HRM200 Lecture Notes - Lecture 12: Organizational Culture, Merit Pay, Performance Appraisal

• School: University of Waterloo
• Department: Human Resources Management
• Course: HRM200
• Professor: William Peckham

Document Summary

Several incentive plans are well suited for use with operations employees, such as those doing production work. Piecework: a system of pay based on the number of items processed by each individual worker in a unit of time, such as items per hour or items per day. In tom smiths case, the job evaluation indicated that hi door-jamb stamping job was worth per hr: the industrial engineer determined that 20 jambs per hour was the standard production rate. Therefore, the piece rate (for each door jamb) was / 20 = As an incentive, he would, however, also be paid at the piece rate of sh. 50 for each unit that he produced over the number required to make minimum wage. Differential piece-rate plan: a plan by which a worker is paid a basic honourly rate plus an extra percentage of his or her base rate for production exceeding the standard per hour or per day.