MGHB02H3 Chapter 6: Chapter 6 Notes

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1 Apr 2011
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Piece-rate link pay to performance on production jobs. Ex. pay a certain sum of money for each complete unit of production completed. Wage incentive plans various schemes that link pay to performance on production jobs. 1) lowered quality: differential opportunity raw materials or the quality of production equipment, reduced cooperation neglect common tasks like house-keeping. 4) incompatible job design difficult t indentify individual productivity (i. e. assembly line work or where teams are large: restriction of productivity what constitutes a fair day"s work. Merit pay plans link pay to performance on white-collar jobs; ineffective evaluate the performance of employees. 1) low discrimination unable or unwilling to discriminate between good and poor performers: small increases spread out over an entire year. Lump sum bonus awarded in single payment and not built into base pay: pay secrecy can"t assess the relative value of what they receive.

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