Ch 7:Case Incident 1: Reducing travel costs at Applebee's

Facts It shows how the costs of travel was reduced by introducing a web based quality agent which monitored the travel arrangements of the employees of the company in consideration with company policy and thus able to bring down the costs of travel. Q1>Consider the variable-pay programs discussed in this chapter. Of which type is the Applebee's program an example? Answer 1>Its an example of "Gainsharing plan" where we have led to the distribution of profits to the company through the productivity enhancement and from it a part was given to certain employees. Gain-sharing here do indicate a way by which we can improve the processes or more correctly streamline them to attain better results in the long term. Q2>If you are asked to revise the Applebee's program to include more individual incentives, how might you do that? Answer 2> Employee recognition based on the amount of money he saves and linking it to gifts with the same value in total but divided to include more of employees in it.Like if company saves $1 million it will allow top 10 employees consistent with the norms of policy, gifts of $1000 each and in this way it will lead to better way. Advancing, on the same topic, we can introduce the same in the HR dashboard a new title as "Employee Benefits/Extra facilities", which can be renewed each year and can be added if not availed to the next year with recognition to the compliant persons in the form of certificates, highlight or some prominent positional assistance. Q 3>How would you react to such a program? Explain your reactions. Answer 3>Anything forced comes under the violation of "hygiene factors" and we need "motivational factors" in order to carry it out further. Its a Hygiene factor that employees have the direct travel booking facility with the travel agent and now to make it voluntary or forced it means to lessen it, thus a simultaneous motivating factor either in the form of "incentives" or "rewards" or "recognition" is required for it. I don't think by making a check on the freedom of employee without sufficient communication, grievance readdress and simultaneous soothing it would be successful as some form of dissent will be evoked out from it. Q 4>Why do you think more companies do not use these sort of incentives? Answer 4> The amount here was very high $6 million, so it became necessary to use such an incentive scheme, in other places it is not used as already discussed in answer to question 3, it hurts the freedom and if adequate incentives, communication pathways are not created will lead to employee dissatisfaction or demotivation due to loss of hygiene factor.