ADM 2337 Chapter Notes - Chapter 10: Piece Work, Job Performance, Profit Sharing

• School: University of Ottawa
• Department: Administration
• Course: ADM 2337
• Professor: Catherine Elliott

Document Summary

Any plan that ties pay to some measure of individual, group, or organizational performance. Encourage employees to put more effort to complete their job tasks. As a compensation strategy to attract and retain top-performing employees. Employees receive a certain rate for each unit produced. A compensation rate under which employees whose production exceeds the standard amount of output receives a higher rate for all of their work than the rate paid to those who do not exceed the standard amount. Pay rates are based on the completion of a job in a predetermined standard time . If the employees finish in less time, then their pay is still calculated on the hourly rate. Bonus: incentive payment that is supplemental to the base wage, related to organizational objectives e. g. cost reduction, quality improvement, or other performance criteria, commonly at the end of the year. Unplanned bonus given for employee effort unrelated to an establish performance measure.