Improving Your Incentive System - Table of Contents - Chapter XIII

IMPROVING YOUR INCENTIVE
SYSTEM’S EFFECTIVENESS
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A comprehensive manual authored By: Gene Levine, Gene Levine Associates
Management Advisors - Since 1965

TABLE OF CONTENTS

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CHAPTER I.	GOALS OF WAGE INCENTIVE SYSTEMS VS. PROBLEMS
CHAPTER II.	ABSENTEEISM
CHAPTER III.	LABOR TURNOVER
CHAPTER IV.	HOW EFFECTIVE IS YOUR MANAGEMENT STYLE?
CHAPTER V.	SETTING AND MAINTAINING MEANINGFUL PRODUCTION STANDARDS
CHAPTER VI.	RECRUITING, INTERVIEWING AND HIRING DEPENDABLE EMPLOYEES
CHAPTER VII.	EFFECTIVE ORIENTATION AND THE USE OF EMPLOYEE HANDBOOKS
CHAPTER VIII.	TRAINING PRACTICES, TOOLS AND A TRAINING INCENTIVE PLAN
CHAPTER IX.	WAGE INCENTIVES
CHAPTER X.	DIRECT LABOR REPORTS AND CONTROLS
CHAPTER XII.	CORPORATE COMMITMENT TO DEVELOPING ITS PEOPLE ASSET
CHAPTER XII PROVIDING INCENTIVE FOR NON-INCENTIVE JOBS A. EVERYONE CAN AND SHOULD BE MEASURED 1. You Cannot Manage Effectively Unless You Can Measure 2. Controlling Measures Progress 3. Incentive Systems Provide the Base For All Other Measurements 4. Incentive Systems Begin With Proper Work Measurement 5. How To Measure Management, Supervision And Everyone Else B. COVERING TOP AND MIDDLE MANAGEMENT 1. Cost-Avoidance Plans 2. Profit Sharing Plans 3. Which Is The Best Is Determined By You C. COST-SAVING PLAN FOR SUPERVISORS 1. The Incentive Should Be Tied To Future Cost-Avoidance 2. Including Compound Measures Will Increase The Plan’s Effectiveness 3. Decide If Bonus Is To Be By Section Or Factory Wide 4. Examples of Bonus Payments D. PROFIT-SHARING PLAN FOR EXECUTIVES 1. Calculation Of Bonus Should Not Be Secret 2. Develop Policies As To Eligibility And Profit Disbursement E. CUTTING ROOM INCENTIVES 1. The Head Of The Cutting Room Is The Key 2. Consider Engineering The Spreading And Cutting Functions First 3. Remember These Basics When Developing The Standards 4. Standards Can Also Be Applied To Almost All Other Cutting Room Jobs 5. Keep Any Standards Up-To-Date 6. Types Of Pay Plans - Individual or Group 7. Group Incentives Advantages 8. Group Incentive Disadvantages 9. Simple Example Of Group Incentives 10. Individual Cutting Room Incentives 11. Information Input Considerations 12. Spreading Considerations 13. Cutting Considerations 14. Final Thoughts Concerning Individual Cutting Room Incentives 15. Quality Must Be Considered 16. Conclusion F. INCENTIVES FOR MECHANICS 1. Mechanics Should Earn A Bonus When "Machine Delay" Is Low 2. The Fallacy Of "Machine Delay" 3. Rethink "Machine Delay" Allowances 4. Pay Machine Delay From The lst, Not The 15th Minute 5. Factors To Consider In A Mechanic’s Incentive Plan G. COMPENSATING A MACHINE-PACED JOB 1. First Determine What Your "Best" Workers Earn 2. High Earnings Should Not Concern Management Provided They Are Earned 3. Machine-Paced Jobs Should Yield Pay Equal To The "Best" Regular Jobs 4. One Way To Compensate Is To Pay The High End Of The Bell Curve 5. Another Way To Pay Is For The Highest Yield
CHAPTER XIII.	CLOSING IDEAS THAT WILL IMPROVE YOUR INCENTIVE SYSTEM’S EFFECTIVENESS

APPENDICES

APPENDIX A - A.A.M.A. "SCARE" MODEL

APPENDIX B - OPERATOR SELECTION TEST

APPENDIX C - EXAMPLE – WHAT TO BRING AND WHAT TO WEAR INFORMATION FORM

APPENDIX D - JOB DESCRIPTION QUESTIONNAIRE

APPENDIX E - EXAMPLE JOB DESCRIPTION – ENGINEER

APPENDIX F - EXAMPLE APPLICATION BLANK

APPENDIX G - INTERVIEW GUIDE: DO’S AND DON’TS WHEN INTERVIEWING

APPENDIX H - WEEKLY INTERVIEWING, TESTING AND HIRING REPORT

APPENDIX I - ORIENTATION AND TRAINING CHECKLIST

APPENDIX J - FACTORY TOUR FORM

APPENDIX K - EXAMPLES OF TRAINING CURVES

APPENDIX L - EXAMPLE DAILY INCENTIVE PAYROLL RECORDS

APPENDIX M - PLANS FOR A VESTIBULE TRAINING AREA

APPENDIX N - 13 WEEK INCENTIVE AVERAGE COMPUTATION FORM

APPENDIX O - DEPARTMENTAL INCENTIVE PAYROLL SUMMARY

APPENDIX P - INCENTIVE EMPLOYEE’S HOURLY POTENTIAL EARNINGS WORKSHEET

APPENDIX Q - ENGINEERED MOTIVATION TECHNOLOGY BASIC DISCUSSION GUIDE

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