In addition, managers should be measured in part on their ability to implement this new system. The employees will need to be educated about the new system. Managers will need to implement the means of measuring performance so that employees can understand how they are being measured in addition to why.
The third step will be to address the issue with the union. With a designed system in hand, the company needs to make the new system a priority in negotiations with the union. This may require the company to break the union, as union resistance to the current gravy train of blanket raises may be high. If the union agrees to the plan, it must be implemented into the collective bargaining agreement.
The fourth step will be a review of the system. It cannot reasonably be expected that a new system will be totally flawless. A team consisting of management, the union and employees should be gathered to review the system each year for several years until the flaws in the system are entirely eliminated.
4. Most of the non-monetary changes will help to motivate better performance. Workers are often motivated simply by measurement. This is a form of intrinsic motivation whereby workers seek to meet targets and to improve upon their past performance. Intrinsic motivation has been found to improve when task-specific target goals are introduced (Haradkiewicz & Elliot, 1998). That the targets are set to performance appraisals is incidental to this motivation, since the intrinsic rewards...
Utley Food Case Study Utley Food Markets was founded in the 1930s in the St. Louis area. It grew to 86 supermarkets in the Missouri and Southern Illinois area. Up until 1948 it was a family owned company, but then sold and went public, with the Utleys moving out of managerial roles. The company is now heavily unionized, and even those employees who are not union members receiving similar salary increases
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