...employees and management meet organizational goals. Employee incentive programs have been a successful way of helping achieve these goals. This paper will discuss performance management and show how apac incentive plans relate to their specific organizational objectives. It will also show if incentive plans help apac achieve its goals and objectives. Performance Management is defined as the process through which managers ensure that employees activities and outputs contribute to the organization’s goals. This process requires knowing what type of activities and outputs are needed in each individual organization, observing whether they occur and providing feedback to help employees meet expectations of the company. While giving feedback, management and employees may find performance issues and think of new ways to resolve issues. Performance Management can be approached in different ways. Performance appraisal is one way companies rate employees and was the way most organizations have previously evaluated employee performance. The evaluation of employee performance by using a scale has many negative results. Performance appraisal measures specific areas of employee performance usually annually or sem-annually. Evaluations usually rate employee performance on a scale and if the evaluation is good, raises are given to the employee. Evaluations and appraisals are uncomfortable for the employees and managers if the employee being evaluated needs too much improvement. Employees...
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...Employee Incentive Programs Leasil Albert OMM 618 Prof. Steven Pierce May 8, 2012 Employee Incentive Programs Employee incentive plans are successful resources to encourage reliability, obligation, and serious hard work. Employee incentive programs should be a key apprehension for managers today. It is becoming more and more complex to attract and keep high-quality employees, and opposition amid companies for the professional personnel is powerful. A carefully intended plan can advance not just the individual employee's attitude, but the association entirely. One of the most frequently known employee incentive plans is recognition. A recognition program can emphasize numerous key areas such as the number of years an employee has been with the company, peer recognition, monthly appreciation ceremonies, or recognition for an explicit job well done. Bonus incentive programs are very useful tools in getting and keeping excellence employees. A bonus incentive program does not have to be financial to be successful. Studies have revealed that employees from time to time react fine when commended for great work, as they do money. For some organizations, a system of admiration and recognition for supported by small, non-monetary rewards may be adequate to keep employees motivated. A disadvantage in recognition programs is that a more pay-based reward programs might be necessary to keep employees motivated. Employee recognition programs usually...
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...(COLA) to Employee Incentives . . . What Have You Done For Me Lately? L`Jada Storm Parker MHR 6751 Labor Relations and Collective Bargaining Abstract The cost of living allowances (COLA), was a portion of benefits, that was at one time, a reactions, to the action of inflation that all U.S. employees felt the impact of, however looked forward to seeing on their pay check stubs, and as part of a benefit to subsidize for the lack of pay raises, as the economy yearly increased on its services and goods to the public. The term cost of living allowances was a yearly incentive to all who were employed, being that prices of all services and goods increased year after year, however the employee paycheck failed to keep up with the rising cost of increased to live. Employers began to become a bit more creative in assisting employees with various offset incentives that were pleasing to employees as the COLA began to phase out. More attractive to the employee was the opportunity to be compensated more often than once a year with an ineffective form of benefit as COLA. In all actually, the COLA was a contradiction to its name and purpose. Cost of living payouts were not equally proportioned with the Cost of living increase. As a result employees began to question the employers with “What have you done for me lately?” As I began to ponder the actions and reactions to the payments of the cost of living allowances (COLA), when compared to employee incentives, the incentives...
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...Introduction There are very few companies in the world that are successful in two realms: its personnel realm and the business realm. It has become common knowledge that Google’s employees love working at Google. They don’t simply like it, they love it. Many of Google’s employees are computer programmers and coders, and it takes more than money to both motivate them and keep them content. Google’s original “campus” in Mountain View, California, otherwise known as GooglePlex, offers employees everything they may need or want – and more – leaving them with little reason to go home at all. It is abundantly clear that this costly approach has paid huge dividends to Google. Google’s very public relationship with its employees has been a point of fascination for me for quite some time. Google’s bold approach in creating the campuses, and the fashion in which they buck the trend in the traditional work environment is admirable at the least. Other than the physical structure of their offices, Google has implemented another tool in working with their employees – they have implemented the 20% rule, first formulated by 3M. This rule basically requires employees to spend 20% of their time on projects of their own choosing – whatever it may be – as long as Google might benefit from it. This rule has had two effects on Google: (a) its employees are happier because they can spend 1/5 of their time on something they are personally very passionate about, and (b) Google has included many of...
