BU354 Lecture Notes - Lecture 10: Frederick Herzberg, Tax Deduction, Income Splitting
Document Summary
Chapter 12 pay for performance and financial incentives. The use of financial incentives financial rewards paid to workers whose production exceeds some predetermined standard is not new; it was popularized by frederick taylor in late 1800s. Taylor had become concerned with the tendency of employees to work at the slowest pace possible and produce at the minimum acceptable level. But the workers had energy for other things. Taylor wanted to harness this energy during the workday to achieve huge productivity gains today, this includes fixed and variable compensation plans. Fixed pay: independent of the performance level of the individual, group, or org base pay and other forms of relatively consistent compensation (allowances) that help income stability. Variable: links pay with productivity, profitability, or some measure of org performance. Orgs spend roughly 11% of total pay-related spending on variable pay-related expenses. > 84% of canadian employers have one or more types of variable pay plans in place.
