As an HR manager, someday it may be up to you to determine what kind of performa
ID: 463754 • Letter: A
Question
As an HR manager, someday it may be up to you to determine what kind of performance-based pay structure should be implemented at a company. In such a case, you must consider what will benefit the employer and employees alike.
a.)From a strategic standpoint, would you be more inclined to use a recognition or incentive form of performance-based pay? Explain your reasoning.
b.)From a strategic standpoint, would you be more inclined to use a merit or earnings-at-risk form of performance-based pay? Explain your reasoning.
c.)Do you think performance-based pay is more or less effective for employees working in teams? Explain.
Explanation / Answer
a). The incentives are good thing. It will motivate the employees to work more. The only problem is that how to define an excellent work , average work and bad work. Some companies have accurately measured these things. But in majority of the company these things are nnot very clear and the incentives are sometimes given to the wrong person. The second problem is that sometimes it will be a habbit of some employees to earn incentives and if they will not get it they will bw disappointed towards the management and it may lead to the lower and lower efficiency of the worker.
b). Earning at risk is vvery dangerous because sometimes there are many external factors that affects the work of an employee like market conditions are not well, some bad management decisions etc..So in that case the worker will not get anything because he has not done upto the mark.
c).As a team performance based pay has both the pros and cons. The good thing is that there are responsibilities shared among the group so if the plans fails there is everyone's responsibility. But on the other hans there many be some group members who are not working at all and taking the incentives as well.
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