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Ginny is the owner of Going Ginger (GG). a small business that makes and sells gingerbreads to bakery stores. She hires two employees and share
Ginny is the owner of Going Ginger (GG). a small business that makes and sells gingerbreads to bakery stores. She hires two employees and share responsrbilities in the folEowing way: I Peter buys. prepares. and mixes all ingredients. I Ginny bakes gingerbreads using an oven. which breaks down quite often. When the oven functions normally. Ginny bakes 200 pieces of gingerbreads per clay. ' Megan xes the oven when it malfunctions. She also packs gingerbreads into boxes by hand. with each box containing 5 pieces of gingerbreads. Ginny recently heard about the theory of constraints and wants to use it to improve GG's protability. After some initial investigation she believes that baking time is the binding constraint. because she only has one oven. Unfortunateiy, the oven breaks down at least twice each month. and it takes Megan two working days on average to x it. Peter and Megan each receives a xed salary of $60.60!) which is comparable to industry standards Ginny wants to design a new incentive scheme for her employees and is seeking your advice. Required Drawing on case information. suggest an incentive scheme suitable for gain Make sure to include specic performance measures and targets in the inoentive scheme. Use Expectancy Theoryto support your choice of incentive scheme. (9 marks) i. Describe your incentive scheme {4 marks) ii. Support for your choice of incentive scheme. using Expor:t.=.u"n::1|.r Theory [5 marks]
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