Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
¶ … Value of Merit-Based Plans, Incentive-Based Plans, and Profit Sharing Plans
Merit-based payment plans, incentive-based payment plans, and company profit sharing plans all can be classified as organizational attempts to foster employee loyalty, increase employee productivity, and make the company a more attractive place to work. Their aim is to increase the motivation of employees to do quality work, above and beyond the expected minimum of the 'job description.' However, the plans operate on slightly different psychological principles and thus aim for slightly different motivational results.
Merit-based plans attempt to allocate pay to employees based on the employee's assessed merit to the company. If employees show the level of merit expected according to the plan, they are rewarded. By setting a certain concrete standard for employee performance, usually determined by human resource staff and assessed on a case-by-case basis through the use of regular performance reviews, employee quality is continually monitored. Additional pay, bonuses, or benefits are given based upon such assessed merit during these reviews, according to pre-set standards. The advantage of merit-based plans are that...
Performance reviews can be overly reliant upon subjective judgments of what constitutes merit. On the other hand, often merit is so broadly defined, the term is rendered meaningless, and so" merit pay plans have lost their 'merit' and become entitlement plans," at some companies wherein all employees are given salary increases. ("Variable Payment Plans: People Management, The Vault, 2005)
Incentive-based plans attempt to curtail such potentially frustrating subjectivity in employee assessments and negative competitiveness by giving employees specific goals they must work towards, rather than simply elusively promising extra pay based upon 'merit.' However, human resources must have a clear idea of what incentives are appropriate to award for achieving company goals. There is an advantage and a disadvantages, too, as when incentive-based…
Works cited
"Profit Sharing." (2005) HR Guide. Retrieved 28 Sept 2005 at http://www.hr-guide.com/data/G444.htm
'Variable Payment Plans: People Management." (2005) The Vault. Retrieved 28 Sept 2005 at http://www.vault.com/nr/newsmain.jsp?nr_page=3&; ch_id=402& article_id=13561596& cat_id=2091
Indeed, effective problem solving in these circumstances often requires high levels of creative collaboration (Richards, 2007a, p. 34). In recognition of this reality, employers consistently name the ability to work together creatively as a primary and crucial skill -- even though many organizations have created cultures that undercut individual and collective creativity. In order to solve this problem there is a need of a comprehensive review of the facility management
Motivation of workers is posing very big challenges to organizations. Herzberg ensures that an organization rewards its employees depending on the behaviors that the management would like to encourage.One of the widely known writers on motivation of workers is Frederick Herzberg. He is widely known for the two-factor theory that he came up with. The two factor theory is widely referred to as the hygiene motivation theory. As stated above,
These figures dwarfed what other big businesses paid for discriminatory practices. These businesses included Texaco, Inc.; Shoney's, Inc., Winn-Dixie, Stores, Inc.; and CSX Transportation, Inc. Critics saw Coca-Cola's settlement as signaling a major breakthrough among big businesses as coming to terms with diversity in the workplace (King). Because the company has been a leader in many areas, these critics regarded it as setting an example of greater openness to
" (2002) p.7 Methodology The methodology proposed in this study is one of a qualitative nature and is to be conducted through an extensive review of literature in this area of study combined with a survey of employees in a yet unchosen organization which will quiz the employees concerning the factors of primary importance in retention and satisfaction of employees by the organization. Population and Sample The population and sample in this study is
" Jardina, likewise, articulated that "my goal is to push every employee to learn and grow. I encourage all to write down personal and professional development plans." Miscellaneous Suggestions Other recommendations for motivating employees of NPOs are more dependent on the situation and include the following: 1. Team Unity Alatrista and Arrowsmith's (2004) field study provides an example where social support -- the feeling of belonging to a team- may fill in the gap when