Presents

PERFORMANCE PAY CASE STUDY

ABHISHEK, AKASH, AMIT, BHUMIT, HARSHIT, NISHANT,SAHIL, TONMOY.

Introduction

• Auto Glass and Claims Management Company• 1993- largest nation wide auto glass company in US• Initially 250 stores were across the country• Then it was taken over by Forstmann Little and Company in 1987.• Till 1989 the company expanded their stores upto 550• 3000+ employees including 1000 installers• 12% market share as compared to Harmon glass and others

competitors

Initial strategy:• Lower level managers

given incentives• Introducucing mobile

services,mobile trucks• Stores are not located

at prime places• Demand decrease in

store based service• Popularity of mobile

service

From store to market

• To group stores into market• Centralized the distribution • Separate warehouse, DCC,CTU and CSR• Unable to handle more customers

LOW PRODUCTIVITY

• Average of 2.5 glass units a day (UAD)• Workers simply didn’t try hard.• Finding the correct location of Customer.• DCC Managers “didn’t hustle”.• No “Equitably” in assigning jobs.

Models of performance plan pay

To create loyalty among its work force

To strengthen industries traditional high turnover rates