Increased use for a Production workers b Technical employees c Service workers

Increased use for a production workers b technical

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7.Increased use for:a.Production workersb.Technical employeesc.Service workersd.Professionalse.Managersf.Executives8.Employees’ earnings potential is increasedExamples: Incentive ProgramLincoln Electric CompanyAwards based on five performance criteriaQualityOutputDependabilityCooperationIdeasJob importance based on job evaluation techniques, five criteriaSkillResponsibilityMental aptitude
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Physical applicationWorking conditionsThe company has awarded incentive payments for the last 75 years in both good and bad economies. The average annual incentive payment per employee amounts to 40 percent of annual salaryExamples: Incentive ProgramH. Lee Moffitt Cancer Center and Research Institute, at the University of South FloridaGoals are to improve patient care and control costsIncentives tied to the company’s:Net income or operating surplusQuality of care measuresPatient satisfaction scoresOperating efficienciesII.Contrasting Incentive Pay with Traditional Pay1.Traditional pay plans based on:Example: Incentive Pay PlanTaco Bell RestaurantsOffer managers biannual bonus based on attainment of:Target profit levelsQuality of customer serviceStore salesThese incentives are used to motivate managers as they know about them ahead of timed.Incentive pay programs replace all, or a portion, of base pay to:i.Control payroll expendituresii.Link pay with performance2.Incentive pay
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a.Designed to reward employees and teams for performanceb.Classified into three categoriesi.Individual-incentive plansii.Group-incentive plansiii.Company-incentive plansc.Levels tend to be based on even more objective criteriad.Awards are communicated in advance, merit awards are notExample: Typical Performance Measures per Incentive PlanIndividual-incentive planQuantity of work outputQuality of work outputMonthly salesWork safety recordWork attendanceGroup-incentive planCustomer satisfactionLabor cost savingsMaterials cost savingsReduction in accidentsServices cost savingsCompanywide incentive planCompany profitsCost containmentMarket shareSales revenueIII.Individual Incentive PlansA.Defining Individual Incentives
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  • Winter '14
  • Management, Employment compensation, incentive pay, Rucker Plans, Traditional Pay, a. Scanlon

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