...about the ‘Performance Based Pay’ system of remuneration for High School Teachers in Jamaica. Your cooperation in this research is highly appreciated and we assure you that your identity will remain anonymous. INSTRUCTION: Read each question carefully and tick the answers you deem as the most appropriate to you in the box provided beside each response. Gender: Male [ ] Female [ ] Age: under 25 [ ] 26-31 [ ] 32-39 [ ] 40 and Over [ ] 1. Please select the highest level of education attained Diploma [ ] Bachelors [ ] Masters [ ] Other (Please specify)__________________ 2. How long have you been a teacher? Less than 1 year [ ] 1-5 years [ ] 6-10 years [ ] 10-15 years [ ] over 15 years [ ] 3. How long have you been teaching at the CXC (grade 10 &11) level? Less than 1 year [ ] 1-5 years [ ] 6-10 years [ ] 10-15 years [ ] over 15 years [ ] 4. Would you prefer a ‘pay for performance’ based system that truly compensates differential performance? Yes [ ] No [ ] undecided [ ] 5. Would you support a system of remuneration that considers both length of service and performance? Yes [ ] No [ ] undecided [ ] INSTRUCTIONS: These are some statements education administrators, teachers and other students have made about teaching and remuneration based on performance, please read carefully and state whether or not you agree with them by circling the letter corresponding with the responses. 6. Compensate teachers based on their...
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...When starting southwest airlines and red lobster choosing the proper method of compensating the employees can play an important role in the company's success. One method of compensation used to motivate their employees is performance-based pay. Performance-based pay is a method of compensation that involves paying employees based on the work they perform. Employee rewards and recognition are very popular. Awards can be in the form of money, prizes, plaques, travel, and public commendations. Recognition given After-the-fact display appreciation for individual or team efforts. Recognition can be tangible or intangible, and range from a thank-you card to travel. The rewards, and recognition goals or to attract, retain, and to motivate employees. “More than thirty eight years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one simple notion: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline, Southwest Airlines Com, 2013.” “Company founder Bill Darden opened his first restaurant, The Green Frog, at age nineteen. From the beginning, Bill’s restaurants focused on quality and service. With a passion for seafood, it was only a matter of time before Bill and his team opened the first Red Lobster in Lakeland, Fla., in nineteen sixty eight, Red lobster.com, 2013.” In...
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...Individual employee incentive and recognition programs Incentive payments for hourly employees may be determined by the number of units produced, by the achievement of specific performance goals, or by productivity improvements in the organization as a whole. In the majority of incentive plans, incentive payments serve to supplement the employee's basic wage. Piecework One of the oldest incentive plans is based on piecework. Under straight piecework, employees receive a certain rate for each unit produced. Their compensation is determined by the number of units they produce during a pay period. At Steelcase, an office furniture maker, employees can earn more than their base pay, often as much as 35 percent more, through piecework for each slab of metal they cut or chair they upholster. Under a differential piece rate, employees whose production exceeds the standard output receive a higher rate for all of their work than the rate paid to those who do not exceed the standard. Employers will include piecework in their compensation strategy for several reasons. The wage payment for each employee is simple to compute, and the plan permits an organization to predict its labor costs with considerable accuracy, since these costs are the same for each unit of output. The piecework system is more likely to succeed when units of output can be measured readily, when the quality of the product is less critical, when the job is fairly standardized, and when a constant flow of...
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...private healthcare or concierge service. 2 Reward Today More recently, this divide between which parts of reward are best suited for attraction and recruitment, retention and motivation has broken down. Modern research shows that individuals are attracted, retained and engaged by a whole range of financial and non-financial rewards and that these can change over time depending on their personal circumstances. The financial elements of a package are not considered particularly important by individuals in some situations. For instance, people at the beginning of their career may be more interested in getting access to training and career development. People at the end of their career are more concerned with job satisfaction rathe than pay necessarily; those with childcare responsibilities are more concerned about work life balance policies and flexibility. It is crucial when creating a reward policy that organisations try to ensure that they align their practices to the needs of the organisation and employees, and integrate the various elements of the reward package so that...
