You need to watch the Lincoln Electric video before you can participate in this forum. (https://www.youtube.com/watch?v=WZRV9Xp9rsI) For the Discussion Forum, answer the following three questions: 1. Based on the LE video and textbook, what do you see as advantages and disadvantages to a piece-rate system (or standard hourly plan)? From the video, you should draw some of your own conclusions about advantages and disadvantages of their piece-rate system. 2. In what ways is LE’s profit-sharing program aligned with expectancy theory? That is, explain how LE designed their profit-sharing program to provide expectancy, instrumentality, and valence. Expectancy theory is explained in the Chapter 4 Lecture Slides 22 & 23 (see also my Chapter 4 lecture video). 3. Of the “common problems” of incentive plans (slide 24), which does Lincoln Electric seem to experience and which has it avoided? Justify your answer.
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