MHR 523 Lecture Notes - Lecture 8: Organizational Culture, Capital Accumulation, Merit Pay
10 Apr 2017
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Fixed pay compensation undefended of performance level (base pay) Variable pay any plan that ties pay to productivity or pro tability. Types of incentive plans: operations employees, senior managers and executives, sales people, organization wide, and other managers/professional employees. Any salary increase awarded to an employee based on individual performance. Usually an ongoing increase to base pay. Pro t sharing plans most or all employees share in the company"s pro ts. Gainsharing plans engages employees to a chief productivity objectives and share the gain. A trust holds shares of company stock purchased or issued to employees. The trust distributes the stock to employees as prescribed by the plan. Piecework plan oldest and most commonly used plan that is based on production standard (the more you work the more you get paid) Team/group incentives production standard is set for a speci c work group and incentives paid if the group exceeds the standard.