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...in writing about the relationship between compensation and employee engagement. 2. Why are you interested in this particular topic? Is there a connection to your field of work or are you looking to broaden your knowledge base on the subject? I am interested in this topic because I would like to broaden my knowledge base on the subject. I have always been interested in employee engagement, but since I have enrolled in this course I would like to know compensation’s role in the matter. 3. Have you done a preliminary literature search on the topic? If so, how many recent journal articles (5 years or less) did you find? Would you be able to source at least 10 to 15 journal articles? Would you be able to write a 10 to 15 page, double-spaced paper on this topic? I have done a preliminary literature search on the topic and I have found 11 recent journal articles that I would be able to source. I would be able to write a 10-15 page, double-spaced paper on this topic. 4. What title would you give your paper? I would title my paper “Unlocking Employee Potential: The Link between Compensation and Employee Engagement”. 5. ------------------------------------------------- How would you construct the paper? What would the sub-sections be composed of and what would you label them as? ------------------------------------------------- The subsections of the Theories Discussed would be Employee Engagement; Motivation; Effects...
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...infrastructure development. 2010. Nr. 5 (24). Research papers. CRITICAL ISSUES FOR COMPENSATION AND INCENTIVES MANAGEMENT: THEORETICAL APPROACH Ramunė Čiarnienė, Milita Vienažindienė Kaunas University of Technology, Vilnius Co-operative College For most people, pay is a primary reason for working. Indeed, compensation is at the core of any employment exchange, and it serves as a defining characteristic of any employment relationship. The study focuses on critical points of compensation and incentives management. The fundamentals of a good incentive program include the elements of vision, potential, communication and motivation and can be realized if incentive promises are fulfilled – by both employer and employee. The aim of the paper is to identify the most important attributes of compensation and incentives management. Research method is the analysis and synthesis of scientific literature, logical, comparative and graphic representation. On the base of analysis, authors of this paper present the model of incentive system for positive employee attitudes and behaviors. Keywords: compensation, employees, incentives, management. Introduction Compensation refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship. Pay may be received directly in the form of cash (e.g., wages, merit increases, incentives, cost of living adjustments) or indirectly through benefits and services (e. g., pensions, health insurance...
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...alignment [300 words]: The role of incentives in securing execution Employees are the agents of the firm’s owners since they take actions or make decisions that impact the payoff to the owners. The difficulties in the agent-principal relationships arise when the objectives of principal and agent are different and the actions taken by the agent or the information possessed by the agent are hard to observe. Employees care about the job in terms of the value the job generates for themselves. Thus providing the right incentives to employees would secure execution of the firm’s plans to meet the firm’s objectives. There are financial and non-financial incentives. Non- financial incentives are social and moral incentives. Which incentives are appropriate depends on the objective of the company. Since motivation comes from within the employees, the personality, needs and interest of each employee determine the right incentives that will influence employees to self motivate and produce the best work possible that will contribute to the firm meeting its objectives. Reward and recognition is concerned with the range of practices an organisation undertakes (financial and non-financial) to compensate employees, maximise employee engagement and encourage behaviours that lead to organisational success. A good reward and recognition system should motivate employees while aligning their goals with those of the organisation. Such a system involves balancing employee remuneration and acknowledgement...
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...team requested that a new compensation proposal be created. The new compensation proposal will be effective January 1, 2011 upon approval from the executive management team. The new compensation plan for employees will consist of the employee’s base salary that will be determined by experience and education of each employee, the sales team will also receive commissions on his or her sales per month. The employees on the sales team will also be part of a sales incentive bonus program; this program will be a quarterly and is determined by the sales for each member on the sales team. If the employee meets or exceeds his or her sales goals for the quarter he or she will be eligible for the sales incentive bonus. The compensation plan also includes vacation time, company paid holidays, and personal time. The company gives two weeks vacation to all full-time employees, at five years the employee will have three weeks vacation and at 15 years the employee will have four weeks vacation. The company has seven paid holidays (New Years Day, Memorial Day, 4th of July, Labor Day, Thanksgiving Day and the Day after, and Christmas Day). The company also will give each employee eight personal/sick days. The vacation time will accrue per pay-period and no more than 80 hours can be carried into the next year. The eight personal/sick days cannot be carried from year to year. The company will offer health, dental and life insurance, and a 401k plan. The company has researched many companies and...
