In managing production worker compensation and expenditures for best practice training, the overriding objective of company managers should be to O compensate production workers at levels that are close to the highest in the industry in each geographic region where its production facilities are located--this is because companies with the highest total annual compensation packages attract highly-motivated workers with the skills needed to achieve the highest levels of labor productivity. o make sure its annual total compensation of production workers remains below the average annual total compensation paid by all companies in the regions where it has production facilities. o pay an incentive per non-defective pair that results in the lowest feasible reject rate for branded pairs produced. o achieve labor costs per pair produced that are at worst below the industry average and at best are very close to (or even equal to) the industry-low in each region where the company has production facilities. achieve the highest possible worker productivity (pairs produced per worker per year).
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