Productions standard usually developed by industrial engineer. More than 80% of canadian employers have one or more type of variable pay plans in place. Today"s efforts to achieve the organization"s strategy through motivated employees include financial incentives, pay-for-performance, and variable compensation plans. Variable pay: any plan that ties pay to productivity or profitability. Accurate performance appraisal or measurable outcomes is a precondition of effective pay-for-performance. Another important factor us line of sight or the extent to which an employee can relate his/her daily work to the achievement of overall corporate goals. Individual incentive programs give income over & above vase salary to certain exceeding employees. Informal incentives may be awarded for accomplishments that aren"t readily measured by a standard. Group incentive programs provide over & above base salary to teams who excel. Organization-wide incentive plans provide monetary incentives to all employees of the organization. Non-monetary recognition program motivate employees through praise and expression of appreciation.