Visionary Design Systems: Are Incentives Enough?
- What is the basic philosophy and values of VDS?
The basic philosophy expressed in Visionary Design Systems is the authorization of its people along with their quality production of success with charitable incentives for its performance. The pioneers of Visionary Design Systems are the reason behind the success of the organization despite its peculiar extent at which the workers operate under an arranged formal procedure and the means by which they are rewarded. The staff are regarded as the most important and exceptional facet that the organization possesses. Some of the values that Visionary Design Systems take note of include; the desire to have workers comprehend the execution of certain choices by the top management, develop a knowledge foundation for every worker enabling them to plunge into new ideas, as well as making critical decisions for Visionary Design Systems, ensure workers have enough data for making the right choices, give adequate training and education to the workers and the freedom of workers to formulate their own budget as per office and department.
2. How would you characterize the VDS compensation (base, bonus, and stock) system? On what principles is it based?
The compensation system of Visionary Design Systems can be exemplified through its basis philosophy claiming that people are supposed to be paid in accordance with their output. This philosophy has led to the adaptation of a pay scale that rewards in view of the productivity of the worker instead of position or status. The compensation system is significantly a contribution to the lack of recognition of the various differences in experience between the workers in the staff. If the work put by the people is what determines the pay of the workers, the level of training and education becomes unnecessary in giving rewards. Bonuses and base salaries are simply given to workers employed in the company around the clock. Since such commissions are an important compensation towards the basic salaries for the workers, salaries have been made lower in Visionary Design Systems compensation system. Sales representatives, application engineers, secretarial workers, contracts made, bureau administrators, professionals all fall under the commissions’ category.
3. Why has VDS had problems with its Product Data Management effort? To what extent do you see incentive issues as important? What other issues are important?
The Product Data Management exertion imposed in Visionary Design Systems is encountering issues since the program has taken majority of the time and resources of the organization. The top management decided to outline the compensation and incentive agenda in alignment with the well being of the staff in the organization though the initialization of the program. This causes time issues since the anticipations of the program by Visionary Design Systems were too high. Incentive issues were not qualitative but quantitative rather because of the unsatisfactory sales that Visionary Design Systems experienced all through the initial three years in production. Other issues significant to the organization that the program faced include the dedication of the allocation of resources to non-manufacturing sectors of the company and rivalry establishment of market awareness.
4. What should VDS do about the Product Data Management (PDM) problems?
According to Bill and Fred, Visionary Design Systems is supposed to focus majority of its resources to the market to increase its sales and develop its compensation system. Visionary Design Systems should develop a software program capable of permitting its clients to begin their operations with the least of expenses. Another recommendation is handling the Product Data Management project similar to an individual business calling for a critical level of financial speculation for development. Training and tutoring sales representatives on Product Data Management advances the design procedure. The organization realizes the importance of consultation and tutoring as a means of solving Product Data Management issues.
- Would you make any changes to VDS’ compensation systems? What? Why?
Personally, I would make changes in the Product Data Management plan. I would initialize a business plan that would monetarily cater to an infrastructure that would improve the returns of the business. Making the business plan would require the grouping of the software group with the staff responsible for the Product Data Management project. The business plan would commit the appropriate amount of resources to the relevant company areas, creating room for investment capital.
Submitted by: Jaya Dixit