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Discussion post

Human Resource Management (Available Titles Coursemate)

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Week 5 Discussion Post 1. Given the background information about Howe 2 Ski Stores, discuss the feasibility of implementing lump sum bonuses, pay for knowledge, profit sharing, and gain – sharing plans. What plan or plans would you recommend that Howe look at most closely and why? INTRODUCTION: “In designing group/team incentive plans, organizations must consider a number of issues. The main concerns are how and when to distribute the incentives, and who will make decisions about the incentive amounts” . Maria Howe owns three ski stores and is facing tough decisions about her staff. It is important for her to look at each incentive plan and then make a decision as to which ones should get a closer look. There are some problems that are in need correcting. Motivation of employees, quality of service, customer care, and company profits are just a few problems Howe is facing. Each area is in need of an incentive plan to motivate the team to do better in each department. The incentive plans examined below are lump sum bonuses, pay for knowledge, profit sharing, and gain sharing plans. LUMP SUM BONUSES: “Individual employees may receive additional compensation in the form of a bonus, which is a one time payment that does not become part of the employee’s base pay” . The point of bonuses is to recognize certain performance done by an employees, a whole team, or even the organization as a whole. Maria Howe has already tried merit pay system for molders of skies. This system didn’t work out as well as Howe had hoped. “The molders felt that their merit ratings were inaccurate because the store managers could not observe them much of the time. Other employees also complained because they were not given the opportunity for merit pay” . The company could actually suffer from lump sum bonuses instead of responding to the problems. If employees are finding merit pay difficult to adjust to because of the differences then lump sum bonuses would cause the same problem. This is why it is not feasible for Howe 2 Ski Stores to implement lump sum bonuses as they are viewed unfair by the existing employees. So this incentive would not need a closer look. PAY FOR KNOWLEDGE: “In the era of the knowledge-based economy and continuous learning, pay-for-knowledge (PFK) compensation plans have received an ever increasing amount of attention from both practitioners and researchers. However, the implementation of a PFK compensation plan does not guarantee that plan's success within any given organization.
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Discussion post - Week 5 Discussion Post 1 Given the...

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