MHR 523 Chapter Notes - Chapter 12: Piece Work, Industrial Engineering, Specific Performance
13 Jun 2016
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Lecture 8 chapter 12: pay-for-performance and financial incentives. The use of financial incentives financial rewards paid to workers whose production exceeds some predetermined standards was used long ago with fredrick taylor. Today, efforts to achieve the organization"s strategy through motivated employees include fixed pay compensation that is independent of the performance level of the individual and variable pay any plan that ties pay to productivity and profitability. Individual incentive programs give income over and above base salary to individual employees who meet a specific performance standard: organization wide incentive plans provide monetary incentives to all employees of the organization. It"s similar to piecework based on a percentage premium: advantages are that it is simple to calculate and easily understood by employees. Short-term incentives: the annual bonus: eligibility for a bonus is determined through analyzing candidates" position, salary-level cut off point, and salary grade.
