HRM 240 wk 7 due day 4

HRM 240 wk 7 due day 4 - One of the most important things...

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One of the most important things in designing an incentive plan is setting clear goals for the employees. The goals should be simple, supported by valid information, monitored for strong controls and quantifiable. Profit share incentive is when the employees emphasize that what is best for the company is best for the employee. When the company profits increase, then the more money is available for bonuses thus means bigger bonuses for the employees. But, during lean times bonuses can become very small. There is a problem with this also, sometimes a long delay between the times that the profit occurs to the time that the bonus is paid. Salary at risk is when the employee is given a minimum base salary and can only earn the full salary if certain performance objectives are met. Incentive plans of this type tend to cause employees to become discouraged, particularly if the performance objectives seem out of reach. This approach feels like a punishment to the employee, an approach known as
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HRM 240 wk 7 due day 4 - One of the most important things...

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