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Old 02-14-2013, 07:58 AM   #6
golf_bears
Senior Member
 
Join Date: May 2007
Location: West Bend, Wisconsin
Posts: 397
Incentive systems do work well if they are managed correctly. What DRV needs to do is charge all the in-house generated quality issues and associated repair cost back to the incentive system. Employee wages would be lowered by the amount of the repair cost associated with their workmanship. In addition, introduce a profit sharing system. With this approach employees policed themselves and they make sure everyone tows the line.

I managed incentive systems in a union shop for over 25 years and the "Charge Back" approach in conjunction with a profit sharing system worked very well. Employees become business partners in a hurry.
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