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...1. Based on the readings of quota restrictions & gold bricking it shows how employees banned together to battle against the firm by lowering their output and wasting time, causing the firm profits and production time. Based on this payment system the slope is positive for low performance, but there is no gain for superior performance. The employees have no incentive to go beyond the required minimum. This pay system was a disadvantage to the workers if they went beyond the expected the firm would have changed the rates against them. They would have to work harder for an even lesser pay. The easiest way to solve this problem is to introduce the performance pay plan. The switch would increase the workers performance and raise the competition level between the Employees. The incentive for moving from fixed rate to piece rate is the average output will rise. Output would be affected in a positive way, because this pay method would raise the standard and encourage speed and productivity. 2. Roy’s machine shop is facing many problems such as low production due to unmotivated employees. The employees have no incentive to cooperate with the firm because of its bad payment system. This firm lowers the money earned for over producing. It means that if a worker is going over his hourly limit, the management will have to pay workers more since earnings are relative to the amount of work completed. Thus the management will either reduce the pay rate...
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... | |CHAPTER | |T Twelve | | | | | |Pay for Performance |12 | | |And Financial | | | |Incentives | | | |Lecture Outline | | | |Strategic Overview |In Brief: This chapter gives an overview of money | | |Money and Motivation: An Introduction |and motivation, and then outlines different | | |Performance and Pay |incentive programs that are used for different | | |Individual Differences |types of employees. It also discusses | | |Psychological Needs and Intrinsic vs. Extrinsic...
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...Chapter 12 Pay for Performance & Financial Incentives Motivation, Performance, and Pay 1. Financial Incentives- Financial rewards paid to workers whose production exceeds standards. 2. Frederick Taylor- scientific management & use financial incentives in the late 1800s 3. Systematic soldering- employees work at the slowest pace possible an produce at the minimum level 4. Fair day’s work- output devised for each job based on careful, scientific analysis 5. People reacted to different incentives in different ways Employee Preference for Noncash Incentives 1. 40% A trip of your choice 2. 20% shopping spree 3. 19% Home Improvement 4. 10% Tickets 5. 4% Electronics Employee Incentive Plans- Pay for Performance Plans 1. Individual Employee Incentives & Recognition 2. Sales Compensation Programs 3. Team/Group based Variable Programs 4. Organization wide Incentives 5. Executive Incentives Compensation Programs Individual Incentive Plans Piecework Plans- Oldest incentive plan, still used widely, these works are paid a sum (piece rate for each unit he or she produces Pros of Piecework 1. Easily understandable, equitable, & powerful 2. Rewards are proportionate to performance Cons of Piecework 1. Employee resistance- to change in standards or work processes affecting output 2. Quality problems-when employees concentrate on output 3. Employee dissatisfaction- when incentives cannot be...
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...Does performance-based pay improve the effectiveness of professionals? For many years, most public and private organizations have been implementing the performance-based pay system in order to improve the effectiveness of professionals but the question one might ask is ‘Does it necessarily improve the performance of professionals and is it the best method? The world is gradually becoming a global village where people from different cultural background and orientation make up the entirety of an organization workforce. What happens in cultures where rewards have to be given collectively to a team and not based on an individual’s performance alone? In a performance-based pay system, managers may set targets for the employees and these must be met at a given period of time. After which the employees get a reward or an incentive. These targets may sometimes require an employee to work overtime and what then happens if this employee comes from a low masculinity country for instance, where personal time is valued. This employee will less likely meet his set targets at the timeline given to him; he would prefer to spend time with his family than give up his evenings because of what he is expecting as a reward. This goes to say that the type of reward system is also linked to the cultural background of an employee. The purpose of this paper is to determine if performance-based pay improves the performance of professionals. It is true that money is a necessity of life but it...
