MHR 523 Chapter Notes - Chapter 12/13: Capital Accumulation, Reinforcement, Life Insurance
21 Apr 2016
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The external rewards for excellent performance (cash bonus) Related to the person"s internal sense of pride or accomplishment in doing the job (feeling of satisfaction from knowing you did well in a job) Any plan that ties pay to productivity or profitability. May be i addition to base pay: fixed pay vs. Disadvantages: some employers arbitrarily raise standards/difficult to adjust fro changes in hourly rates/resistance be revising the standard/quality may be compromised. Set standards for the group as a whole: use a group defined measure of performance. Incentives for senior managers and executives rates/resistance be revising the standard/quality may be compromised: use a group defined measure of performance. Set standards for the group as a whole. Sales people know their income in advance. Salary usually based on seniority/demotivating for high performing sales people. Commission plan -pay in direct proportion to sales generated. Most or all employees share in the company"s profits.
