MHR 523 Lecture Notes - Lecture 10: Telecommuting, Unemployment Benefits, Adverse Selection
2 Jul 2018
School
Department
Course
Professor
22/03/18 Week 10
Alexandra Karkaby
Chapter 12: Pay for Performance and Financial Incentives
Incentives
Types of Incentive Plans
● Organization-wide
● Operations employees
● Senior managers and executives
● Salespeople
Developing Effective Incentive Plans
● Considerations
○ Performance pay cannot replace good management.
○ Firms get what they pay for.
○ Pay is not a motivator.
○ Rewards rupture relationships.
○ Rewards may undermine responsiveness.
Employee Implementation of Incentive Plans
1. Pay for performance.
2. Link incentives to activities that engage employees.
3. Link incentives to measurable, valuable competencies.
4. Match incentives to organizational culture
5. Keep group incentives clear and simple.
6. Over-communicate.
7. The greatest incentive is the work itself.
Employee Recognition Programs
● Emerging as a critical component of incentive plans.
● Traditionally, recognition has been for long service.
● Movement toward recognition throughout the career.
● Particularly effective in smaller entrepreneurial companies.
find more resources at oneclass.com
find more resources at oneclass.com
● Effective in achieving improved attitudes, increased workloads, and productivity.
Chapter 13: Employee Benefits and Services
Employee Rewards
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Chapter 12: pay for performance and financial incentives. Emerging as a critical component of incentive plans. Traditionally, recognition has been for long service. Effective in achieving improved attitudes, increased workloads, and productivity. Five components of total rewards: compensation, benefits, work-life programs, performance and recognition, development and career opportunities. Benefits indirect financial payments given to employees. A federal program that provides income benefits if a person is unable to work through no fault of his or her own. Does not apply to those on short-term contract or fired for just cause. Amount of payment varies according to jurisdiction and circumstances: Employer must guarantee same or similar job when employee returns. Common types: maternal leave, adoption leave, compassionate care leave, etc. Minimum amount of paid vacation must be provided to employees. Holidays vary by jurisdiction (minimum 5 days, maximum 9 days). Income and medical benefits to victims of work-related accidents or illness, regardless of fault.
