BU354 Chapter Notes - Chapter 12: Piece Work, Masturbation, Restricted Stock
Document Summary
Money and motivation variable pay, any plan that ties to pay to productivity or profitability. The fundamental premise of variable pay plans is that top performers must get top pay in order to secure their commitment to the organization. Individual incentive programs give income over and above base salary to individual employees who meet a specific individual performance standard. Spot bonuses, a spontaneous incentive awarded to individuals for accomplishments not readily measured by a standard. Group incentives programs are like individual incentive plans, but they give pay over and above salary to all team members when the group or team collective meets a specified standard for performance, productivity, or other work- related behavior. Profit sharing plans, provide employees with a share of the organization"s profits in a specified period. Gain sharing programs are organization wide pay plans designed to reward employees for improvements in the organizational productivity.
