12-1. p a r t p a r t compensating human resources establishing a pay structure recognizing employee...
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PART
PART
Compensating Human Resources
Establishing a Pay StructureRecognizing Employee Contributions with
PayProviding Employee Benefits
4
12-3
Incentive PayPay for Individual PerformancePay for Group PerformancePay for Organizational PerformanceProcesses that Make Incentives WorkIncentive Pay for Executives
Recognizing Employee Contributions with Pay
PA ET RHC 12
12-4
Ch. 12 Learning Objectives
1. Discuss the connection between incentive pay and employee performance.
2. Describe how organizations recognize individual performance.
3. Identify ways to recognize group performance.
4. Explain how organizations link pay to their overall performance.
12-5
Ch. 12 Learning Objectives
5. Describe how organizations combine incentive plans in a “balanced scorecard.”
6. Summarize processes that can contribute to the success of incentive programs.
7. Discuss issues related to performance-based pay for executives.
12-6
Incentive Pay
Forms of pay linked to an employee’s performance as an individual, group member, or organization member.
What types of incentive pay are you familiar with?
How do companies determine if incentive pay is the best compensation approach?
12-10
Test Your Knowledge
John works twisting pretzels in a pretzel factory. Pablo works on IT systems integration at a credit card company. The best pay plans for these individuals would be ________ and _______, respectively.a. Merit pay, individual bonusb. Sales commissions; merit payc. Piecework, Merit payd. Individual bonus, sales commissions
12-12
Group Incentives Gainsharing
Group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees.
What conditions are required for gainsharing plans to work?
12-14
Test Your Knowledge For each of the following jobs, identify the best
type of incentive (e.g., individual, group, organizational). Be prepared to explain your answer.
1. Director of Marketing, Pepsi2. Recruiter, Verizon3. Cashier, CVS (drugstore)4. Salesperson, Macy’s
a. Individualb. Groupc. Organizational
12-15
Balanced Scorecard
A combination of performance measures directed toward the company’s long- and short-term goals and used as the basis for awarding incentive pay.
12-17
Processes that Make Incentives Work What process will ensure buy-in
and agreement with the compensation system?
What process will ensure employees engage in the desired behaviors?
12-19
Video – Container Store
1. Discuss how employees’ achievements can be recognized through an organization’s monetary compensation system. Does this always provide motivation for employees? Explain.
2. As the Container Store is noted for paying above average wages in the industry, does employment with this organization interest you? Why or why not? Explain your response.
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