Pay for Performance and Financial Incentives (E): Team and Organization-wide Incentive Plans @ Ray Tech

Fifth in a series of six caselets on Pay for Performance and Financial Incentives, this caselet is meant to understand the importance of organization-wide incentive plans. Siddarth Ray (Ray) established Ray Tech Pvt. Ltd. (Ray Tech) in January 2011. The company designed a software for doctors and clinics to store, access (from anywhere) and share healthcare records with other doctors. The company also launched a website through which patients can search for doctors and book appointments. However, the company's projects were getting delayed on a regular basis. The management found lack of cooperation and coordination between the technical team and the marketing team. In order to motivate the two teams to work in sync with each other, Ray Tech's management decided to go for an organization-wide incentive plan using the Scanlon Benefit Sharing Formula.

Pedagogical Objectives

• To understand the importance of team and organization-wide incentive plans in bringing employees together to work for the common goal of the company and the various team and organization-wide profit-sharing plans used
• To discuss and design a Scanlon benefit sharing plan for Ray Tech employees

Case Positioning and Setting

This caselet can be used in either MBA or Executive MBA or Executive Development Programs, for the following module/topic in the Human Resource Management course:

• Team and Organization-wide Incentive Plans - To understand the role of team/organization-wide incentives in encouraging teamwork and the various types of profit-sharing plans to achieve the purpose