ADM 2337 Chapter Notes - Chapter 10: Job Performance, Employee Stock Ownership Plan, Profit Sharing

• School: University of Ottawa
• Department: Administration
• Course: ADM 2337
• Professor: Gebrekiduce Mekonnen

Document Summary

Hr: chapter 10- pay for performance: incentive rewards. Strategic reasons for incentive plans & requirements for a successful incentive plan. A major element of strategic compensation management is the use of incentive plans, also called variable pay programs, for employees throughout the organization. Variable pay: tying pay to some measure of individual, group, or organizational performance. Incentive pay programs establish a performance threshold that an employee or group of employees must reach to qualify for incentive payments. Incentive plans emphasize a shared focus on organizational objectives by broadening the opportunities for incentives to employees throughout the organization. 2 reasons to implement incentive plans: encourages employees to put out more effort to complete their job tasks, attract and retain top-performing employees. 2 factors the degree of success depends on (not limited to): identifying important organizational metrics by which to measure employee performance, a customized incentive plan that effectively measures employee output and rewards exceptional employee performance.