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A Historical Approach on Individual Incentive Program In A Collectivist Society In An Indonesian Glass Lens Manufacturing
Milind Gadre, Michelle Yit
Pages - 87 - 104     |    Revised - 19-08-2021     |    Published - 20-12-2021
Volume - 0   Issue - 0    |    Publication Date - December 20, 2021  Table of Contents
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KEYWORDS
Incentive Program, Employee Recognition, Individualist Versus Collectivist, Glass Lens Manufacturing, Indonesia.
ABSTRACT
Transferring production operations overseas was a cost driven strategy and in glass bifocal lens manufacturing, high quality labor skills were required and yield targets were critical. Sensitivity analysis conducted showed three levels of yield drop would result in significant increase in costs of products. At the same time, major considerations were made due to cultural differences of individualist versus collectivist. Incentive programs, both monetary and recognition, were implemented to motivate assembly operators of production to achieve yield targets. The findings were while individual incentives continued to be paid out on monthly basis, the public recognition had to be removed. Individual public recognition was concluded as hindrance to achieving performance results in a collectivist society. In the end, the incentive program proved successful and the factory achieved its yields. Another importance collectivist trait observed were employees who obtained incentives were found helping their co-workers to improve their skills over coffee breaks. This paper used an evidence-based approach provided by the Management of the Indonesia factory.
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Mr. Milind Gadre
Hoya Vision Care c/o, School of Business Management, Institute Technology Bandung, Jakarta, 12950 - Indonesia
milindgadre1962@gmail.com
Miss Michelle Yit
School of Business Management, Institute Technology Bandung, Jakarta, 12950 - Indonesia