MHR 523 Study Guide - Career Development
Document Summary
Chapter 12 pay for performance and financial incentives. 4. incentives for operations employees incentives for senior managers and executives incentives for salespeople incentives for other managers and professional employees: organization wide incentives. 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. Advantages simple to calculate for employees fair/ equitable in principle powerful incentive value rewards directly related to performance. Produced at a rate 25 % higher regular pay = employee gets 1. 25 +80 people are not mentally linked to number of units produced quality isn"t low etc. Stock option: the right to purchase a state number of shared of a company sotck at todays price at some time in the future. Supervisors tend to minimize differences in employee performance when computing merit raises (everyone gets a raises)