Teacher: Rejendra Kumar
Student: Anderson Olascoaga Zavaleta
ID student: 0704IBIB0409
Question a. Do you think it is a good idea on the part of any management to award employees with merit issues? Why or why not? Discuss and debate. What factors should management consider in your opinion? Substantiate with many relevant organizational examples (Discussion on how to motivate employees at the workplace should be seen as it has become a challenge for employers today. Some Employers do give ESOP, Profit sharing, Scanlon plan, Annual Bonus, Gain sharing and Merit plans. Give relevant examples). -------------------------------------------------
Awarding good performance of the employees is a method that almost all the companies around the word do in the sense of improve the performance of the company’s. An important issue for the companies is developing and implementing strategies, policies and systems to increase the opportunity to achieve its objectives by increasing the commitment and motivation of the employees.
The most important aim to recognize and reward employees is that it carries out good understanding and judgment. It helps organizations to do the following:
* Increase their revenues and profits
* Keep their best employees and enlist top new talent
* Stimulate peak performance from all their employees
Recognition give employees something that they appreciate at modes cost. Currently nine out of ten organizations give recognition awards, and half are planning adding new awards before long. The most frequently reasons to give these are producing a good work environment.
Percentage (%) of Organizations Offering Recognition Awards
VARIABLE PAY (INCENTIVE PLANS): INCENTIVES FOR PERFORMANCE
Also know as incentives, it is compensation connected to individual, team, or organization performance. Variable pay plans assays have the aim to link extra tangible rewards given to employees for performance further than normal expectation. (Mathis and Jackson 1999)
Types of incentive plans
INDIVIDUAL| GROUP| ENTERPRISE|
Piecework| Team compensation| Profit sharing|
Standard hour plan| Scanlon Plan| Stock options|
Bonuses| Improshare| Employee stock Ownership plans(ESOPs)| Merit pay| | Gainshering|
Lump sum merit pay| | |
Incentive awards| | |
Sales Incentives| | |
Incentives for professional employees| | |
Executive compensation| | |
(Bohlander and Snell 2010)
Individual incentive systems assay to associate individual effort to pay. It has the following conditions:
Identification of individual performance: The discharge of each individual can be assessed and identified due the fact of that each employee has job responsibilities and tasks that can be differentiated from those of other employees
Independent work: Independent work and individual effort by the employee give individual contribution
Individual competitiveness desired: In reason that individuals commonly will drive for the individual incentives for themselves, contest among employees will happen. Hence, independent contest through some employees “win” and others don’t obtain the incentive.
Individualism stressed in organizational culture: The organization must create a culture that emphasizes individual growth, attainment and rewards these goals. If an organization accent teamwork and cooperation, consequently individual incentives will be counterproductive (Mathis and Jackson 1999)
Types of Individual Incentives
It is the simplest incentive scheme. The employees are paid by the number of “pieces” that they produce at a specific rate. The amount of money that they earn is directly proportional to their number of produced pieces. Nevertheless most...