人力资源管理 HRM chapter12 Pay for Performance and ╲u000bFinancial Incentives.pptVIP

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人力资源管理 HRM chapter12 Pay for Performance and ╲u000bFinancial Incentives.ppt

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Pay for Performance and Financial Incentives After studying this chapter, you should be able to: Discuss the main incentives for individual employees. Discuss the pros and cons of incentives for salespeople. Name and define the most popular organization-wide variable pay plans. Describe the main incentives for managers and executives. Outline the steps in developing effective incentive plans. Pay for Performance and Financial Incentives Individual Incentive Plans Incentives for Salespeople Team/Group Variable Pay Incentive Plans Organizationwide Variable Pay Plans Incentives for Managers And Executives Individual Incentive Plans Piecework Plans Merit pay Incentives for professional employees Recognition-based awards Individual Incentive Plans Piecework Plans A system of pay based on the number of items processed by each individual worker in a unit of time, such as items per hour or per day. Individual Incentive Plans Piecework Plans Straight piecework: an incentive plan in which a person is paid a sum for each item he or she makes or sells, which a strict proportionality between results and rewards. Standard hour plan: an incentive plan in which a person is paid a basic hourly rate but is paid an extra percentage of his or her rate for production exceeding the standard per hour or per The Standard hour plan is similar to Piecework payment but based on a percent premium. Individual Incentive Plans Merit pay A permanent cumulative salary increase the firm awards to an individual employee based on his or her individual performance. It usually becomes part of the employees’ base salary. Individual Incentive Plans Incentives for professional employees Professional employees are those whose work involves the application of learned knowledge to the solution of the employer’s problems. Lawyers, doctors, economists, and engineers. Possible incentives Bonuses, stock options and grants, profit sharing Better vacations, more flexible work hours improved pension plans Equipmen