CHOKA Enterprises INC is a marketing and distribution company that is engaged in providing exotic Caribbean Food products of high quality to persons in the diaspora that currently reside in North America and Europe. It sources products from a number of small manufacturers throughout the region. The Quality of the product and reliability in the delivery times are two critical success factors. CHOKA has been using its website as it principal point of contact for its customers. CHOKA 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 group in the population .This is in addition to the growing popularity of Caribbean Food within Europe even to the extent where it is now a rival to Asian food.
Higher levels of productivity by CHOKA suppliers are necessary in order to meet the product cost and delivery time requirements. You, as Marketing Manager, are expected to work closely with the Human Resource Managers of the 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 1,000 words:
1. Outline the factors that CHOKA Enterprises INC. 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 proposal for consideration by the Board and Top Management of each company. In your proposal you should indicate:
I. Whether and why the Plan should be team based or individual based
II. The quantum of risk employees should be prepared to accept in their total package i.e. the ratio of incentive pay relative 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 this will be communicated and disseminated to supervisors for onward transmission to the general staff.
V. The administration of the reward system, i.e. whether short or long term and whether the pay-outs should match the production cycles which are also linked to the delivery schedules.