...Variable pay is compensation linked to individual, group/team and/or organizational performance. Variable pay programs are very poplular, with more than 80% of organizations using them according to a Worldat work annual survey. Variable pay plans attempt to provide tangible rewards, traditionally known as incentives, to employees for performance beyond normal expectations By using variable pay is a better way to attract, retain and motivate employees, said Ken Abosch, business leader at Hewitt Associates during Worldat work’s Total Rewards conference and exhibition in Anaheim, California. The key to motivating the machine operators is to understand what motivates them. Different things motivate each individual. The first thing Plastec can do is to find out what it is that really motivates each of them, by doing this they can asking them, listening to them and observe them. Plastec can designed a variable pay plan for their machine operators around net operating margin. Each machine operator should have a separate target value. As part of the plan, machine operators can be treated to several days of award (rewards), spa treatments, golf outings, paid time off, gifts, monetary, and meals. Machine Operator managers can be recognized for attainment of their specific goals. Also with financial and non-financial rewards this is a win-win for all. In addition financial reward are provided to the machine operators in recognition of their contributions. To increase their...
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...Variable pay is a significant element of the direct compensation package of a growing number of organizations. The trend is towards more organizations using variable pay and for these organizations to expand eligibility and to increase the prominence of variable pay in the total direct compensation package. Variable pay is defined as “direct compensation that does not become a permanent part of base pay/salary and which may vary in amount from period to period.” Other names for variable pay include: incentive compensation, incentives, bonuses, commissions, cash awards and lump sums. Variable pay can be in the form of short-term (one year or less) or long-term (two years or more) incentives/bonuses and employee ownership programs. “Incentives” are plans that have predetermined criteria and standards, as well as understood policies for determining and allocating rewards. “Bonuses” are awards delivered at the end of the period, based on a subjective judgment as to the quality of performance and the rewards that are warranted. Indeed, businesses that adopt variable pay have to recognize the importance of tailoring the program to account for different circumstances. Factors that have to be considered, said Sunoo, include: • Achievement of business and personal growth goals • Compensation packages that are available to employees if they decided to look elsewhere for work • Current level of pay based on salary range relative to skills and experience • Eligibility...
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...If you were an applicant, would the HVP program be attractive to you? Why or why not? The offer would not be attractive because it does not take into account the experience the candidate may have. The plan starts out around the industry level and that is why most of the better-qualified candidates go to the competition. The better candidates like to know they are getting what they are worth. The riskier the plan the more experience the person should have. The plan that is the most attractive depends on the experience level of the person accepting the offer. The bonus level is attractive for people that are well established but for those that are breaking into the field the pressure to perform may be too much. So keeping it simple to start is the safest way to ensure long-term success. If you were going to be an offer receiver, which of the three plans would you choose, and why? I would choose the standard plan to start with and as I learned the job, I would make a more informed choice. A plan that does not force me to perform as soon as I walk in the door but does offer some incentive to improve is the perfect plan for me. All things take time and hard work to master especially something you want to be successful doing. The fact that I could still earn a bonus while learning would provide enough motivation for me to start meeting expectations as soon as applicable. Predict and justify if the HVP program will likely increase the job offer acceptance rate. The new plans...
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...Management Department Faculty Publications Management Department 1-1-2014 Pay-for-Performance’s Effect on Future Employee Performance: Integrating Psychological and Economic Principles Toward a Contingency Perspective Anthony J. Nyberg University of South Carolina, Anthony.Nyberg@moore.sc.edu Jenna R. Pieper University of Nebraska-Lincoln, jpieper@unl.edu Charlie O. Trevor University of Wisconsin-Madison, ctrevor@bus.wisc.edu Follow this and additional works at: http://digitalcommons.unl.edu/managementfacpub Nyberg, Anthony J.; Pieper, Jenna R.; and Trevor, Charlie O., "Pay-for-Performance’s Effect on Future Employee Performance: Integrating Psychological and Economic Principles Toward a Contingency Perspective" (2014). Management Department Faculty Publications. Paper 111. http://digitalcommons.unl.edu/managementfacpub/111 This Article is brought to you for free and open access by the Management Department at DigitalCommons@University of Nebraska - Lincoln. It has been accepted for inclusion in Management Department Faculty Publications by an authorized administrator of DigitalCommons@University of Nebraska - Lincoln. Published in Journal of Management 2014 ; doi: 10.1177/0149206313515520 Copyright © 2013 Anthony J. Nyberg, Jenna R. Pieper, and Charlie O. Trevor. Published by Sage Publications for Southern Management Association. Used by permission. digitalcommons.unl.edu Pay-for-Performance’s Effect on Future Employee Performance: Integrating Psychological...
