HRM200 Chapter 12: Chapter 12
8 Mar 2017
School
Department
Course
Professor
Document Summary
Money incentive: compensation for work done at base or bonus rates. Fixed pay: compensation independent of performance (base pay, allowances) Variable pay: compensation tied to productivity/profit (in addition to base pay) 1: merit pay/raise: salary increase awarded based on performance on top of base pay and acts as a motivator depending on the appraisal system. 2: employee share purchase/stock ownership: a trust holds the stock issues to employees and disturbed the stock as per the plan. 3: profit sharing: employees share in company"s profits. 4: gain sharing: employees achieve productivity goals and share the gains (works with performance measures) 1: piecework: based on production standard, can be straight/guaranteed/differential piecework plans. Cons: employers raise the standard, hard to adjust for hourly rate changes, quality compromised, and resistance to revising the standard. 2: team: production standard for a specific work group and the incentive is paid if the group exceeds the standard. Set standards for each member (paid based on highest/lowest performer)
