HRM 3490 Lecture Notes - Lecture 5: Cash Flow, Piece Work, Employee Stock Option
16 Dec 2017
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Cne and one soft drinks maker was determining pay for summer students. This soft drink maker makes a couple of booths to sell drinks. Almost all the employees are students, including the supervisors. Students paid minimum wage, and no advancement opportunities. Pockets are sewn so that they can"t steal. At the end of the day they tally the number of cups, and check for discrepancies. Some students find ways to beat the system take used cups and pocket the empty cups. Special-purpose: group performance, gain-sharing, goal-sharing, other, organizational performance. Employees are paid per unit of production more you make more you earn. Not applicable in highly sensitive environments, or when there is heavy interdependency among units or departments. This is used when employees have control over output. When high quality is an issue, this is not applicable. Reduce the need for external control of employees: less supervision. Link compensation to output and reduce employer risk.
