MHR 523 Lecture Notes - Lecture 8: Physical Therapy, Critical Illness Insurance, Piece Work
10 Apr 2017
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Money and motivation: xed pay - compensation that is independent of the performance level of the individual, group or organization; salary, base pay, allowances, variable pay - any plan that ties pay to productivity or pro tability; tips, bonuses. Incentives for senior managers and executives: short-term incentives - annual bonus, long-term incentives - capital accumulation; stock options; performance share units plan; appropriate link to strategy. Incentives for salespeople: salary pay - xed salary; not based on effort or quality of work, commission plan - pay in direct proportion to sales generated; may be income. Uctuations; may be affected by external factors; more freedom, but often long hours: combination plan - base salary plus commission. Employee bene ts and services: indirect nancial payments given to employees, include supplementary health and life insurance, vacation, pension plans, education plans and discounts on company products.
