人力资源管理 HRM chapter12 Pay for Performance and ╲u000bFinancial Incentives

PayforPerformanceand

FinancialIncentivesAfterstudyingthischapter,

youshouldbeableto:Discussthemainincentivesforindividualemployees.Discusstheprosandconsofincentivesforsalespeople.Nameanddefinethemostpopularorganization-widevariablepayplans.Describethemainincentivesformanagersandexecutives.Outlinethestepsindevelopingeffectiveincentiveplans.©2005PrenticeHallInc.Allrightsreserved.12–2PayforPerformanceandFinancialIncentivesIndividualIncentivePlansIncentivesforSalespeopleTeam/GroupVariablePayIncentivePlansOrganizationwideVariablePayPlansIncentivesforManagersAndExecutives3©2005PrenticeHallInc.Allrightsreserved.IndividualIncentivePlansPieceworkPlansMeritpayIncentivesforprofessionalemployeesRecognition-basedawards4©2005PrenticeHallInc.Allrightsreserved.IndividualIncentivePlansPieceworkPlansAsystemofpaybasedonthenumberofitemsprocessedbyeachindividualworkerinaunitoftime,suchasitemsperhourorperday.5©2005PrenticeHallInc.Allrightsreserved.IndividualIncentivePlansPieceworkPlansStraightpiecework:anincentiveplaninwhichapersonispaidasumforeachitemheorshemakesorsells,whichastrictproportionalitybetweenresultsandrewards.Standardhourplan:anincentiveplaninwhichapersonispaidabasichourlyratebutispaidanextrapercentageofhisorherrateforproductionexceedingthestandardperhourorperTheStandardhourplanissimilartoPieceworkpaymentbutbasedonapercentpremium.6©2005PrenticeHallInc.Allrightsreserved.IndividualIncentivePlansMeritpayApermanentcumulativesalaryincreasethefirmawardstoanindividualemployeebasedonhisorherindividualperformance.Itusuallybecomespartoftheemployees’basesalary.7©2005PrenticeHallInc.Allrightsreserved.IndividualIncentivePlansIncentivesforprofessionalemployeesProfessionalemployeesarethosewhoseworkinvolvestheapplicationoflearnedknowledgetothesolutionoftheemployer’sproblems.Lawyers,doctors,economists,andengineers.PossibleincentivesBonuses,stockoptionsandgrants,profitsharingBettervacations,moreflexibleworkhoursimprovedpensionplansEquipmentforhomeoffices8©2005PrenticeHallInc.Allrightsreserved.IndividualIncentivePlansRecognition-basedawardsRecognitionhasapositiveimpactonperformance,eitheraloneorinconjunctionwithfinancialrewards.Combiningfinancialrewardswithnonfinancialonesproducedperformanceimprovementinservicefirmsalmosttwicetheeffectofusingeachrewardalone.Day-to-dayrecognitionfromsupervisors,peers,andteammembersisimportant.9©2005PrenticeHallInc.Allrightsreserved.IncentivesforSalespeopleSalaryplanCommissionplanCombinationplanSettingSalesQuotasStrategicsalesincentives10©2005PrenticeHallInc.Allrightsreserved.IncentivesforSalespeopleSalaryplanFixedsalariesCommissionplanPayisonlyapercentageofsalesgoCombinationplanPayisacombinationofsalaryandcommissions,usuallywithasizablesalarycomponent.SettingSalesQuotasStrategicsalesincentivesLinkssalescommissionstostrategicnon-volume-basedmeasures.

