HRM 3490 Lecture Notes - Lecture 5: Column Inch, Plans, Tax Deferral

• School: York University
• Department: Human Resources Management
• Course: HRM 3490
• Professor: Ping Peng

Document Summary

Four main types of individual performance pay, two of which may substitute for time- based pay, and two of which are always used in conjunction with base bay. Instead of being paid by the time worked, individual employees may be paid according to the amount of output they produce. Two main approaches to output-related pay: sales commissions, and piece rates combination with base pay, which is the most common arrangement. These two do not supplement base pay entirely; they can be used in. Other two types of individual incentives: merit pay, and special purpose incentives: piece rates** on exam (how to calculate piece rates) Defined as: a pay system under which individuals receive a specified sum of money for each unit of output they produce or process. Objective is to maximize individual productivity by linking output to reward. Commonly associated with the manufacturing sector, but they are also used in the service sector.