COMMERCE 2BC3 Lecture Notes - Lecture 28: Piece Work, Profit Sharing, Specific Performance
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Commerce 2bc3 march 22 2016 prof. a schat. B: k guaranteed, up to 60k with performance incentives. C: 25k guaranteed with up to 75k performance incentives. An organization generally prefers to have a pay at risk. Because one of the fundamental goals of an org is to attract people. Organizations are willing to pay high levels of pay, coupled with a low level of guaranteed pay. Tension: individuals want high guaranteed pay, but employers want to only guarantee a low level. Pay for performance: any type of financial reward provided only when specific performance results occur. What gets paid is what gets done can encourage counterproductive behavior. New orleans saints were paid higher to injure other players. Some of the coaches had provided these financial incentives. Bus drivers were skipping stops because they were paid to reach their destination on time. Missing out on revenue for company from a full bus stop in order to make more pay for yourself.