Study sets matching "pay for performance and financial incentives"

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Study sets matching "pay for performance and financial incentives"

Pay-for-pay performance and financial incentives
Piecework pay plans
Manufacturing workers or blue-collar
Merit Based pay plans
Professionals and clerks
payment based on products developed ex: items/hour
piecework plans
payment based on performance appraisal
merit based pay plans
Piecework pay plans
payment based on products developed ex: items/hour
Manufacturing workers or blue-collar
piecework plans
25 terms
HROB 2100 - pay-for-performance and financial incentives
fixed pay
variable pay
types of incentive plans
incentives for operations employees -…
compensation independent of performance level, includes base…
any plan that ties pay to productivity or profitability, may…
operations employees, senior managers and executives, salespe…
based on production standard, set amount of money for each pi…
fixed pay
compensation independent of performance level, includes base…
variable pay
any plan that ties pay to productivity or profitability, may…
17 terms
Chapter 12: Pay-for-performance and Financial Incentives
Fixed pay
Variable pay
Intrinsic motivation
Expectancy
Compensation that is independent of the performance level of…
Any plan that ties pay to productivity or profitability
Motivation that derives from the pleasure someone gets from g…
A person's expectation that his or her effort will lead to pe…
Fixed pay
Compensation that is independent of the performance level of…
Variable pay
Any plan that ties pay to productivity or profitability
6 terms
Ch 12: Pay for Performance and Financial Incentives
Frederick Taylor
Motivation and Incentives
4 Types of Incentive/ Recognition Prog…
Incentives for Salespeople
-Father of Scientific Management... -Incentive pay- paid workers…
1. Maslow's Hierarchy of Needs... 2. Herzberg's Two-factor Theor…
1. Piecework- pay on what is producted (doesn't work b/c of m…
-Salary plan: base pay + really good incentives... -Commission p…
Frederick Taylor
-Father of Scientific Management... -Incentive pay- paid workers…
Motivation and Incentives
1. Maslow's Hierarchy of Needs... 2. Herzberg's Two-factor Theor…
24 terms
Chapter 12: Pay for performance and financial incentives
Financial Incentives
Productivity
Fair day's work
Scientific management movement
Financial rewards paid to workers whose production exceeds so…
The ratio of outputs(goods and services) divided by the input…
Output standards devised based on careful, scientific analysis
Management approach based on improving work methods through o…
Financial Incentives
Financial rewards paid to workers whose production exceeds so…
Productivity
The ratio of outputs(goods and services) divided by the input…
Chapter 12 Pay for Performance and Financial Incentives
Traditional Pay
Contingent pay
Merit pay
1) Expectancy... 2) Instrumentality... 3) Ou…
Salary and salary increases are based on Job and Seniority
Salary and salary increases are based on... job performance
if you perform well 1 year, your base pay or salary increases…
3 Motivational Factors of Expectancy theory
Traditional Pay
Salary and salary increases are based on Job and Seniority
Contingent pay
Salary and salary increases are based on... job performance
HR Ch 12 Pay for Performance and Financial Incentives
Variable Pay
Piecework incentive pay
Straight Piecework plan
Standard Hour Plan
Any plan that ties pay to productivity or profitability, usua…
A system of pay based on the number of items processed by eac…
An incentive plan in which a person is paid a sum for each it…
an incentive pay plan, which establishes a fixed unit of time…
Variable Pay
Any plan that ties pay to productivity or profitability, usua…
Piecework incentive pay
A system of pay based on the number of items processed by eac…
Chapter 12 - Pay-for-Performance and Financial Incentives
Variable Pay
5 Types of Incentive Plans
Piecework
Straight Piecework Plan
Tying pay to some measure of individual, group, or organizati…
1. Incentives for operations employees,... 2. Incentives for sen…
A system of pay based on the number of items processed by eac…
A set payment for each piece produced or processed in a facto…
Variable Pay
Tying pay to some measure of individual, group, or organizati…
5 Types of Incentive Plans
1. Incentives for operations employees,... 2. Incentives for sen…
chapter 12 - pay for performance and financial incentives
Variable Pay
Group level incentive plans
Organization-level
Straight Piecework Plan
tying pay to someone's performance (incentive/performance-bas…
-team compensation and gainsharing