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...it (valence), must believe that effort will be successful in producing desired performance (expectancy), and must trust that the monetary reward will follow better performance (instrumentality)* * * Many employees are not sure that additional performance will lead to additional pay (the performance-reward connection) Desirable and Undesirable Instrumentality Conditions Situation | Level of Performance | Level of Economic Reward | Instrumentality Condition | 1 | High | High | Desirable | 2 | High | Low | Undesirable | 3 | Low | High | Undesirable | 4 | Low | Low | Desirable | ECONOMIC INCENTIVE SYSTEMS Incentives linking pay with performance ADV. & DISADV. OF INCENTIVES LINKING PAY WITH PERFORMANCE ADVANTAGES * Strengthen instrumentality beliefs * Create perceptions of equity * Reinforce desirable behaviors * Provide objective basis for rewards DISADVANTAGES * Cost (to both employer and employee) * System complexity * Declining or variable pay * Union resistance * Delay in receipt * Rigidity of system * Narrowness of performance Incentive Measure | Example | Description | Amount of output | Piece rate; sales commission | Merit pay or more pay for more production. | Quality of output | Piece rate only for pieces meeting the standard; commission only for sales that are without bad debts | Pay determined by combination of quantity-quality. | Success in reaching goals ...
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...British firms prefer share scheme, merit pay is often used in French companies (David & Richard, 2010) while In China, a large amount of corporations perform EVA-based scheme. (Yongjian, Lei &Donghua, 2015) For executives, formula-based arrangement is often used. (Robert, David & Richard, 1995). This leads to the question of what’s the advantage and disadvantage of the four payments. In the literature, I only discuss about individual incentives. Knowledge Gap The share scheme is extended rapidly these years. The incentive helps the employees perform as the shareholders do. When the company’s retained earnings increases, they are also benefited. Another advantage of this incentive is tax-avoiding. Merit pay is a traditional but effective motivating method. How much one earns depends on his performance. However, it is also difficult to determine what kind of expectation should be rewarded and how to reward. If the standard is not fair enough, it might lead to contradiction between the employees and executives. (David & Richard, 2010) EVA-based mechanism grantees the profit of the company. EVA defines company profit as the part of the return exceeds the capital cost. Under the mechanism, the more profit the company earns, the more incentive the staff will have. Also, when the company’s revenue is negative, the incentive will be reduced as well. (Yongjian, Lei &Donghua, 2015) For senior-level executives, formula-based calculation is often used. The formula links...
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...Pay enough, don’t pay too much or don’t pay at all? An empirical study of the non-monotonic impact of incentives on job satisfaction Pouliakas, K1 Centre for European Labour Market Research (CELMR), University of Aberdeen Business School, Scotland Keywords: Incentives, intensity, job satisfaction, non-monotonic JEL- Code: C23, J28, J33. Abstract This paper attempts to test the non-monotonic effect of monetary incentives on job satisfaction. Specifically, 8 waves (1998-2005) of the British Household Panel Survey (BHPS) are used to investigate the ceteris paribus association between the intensity of bonus/profit-sharing payments and the utility derived from work. After controlling for individual heterogeneity biases, it is shown that relatively ‘small’ bonuses exert a significant negative effect on worker satisfaction. In contrast, job utility is found to rise only in response to ‘large’ bonus payments, primarily in skilled, non-unionized private sector jobs. The empirical evidence of the paper is therefore consistent with a ‘V-effect’ of incentives, suggesting that employers wishing to motivate their staff should indeed “pay enough or don’t pay at all”. 1 Research Fellow, Address: CELMR, University of Aberdeen Business School, Edward Wright Building, Dunbar Street, Old Aberdeen AB24 3QY, UK; Tel: ++44 01224 272172; e-mail: k.pouliakas@abdn.ac.uk. 1. Introduction The principal-agent model, with its convincing illustration of the trade-off that arises between risk...
