COMMERCE 4BE3 Lecture Notes - Lecture 16: Piece Work, Profit Sharing, Job Evaluation
29 Oct 2017
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In designing a compensation mix: must choose which of the 3 components to include and how much will each account for, mix can have 1,2 or all 3 components to it. It makes sense to have different compensation mix for different groups in company. If weekly, monthly, or annual it is a salary. In the retail sector, salespeople may become too aggressive or may resort to unethical sales practices in order to maximize their commission income. With time-based pay, the employer is essentially buying time from the employee. Within certain limits, this time may be directed in (cid:373)a(cid:374)(cid:455) (cid:449)a(cid:455)s a(cid:374)d (cid:396)edi(cid:396)e(cid:272)ted as (cid:374)eed a(cid:396)ises. In an output-related system, employees who do not perform up to standard tend to voluntarily remove themselves from the organization because they are unable to earn enough money. 4. 2b performance pay: defined as any type of financial reward provided only when certain specified performance results occur, performance-contingent pay/variable pay/at-risk pay, 3 main categories.
