ADMS 2600 Chapter Notes -Financial Institution, Restricted Stock, Employee Stock Ownership Plan
6 Oct 2013
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Document Summary
As previously mentioned, one of the most expensive parts of the hr dollar is compensation. In order to control the costs of compensation, some organizations have adopted pay for performance plans. These include merit pay, cash bonuses, and incentive pay and have been shown to increase productivity by up to 35% when used appropriately in companies. Topics for this lesson include: linking incentive plans to organizational objectives. At the end of this module, you will be able to: 1 describe why incentive plans are important to organizational outcomes. 2 discuss the various types of individual incentive plans and the advantages and disadvantages of each. 3 explain why merit pay is not always successful in organizations. 4 explain the reason why executive compensation is treated differently in companies and list the various types of executive compensation. 5 describe the difference between the various gainsharing approaches. 6 explain the advantages and disadvantages of enterprise incentive plans.
