Incentive Pay Plans薪酬激励计划.pptVIP

. Incentive Pay Systems Incentive Pay Plans Designed to relate pay directly to performance. Incentive pay plans strengthen performance–reward relationship: Motivate employees. Advantage: Not permanent; must be earned each year Incentive Pay Plans Most programs tie pay directly to profitability. Incentives can be rewarded several times per year: Creates more direct link with pay performance. Requirements of Incentive Plans If incentives are based on Performance, employees must believe performance is accurately and fairly Evaluated. Key Issue in performance measurement: Trust in Management. Individual Incentives Tied to Individual Performance. Advantage: Employees can see relationship between what they do and what they get. Drawback: Competition among employees. Piece Rate Plans Simplest most common type of incentive. Employee paid set amount for every unit produced. Differential Piece Rate plan (Frederick W. Taylor): Pays one rate for all acceptable units up to standard and higher rate for all pieces produced if output exceeds standard. Plans Based on Time Saved Standard Hour Plans: Based on time saved; give employee bonus for reaching production level in less than standard time. Plans Based on Commissions Rewards employees based on their sales volume: Straight Commission Combination of Salary plus Commission Advantages? Disadvantages? Individual Bonuses Merit Pay Increase: Reward based on performance but also perpetuated year after year. Bonus: Reward offered on a one-time basis for high performance. Advantage? Potential Drawbacks? Suggestion Systems Offer cash incentives for employee suggestions that result in either increased profits or reduced costs or improved customer relations. Communication Procedures Incentives for Managerial Personnel Annual Bonuses Long-Term Performance Planning Stock Options Annual Bonus Usually based on Org