Profit sharing, stock options, employee stock ownership plans…
set payment for each piece produced or processed in a factory…
Variable Pay
tying pay to someone's performance (incentive/performance-bas…
Group level incentive plans
-team compensation and gainsharing
14 terms
HR ch 12- Pay for Performance and Financial Incentives
financial incentives
productivity
fair day's work
scientific management movement
financial rewards paid to workers whose production exceeds so…
ratio of outputs divided by the inputs
namely precise output standards for each job
emphasized improving work through observation and analysis
financial incentives
financial rewards paid to workers whose production exceeds so…
productivity
ratio of outputs divided by the inputs
Chapter 12: Pay-for-Performance and Financial Incentives
fixed pay
variable pay
piecework plan
straight piecework plan
compensation that is independent of the performance level of…
any plan that ties pay to productivity or profitability
pay based on the number of items processes by each individual…
a set payment for each piece produced or processed in a facto…
fixed pay
compensation that is independent of the performance level of…
variable pay
any plan that ties pay to productivity or profitability
24 terms
HRM Ch 12- Pay for Performance and Financial Incentives
Financial Incentives
Productivity
Fair Day's Work
Scientific Management
Financial rewards paid to workers whose production exceeds so…
The ratio of outputs (goods or services) divided by the input…
Output standards devised based on careful, scientific evidence
Management approach based on improving work methods through o…
Financial Incentives
Financial rewards paid to workers whose production exceeds so…
Productivity
The ratio of outputs (goods or services) divided by the input…
Chapter 12 Pay for Performance and Financial Incentives (comprehensive)
Traditional Pay
Contingent pay
Merit pay
1) Expectancy... 2) Instrumentality... 3) Va…
Salary and salary increases are based on Job and Seniority
Salary and salary increases are based on... job performance
if you perform well 1 year, your base pay or salary increases…
3 Motivational Factors of Expectancy theory
Traditional Pay
Salary and salary increases are based on Job and Seniority
Contingent pay
Salary and salary increases are based on... job performance
17 terms
HRM Chapter 12 Pay-for-Performance & Financial Incentives
fixed pay
variable pay
intrinsic motivation
expectancy
compensation that is independent of the performance level of…
any plan that ties pay to productivity or profitability
motivation that derives from the pleasure someone gets from d…
a person's expectation that his/her effort will lead to perfo…
fixed pay
compensation that is independent of the performance level of…
variable pay
any plan that ties pay to productivity or profitability
Chapter 12: Pay-for-Performance and Financial Incentives
Capital Accumulation Programs
ESOPs (Employee Share Purchase/Stock O…
Gainsharing Plan
Guaranteed Piecework Plan
Long-term incentives most often reserved for senior executives.
A trust is established to hols shares of company stock purcha…
An incentive plan that engages employees in a common effort t…
The minimum hourly wage plus an incentive for each piece prod…
Capital Accumulation Programs
Long-term incentives most often reserved for senior executives.
ESOPs (Employee Share Purchase/Stock O…
A trust is established to hols shares of company stock purcha…
24 terms
Ch. 12 - Pay for Performance and Financial Incentives
Money and Motivation
Frederick Herzberg
Edward Deci
Victor Vroom
Fixed pay: independent of performance level of individual,…
Hygienes: satisfying lower level needs for temporary period…
Demotivators... Extrinsic rewards could at times actually detr…
Expectancy theory:... A person's motivation to exert some leve…
Money and Motivation
Fixed pay: independent of performance level of individual,…
Frederick Herzberg
Hygienes: satisfying lower level needs for temporary period…
19 terms
Ch. 12HR pay for performance and financial incentives
variable pay
intrinsic motivation
expectancy
instrumentality
any plan that ties pay to productivity or profitability, usua…
motivation that derives from the pleasure someone gets from d…
a person's expectation that his effort will lead to performance
the perceived relationship between successful performance and…
variable pay
any plan that ties pay to productivity or profitability, usua…
intrinsic motivation
motivation that derives from the pleasure someone gets from d…
10 terms
Week 8: Pay-for-performance and financial incentives
fixed pay
variable pay
What are the 5 types of incentive plans?
