This case study illustrates how three small companies tie their respective incentive plans into the employees performance and the companies performance overall. The three companies are Rogan, a plastic knob business in Northbrook, IL, Aspect Communications in San Jose, CA a manufacturer of communications equipment, and Calvert Group in Bethesda, Maryland a financial-management company. All three have similar plans, but also different in many respects. Rogan ties their incentives to employee ideas that save the company money. This gives the employee's added responsibilities and added money when the company saves from their ideas. Aspect Communication uses customer service and customer satisfaction as the basis for their incentive program. These two key points give the employees of this company long-term commitment to the customer and also the company. Calvert's incentive is centered on outstanding performers and regular company distributions. Additionally Calvert reimburses employees for walking to work recognizing the cost savings of walking over driving.

1. Explain how concepts of organizational justice may be used to explain t

Answer: These incentive plans would not be as effective at a larger company for various reasons. The Rogan plan of using cost saving ideas would be difficult to administer. There would be difficulty in having a common goal using this plan when dealing with a larger company. With Aspect, how do the other employees buy into an incentive plan that only measures customer satisfaction? Other employees would not have a direct impact on the program. Additionally with Calvert's plan of paying high performance employees, who makes the decision on which employees are considered as high performers? This will turn into a very subjective decision using supervisors and management.

Answer: Incentive plans cannot just be a "cash cow" for the employee. If there is no additional input by the employee to earn a reward, then there will be less production and performance for which the company is paying for. At Rogan the key was giving the employees the responsibility for their own work. Their destiny for the incentives all depends on their input to receive the reward. At Aspect the company set goals to be attained before an incentive was earned. These were clearly defined and reachable with some effort. At Calvert the reward is not always cash but can be instead a pair of running shoes, or the a

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Approximate Word count = 874
Approximate Pages = 3 (250 words per page double spaced)