BUS 272 Chapter Notes - Chapter 5: Employee Stock Ownership Plan, Performance Appraisal, Job Sharing

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 272
• Professor: Zorana Svedic

Document Summary

Internal equity the worth of the job to the organization, usually established through job evaluation. External equity the external competitiveness of an organization"s pay relative to pay elsewhere in its industry, usually established through pay surveys. Variable-pay programs a reward program in which a portion of an employee"s pay is based on some individual and/or organizational measure of performance. Piece-rate pay plan an individual-based incentive plan in which employees are paid a fixed sum for each unit of production completed. Merit-based pay plan an individual-based incentive plan based on performance appraisal ratings. Bonus an individual-based incentive plan that rewards employees for recent performance rather than historical performance. Skill-based pay an individual-based incentive plan that sets pay levels on the basis of how many skills employees have or how many jobs they can do. Gainsharing a group-based incentive plan in which improvements in group productivity determine the total amount of money to be shared.