What are some examples of incentive fo…
-compensation independant for performance level... -includes bas…
-any plan that ties pay to productivity or profitability... -may…
-operations employees... -senior managers and executives... -salesp…
Merit or Merit raise:... -any salary increase awarded to an empl…
fixed pay
-compensation independant for performance level... -includes bas…
variable pay
-any plan that ties pay to productivity or profitability... -may…
51 terms
Week Seven: Pay-for-Performance and Financial Incentives
Profit sharing
Fixed pay
Variable pay
Individual incentive programs
A plan where most employees share in the profits.
Compensation that is independent of the performance level of…
Any plan that ties pay to productivity or profitability.
Give income over and above base salary.
Profit sharing
A plan where most employees share in the profits.
Fixed pay
Compensation that is independent of the performance level of…
13 terms
HRM 523 Ch 12- Pay-for-Performance and Financial Incentives
Fixed pay
Variable pay
Piecework
Straight piecework plan
Compensation that is independent of performance level of the…
Any plan that ties pay to productivity or profitability.
A system of pay based on the number of items processed by eac…
A set payment for each piece produced or processed in a facto…
Fixed pay
Compensation that is independent of performance level of the…
Variable pay
Any plan that ties pay to productivity or profitability.
12 terms
Bus 381 (Lec 9): Chapter 12 - Pay for Performance & Financial Incentives
Fixed pay
Variable pay
Piecework
Straight piecework plan
Compensation that is independent of the performance level of…
Any plan that ties pay to productivity or profitability
System of pay based on the number of items processed by each…
A set payment for each piece produced or processed in a facto…
Fixed pay
Compensation that is independent of the performance level of…
Variable pay
Any plan that ties pay to productivity or profitability
12 terms
Bus 381 (Lec 9): Chapter 12 - Pay for Performance & Financial Incentives
Fixed pay
Variable pay
Piecework
Straight piecework plan
Compensation that is independent of the performance level of…
Any plan that ties pay to productivity or profitability
System of pay based on the number of items processed by each…
A set payment for each piece produced or processed in a facto…
Fixed pay
Compensation that is independent of the performance level of…
Variable pay
Any plan that ties pay to productivity or profitability
42 terms
Pay- for- Performance Incentive Rewards
What is variable pay?... What programs do…
What are incentive rewards based on?... F…
What are incentives pay used for?
Do incentive plans work?
Trying to pay to some measure of individual, group of organiz…
Based entirely upon pay-for-perfomrance---> focus on organiza…
-Used to encourage employees to put more effort to complete t…
yes and no, depend on factors... 1. identifying important organi…
What is variable pay?... What programs do…
Trying to pay to some measure of individual, group of organiz…
What are incentive rewards based on?... F…
Based entirely upon pay-for-perfomrance---> focus on organiza…
Pay-for-Performance: Incentive Rewards
Variable Pay
Straight Piecework
Differential Piece Rate
Standard Hour Plan
Tying pay to some measure of individual, group, ... or organizat…
An incentive plan under which employees receive a certain rat…
A compensation rate under which employees whose production ex…
An incentive plan that sets pay rates based on the completion…
Variable Pay
Tying pay to some measure of individual, group, ... or organizat…
Straight Piecework
An incentive plan under which employees receive a certain rat…
12 terms
Paying for performance / incentive applications
principal-agent problem
Risk aversion in relation to pay for p…
When marginal benefit + marginal cost…
How does pay for performance relate to…
Principal (the firm) Agent (the employee) The objectives of t…
PFP more risky b/c no strict salary
optimal effort
motivated employees will want to work more so they like pay f…
principal-agent problem
Principal (the firm) Agent (the employee) The objectives of t…
Risk aversion in relation to pay for p…
PFP more risky b/c no strict salary
CH. 10: Pay-for-performance incentives
Bonus
Piecework
Differential piece rate
Commission
Supplemental to the base wage ... -Provides employees with more…
Straight piecework: Incentive plan under which employees rece…
Employees whose production exceeds the standard amount of out…
...
