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| DIAMOND INTERNATIONAL |
| Pages |
3 |
| Publisher |
INDIA MBA BOOKS |
| Product Type |
Case study |
| Price |
350 |
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CASE STUDY: DIAMOND INTERNATIONAL
Read the following case carefully and answer the questions at the end. In 1981 the 325 employees who manufactured paper egg cartons at Diamond International plant in Palmer, Massachusetts, faced an uncertain future. Styrofoam containers were creating stiff competition, the recession was affecting profits adversely, ad workers were worried about being laid off. Labour-management relations were strained at best. Over 65 per cent of the plant`s workforce felt that management did not treat them with respect, 56 per cent approached their work pessimistically, and 79 per cent thought they were not being rewarded for a job well done.
Then the personnael director of the Diamond plant devised a system of productivity incentives called the "100 Club". It is disarmingly simple. Employees are allocated points in recognition of above-average performance, Any employee who works a full year without having an industrial accident is awarded 20 points; 100 per cent attendance is worth 25 points. Every year on February 2 (the anniversary of the programme`s launching date), points are tallied and a record is sent to the individual`s home. Upon reaching 100 points,
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QUESTIONS
- Do you think recognition alone is enough to motivate employees, or does it always have to be tied to pay?
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- How might Diamond`s recognition programme affect errors, grievances, and time lost due to absence?
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- Can such a programme be sustained overs time? If so, how?
Discuss the relevance of the example in the case to Indian situation. Also mention at least one instance where an Indian organisation has tried some creative/innovative/ unique way of recognising its employees and with what effect. ?
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