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...HRM 324 Final Exam Guide To Buy This material Click below link http://www.uoptutors.com/HRM-324/HRM-324-Final-Exam-Guide Base pay defined is? Pay by the drink Hourly or annual salary Service fees A fee that is paid per project How is base pay adjusted over time? Cost of living adjustments Seniority pay, merit pay Incentive pay, person focused pay All of the above Extrinsic compensation includes? Base salaries and bonuses Jobs that provide autonomy Both monetary and nonmonetary rewards Traditional pay 4) Competency based can be defined as? Two basic types of focused pay programs, pay for knowledge and skill base pay Compensation for longevity Phased wage approach Retirement compensation 5) Pay for knowledge can be defined as? a) Rewards for managerial, service, or professional workers for successfully learning specific curricula b) Consultant fees c) Measures labor productivity 6) Skill-based pay defined is? a) Employees who work on computers b) A term used mostly for employees who do physical work c) Trade that deals mainly with the restaurants industry d) Skills considered supervisory 7) Incentive pay defined is? Augments employees base pay Appears as a one-time payment Employees usually receive a combination of recurring base pay and incentive pay All of the above 8) Incentive pay plans can be broadly classified into what 3 categories. a) Store sales, profit levels, customer quality b) Cost savings, reduction, services c) Individual incentive...
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...Pay systems Introduction Pay is a key factor affecting relationships at work. The level and distribution of pay and benefits can have a considerable effect on the efficiency of any organisation, and on the morale and productivity of the workforce. It is therefore vital that organisations develop pay systems that are appropriate for them, that provide value for money, and that reward workers fairly for the work they perform. Pay systems are methods of rewarding people for their contribution to the organisation. Ideally, systems should be clear and simple to follow so that workers can easily know how they are affected. In considering rewards it should be borne in mind that pay and financial benefits are not the only motivator for worker performance. Other important motivators for individuals may include job security, the intrinsic satisfaction in the job itself, recognition that they are doing their job well, and suitable training to enable them to develop potential. What are pay systems? Key Points: Pay systems provide the foundation for financial reward systems There are basic rate systems, where the worker receives a fixed rate per hour/week/month with no additional payment There are systems related in whole or part to individual or group performance or profit There are systems based in part on the worker gaining and using additional skills or competencies Pay systems provide the bases on which an organisation rewards workers for their individual contribution, skill and...
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...Pay for Performance: It’s Effect on Employee Motivation Name Course Title Professor’s Name Date Pay for Performance: The Effect on Employee Motivation Managers are continuously looking for ways to motivate their employees. Many methods have been tried and many methods have failed. Consequentially, human resource professionals and managers continue to work to develop effective performance management systems which serve to motivate employees, with an end result of improved morale and increased productivity. Designing an effective performance management program, combined with the appropriate compensation methods, can serve as tools to inspire and motivate employees to improve and/or maintain the highest levels of performance. Compensation administrators are encouraging the use of pay-for-performance plans to meet this goal. Pay-for-performance plans motivate employees to be productive and perform at higher levels by linking their pay directly to their pay. The idea behind pay-for-performance plans is that money serves to motivate employees to perform. Maslow’s theory of motivation “suggests that employee needs are arranged in priority order such that lower-order needs must be satisfied before higher-order needs become motivating” (Leonard, 2010, p. 121) with the lowest level of needs being basic biological needs and the highest level being self-fulfillment. When an individual is on the lower levels of the spectrum and trying to fulfill his/her basic...
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...to motivate labor. Companies are learning that they can no longer cling only to individual incentive pay plans. Just as an artist relies on a whole pallet of colors, the future success of incentives is having and using many different pay plans, each tailored to achieve a desired effect. There are many incentive plans for you to consider. Some even de-emphasize money and appeal to employees higher needs. I even discussed one plan, Merit Pay, in a previous Industry Advisor article. Now I will compare individual to group incentives – in certain key areas and provide highlights of the differences. Be aware that I am an advocate of group incentives. PERFORMANCE Individual Incentives Since each direct labor employee – who is motivated by money – is theoretically in "business for him/her self" there should be a strong inducement for high performance. A piece work operator could care less about a fellow operator’s performance. The relative productivity of each individual can be readily determined. Likewise, actual time spent on specific jobs is also easily determined and standards set. Individual incentives work best on singularity of product and long runs. They lose their effectiveness and are usually costly to maintain in a high style, fast in-process turnover environment. Group Incentives Groups attempt to empower people and tend to have a leveling effect on labor’s performance. Rather than restrict production, the group pressures the superior producer to handle more job assignments...
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