Bonus
Supplemental to the base wage ... -Provides employees with more…
Piecework
Straight piecework: Incentive plan under which employees rece…
Dessler Human Resource Management Chapter 12 Pay for Performance and Financial Incentives Lindenwood University
Financial Incentives
Productivity
Fair day's work
Scientific management
Financial rewards paid to workers whose production exceeds so…
The ratio of outputs(goods and services) divided by the input…
Output standards devised based on careful, scientific analysis
Management approach based on improving work methods through o…
Financial Incentives
Financial rewards paid to workers whose production exceeds so…
Productivity
The ratio of outputs(goods and services) divided by the input…
32 terms
HRM - Ch 12 + 13 - Pay-for-Performance and Financial Incentives & Employee Benefits and Services
Fixed pay
Variable pay
Incentives for Operations Employees-Pi…
Straight Piecework Plan
Compensation that is independent of the performance level of…
Any plan that ties pay to productivity or profitability
Based on production standard. 3 types of piecework... - Straight…
A set payment for each... piece produced or processed
Fixed pay
Compensation that is independent of the performance level of…
Variable pay
Any plan that ties pay to productivity or profitability
Chapter 10: Pay for Performance - Incentive Rewards
bonus
differential piece rate
employee stock ownership plans (ESOPs)
gainsharing plans
An incentive payment that is supplemental to the base wage
A compensation rate under which employees whose production ex…
Stock plans in which an organization contributes shares of it…
Programs under which both employees and the organization shar…
bonus
An incentive payment that is supplemental to the base wage
differential piece rate
A compensation rate under which employees whose production ex…
45 terms
Chapter 10 Pay for Performance: Incentive Rewards
The process of...
Variable Pay
Incentive Plans as Links to Organizati…
Degree of Success of Incentive Plans D…
(1) choosing the right incentive plans based on organizationa…
Tying pay to some measure of individual, group, or organizati…
• Gives employees ownership ... • Encourages employees to exert…
o Identifying important organizational metrics by which to me…
The process of...
(1) choosing the right incentive plans based on organizationa…
Variable Pay
Tying pay to some measure of individual, group, or organizati…
18 terms
Chapter 10: Pay-for-Performance: Incentive Rewards
bonus
combined salary and commission plan
differential piece rate
employee stock ownership plan (ESOPs)
an incentive payment that is supplemental to the base wage
a compression plan that includes a straight salary and a comm…
a compensation rate under which employees whose production ex…
stock plans in which an organization contributes shares of it…
bonus
an incentive payment that is supplemental to the base wage
combined salary and commission plan
a compression plan that includes a straight salary and a comm…
Chapter 10: pay for performance : incentive awards
strategic reasons for incentive pay... va…
advantages of incentive payments (5)
disadvantages of incentive payments (3)
Successful incentive plans (6)
variable pay - paying a individual,group or organizational fo…
- higher productivity - employees are put to accomplish perfo…
- may fail to satisfy employee expectations for pay gains ... -…
- desire from employees to have an incentive plan... - employees…
strategic reasons for incentive pay... va…
variable pay - paying a individual,group or organizational fo…
advantages of incentive payments (5)
- higher productivity - employees are put to accomplish perfo…
18 terms
Ch. 10 Pay-For-Performance: Incentive Rewards
Variable Pay
Incentive Pay Programs
Straight Piecework
Differential Piece Rate
Tying pay to some measure of individual, group, or organizati…
Establish a performance threshold to qualify for incentive pa…
Paid a certain rate for each unit produce
Paid a higher rate for all their work if exceed the standard…
Variable Pay
Tying pay to some measure of individual, group, or organizati…
Incentive Pay Programs
Establish a performance threshold to qualify for incentive pa…
Chapter 10: Pay-for-Performance: Incentive Rewards
Variable Pay
Incentive Pay Programs
Straight Piecework
Differential Piece Rate
Tying pay to some measure of individual, group, or organizati…
Establish a performance threshold to qualify for incentive pa…
An incentive plan under which employees receive a certain rat…
A compensation rate under which employees whose production ex…
Variable Pay
Tying pay to some measure of individual, group, or organizati…
Incentive Pay Programs
