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Safelite Auto Glass Performance Pay Case A
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