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...Pay for Performance through Strategic Planning Introduction Because studies have shown time and again that pay represents one of the most important factors involved in retaining qualified employees, it is little wonder that there has been a great deal of attention focused 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. In this regard, Miller, Hildreth and Rabin (2012) note that, “Individual incentives have a central role to play in the success of most conceptual schemes related to performance. Such plans, while very difficult, have large possibilities; seemingly insurmountable obstacles can be overcome if the emphasis moves to the employee's relative needs for power, affiliation, and achievement” (p. 230). These are tall orders for any human resource manager and an organization’s leadership, though, and the fact remains that measuring individual performance is a complicated...
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...The twelve guiding principles for instituting variable team-based pay structures within organization are: First principle, goals should cover areas that team members can directly affect, meaning compensation will not motivate employees unless there is a direct line of sight between performance and results. Second principle, balance the mix of individual and team-based pay a thoughtful balance of individual and group incentives may be most appropriate. Third principle, consult the team members, who will be affected, the programs with the greatest likelihood of success are those that have input from all levels of the organization, including members of the team, teams that support or interface with the team, those who will administer the plan, management, and customers. Fourth principle avoids organizational myopia; many programs fail not because they are inherently flawed, but rather because they create problems with other teams, groups, and units within the organization. Fifth, principle, determine eligibility who is qualifies for the plan, every member of the team should be eligible for the plan, and the plan should indicate when someone becomes eligible or loses eligibility. Six principles, determine equity method, there are two basic variations: same dollar amount and same percentage amount. Seventh, principle, quantify the criteria used to determine payout, there are two main ways to measure team results: financial and operational. Financial measures tend to be ''bigger...
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...those from whom we receive them, or only seldom. But the benefit we receive must be rendered again, line for line, deed for deed, cent for cent, to somebody” and this is exactly what “paying it forward” is. Kant says that morality is not just doing the right thing by helping other people, but doing it for the right reasons as well: simply because it is the right thing to do. He holds true that for an action to be moral, it must be done out of a principle which can be applied to everyone equally, a maxim that can be willed to become a universal law. The movie and the book, Pay it Forward, progressively rises towards the moral standards of Kant as the characters come to understand the meaning of this movement and their duty to the world. I saw a bumper sticker the other day that said, “Think globally, act locally.” That is what the kids in Mr. Simonet’s class are really being assigned to do and that is what the Pay it Forward movement demonstrates. We are all connected to each other. The world may be broken but in watching and helping those around us for the right reason, the benefits spread worldwide. Kant agrees that the world is broken, that the human condition is flawed or Trevor in the beginning says, “the world is shit.” Trevor looks at all the bad around him; the trailer homes, the bullies, all the starving homeless people. His mom is a drunk and working as a stripper, his dad is abusive and it is no mystery why an eleven year old would see all this and think the world sucks...
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...merit pay involves giving employees a permanent pay raise based on past performance. Often the company’s performance appraisal system is used to determine performance levels and the employees are awarded a raise, such as a 2% increase in pay. I worked in a hospital and with nurses in an emergency room that got this exact raise. They had a cap that they could hit where they maxed out once they had been there for over 33 years they stopped getting the raise. The ever looming and potential problem with merit pay is that employees come to expect pay increases. This means it will be more so of an expectation and less so something earned. If you know something is coming either way, would you work harder for it? Not to sound lazy but time is valuable and why put in more time than everyone else for the same rewards? The only way to make merit pay more effective depends on making it truly dependent on performance and designing a relatively objective appraisal system. Without the appraisal system it is literally pointless. Ultimately, to be successful, the merit pay program must ensure that awards provided to the best performers will be substantially greater than increases awarded to average, or below-average performers. Merit pay when managed correctly provides a huge advantage for employers in my eyes. Merit pay helps an employer differentiate between performance of high and low performing employees and reward the performance of the higher performers. I believe that merit pay is worth...
