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In: AccountingSupplemental Case Chapter 5: Gain Sharing at CircleWorksCircleWorks has been making custom bicycles for biking...Supplemental Case Chapter 5: Gain Sharing at CircleWorksCircleWorks has been making custom bicycles for biking enthusiastsfor nearly fifty years. The family-run company has had much successusing small teams of employees to build bicycles to meet customerspecifications. The custom built bikes have been in consistentdemand and CircleWorks has maintained their position as a leader inthe market. But, as a new generation of bike builders enters theworkforce, Human Resources Director Sheila Gaines is concernedabout employee motivation. She is considering offering incentivesto encourage better teamwork, more employee involvement andimproved productivity. Introducing incentive pay is a challenge atCircleWorks as it runs contrary to the organizational culture. Thefamily who started the company believed strongly in hard work andtraditional management practices and this view dominates theorganizational culture. The company President has suggested toSheila that employees should be motivated only by the satisfactionof getting the job done. Further, company management is somewhatresistant to employee involvement in decisions. While they havealways had a suggestion box available, very rarely does managementlook to employees for input on operations. Advancing technology hasallowed many changes in production techniques and managementbelieves that the design engineers are in the best position toguide changes in the work processes. The bikes are built usingteams of four to five workers who follow specific directions onbuilding each bike. Because the bike designs are fairly intricate,each bike takes a designated amount of time to build and there isnot much variability in the speed of production. However, Sheilahas noted that some teams do work together better than others andwants to reward such cooperation. She has considered productivitybonuses awarded to the teams, but has also considered implementinga gain sharing plan. Sheila believes that some incentives directedat all employees as opposed to the individual teams may promotemore cooperation overall within the company. Further, as newworkers with varied talents enter their workforce, Sheila wants toprovide some incentives for the employees to make improvements tothe production process. As she prepares to meet with the companyPresident, she must decide if a gain sharing plan is the bestrecommendation Read the case study and provide a recommendation toassist Human Resources Director Sheila Gaines in deciding whether again sharing plan is the best option for CircleWorks. Be sure tofollow APA guidelines and write your paper in the proper format
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