You Tube Enterprises are a marketing and distribution company that is engaged in providing exotic Caribbean products of high quality to persons in diaspora that currently reside in North America and Europe. Quality and reliability are two critical success factors. You Tube has been using its website as it principal point of contact for its customers. You Tube Enterprises were recently awarded a major contract to supply a major chain in Europe, Marks and Spencer’s. It is recognised that persons of Caribbean origin are a significant percentage of the population .This is in addition to the growing popularity of Caribbean food among other sectors of the population. In order to successfully fulfil this contract, higher levels of productivity by You Tube suppliers are required in order to meet the price and response time requirements. You, as Marketing Manager, are expected to work closely with the Human Resource Managers of the four main suppliers to develop a reward system that will enable greater reliability with respect to response time and assure quality and compliance with HACCAP1 requirements.
In no more than 800 words:
1. Outline the factors that You Tube Enterprises must consider in the design of such a reward system to ensure its success, i.e. to ensure that the programme is beneficial to both the employees and the supplier company and
2. Develop a draft proposal for consideration by the Board and Management of each company. In your proposal you should indicate:
I. Whether and why the Plan should be group based or individual based
II. The quantum of risk employees should be prepared to accept in their total package i.e. the quantum of incentive pay to total compensation
III. Whether incentive pay should fully replace traditional pay and the reasons for this recommendation
IV. The criteria by which performance will be judged and how will this be communicated and disseminated to staff and their supervisors
V. The administration of the reward system, i.e. whether short or long term and whether the pay-outs should match the production cycle and the required delivery schedules
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