Decision: The best course of action for Ralph Porter is to avoid any disruptions that could put company objectives at risk. In order to correct the inequities that exist in the Plating Department he must restructure the compensation arrangement. It could be useful to salary employees and place more emphasis on rewarding the output that the company desires. Incentive-based compensation (bonuses) could be applied to periods of higher output in the business cycle. Through bonuses the company has better control of rewarding behaviors that are most consistent with company goals. A change in the compensation arrangement would realign company, group and individual goals and reduce the need for groups and/or individuals to take a vigilante approach in realizing individual and/or company object.…
