As an executive senior manager, I have diagnosed the problem in this case study, and the solution would have to be custom-made designed to solve more than one problem that Westinghouse is faced with. The key issues in the case study are the pay for knowledge reward system, salary, decreasing of growth versus increases in financial rewards, poor measurement of lump sum payments for labor indicator, resentment between managers and technicians due to unfair distribution of incentives, and international pressures and threats. These key issues jeopardize Westinghouse future operations therefore, re-structure and implementations are needed to achieve a high rate in productivity and efficiency of the company.
             Bonus programs reflect a company's definition of success, how that definition is measured, and the extent to which that measure is met. However, my opinion in the case study is that Westinghouse went a little too far in their reward system. I think that the "pay for knowledge" rewards system do not motivate employees to work harder; it motivate them to acquire knowledge and perhaps job security not necessary in the Westinghouse plant. As a senior management executive I would have different approach to solve the compensation issues and competitive advantage at the Westinghouse Electronic Plant. I would recommend that Westinghouse discontinue the practice of awarding "pay for knowledge" to it employees. I would do my best to eliminate the reward system; enough with that. We already know the problems the rewards system brings in regards with technicians and managers, not to mention the increasing external threats and pressures by other electronic companies operating from third world countries. My goal is to create a management system with alternative solutions that emphasis on builds commitment rather than monetary incentives, and kept the best qualify personnel committed to my company, and consequently elim...