HRM200 Chapter Notes - Chapter 12: Industrial Engineering, Piece Work, Performance Appraisal

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Ways to implement: set work standards for each member of the group and maintain a cont of the output of each member. Dis: each workers rewards are not based solely on his or her own effort. When either is poor, the product is zero. More prevalent approach is to use a combination of salary and commission to compensate salespeople. Widespread use of incentives for salespeople is due to three factors: tradition, the unsupervised nature of most sales work, and the assumption that incentives are needed to motivate salespeople. Commission plan (pay in direct proportion to sales) When to use incentives: performance pay cannot replace good management, firms get what they pay for, pay is not a motivator, rewards rupture relationships, rewards may undermine responsiveness. *common problem areas to be avoided include not tying rewards to performance, not delivering on all rewards initially promised and delivering rewards in an authoritarian style or manner.

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