HRM200 Lecture : Pay for Performance and Financial Incentives.docx

• School: University of Waterloo
• Department: Human Resources Management
• Course: HRM200
• Professor: Katrina Di Gravio

Document Summary

Chapter 12 pay for performance and financial incentives. Money is a great motivator at the beginning but it is not the thing that keeps employees going to work. Variable pay: any plan that ties pay to productivity or profitability, has to be tied with something measurable increased sale, productivity, Types of incentive plans incentives for operations employees front line incentives for senior managers and executives incentives for salespeople incentives for other managers and professional employees. 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, pay for every item produced. The more they produced, the more they get paid. Straight piecework plan: a set payment for each piece produced or processed in a factory or shop. Guaranteed piecework plan the minimum hourly wage plus an incentive for each piece produced above a set number of pieces per hour.