ADM 2337 Chapter Notes - Chapter 12: Piece Work, Job Evaluation, The Standard Hour
Document Summary
Variable pay: variable pay is any pay plan that ties productive or productivity to compensation: examples: financial incentives, pay for performance, variable compensation. The idea behind variable pay is making sure that our top performers are being paid top pay to secure their commitment to the organization and their continued success. Variable pay plans are really useful for tying compensation to line of sight line of sight is the extent to which and employee can relate his or her daily work to the achievement of overall corporate goals. They are simple to calculate and easily understood by employees. Piece-rate plans appear equitable in principle, and their incentive value can be powerful since rewards are directly tied to performance: disadvantages. Unsavoury reputation among many employees, based on some employers" habits of arbitrarily raising production standards whenever they found their workers earning excessive wages.
