Compensation

Compensation - Group q Shirking q How does group...

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Compensation BUS M 540 Fall 2010 Peter Madsen
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Individual Pay for Performance n Individual incentive pay q piece rate, commission n Merit pay q Increases in base pay tied to performance n Individual bonuses q Performance affects bonus, not base pay
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n Group/Team Level q Bonuses q Merit pay based on group performance n Organizational q Gainsharing—tied to increasing productivity q Profit-sharing—tied to business profitability q Stock options—make employees into owners
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Determinants of PSF Partner  Compensation (estimates, Maister) n Seniority 39% n Personal Billing Rate 20% n Business Development 15% n Total Hours Billed 2% n Realization Rate (efficiency) 0%
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Defining Performance n What behaviors are most valuable to the organization? n Individual q Is a job entirely independent of others? n
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Unformatted text preview: Group q Shirking q How does group performance relate to organizational performance? n Organizational q How do individual actions affect the company? Congruence model of organizations Work Informal Organization People Formal Organization Strategy Input: Environment Resources History Output: System, Unit, Individual Performance Takeaways n There are many forms of rewards organizations can bestow on employees n Many different compensation systems exist at the individual, group, and organizational levels n There is no best compensation system. Leaders must match compensation systems with: q The type of work an employee is doing q The preferences of each employee q The strategy, structure, and culture of the organization...
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This note was uploaded on 03/30/2012 for the course BUS M 540 taught by Professor Petermadsen during the Fall '10 term at BYU.

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Compensation - Group q Shirking q How does group...

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