MHR 523 Chapter Notes - Chapter 12: Piece Work, Management System, Merit Pay
17 Sep 2015
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Document Summary
The use of financial incentives financial rewards paid to workers whose production exceeds some pre-determined standard is not new; it was popularized y fredrick taylor in the late. 1800"s: had concern with the tendency of employees to work at the slowest pace possible and produce minimum acceptable level. Toda"s effort to motivate employees includes financial incentives, pay-for-performance, and variable compensation. These types of compensation are now commonly called variable pay: variable pay: any plan ties pay to productivity or profitability, variable pay facilitates management of total compensation by keeping base pay inflation controlled. Informal incentives: accomplishments that are not readily measured by a standard, to recognize customer service of the week . Individual incentives: income over and above base salary to specific employees who meets performance standard: group incentive: like individual incentives however over a team, organization-wide incentives: provide monetary incentives to all employees of the organization.
