MHR 523 Chapter Notes - Chapter 12: Performance Appraisal, Piece Work, Merit Pay
3 Apr 2016
School
Department
Course
Professor
Document Summary
Describe incentives for managers, executives, professionals and salespeople. Explain the possible disadvantages to a company when salespeople are on commission. Fixed pay: compensation that is independent of the performance level of the individual, group or organization. Variable pay: any plan that ties pay to productivity or proitability. Incentives for operations employees-piece work o o o o. Straight piecework plan : a set payment for each piece produced or processed. Guaranteed piecework plan: the minimum hourly wage plus an incentive for each piece produced above a set number of pieces per hour. Diferential piecework plan: a plan by which a worker is paid a basic hourly rate plus an extra % of his or her base rate for production exceeding the standard per hour or per day. Long term incentives capital accumulation stock options performance share units plan appropriate link to strategy. Professionals often driven by high quality work and peer recognition o.
