Incentives and Benefits Chap 9

Incentives and Benefits Chap 9 - 1 Incentives and Benefits...

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Unformatted text preview: 1 Incentives and Benefits Administration Chapter 9 Types of incentive programs, creating 2 Incentives and Benefits • Combine programs with salary & wages to create a total compensation package • When designed properly can lead to employee retention, increased productivity, reduce labor costs, increase ee focus on organizational goals 3 Effective Incentive Programs • Specific goals that ee’s understand • Fair, easy-to-measure goals. Managers sometimes establish incentives based on subjective measures. • Room for improvement in productivity and performance • Goals must be attainable. Employees must have some expectations of success. 4 Effective Incentive Programs • Rewards must be substantial enough to encourage effort. Rewards must be desirable • Link to both short-term rewards & long- term advancement • Link to productivity, not time invested • Reward quickly 5 Advantages of Incentive Programs • Retain quality employees: Often results from the long-term effect that incentive programs have on personnel. • Increase productivity: When pay is linked to performance, employees have a reason to work harder • Reduce labor costs: pay more when times are good, pay less when times are bad • Increase employee focus on organizational objectives 6 Barriers to implementing pay for performance systems • Rewards are set too low to produce an incentive • The link between rewards and performance is not clearly established because the measures for success are not clearly defined or outlined • Supervisors either resist performance appraisals...
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This note was uploaded on 03/30/2012 for the course HRAD 3783 taught by Professor Slevitch during the Spring '08 term at Oklahoma State.

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Incentives and Benefits Chap 9 - 1 Incentives and Benefits...

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