Administracion De Empresas

CONSIDERING THE DISAPPEARING CARROT:
MANAGEMENT DISCRETION OR UNETHICAL PRACTICE

Discussion Questions
As teams, consider the following issues and provide a summary of your conclusions to therest of the class.
1. Idea Integration justifies the change in bonus pay plans on the basis, of overall company performance. Specifically, even though the PeopleSoft portion of the operation wasdoing well, Idea, as a whole, was losing money. However, overall company performance was not part of the incentive plan and some of the affected workers argue that including overall company performance ischanging the terms of the contract.

a. Should organization have the right to unilaterally change the terms of incentive plans? If so, under what conditions?
The organization has the right tochange the terms of the incentive schemes under the following conditions: 

* The incentive that each worker receives varies according to the ups and downs of the organization, for example in abad season in the company's compensation decreases.
* Incentive systems can be modified by the worker's performance such as the organization pays for results and not by the number of working hour.Therefore, these points from the incentive system must be resolved before determining a policy. Because it would cause problems in the organization (demands, would affect the image and reliabilityof the company etc), a different result than positive motivation

b. What do you think long term impact of changing incentive plan terms might be? For example what might be the impact onmotivation, trust and the culture of the organization?
The compensation system can impact on motivation, teamwork spirit, culture and the general perception people have of the organization. 
Institutionsrecruit and select their human resources to achieve organizational objectives with them and, the workers want to achieve benefits, good working conditions and career development.
If an organization...