BUS 272 Chapter Notes - Chapter 5: Organizational Architecture, Mobile Computing, Flextime
31 Jan 2017
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From theory to practise: the role of money. Piece wage rates: paying a xed sum for each unit of production completed - pure piece-rate plan provides no base salary, pays the employee only for what they produce. Merit based pay: pay for individual performance based on performance appraisal ratings - people with high performances are given larger raises. Bonuses: reward employees for recent performance rather than historical performance - one time rewards. Skill based pay (competency-based or knowledge-based: bases pay levels on the basis of how many skills employees have or how many jobs they can do. Tuesday, january 31, 2017: group based incentives. Gainsharing: a formula based group incentive plan that uses improvements in group productivity from one period to another to determine the total amount of money to be shared, organization based incentives. Teamwork, unions, public sector employees, and ethical considerations present distinct challenges to pay-for-performance programs. Abolish incentive pay: pay employees fairly.