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...December 6, 2012 Incentive Pay This topic was picked as a local health organization is going to be implementing this for their employees in the 2014 fiscal year. They have decided after many years of debate to finally make the decision to include this when they do annual reviews to determine if the employee will receive an additional pay raise over the normal market percentage that they receive on a yearly basis. This is a new device that employers are beginning to use to coax employees to do more in their everyday functions than just what is required of them by their employer. There are several steps to implementing a successful incentive compensation program. The six steps mentioned here that are worth exploring further to make sure the process goes accordingly to help the organization to reach their goal of more revenue, increased patient satisfaction and increased motivation from employees. The process was written by D. Kevin Berchelmann of Triangle Performance LLC. 1. Determine what the plan intends to accomplish-Identify in detail what the desired conditions should be and the reasonable behaviors necessary to achieve them. It’s important to make sure that the organization analyzes the appropriateness for the environment for which the plan will be implemented and to make sure that the plan clearly states what it is that the organization wants, be specific as possible. 2. Determine Participants- Every employee is key component to making the plan...
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... (2) incentive or reward value of the goal, and (3) expectations of the individual and of his or her peers. These factors are the reasons one has for behaving a certain way. An example is a student that spends extra time studying for a test because he or she wants a better grade in the class. What type of non-financial rewards might a company use to motivate employees ? Every employee certainly appreciates more money, but money does not buy happiness, nor does it buy engagement and loyalty. Non-financial incentives inspire and engage employees in ways that money is incapable of doing. Non-financial incentives are the types of rewards that are not a part of an employee’s pay. Typically, they cost the company little or no money, yet carry significant weight. Incentives of this nature are particularly effective for workers who are comfortable with their salaries or have been in the position for a long time. As companies continue to make cuts to employee compensation, non-financial incentives for employees are more crucial than ever. Relationships Matter All too often, workers feel abused and unappreciated by the companies for which they toil day in and day out. Layoffs, stressful work conditions, ever-increasing demands, unappreciative bosses, and unsupportive peers contribute to employee disengagement. At the heart of the matter is the employee-employer relationship. To perform at their best, workers must feel welcomed, valued, and appreciated. Non-financial incentives help companies...
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...on how best to compensate employees for their performance in recent years. Moreover, because employee performance and productivity is inextricably related to organizational profitability, these issues have assumed new relevance and importance in the current economic environment. There have been some mixed reviews concerning pay-for-performance approaches to enhancing employee performance, though, that suggest there is more involved than simply throwing money at top performers. Despite these constraints, many authorities suggest that pay-for-performance programs have a lot to offer organizations seeking to identify better ways to improve employee performance. Pay for performance is not a new idea. Organizations all over the world use this type of system when offering bonuses based on predetermined results or commission. Pay-for-performance programs, also known as incentive pay or merit pay, are a solid approach to rewarding top-quality performance by employees in many types of organizations including healthcare settings. Pay for performance is a motivation concept in human resources, in which employees receive compensation for their work based on the level of reaching certain targets individually or with their team, department or company. The term is often referred to when one is addressing the topic of variable pay based on performances. Unfortunately, the perception of such incentive pay approaches is...
