Question

Consider an incentive system that simply rewards production output. How can this system hurt an organization with a distinct bottleneck operation? What part of the organization will be hurt the most?

Answer 1

Answer:

The department with the bottleneck output will suffer the most.

Explanation:

A bottleneck operation is a point in the organization where everything is filtered, for example in the textile industry, it is usually where the clothes are branded, meaning the tags are sewed or printed into the clothing, and no matter how hard the other departments work, that bottleneck part of the operation can only do so much, so when you reward output for other departments instead of efficiency or searching for other parameters the only thing you'll end up with is a bottleneck department filled up with work to do and no real change in your final production output.