Duckworth Industries
The following is a case study analysis of Duckworth Industries, in particular the company?s incentive compensation programs:
1 & 2) What are the different incentive compensation plan options covered in the case and what problems does each plan solve?
Mr. Duckworth believed in the power of incentive to guide management action. In order to better align the interest of the management with the shareholders, Mr. Duckworth implemented a variety of new incentive compensation programs:
The first incentive program implemented addressed tardiness and attendance. Basically, under this plan an attendance bonus ($0.60/hour) would be awarded to any plant-level employee who was never more than two minutes tardy for work each pay-period.
To ensure that quality became part of Duckworth Industries culture, a quality incentive program was implemented. Under this incentive program plant level employees and shift supervisors could earn up to an additional $100/month for meeting promised......
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