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Case Study: Gain Sharing at CircleWorks

Updated on October 17, 2016

Read the case study and provide a recommendation to assist Human Resources Director Sheila Gaines in deciding whether a gain sharing plan is the best option for CircleWorks.

When deciding whether a gain sharing plan is the best option for CircleWorks Human Resources, Director Sheila Gaines needs to consider the implications of a gain sharing plan and her own goals. Gain sharing is a group of incentive systems that provide participating employees with an incentive payment based on improved company performance, increased productivity, increased customer satisfaction, lower costs, and/or for better safety records (Martocchio, 2014). Human Resources Director Sheila Gaines’s has the goal of utilizing a gain sharing plan to promote more cooperation overall within the company and to provide incentives for the employees to make improvements to the production process (Supplemental Case Chapter 5: Gain Sharing at CircleWorks, n.d.).

Considering Human Resources Director Sheila Gaines’s goals I would recommend that she proceed with a gain sharing plan for CircleWorks. However I would advise her to use a Scanlon plan because of the emphasis it places on employee involvement. This plan would be the most beneficial to Human Resources Director Sheila Gaines as it allows employees to exercise self-direction, self-control, and responsibility within the company (Martocchio, 2014). A Scanlon plan would place an emphasis on teamwork in order to reduce the costs, it would involve a suggestions system that would send cost-saving ideas from employees through a labor management committee that would evaluate and implement suggestions, and a monetary reward for productivity improvements to encourage employee involvement.

My final recommendation would be for Human Resources Director Sheila Gaines to recommend a Scanlon gain sharing plan to the company President of CircleWorks. A Scanlon gain sharing plan could be adapted based on any suggestions or criticism from the President. A Scanlon gain sharing plan would allow Human Resources Director Sheila Gaines to direct incentives at all employees as opposed to the individual teams to promote more cooperation within the company; it would also allow her to provide incentives for the employees to make improvements to the production process (Supplemental Case Chapter 5: Gain Sharing at CircleWorks, n.d.).

References

Supplemental Case Chapter 5: Gain Sharing at CircleWorks [PDF]. (n.d.).

Martocchio, J. (2014). Strategic compensation: A human resource management approach (8th ed.). Upper Saddle River, NJ: Prentice Hall.

Share with the class the most valuable topic or subject area you learned about during this course and why. When responding to classmates' posts, explain how the topic they chose was also valuable to you.

The most valuable topic of Human Resource Strategy and Development class for me was the discussion forums on human resources hiring. Prior to taking the Human Resource Strategy and Development class I never really thought about hiring from the perspective of a human resources professional. Instead I had only thought about hiring from the perspective of a job applicant. The discussion board questions of “if your employer asked you to review the decision not to hire an African American applicant for a job, what would you need to consider” and “how would you do a complete background investigation on applicants to minimize concerns about negligent hiring” were what really made me start thinking about hiring from a human resources professional’s point of view.
The reason that I consider this valuable is that having insight into the viewpoint of a human resources professional’s job and considerations will allow me to put myself in a better position for hiring. The fact that I already know what human resource professionals will look for in job applicants will allow me to prepare my resume to better appeal to them. The other reason the topic is valuable to me is that if I decide to go into human resources I will already have an understanding of hiring considerations and procedures.

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