The document discusses a case study of a large auto glass and claims management company that initially had 250 stores across the US that grew to 550 stores and 3000+ employees, including 1000 installers. The company had a 12% market share but faced issues with low productivity, with installers averaging only 2.5 glass units installed per day. The company was considering implementing a performance pay plan to address productivity issues and create workforce loyalty to reduce traditionally high turnover rates in the industry.

1. ABHISHEK, AKASH, AMIT, BHUMIT, HARSHIT, NISHANT,
SAHIL, TONMOY.
Presents
PERFORMANCE PAY CASE STUDY

2. Introduction
• Auto Glass and Claims Management Company
• 1993- largest nation wide auto glass company in US
• Initially 250 stores were across the country
• Then it was taken over by Forstmann Little and Company in 1987.
• Till 1989 the company expanded their stores upto 550
• 3000+ employees including 1000 installers
• 12% market share as compared to Harmon glass and others
competitors

3. Initial strategy:
• Lower level managers
given incentives
• Introducucing mobile
services,mobile trucks
• Stores are not located
at prime places
• Demand decrease in
store based service
• Popularity of mobile
service

4. From store to market
• To group stores into market
• Centralized the distribution
• Separate warehouse, DCC,CTU and CSR
• Unable to handle more customers

5. LOW PRODUCTIVITY
• Average of 2.5 glass units a day (UAD)
• Workers simply didn’t try hard.
• Finding the correct location of Customer.
• DCC Managers “didn’t hustle”.
• No “Equitably” in assigning jobs.

6. Models of performance plan pay
To create loyalty among its work force
To strengthen industries traditional high turnover
rates