Variable Pay
Variable pay categories
Individual Incentives
Group/Team Incentives
Organization Incentives
100
Compensation liked to individuals, groups, teams, and/or organizational performance
What is variable pay
100
quality improvement, cost reduction and other measurable results
What are focuses of group/team incentives
100
Piece-rate systems, Bonuses, special incentive programs, sales compensation
What are Individual Incentives
100
All members received the same payout, regardless of job level, current pay, seniority, or individual performance differences
What is same size reward for each member
100
Distributes some portion of organizational profits to employees
What is profit sharing
200
Many employees' total compensation should be tied directly to performance and results
What is a basic assumption of the philosophical foundation
200
Develop clear, understandable plans that are continually communicated.
what is a factor that contributes to the succes of incentive plans.
200
Wages are determine by multiplying the number of units it produces by the rate for one unit
What is a straight piece-rate system?
200
How often group/team incentives are paid out
What is timing of group/team incentives
200
fixed percentage of profits
What is a funding choice for profit sharing
300
WorldatWork shows this in their annual survey on variable pay programs
What is 80% of organizations
300
Identify variable pay incentives separately from base pay
What is a factor that contributes to the success of incentive plans
300
A bonus that can be awarded at any time
What is a "spot" bonus
300
these include individual wages and salaries in addition to other pay rewards
What are types of Group/team incentives
300
higher rewards are not obviously linked to better performace
What is a drawback of profit sharing plans
400
Does the plan fit with business startegies and culture, Are the appropriate actions rewarded, Is the plan administered properly?
What is Incentive Plan Success
400
A plan that is too complex for employees and management to understand
What is a factor that can lead to failure of a variable py plan
400
Inhance employee loyalty and retention
What is a "trigger" for special incentives?
400
Sharing with employees greater-than-expected gains in profits
What is gainsharing
400
Employee stock ownership plans
What is ESOP
500
Return on investment incentive plan
What is a variable pay metric?
500
Rewards people according to the performance results of the enire organization
What is are organizational incentives
500
Recpgnizing a length of service of 10 years
What is a service award
500
An older approach similare to gainsharing
What is Improshare or the Scanlon plan
500
This makes wages/salaries and retirement benefits dependent on the performance of their employees
What is a disadvantage of ESOP
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