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...CheckPoint: Incentive Plans Peggy Harrington HRM/240 J. Scott Lodge March 8, 2012 Axia College CheckPoint: Incentive Plans Companies utilize various incentive plans to acquire the best and most skilled employees. The incentive plans can be broken down into individual incentive plans and group incentive plans. Below are a few of the pros and cons for each type. Individual Incentive(s) Piecework Pros - Individuals receive a certain rate for each unit produced Computing rate of pay is simple Labor costs are more accurately predicted Cons - Not an effective motivator Quality may be lacking Standard Hour Plan Pros - Based on “standard time” for job completion, even if completed in less time Best for non-repetitive tasks and requiring varied skills Cons - Quality can suffer due to employees not taking enough time to do the job properly High equipment maintenance due to employees not exercising proper care of the equipment Bonuses/Spot Bonuses Pros - Not part of base pay Typically given at end of year Useful as a retention and motivational tool Cons - Hard to predict labor costs Employees may come to expect the bonus Merit Pay Pros - Based on performance Can be a motivator if increase is large enough Cons - May be perpetuated even if performance declines Employees see it as an entitlement ...
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...Incentive Plans Paper Danyiel Brown MGT/431 University of Phoenix March 29, 2012 Demetrius Holt Incentive Plans Paper Incentive plans are reward plans that are used to motivate employees to perform past the common values of their company and increase their productivity created by their company. . There are three types of incentive plans recognized by the experts in the HR and development field; they are enterprise, group and individual. One of the incentive plans that most organizations provide these days is merit pay. Merit pay is determined by the employee’s work performance and achievements set forth by the organization’s standards. “Merit raises can serve to motivate if employees perceive the raise to be related to the performance required to earn it” (Al-Nsour, 2012). There can be a downsize to providing employees with merit raises because over years the employees performance may decline but they will still feel that they are obligated to receive the raised whether they performed or not. There are other issues that can occur with merit pay incentives such as no rules put in place for managers to calculate work performance, not enough funds obtainable to increase the base pay for the entire staff and some employees may assume merit pay has nothing to do with their work performance and overall productivity. Merit pay sometimes does not motivate employees of an upper level because of the lack of honesty on both the managers and supervisors and the employees which...
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...determines by culture, structure, leadership, internal and external factors of organization; therefore, the manager must be able to recognize and react to the factors in order to achieve the organization’s goals. Human behavior in the organization is complex and it differs from every individual to another. Organizations face challenges to match the task, manager and subordinate in an efficient and effective way. Manager or Management in the organization should analyze the tasks, required skills and assemble a team that match each other skills; therefore the management can create an enrich and conflict free team which need to perform the job well. This report is based on XYZ Company’s challenges such as declining of Sales, low level of employee morale and low level of motivation. Also other behavioral issues observations such as conflicts in the work place, absenteeism, lack of trust and integrity between the superior and the subordinates, occasional sabotage, high temper people with severe stress. This report is primarily based on the study of the MARS model, type of individual behavior in organizations and ethics and values in the workplace. Also this report contains the solution for the above problem. Literature Review a. MARS Model MARS model is a model explain individual behavior as a result of internal and external factors or influences acting together. The name of the model is an acronym for individual Motivation, Abilities, Role Perception...
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...Assignment 4 - Recognizing Employee Contributions Assume that you are the HR Manager at a university. You want to create a way to recognize employee contributions in the Admissions Office. Determining the methods to motivate employees to enroll new students has been challenging. However, you are now being pressured by top management to reach admission goals. Employee participation in pay-related decisions could be part of a general move toward employee empowerment. Employees have hands-on knowledge about the kinds of behavior that can help the organization to perform well. Consider ways that you would attempt to meet the admission goals. Create a PowerPoint presentation with fifteen to twenty (15-20) slides in which you: 1.As the HR manager, propose two (2) methods that you will use to determine incentive pay. Explain if the rewards are tailored towards individual, group, and / or company performance. Explain how you as the HR manager will create an incentive pay program that will motivate employees. 2.The balanced-score card approach is useful in designing executive pay. Propose three (3) measures the HR manager can use to assess shareholder value, customer value, and employee value. 3.As the HR manager, analyze two (2) difficulties in creating a benefits package that motivates employees. 4.As the HR manager, propose three (3) incentives that can be used to motivate employees. 5.As the HR manager, examine two (2) ethical risks of making incentive pay a large portion of employees’...
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