1. Does the pay-for-performance plan seem like a good idea? Why or why not? In his new position at Hathaway Manufacturing, one of the first things Sandy Caldwell wanted to do was improve productivity through teamwork at every level of the firm. As the new human resource manager for the suburban plant, Sandy set out to change the culture to accommodate the team-based approach he had become so enthusiastic about in his most recent position.

Sandy started by installing the concept of team management at the highest level, to oversee the operations of the entire plant. The new management team consisted of manufacturing, distribution, planning, technical, and human resource plant managers. Together they developed a new vision for the 500-employee facility, which they expressed in the simple phrase Excellence Together. They drafted a new mission statement for the firm that focused on becoming customer driven and team based, and that called upon employees to raise their level of commitment and begin acting as owners of the firm.