robbins_ob14_ppt_08.pptVIP

Additional methods of variable-pay programs include skill-based pay, profit-sharing plans, gainsharing, and employee stock ownership plans, otherwise known as ESOPs. Skill-based pay will add compensation to workers as they gain more skills and the ability to do additional jobs. It rewards the employees for continuous improvement. Profit-sharing plans are organizational-wide programs where some of the profits of the company are shared with all workers. Gainsharing is a group incentive where a department or unit will earn additional income if they improve group productivity from the previous period. ESOPs are a method used to motivate the employees toward the organizational goals. As part of their benefit package, they are able to earn or purchase company stock, often at below-market rates. This encourages them to work toward the overall profitability of the organization as they have ownership in it and will gain as the company gains. (c) 2008 Prentice-Hall, All rights reserved. * Flexible benefits allow employees choices between different benefits. This allows them to customize their options and create a plan that best meets their needs and situation. This increases their motivation because they realize the organization has their best interest in mind. (c) 2008 Prentice-Hall, All rights reserved. * A method of motivation that has been highly successful is employee recognition programs. This idea recognizes the importance of coupling extrinsic and intrinsic methods to help motivate employees. Recognition is an intrinsic motivation technique that can range from giving an employee the proverbial pat on the back to a more public recognition ceremony. Recognition programs are highly effective and cost very little to administer. There are critics of such programs, however, who say that they can be politically motivated and if the perception is that they are applied unfairly, they can cause more harm than good. (c) 2008 Prentice-Hall, All rights reserved. * T