Establish a performance threshold to qualify for incentive pa…
29 terms
Chapter 10: Pay-for-Performance: Incentive Rewards
bonus
combined salary and commission plan
differential piece rate
employee stock ownership plan (ESOPs)
an incentive payment that is supplemental to the base wage
a compression plan that includes a straight salary and a comm…
a compensation rate under which employees whose production ex…
stock plans in which an organization contributes shares of it…
bonus
an incentive payment that is supplemental to the base wage
combined salary and commission plan
a compression plan that includes a straight salary and a comm…
Ch. 10 Pay for performance incentive rewards
Advantages of incentive pay plans
Individual incentive plans
group incentive plans
Enterprise incentive plans
• Incentives focus employee efforts on specific performance t…
Piece work, standard hour plan, bonuses, merit pay, lump sum…
team compensation, Scanlon plan, improshare
profit sharing, stock options, employee stock ownership plans
Advantages of incentive pay plans
• Incentives focus employee efforts on specific performance t…
Individual incentive plans
Piece work, standard hour plan, bonuses, merit pay, lump sum…
49 terms
Chapter 10 Pay for performance incentive rewards
Variable pay
Incentive pay plans
Purpose of incentive plans
Advantage of incentive pay programs
Tying pay to some measure of individual, group or organizatio…
1. Establish a performance threshold for employees to qualify…
1. Encourages employees to assume ownership of their jobs, th…
1. Focus employees on specific Performance targets... 2. Incenti…
Variable pay
Tying pay to some measure of individual, group or organizatio…
Incentive pay plans
1. Establish a performance threshold for employees to qualify…
Ch. 10 Pay-for-performance: Incentive rewards
variable pay
incentive pay plans
incentive plans
individual - incentive plan
tying pay to some measure of individual, group, or organizati…
-establish a performance threshold for employees to qualify f…
-individual... -group... -enterprise
-piecework... -standard hour plan... -bonuses merit pay... -sales ince…
variable pay
tying pay to some measure of individual, group, or organizati…
incentive pay plans
-establish a performance threshold for employees to qualify f…
HRM Chapter 12 Py for performance and financial incentives
What is a piecework plan?
Short term incentives for senior manag…
Long term incentives for senior manage…
Why is long term incentives for manage…
Based on production standard... Straight piecework plan ... -A se…
Annual bonus
Capital accumulation
Keeps your employees tied to you fro a longer term since it t…
What is a piecework plan?
Based on production standard... Straight piecework plan ... -A se…
Short term incentives for senior manag…
Annual bonus
27 terms
Managing Human Resources Chapter 10 Pay-for-Performance: Incentives and Rewards
variable pay programs
advantages of incentive pay programs
piecework
straight piecework
aka incentives plans... consist of bonuses, incen-tives, or reco…
Incentives focus employee efforts on specific performance tar…
oldest incentive plan
extra pay for each extra piece produced
variable pay programs
aka incentives plans... consist of bonuses, incen-tives, or reco…
advantages of incentive pay programs
Incentives focus employee efforts on specific performance tar…
27 terms
Managing Human Resources Chapter 10 Pay-for-Performance: Incentives and Rewards
variable pay programs
advantages of incentive pay programs
piecework
straight piecework
aka incentives plans... consist of bonuses, incen-tives, or reco…
Incentives focus employee efforts on specific performance tar…
oldest incentive plan
extra pay for each extra piece produced
variable pay programs
aka incentives plans... consist of bonuses, incen-tives, or reco…
advantages of incentive pay programs
Incentives focus employee efforts on specific performance tar…
Chapter 9: Compensation and 10: Pay for Performance: Incentive Rewards
strategic compensation
*List seven common strategic compensat…
equity theory
*Explain the equity theory.
links the compensation of employees to the mission, objective…
1. To reward employees' past performance ... 2. To remain compet…
a motivation theory that explains how people respond... to situa…
It states that individuals form a ratio of their inputs (abil…
strategic compensation
links the compensation of employees to the mission, objective…
*List seven common strategic compensat…
1. To reward employees' past performance ... 2. To remain compet…
Ch. 10 - Pay for Performance: Incentive Rewards HR 312
Variable pay programs
Incentive pay plans establish...
