HRM200 Lecture Notes - Lecture 12: Piece Work, Capital Accumulation, Profit Sharing

• School: University of Waterloo
• Department: Human Resources Management
• Course: HRM200
• Professor: William Peckham

Document Summary

Fixed pay compensaion independent of performance level includes base pay, allowances. Variable pay any plan that ies pay to producivity or proitability: may be in addiion to base pay. Types of incenive plans operaions employees senior managers and execuives salespeople other managers and professional employees organizaion-wide. Incenives for operaions employees piecework plans oldest and most commonly used plan based on producion standard straight piecework plan guaranteed piecework plan diferenial piecework plan. Piecework plans advantages: simple appears equitable directly ied to performance disadvantages: some employers arbitrarily raise standards diicult to adjust for changes in hourly rates resistance to revising the standard quality may be compromised. Incenives for operaions employees team or group incenives producion standard is set for a speciic work group incenives paid if the group exceeds the standard. 1. set standards for each member of the group. 2. set standards for the group as a whole all members paid equally: use a group deined measure of performance.