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...SCHOOL OF BUSINESS ADMINSITRATION BACHELOR OF BUSINESS ADMISNITRATION Semester: Fall 2015 – 2016 Course Title Performance & Compensation Course Code HURM402 TITLE OF Case Study APPRAISING PERFORMANCE AT PRECISION In submitting this work, I am confirming that it is all my own work, or the work of my group. I have correctly acknowledged the work of others by using references. Once my work is submitted to Turnitin, it becomes part of the database that subsequent works are checked against. Full Name of Student: Submission Date: Nov 27th, 2015 Assessment: CASE-2 Semester: Fall Academic Year: 2015 ------------------------------------------------- ------------------------------------------------- Date of Case-2 Handover Nov 20th, 2015 ------------------------------------------------- ------------------------------------------------- Time Period Start time: 02:00 PM End time: 03:00 PM ------------------------------------------------- ------------------------------------------------- Duration of Case-2 Handover 2 weeks (Due Date: 4th Dec, 2015) ------------------------------------------------- ------------------------------------------------- Number of Case-2 Handover Pages 7 pages (Including this cover sheet-1) ------------------------------------------------- Marking Scheme: Question | Score | Marks | CLO | Achieved | 1 | 7.5 | | 5 | □ Yes □ No | 2 | 7.5 |...
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...The Rack of a Shotgun in the Night In the clear early Saturday morning around 4:30 am, I completed my shift on a part time detail at a popular hip-hop night club that I worked for off duty along with two additional officers. The club serves alcohol to the 21 year old and over crowd. The capacity level is reach quite frequently every Saturday night. The potential party goers who can not gain entry try to hangout in the parking lot of the club. The club owner employed several off duty police officers with myself included to deter in crime or incidents on the property after the club is closed at 4:00 am. My job was to ensure that no loitered in the dimly lighted parking lot of the club. I would walk the parking area in my full department issued uniform to give the show of officer presence to hinder any crime that could potentially take place. I checked to ensure there were no disputes physical or verbal in the parking area. A clear presence disrupted any vehicle theft or vandalism too. I walked the parking area and gave verbal instructions to individuals who sat in or just stood by vehicles to make entry to the establishment or depart the property. A combination of alcohol and poor judgement has been a factor with people who did not follow instructions in the parking area. At 4:00 am, one of the security guards for the club opened the front door and I could hear the DJ say that the club was closed. The loud music had stopped and people began to exit the club to the parking...
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...Running head: ACTION INQUIRY RESEARCH PAPER- MERIT PAY Action Inquiry Research Paper- School Finance Jennifer Ponton Grand Canyon EDA 535 July 01, 2012 Action Inquiry Research Paper- School Finance Statement of the Problem This past spring thousands of teachers protested at the Louisiana State Capital to prevent Louisiana lawmakers from passing an educational reform bill proposed by Governor Bobby Jindall that would change the face of public education in Louisiana forever. Many superintendents and school personnel were relieved of their professional responsibilities on the days they protested hoping that they could sway the governor and the lawmakers from passing the bill. The bill was passed even without the support of many educational leaders and lawmakers in Louisiana. The laws passed by Louisiana lawmakers read like a conservative education reformer’s wish list. Teacher tenure in Louisiana after three years of employment was eliminated and replaced with teachers receiving a “highly effective rating for five out of six consecutive years of teaching. Back to back “ineffective rating will result in a teacher being fired. Seniority will no longer be a dominant factor in layoff decisions. In fact most decisions involving teacher employment and pay will now be the responsibility of both the principal and the superintendent of school. Before Governor Jindall’s reform plan it was the responsibility of the local school board. The reform proposed by the governor...