GO11©2005PrenticeHallInc.Allrightsreserved.TeamIncentivePlansTeamorgroupincentiveplanAplaninwhichaproductionstandardissetforaspecificworkgroup,anditsmembersarepaidincentivesifthegroupexceedstheproductionstandard.HowtoDesignTeamIncentivesSetindividualworkstandardsUseanengineeredproductionstandardbasedontheoutputofthegroupasawholeTierewardstogoalsbasedonanoverallstandardofgroupperformance12©2005PrenticeHallInc.Allrightsreserved.HowtoDesignTeamIncentivesSetindividualworkstandardsSetworkstandardsforeachteammemberandthencalculateeachmember’soutput.Membersarepaidbasedononeofthreeformulas:Allmembersreceivethesamepayearnedbythehighestproducer.Allmembersreceivethesamepayearnedbythelowestproducer.Allmembersreceivesamepayequaltotheaveragepayearnedbythegroup.13©2005PrenticeHallInc.Allrightsreserved.HowtoDesignTeamIncentivesUseanengineeredproductionstandardbasedontheoutputofthegroupasawhole.Allmembersreceivethesamepay,basedonthepiecerateforthegroup’sjob.TierewardstogoalsbasedonanoverallstandardofgroupperformanceIfthefirmreachesitsgoal,theemployeesshareinapercentageoftheimprovement(inlaborcostssaved).14©2005PrenticeHallInc.Allrightsreserved.OrganizationwidePayPlansProfit-sharingplansEmployeestockownershipplan(ESOP)ScanlonPlanGainsharingPlansAt-RiskVariablePayPlans15©2005PrenticeHallInc.Allrightsreserved.OrganizationwidePayPlansProfit-sharingplansAplanthatemployeesshareinthefirm’sprofits.SeveraltypesIncashplans:thefirmdistributesapercentageofprofitsasprofitsharestoemployeesLincolnincentivesystem:employeesworkonaguaranteedpieceworkbasis,andthefirmdistributestotalannualprofitseachyearamongemployeesbasedontheirmeritrating.Deferredprofit-sharingplans:thefirmplacesapredeterminedportionofprofitsineachemployee’saccountunderatrustee’ssupervision.16©2005PrenticeHallInc.Allrightsreserved.OrganizationwidePayPlansEmployeestockownershipplan(ESOP)Acorporationannuallycontributesitsownstock—orcashtobeusedtopurchasethestock—toatrustestablishedfortheemployees.Thetrustholdsthestockinindividualemployeeaccountsanddistributesittoemployeesuponseparationfromthefirmiftheemployeehasworkedlongenoughtoearnownershipofthestock.ESOPshelpemployeesdevelopasenseofownershipinandcommitmenttothefirm,andhelptobuildteamwork.go17©2005PrenticeHallInc.Allrightsreserved.ScanlonPlanAnincentiveplandevelopedin1937byJosephScanlonanddesignedtoencouragecooperation,involvement,andsharingofbenefitsPhilosophyofcooperationIdentityCompetenceInvolvementsystemBenefitssharingformula18©2005PrenticeHallInc.Allrightsreserved.ThebasicfeaturesofScanlonplanPhilosophyofcooperationNo“us”and“them”attitudesthatinhibitemployeesfromdevelopingasenseofownershipinthecompany.IdentityEmployeesunderstandthebusiness’smissionandhowitoperatesintermsofcustomers,prices,andcosts.CompetenceTheplandependsahighlevelofcompetencefromemployeesatalllevels.involvementsystemEmployeespresentimprovementsuggestionstoemployer.SharingofbenefitsformulaEmployeessharein75%ofthesavings(reductioninpayrollexpensesdividedbytotalsales).19©2005PrenticeHallInc.Allrightsreserved.GainsharingPlansGainsharingAnincentiveplanthatengagesmanyorallemployeesinacommonefforttoachieveacompany’sproductivityobjectives.Cost-savingsgainsaresharedamongemployeesandthecompany.20©2005PrenticeHallInc.Allrightsreserved.At-RiskVariablePayPlansAt-riskvariablepayplansthatputsomeportionoftheemployee’sweeklypayatrisk.Ifemployeesmeetorexceedtheirgoals,theyearnincentives.Iftheyfailtomeettheirgoals,theyforgosomeofthepaytheywouldnormallyhaveearned.21©2005PrenticeHallInc.Allrightsreserved.IncentivesforManagersAndExecutivesShort-TermIncentivesannualbonus:plansthataredesignedtomotivateshort-termperformanceofmanagersandaretiedtocompanyprofitability.Eligibilitybasis:joblevel,basesalarylevel,andimpactonprofitabilityFundsizebasis:severalwaysIndividualawards:personalperformance/contributionwillManagersreceivebonusesbasedonindividualorcorporateperformance,orboth?22©2005PrenticeHallInc.Allrightsreserved.MultiplierApproachtoDetermining

AnnualBonusTable12–2Note:Todeterminethedollaramountofamanager’saward,multiplythemaximumpossible(target)bonusbytheappropriatefactorinthematrix.go23©2005PrenticeHallInc.Allrightsreserved.IncentivesforManagersAndExecutivesLong-TermIncentivesstockoption:therighttopurchaseaspecificnumberofsharesofcompanystockataspecificpriceduringaspecificperiodoftime.Assumption:thepricewillgoupSeveraltypesNonqualifiedstockoption

goIndexedoption

goPremiumpricedoptiongo24©2005PrenticeHallInc.Allrightsreserved.stockoptionNonqualifiedstockoptionTopurchasestockatastatedprice,usuallythefairmarketvalueatthetimeofthegrant.

go25©2005PrenticeHallInc.Allrightsreserved.stockoptionIndexedoptionTheoption’sexercisepricefluctuateswiththeperformanceofamarketindex.

go26©2005PrenticeHallInc.Allrightsreserved.stockoptionPremiumpricedoptionTheoption’sexercisepriceishigherthanthestock’sclosingpriceonthedateofthegrant.

27©2005PrenticeHallInc.Allrightsreserved.IncentivesforManagersAndExecutivesStockappreciationrightsTopermittherecipienttoexercisethestockoptionortotakeanyappreciationinthestockpr