors’ work.

Other Employees on Similar Plan

Speaking of other employees including cleaners, pressers, and customer services, a similar plan can be implemented as well. Considering that they also work with separate items, it seems to be a good idea to use the mentioned incentive plan. In this regard, it is crucial to clearly and simply identify the way the compensation would be paid. Employees should comprehend that the quality cannot be decreased in any case. A well-understood reward system would create the engagement of the staff leading to benefits both for workers and the organization. Also, it would contribute to improved retention rates due to enhanced motivation.

As for convincing arguments for customer service representatives and floor supervisors, it is necessary to mention that they can always have shortened work hours and other benefits.

Another Incentive Plan?

A Balanced Scorecard (BSC) might be used as an alternative incentive plan. According to Chavan (2009), “the process of creating the balanced scorecard is a fairly involved process which requires a lot of understanding and commitment” (p. 404). According to the research, this plan is useful to drive organizational change processes. At that, the case under discussion illustrates the need for change to enhance the organization’s efficiency. In the context of total rewards, it would lead to increased career opportunities (Kantor & Kao, 2004). Also, the realization of the above reward system would cause performance-enhancing effects (Perkins, Grey, & Remmers, 2014). Finally, this incentive plan promotes a social component of the reward organization.

Incentive Plan Suggestions for Store Managers

Seeing that store managers also need an incentive plan, it is possible to recommend the implementation of a performance reward system as well. Store managers are to maintain supply and fuel bills and keep sales high (Armstrong, 2012). In particular, they might be paid per item sold, let us say, the three percent per unit.

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Armstrong, M. (2012). Chapters 8, 19, 20, 21, 23, 24, 25, & 26. In Armstrong’s handbook of reward management practice: Improving performance through reward. Retrieved from EBSCO in the Trident Online Library.

Chavan, M. (2009). The balanced scorecard: A new challenge. The Journal of Management Development, 28(5), 393-406. Retrieved from ProQuest in the Trident Online Library.

Hale, J., & Bailey, G. (1998). Seven dimensions of successful reward plans. Compensation and Benefits Review, 30(4), 71-77. Retrieved from the Trident Online Library.

Kantor, R., & Kao, T. (2004). Total rewards. WorldatWork Journal, 13(3), 7-15. Retrieved from ProQuest in the Trident Online Library.

Perkins, M., Grey, A., & Remmers, H. (2014). What do we really mean by “balanced scorecard”? International Journal of Productivity and Performance Management, 63(2), 148. Retrieved from the Trident Online Library.

Grading Rubric

HRM511 Module 3Session Long ProjectChecklist (Rev. 5-13-15)
INSTRUCTIONS FOR STUDENT:After you complete your references section in your assignment, copy and paste this grading rubric to your Word document and use it as a checklist to help make sure you covered all the required content, structure, and mechanical expectations.
Content (Student should structure the paper into sections below.)

Student should use mark the box below as a checklist.

Student Notes
Section 1- Introduction( Use this header): describes what the memo is going to be about; it mentions the upcoming sections.
Section 2- Extending the Plan to Parts Washers?( Use this header):Should this plan be extended to parts washers in the other stores?
Section 3- Other Employees on Similar Plan( Use this header):
2.Should other employees (cleaner/spotters, pressers, customer services) be put on a similar plan? Why or why not? If so, how, exactly?
Section 4- Another Incentive Plan?( Use this header):
3.Is there another incentive plan you think would work better for the parts washers? Describe it.
Section 5- Incentive Plan Suggestions for Store Managers ( Use this header): 4.A store manager’s job is to keep total wages to no more than 30% of sales and to maintain the fuel bill and the supply bill at about 9% of sales each. Managers can also directly affect sales by ensuring courteous customer service and by ensuring that the work is done properly. What suggestions would you have to Charlie for an incentive plan for store managers?
Section 6- References( Use this header): has2 peer-reviewed/scholarly references from the databases within the CyberLibrary. The references are also integrated within the paper.
Section 7- Grading Rubric( Use this header): contains this grading rubric.
Organization / Development
Student should use mark the box below as a checklist.
Student Notes
The 7 required sections are organized separately in sequence as listed in the Content section.
The memo is at least 2full pages in length (excluding references and headers) size 12 Times New Roman font with double spacing text.
Each section is labelled with the header prescribed above.
Student should use mark the box below as a checklist.
Student Notes
Formatting or layout and graphics are pleasing to the eye (font, colors, spacing).
Rules of grammar, word usage, punctuation, capitalization, and spelling are followed.
Sentences are complete, clear, varied, and concise with proper syntax.
Used size 12 Times New Roman font for main body text and References.
Used double spacing between sentences and in References section.

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