MHR 523 Lecture Notes - Lecture 10: Piece Work, Capital Accumulation, Organizational Culture

• School: Ryerson University
• Department: Human Resources
• Course: MHR 523
• Professor: Anne Hardacre

Document Summary

Any plan that ties pay to productivity or profitability. May be in addition to base pay. Difficult to adjust for changes in hourly rates. Incentives for operations employees -team or group incentives. Production standard is set for a specific work group. Incentives paid if the group exceeds the standard. Implementing team or group incentives: set standards for each member of the group. Members paid based on average performance: set standards for the group as a whole. All members paid equally: use a group defined measure of performance. Define internal and external issues facing the company. Group executive compensation components into a whole plan. Check plan for legal compliance and tax effectiveness. Review/evaluate plan whenever a major business change occurs. Pay in direct proportion to sales generated. Sales people know their income in advance. Salary usually based on seniority, demotivating for high performing sales people. Greatest incentive, attracts high performing sales people. Sales people encouraged to strengthen relationships with customers.