Read the Application Case 11-1, “Customizing Bonus Pay Plans,” on pages 348-352 of the textbook. Answer the three (3) discussion questions on page 352.
Why is it important to include operating employees (non-managers) …show more content…
Explain it in managerial terms.
The individual performance modifier that Towers Perrin survey identified was found in 62 percent of companies with an orgaizationwide incentive plan. This individual performance modifier was where an employee is measured against preestablished personal goals for the year and then rewarded for achieving specific goals. The goals were established to directly influence a behavior. An example used was to pay clerks double time for any sick days not used.
American Woodmark’s scorecard approach can be most effectively used with what type of organizations? Employees? American Woodmark’s scorecard approach was an incentive pay system developed with company goals in mind. Goals were divided into areas of cost, quality, deliver, and safety. Lower level goals were set to support these so that if each of the plants met targets the result would be the achievement of company wide targets and if each team met targets then a plant would meet targets and so on down to the individual level. This was a complex system with many different targets to meet and are tough to manage. This system encompassed the management of individual goals with the management of plants and company goals in …show more content…
An employer has no choice about offering mandated benefits programs and cannot change them in any way without getting involved int the political process to change the existing laws. The three mandated programs are unemployment insurance, social security, and workers’ compensation.
Unemployment insurance is designed to provide cash income to workers during short period of involuntary employment. It helps workers find jobs. It encourages employers to stabilize employment. It stabilized labor supply by providing benefits so that skilled workers are not forced to seek other jobs during short period of unemployment.
Social Security established pension to retired people to supplement savings, pensions and part-time work. The basic concept is an employee pays taxes and would later receive this program. Social Security taxes are paid by both the employer and employee. Due to the increase in the eligible individuals and the pay out difference from what was originally paid in this benefit is slowly dwindling. The growth of international business has created other problems for retrieving these