Chapter 12 notes - Chapter 12 Recognizing Employee...

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Chapter 12 Recognizing Employee Contributions with Pay Incentive pay - forms of pay linked to an employee’s performance as an individual, group member, or organization member Pay for individual performance: Piecework rates - a wage based on the amount workers produce o Straight piecework plan - incentive pay in which the employer pays the same rate per piece, no matter how much the worker produces o Differential piece rates - incentive pay in which the piece rate is higher when a greater amount is produced Standard hour plans - an incentive plan that pays workers extra for work done in less than a preset “standard time” Merit pay - a system linking pay increases to ratings on performance appraisals Individual bonuses Sales commissions - pay calculated as a percentage of sales Pay for group performance: Gainsharing - group incentive program that measure productivity and effectiveness and distributes a portion of each gain to employees o Scanlon plan
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This note was uploaded on 11/28/2011 for the course MGT 315 taught by Professor Wenier during the Summer '08 term at Michigan State University.

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