ECO244Y5 Lecture 2: Week 22
Document Summary
Money and motivation: variable pay is any plan that ties pay to productivity or profitability, the fundamental of this is that top performers must get top pay in order to secure their commitment to the organization. Types of incentive plans: there are several types of incentive plans: Individual incentive programs give income over and above base salary to individual employees who meet a specific individual performance standard. Informal incentives may be awarded, generally to individual employees for accomplishments that are not readily measured by a standard. group incentive programs are like individual incentive plans, but they provide payments over and above base salary to all team members when the group collectively meets a specified standard for performance, productivity, or other work-related behaviour. organization-wide incentive plans provides monetary incentives to all employees of the organization. non-monetary cognition programs motivate employees through praise and expression s of appreciation for their work.
