Unformatted text preview: erit Pay An increase to base salary is made in accordance with
evaluation ratings. Lump-Sum Bonuses A bonus is received for meeting individual goals but no change
is made to base salary. The potential bonus represents “at risk”
pay that must be re-earned each year. Base salary may be lower
in cases in which potential bonuses may be large. Recognition Awards Tangible awards (gift cards, merchandise, trips, special events,
time off, plaques) or intangible awards (praise) are given on an
impromptu basis to recognize achievement. 20 Compensation Plan Elements, Cont’d
ELEMENT DESCRIPTION Unit-Focused
Gainsharing A bonus is received for meeting unit goals (department goals,
plant goals, business unit goals) for criteria controllable by
employees (labor costs, use of materials, quality). No...
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This note was uploaded on 04/04/2012 for the course MGM 330 taught by Professor Christinejackson during the Spring '11 term at Purdue.
- Spring '11
- Alice in Wonderland