Individual Incentive Plans个人激励计划.pptVIP

Pay-for-Performance:Incentive Rewards ObjectivesAfter studying this chapter, you should be able to: Discuss the basic requirements for successful implementation of incentive programs. Identify the types of, and reasons for implementing, individual incentive plans. Explain why merit raises may fail to motivate employees adequately and discuss ways to increase their motivational value. Indicate the advantage of each of the principal methods used to compensate salespeople. Objectives (cont’d)After studying this chapter, you should be able to: Differentiate how gains may be shared with employees under the Scanlon, Rucker, and Improshare gainsharing systems. Differentiate between profitsharing plans and explain advantages and disadvantages of these programs. Describe the main types of ESOP plans and discuss the advantages of ESOP to employers and employees. Strategic Reasons for Incentive Plans Variable Pay Tying pay to some measure of individual, group, or organizational performance. Incentive Pay Programs Establish a performance “threshold” to qualify for incentive payments. Emphasize a shared focus on organizational objectives. Create shared commitment in that every individual contributes to organizational performance and success. Figure 10–1 Types of Incentive Plans Incentive Plans as Links toOrganizational Objectives Incentive Plan Purposes Encourage employees to assume “ownership” of their jobs, thereby improving effort and job performance. Motivate employees to expend more effort than under hourly and/or seniority-based compensation systems. Support a compensation strategy to attract and retain top-performing employees. Incentive Plan Effectiveness There is evidence of a relationship between incentive plans and improved organizational performance. Figure 10–2 Advantages of Incentive Pay Programs Employee Opposition to Incentive Plans Production standards are set unfairly. Incentive plans are really “work speedup.” Incentive plans create competition among wo