The Effects of Performance Measurement on a Delivery Company: a Case Study

SYMPTOMS

The following warning signs indicate that WDS has a significant problem that needs attention:

• Employee safety concerns including muscle fatigue, not being able to think clearly, and injuries;

• Complaints from employees about the poor condition of the trucks;

• Employees frustrated because supervisors are not addressing their concerns;

• Complaints from employees that management doesn’t care about them, “All management cares about is getting packages delivered and out of the building.” (McElroy 2008);

• Drivers feeling overworked due to excessive overtime and long shifts;

• Increases in standard time for drivers to complete unfamiliar routes;

• Employees feel they are not being recognized by management.

PROBLEM IDENTIFICATION

The problem that WPS is now facing is not that they are currently unable to meet the demands of their business, but that they are currently meeting these demands at the expense of their employees. In the long run this could hinder them greatly and it could have a major impact on their position as the largest express delivery company and leader in supply chain management. We can attribute the problem to a disconnect between management and the drivers concerning areas of performance measurement, incentives, motivation methods, and safety. Management has their agenda to continue growth, lower costs, and increase efficiency with no additional resources. The drivers are now encouraged to attain very unrealistic efficiency goals, are incentivized monetarily only, and lack the resources to complete their jobs safely. Based on the symptoms described above, money is no longer a motivating factor for WDS employees.

CRITERIA

Because they seem to be the main goals of WDS management, the following criteria should be used in the assessment of alternatives for solving the afore-mentioned problem:

• Continued growth

• Reduced costs

• Increased efficiency

• Maximum productivity

SOLUTION

One alternative for WDS would be to ensure the basic needs of its employees are being met. According to Maslow’s Hierarchy of Needs, safety is one of the basic needs of people (Robbins 2010). WDS, however, does not put much emphasis on the safety of its employees, especially for an industry that has a high injury rate. Specifically, Mike the Driver is so concerned about his performance bonus that he ends up twisting his ankle. No one at WDS shows concern for Mike’s injury. The company is simply concerned with the completion of the route. The learning opportunity for WDS, in this instance, is that if employees’ needs are not being met, employees will not be motivated to complete their duties. The major problems that the employees face concern outdated equipment, long hours, and daily goals that are difficult to meet without risk of injury. In the case, it appears that the employees are not motivated to work longer hours for more pay but would feel better about work with better equipment. The efficiency levels need to be increased by management, but they could do much more with

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