1) What are the strengths and weakness of the system that Mr. Sponza developed for the control repair facility?
a) By changing eight department they called shops as a “Profit Center” change the work attitudes of the workers. Since they’re now profit oriented, their productivity increase thus increase profits. b) By having this concept every each departments form a spirit of competitiveness, they compete each other even comparing to private sector. Having profit motives in every individual mind increase productivity thus increase profits.
a) The concept doesn’t work in Engine Department due to cost to rebuilt engine was as much as the cost to buy new engine. b) Clocking actual time to do jobs will create uneasy to the workers because whenever they beat the clock they afraid they have to do more works. Without having an ability to trace the individual time, it’s difficult to do performance measure as well as to determine the cost.
2) Records on performance by individual or on costs for individual jobs were discontinued. Do you agree with this policy? No, somehow every each individual need to be assessed on their performance. Without records on performance the government will later having difficulty to do performance appraisal. Thus, no promotion, no increment on salary and no yearly bonus.
3) What recommendations, if any, would you make to Mr. Sponza concerning the system he has developed? How might you improve on it? Mr. Sponza needs to implement a “Performance Management Framework” such as setting up a Key Performance Index and Balanced Score Card where every each individual can be assed based on many factors not only on how fast they can do the jobs or profitability of every individual department. By implementing Balanced Score card, Mr. Sponza and management will be able to analyse four separate areas that need to be analysed: (1) learning and growth, (2) business processes, (3) customers, and (4) finance.