PFP and EE Ben_BREIF - INCENTIVE PAY & EMPLOYEE...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
INCENTIVE PAY EMPLOYEE BENEFITS
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Effective incentive pay plans* meet the following requirements: 1. Performance measures are linked to the organization’s goals. (Strategic Congruence) 2. Employees believe they can meet performance 3. The organization gives employees the resources they need to meet their goals. 4. Employees value the rewards given. 5. Employees believe the reward system is fair. 6. The pay plan takes into account that employees may ignore any goals that are not rewarded.
Background image of page 2
MERIT PAY* Is Based on Individual Job Performance (no countable output such as sales). Is Zero sum: Fixed budget for individuals in a unit (I.e. win/loose) Greater pay increases (within their job or pay grade) for individuals with: Higher job performance Lower in their pay range
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Table 12.1: Sample Merit Increase Grid
Background image of page 4
use? That is the question! Do you want to pay for Individual performance? Is there real variation between individuals’ job performance? Does the Organization have a Construct Valid Measure of Job Performance? Work Design has Strategic Congruence?
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/31/2011 for the course OBHR 428 taught by Professor Campion during the Fall '09 term at Purdue University-West Lafayette.

Page1 / 17

PFP and EE Ben_BREIF - INCENTIVE PAY & EMPLOYEE...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online