Galt Contracting Essay Example

rate system, planters show less enthusiasm for their work, taking more breaks and wasting time. There is no sense of competition among the planters, leading to a steady pace of work. Additionally, planters tend to socialize with each other and plant fewer trees. Galt's current motivation system for the planters is the piece-rate system. Considering the theories discussed in Chapter 9, it is worth reviewing their implications for Galt's idea of replacing the piece-rate system with a flat rate payment for each day of work.

The piece-rate system is a method where workers are rewarded with cash incentives for being productive. This means that the more trees a planter can plant, the more money they will earn. However, Galt has been experiencing problems with the quality of work using this system. To enhance the level of planting, Galt is contemplating transitioning to a flat rate system instead. This shift in motivation aligns with the classical theory of motivation, which proposes that workers are solely driven by monetary rewards. According to this theory, increasing payment for employees will lead to an increase in productivity.

According to this theory, if Galt were to switch his workers to a flat rate system, their motivation would decrease and lead to a decline in production. However, classical theory also argues that by analyzing the job and finding ways to improve efficiency, the cost of goods produced would decrease and profits would increase. This would subsequently lead to higher wages for workers. Therefore, if Galt were to implement a flat rate system, he must evaluate the jobs in order to enhance effectiveness and efficiency. Consequently, this would boost motivation as a more effective

job would generate greater profits and eventually provide more income for the workers.

Galt frequently goes with tree planters to monitor their work and maintain high quality standards. If Galt suspects a worker's productivity is lacking, he shadows that particular individual. This information becomes known to all other workers when Galt accompanies someone. However, this can lead to tension among the workers due to the generally negative connotation of Galt's presence. Although this approach aims to ensure quality, it may result in a decrease in quantity. As per the early behavioral theory, workers tend to become more productive if they perceive they are receiving special attention from management.

If Galt chooses to implement a flat rate system, early behavioral theory indicates that additional measures are necessary in order to ensure an increase in production levels. Relying solely on a flat rate would not yield successful results. However, if Galt decides to maintain the piece-rate system, early behavioral theory suggests that this would be acceptable as long as employees receive encouragement and special attention. Furthermore, early behavioral theory outlines a hierarchy of needs for workers, which includes physiological, security, social, esteem, and self-actualization levels, in order to stimulate motivation.

The text explains that if the basic needs (physiological needs) like food, water, and shelter are not fulfilled, the worker will not prioritize higher needs such as sociability (social needs). Instead, the worker will be motivated to earn a higher wage to purchase more food. Currently, Galt's piece-rate system does not foster a social environment. If the workers desire to socialize but are unable to do so, their motivation will shift from self-actualization to fulfill their social needs. By changing

to a flat rate system, the social needs of the workers can be satisfied.

According to early behavioral theory, once social needs are met, esteem needs and self-actualization needs will follow. However, more modern theories have been developed to explain motivation in the workplace. These theories strongly support Galt's decision to implement a flat rate system and are used to support our recommendation to Galt. Our proposed payment system for tree planters is as follows:

• Each tree planter will receive a flat rate salary per day.
• A daily bonus will be given if the planter plants 1200 or more trees.
• The bonus will be void if trees are poorly planted and the rights to bonuses will be suspended until Donald Galt and Quality Control Checkers deem the quality of production acceptable.
• A single half-hour lunch break will be provided.

This payment system will have an impact on the following factors:

1. The motivation levels of the planters.
2. The activities of the quality control checkers.
3. The level of quality needed in tree planting.
4. The needs of the lumber companies.
5. Donald Galt's need to run a profitable company.

By placing the bonus at a mark of 1200 trees, it is slightly above the average for experienced planters, making it attainable for most people. Additionally, the flat rate wages reduce the pressure on planters to work fast or be in a rush. This encourages planters to prioritize quality over quantity when planting trees. Furthermore, the provision of a lunch break boosts the morale of the planters and makes the job more enjoyable. It provides them with a rest from their physically demanding work

and decreases the likelihood of employees taking additional breaks on the job. 2. The quality control checkers engage in various activities.

The duties of quality control checkers will remain the same, as they will continue to prioritize tree quality and follow company standards. However, they will now have more power within the company as they can withhold bonuses from workers if the quality does not meet the required standards. Other than this change, their responsibilities will stay consistent. Moreover, there will be a stronger focus on planting high-quality trees and less pressure to plant a large quantity. This shift in emphasis ultimately aims to enhance overall quality.

In the past, there has been a consistent standard of quality. However, in order to meet the demand for good products, there will now be an increase in quantity. This rise in quality is expected to generate higher demand from lumber companies. Galt Contracting's work will be perceived as dependable and well-made, which will help rebuild positive relationships with companies that had lost interest due to previous subpar quality. Moreover, it is crucial for Donald Galt to ensure the profitability of his company.

Donald Galt's success heavily relies on the quality of the trees. By improving the quality, Galt can enhance his reputation in the lumber industry, increase the chances of his job bids being accepted, and reduce the number of dying trees. This not only cuts down on replacement costs but also minimizes wasted time and effort. To further benefit financially, Galt incorporates bonuses into the payment scheme and adjusts flat rate wages accordingly. Ultimately, these measures contribute to Donald Galt's goal of building a profitable company.

Considering these factors, it

is recommended that Donald Galt implement the flat rate salary system. This system aligns with modern theories for meeting employees' needs, particularly expectancy theory and equity theory. Expectancy theory asserts that individuals are motivated when working towards a reward. Embracing equity theory, Galt ensures fair treatment by comparing the input and output ratio of employees with their peers. Under the current piece-rate system, some workers were unfairly treated based on their productivity level, which undermined morale and overall productivity.

Both contemporary theories recommend that Galt should convert his system to a flat rate. Additionally, Galt must implement the use of these two theories to enhance motivation and productivity in his workplace. Besides cash incentives, Galt can also offer other desired incentives to employees, such as health and dental benefits. When determining the flat rate salary, Galt should consider both the total amount of the new daily wage and the bonus offered to ensure it is relatively similar to previous wages. This change will emphasize the importance of quality control by the employees themselves and demonstrate its critical role in Galt Contracting. As employees recognize that they hold the future of the company in their hands, they will take ownership and strive to improve the quality of their work. Galt will move closer to turning his fortunes around, bringing a brighter future within reach.