Advantages of incentive pay programs
Degree of success for incentive plans…
bonuses, incentives, or recognition for good work - attached…
an employee threshold that an employee or group must achieve…
focus employee efforts on specific performance targets, payou…
identifying important organizational metrics, a customized in…
Variable pay programs
bonuses, incentives, or recognition for good work - attached…
Incentive pay plans establish...
an employee threshold that an employee or group must achieve…
10 terms
HRM Chapter 12, Pay-For-Performance and Financial Incenctives
What is variable pay?
What is piecework?
What is straight piecework?
what is the guaranteed piecework plan?
Any plan that ties pay to productivity or profitability
Get paid per piece produced per time slot
Set payment for each piece produced
Minimum wage + price per piece produced above a set number of…
What is variable pay?
Any plan that ties pay to productivity or profitability
What is piecework?
Get paid per piece produced per time slot
34 terms
Chapter 9: Pay for Performance
Pay for Performance
3 other names for Pay for Performance
Tota Compensation Mix
Pay Mix
Variable forms of pay designed to recognize and reward employ…
1. Incentive pay... 2. Variable pay... 3. Performance-based pay
Proportion of pay to benefits
Proportion of fixed pay to variable pay
Pay for Performance
Variable forms of pay designed to recognize and reward employ…
3 other names for Pay for Performance
1. Incentive pay... 2. Variable pay... 3. Performance-based pay
20 terms
Chapter 12 Incentive Pay
Piecework Rate
Straight piecework plan
differential piece rates
Standard hour plans
Rate of pay for each unit produced
Incentive pay in which the employer pays the same rate per pi…
Incentive pay in which the piece rate is higher when a greate…
An incentive plan that pays workers extra for work done in le…
Piecework Rate
Rate of pay for each unit produced
Straight piecework plan
Incentive pay in which the employer pays the same rate per pi…
Chapter 12 Incentive Pay
Variable Pay
Individual Incentives
Group Ncentives
Social Loafers
compensation that depends on some measure of individual or gr…
incentives that reinforce performance of a single person with…
incentives that provide reinforcement for actions of more tha…
individuals who avoid providing their maximum effort in group…
Variable Pay
compensation that depends on some measure of individual or gr…
Individual Incentives
incentives that reinforce performance of a single person with…
15 terms
CHV1 Incentives for Performance
Variable Pay
Incentive possibilities
Reasons for Pay-for-Performance Plans
Why variable pay plans fail
Compensation linked to:... *Individual, ... *Group/team, and/or ... *O…
*Recognition/reward programs.... *Team bonus.... *Price/rate pay.... *…
*Link strategic goals and employee performance.... *Reward and r…
*Plan doesn't reward doing a good job.... *Plan doesn't motivate…
Variable Pay
Compensation linked to:... *Individual, ... *Group/team, and/or ... *O…
Incentive possibilities
*Recognition/reward programs.... *Team bonus.... *Price/rate pay.... *…
Financial Measures and incentives
Return on investment
Company wide ROI
ROI Advantages and disadvantages
Residual income
= profit / investment... investment = equity or assets (ROE , R…
= proportion of coys BV of ending assets x divisional ROI... Ca…
Advantages... - commonly used, easily understood... -blends togethe…
= Profit - (rrrx investment... rrrx investment = capital charge…
Return on investment
= profit / investment... investment = equity or assets (ROE , R…
Company wide ROI
= proportion of coys BV of ending assets x divisional ROI... Ca…
17 terms
Pay, Benefits, and Incentives
Gross Pay
Overtime
Deductions
Net Pay
the total amount you earn before any deductions are subtracted
time worked beyond the regular hours
amounts subtracted from your gross pay
when all deductions are taken out of your gross pay, it is th…
Gross Pay
the total amount you earn before any deductions are subtracted
Overtime
time worked beyond the regular hours
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