Questions

This is a place for your questions on management. Replies will be posted here. If you give an email address, we would be pleased to email you the reply. You can ask any questions on management here, e.g how do I deal with a difficult boss? How do you manage a difficult employee?

A question that I recently received was how do you manage your driver? In this case the driver was absent without leave and on extended medical leave without notice. The driver in question was being paid RM1,500/month. 

The reward structure is acknowledged as the strongest tool to shape a company’s corporate culture – “you get what you pay for”. Understanding this fact, allows us to come up with a “pay for performance” structure. Taking the lessons from Multi-National Companies that pay people a lower basic but higher performance bonus, we came up with a modified pay for performance structure.

The driver is now paid a basic of RM1,100/month vs RM1,500/month. However, if he performs his tasks, i.e. turns up on time, gives 3 days notice before taking leave, he will then be given a performance bonus of RM150/week which is paid in cash. This gives a financial reward for him to perform and makes it financially painful not to. If he performs his duties, he can earn up to RM1,700/month as opposed to RM1,500/month. Every 3 months, his performance will be reviewed and additional allowances may be granted such as telephone or clothing allowances. These will be added to the performance bonus.

With this new reward structure, you are more likely to get a driver who comes early.

Do post any thoughts or comments on this.