ADM 2337 Chapter Notes - Chapter 10: Merit Pay, Total Rewards, Peer Pressure

• School: University of Ottawa
• Department: Administration
• Course: ADM 2337
• Professor: Catherine Elliott

Document Summary

Any plan that ties pay to some measure of individual, group or related to output. Performance measures should be linked to organization"s goals. Employees should believe thane can meet performance standards. Organization must give employees resources needed to meet goals. Employees should believe reward system is fair. Plan should take into account that employees may ignore goals that are not rewarded. Straight piecework: employees receive a certain rate for each unit produced. Differential piece rate: a compensation rate under which employees whose production exceeds the standard amount of output receive a higher rate for all their work than the rate paid to those who do not exceed the standard amount. Standard hour plan: pay rates are based on the completion of a job in a predetermined. If the employee finishes in less time, then their pay is still calculated on the hourly rate. Bonuses: incentive payment that is supplemental to the base wage.