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...Trent Dewberry Corporate Governance Case 7 September 11, 2012 The Board-Management Relationship After almost a full year as a member of the Mega Corporation Board of Directors, Jack Wright felt confident in his assessment of the functionality of the organization. Wright found that the company had a strong balance sheet, several successfully operating businesses, and some other businesses that could be sold. Yet Wright also found that there were several issues that were not being addressed. Wright found that somehow Sam Bigger was keeping John Rock from changing the governance structure of Mega. Bigger’s control of the company is the first barrier towards Mega’s progress as a company. The situation with Sam Bigger is a very common one with entrepreneurs. Sam Bigger started the company many years ago and has experienced a great deal of success. It is a difficult thing for a well accomplished business man to admit that the ways things have always been done are no longer effective. It has become evident that changes are needed in order to stimulate growth and improve business operations. Sam Bigger has so much control of the company that he is a hindrance to Mega and its operations moving forward. The question now is what action should John Wright take in order to break through the entrenchment of Sam Bigger? There are a few options that Jack Wright could take in this situation. Wright considered going directly to Bigger for a face-to-face discussion. Wright chose not to go...
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...Form: Wal-Mart September 10th, 2015 Wal-Mart: The High Cost of Low Price focuses on the malicious strategies the company uses to solidify its place at the top of the retail industry. The documentary includes interviews from hard-working Americans and former Wal-Mart employees who share their stories of malpractice by the company. The first portion of the film details how Wal-Mart has ruined three-generation mom-and-pop businesses in small towns through the help of local subsidies and state legislature. Next, the film addresses the mistreatment of workers. Wal-Mart offers too few hours for employees to earn a living or gain benefits, its healthcare program is too expensive, and employees are often pressured to work overtime with no pay. Furthermore, the company has hidden camera surveillance and response teams to shut down union activities. Working conditions in China are also documented in the film and a former manager tells a story about how he was fired by the company for reporting the terrible conditions. Lastly, the film shows movements in communities around the U.S. to stop Wal-Mart from opening stores in their areas. For me, the most interesting point in the movie dealt with Wal-Mart’s environmental practices. In Belmont, North Carolina, a Wal-Mart near the Catawba River would sell herbicides and pesticides on pallets in the parking lot. As one of the River keepers said, every time it rained in the area the chemicals would run off from the parking and into...
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...“What about everyone else? The problem may not be that executives are paid too much, but that employees are paid too little.” 2. Statement of the Problem Studied In this article, Mr. Delves examined why people complain about executive pay, how companies used to inflate employee earnings, and how companies can increase employee wages now. 3. Significance of the Problem Studied With sky rocketing pay for many executives over the last few decades, many employees have wondered why their pay has not also increased. In the past companies have used stock options to provide incentive for employees and to use these as a pathway to increase employee pay. However with the economic recession and many of the changes in accounting practices, companies could no longer use this incentive to increase wages for employees. Thus Mr. Delves presents the question, “what do we do about [increasing employee incentives]?” (Delves, 2012). If this question can be answered, it has the potential to not only increase employee productivity but also to provide them with increased opportunities. 4. Comments on the Article Many people complain and cannot understand why executives are paid so much money and why their pay continues to remain fairly constant. Delves states, “I have wondered for some time about why so many people continue to be so upset about executive compensation and corporate governance when we have made so much positive progress” (Delves, 2012)...
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...Pay It Forward ETH 316 Pay It Forward “Pay it forward” is not only a movie but also an assessment of child which dialogues about Trevor’s life and his assignment. Let us consider the impending impact 11-year-old Trevor McKinney as portrayed by actor Haley Joel Osment. As seventh grade student who is challenged by his Social Studies teacher Eugene Simonet played by actor Kevin Spacey in an extra credit assignment to change the world. Living is difficult for the young Las Vegas resident Trevor and single mother Arlene played by actress Helen Hunt. Challenging issues of both physical and sexual abuse, along with extreme alcoholism plague the McKinney family. Arlene has dissociated from her son by her severe drinking problem and habitual poor decision making. She is a casino worker by day and strip club waitress at night. Her son Trevor is no run of the mill son. The child sees the potential difference he can make in a world that he does not like the look of. His plan for change is to influence the lives of three people. If the three people accept, it will become their duty and obligation to continue with his idea of “paying it forward”, instead of taking it back by impacting the lives of three other people. This becomes the idea of “one person reaching another” to “one person reaching out to three.” Ultimately the results can revolutionize the earth. The movie “Pay It Forward” is conveyed in an interesting present-day to earlier and back to the present type storyline by...
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