BU354 Lecture Notes - Lecture 12: Merit Pay, Performance Appraisal, Piece Work
Document Summary
Money and moivaion: fixed pay compensaion that is independent of the performance level of the individual, group, or organizaion. Base pay, allows for income stability: variable pay any plan that ies pay to producivity or proitability. Team or group incenive plans a plan in which a producion standard is set for a speciic group and its members are paid incenives if the group exceeds the producion standard. All members receive pay earned by the highest producer. All members receive pay earned by the lowest producer. All members receive equal to the average pay earned by the group. Incenives for senior managers and execuives: short-term incenives: the annual bonus. Determined through key posiion (impact of proitability) Salary level once at a certain salary auto eligible for a bonus. Salary grade all employees at a certain salary grade or above are eligible for a bonus. Determine a fund size of the total money to pay out.
