...15/04/2016 Variable Pay Encyclopedia Business Terms | Inc.com Variable Pay Related Terms: Employee Benefits; Employee Compensation; Human Resource Policies Variable pay programs are an increasingly popular mode of compensation in today's business world. These programs, which are also sometimes referred to as "pay-forperformance" or "at-risk" pay plans, provide some or all of a workforce's compensation based on employee performance or on the performance of a team. Variable pay proponents contend that providing tangible rewards for superior performance encourages hard work and efficiency and serves as an effective deterrent to mediocre or otherwise uninspired work performance. Variable pay programs are made up of a variety of different compensation methods. In the broadest sense, variable pay programs include annual incentives or bonus payments; individual incentive plans; lump-sum payments; technical achievement awards; cash profit-sharing plans; small group incentives; gainsharing; and payments for newly acquired skill and knowledge. Some analysts argue that variable pay programs should be defined far more restrictively, but most agree that all of the above share a common emphasis on recognizing achievement, which is the ultimate goal of variable pay plans. VARIABLE PAY AND THE MODERN BUSINESS ENVIRONMENT The growing prevalence of variable pay alternatives in business compensation strategies has been attributed in part to a couple of other business...
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...Timothy Hasson Discussion Board 2 BUSI 642 Liberty University Q2) What are some of the pros and cons of linking pay to objective criteria that are important to the organization such as quality control measures, profitability, and low turnover? Introduction Today over 80 percent of US firms have implemented some type of variable pay program for the non-executive employee population (Merriman and Deckop, 2007, p. 1027). The high percentage of firms deploying variable pay programs clearly demonstrates that there is sound business benefits associated with the practice. The focus of this work is to discuss both the advantages and disadvantages of linking pay to objective organizational measures. The study includes analysis of plans at the individual, team and organizational levels. Advantages (pros) According to Gerhart, Rynes and Fulmer (2009) aligning pay to objective criteria has demonstrated the capacity to improve firm performance by as much as 30 percent over firms without incentive programs (p. 254). From an organizational perspective, variable pay programs linked to objective criteria have a motivational effect on employees by changing the amount or intensity of work output and can serve to move the workforce navigationally in the right direction to achieve critical near-term operational targets (Merriman and Deckop, 2007, p. 1028). Expanding on the theme of operational targets, by enabling the workforce to consolidate efforts on key objectives organizations...
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...Week 3 iLab—Calculate Overtime Pay ------------------------------------------------- TCO 3 — Given a simple problem, design and desk-check a solution algorithm requiring a modular design that is expressed in terms of pseudocode or program notes, input-process-output (IPO) analysis, and flow chart. ------------------------------------------------- TCO 4 — Given a simple problem that requires one or more decisions, create a working solution that uses decisions with logical and relational expressions. ------------------------------------------------- TCO 8 — Given a more complex problem, develop a complete solution that includes a comprehensive statement of the problem, complete program design, and program documentation. ------------------------------------------------- Assignment You will need to design an application that will prompt a user for his or her hourly pay rate; his or her hours worked; and whether he or she is single, married, divorced, or widowed. It will then calculate the user’s gross and net pay. If the user works more than 40 hours, overtime is calculated at 1 ½ times the regular rate and displayed separately. If he or she is married, use a flat tax rate of 15%; if he or she is single, use 22%. If he or she is divorced, use 23%; and if he or she is widowed, use 13%. (I realize that these rates are not very realistic). Below is a sample of what the program should do when run. (No overtime example) Enter hourly pay rate: 10.00 Enter hours worked:...
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...Week 3 Activity—Calculate Overtime Pay ------------------------------------------------- TCO 3—Given a simple problem, design and desk-check a solution algorithm requiring a modular design that is expressed in terms of pseudocode or program notes, input-process-output (IPO) analysis, and flow chart. ------------------------------------------------- TCO 4—Given a simple problem that requires one or more decisions, create a working solution that uses decisions with logical and relational expressions. ------------------------------------------------- TCO 8—Given a more complex problem, develop a complete solution that includes a comprehensive statement of the problem, complete program design, and program documentation. ------------------------------------------------- Assignment You will need to design an application that it will prompt a user for his or her hourly pay rate, his or her hours worked, and whether he or she is single, married, divorced, or widowed. It will then calculate his or her gross and net pay. If the user works more than 40 hours, overtime is calculated at 1 ½ times the regular rate and displayed separately. If he or she is married, use a flat tax rate of 15%. If he or she is single, use 22%; if he or she is divorced, use 23%; and if he or she is widowed, use 13% (I realize that these are not very realistic). Below is a sample of what the program should do when run. (No overtime example) Enter hourly pay rate: 10.00 Enter hours worked: 35 ...
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...STARTING OUT WITH Python ® Second Edition This page intentionally left blank STARTING OUT WITH Python ® Second Edition Tony Gaddis Haywood Community College Addison-Wesley Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Vice President and Editorial Director, ECS: Editor-in-Chief: Editorial Assistant: Vice President, Marketing: Marketing Manager: Marketing Coordinator: Vice President, Production: Managing Editor: Production Project Manager: Manufacturing Buyer: Art Director: Cover Designer: Cover Image: Media Editor: Project Management: Composition and Illustration: Printer/Binder: Cover Printer: Marcia Horton Michael Hirsch Stephanie Sellinger Patrice Jones Yezan Alayan Kathryn Ferranti Vince O’Brien Jeff Holcomb Kayla Smith-Tarbox Lisa McDowell Linda Knowles Joyce Cosentino Wells/JWells Design © Digital Vision Dan Sandin/Wanda Rockwell Sherill Redd, Aptara®, Inc. Aptara®, Inc. Edwards Brothers LeHigh-Phoenix Color/Hagerstown Credits and acknowledgments borrowed from other sources and reproduced, with permission, appear on the Credits page in the endmatter of this textbook. Copyright © 2012, 2009 Pearson Education, Inc., publishing as Addison-Wesley. All rights reserved. Manufactured in the United States of America. This publication...
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...information, please contact jdd10@cornell.edu. Employee Compensation: Theory, Practice, and Evidence Abstract [Excerpt] As organizations continue to face mounting competitive pressures, they seek to do more with less and do it with better quality. As goals for sales volume, profits, innovation, and quality are raised, employment growth is often tightly controlled and in many cases, substantial cuts in employment have been made. To accomplish more with fewer employees calls for effective management of human resources. Typically, the employee compensation system, the focus of this chapter, plays a major role in efforts to manage human resources better. Keywords employee, compensation, organization, profit, human, resource, manage, pay, market Disciplines Human Resources Management Comments Suggested Citation Gerhart, B., Minkoff, H. B. & Olsen, R. N. (1995). Employee compensation: Theory, practice, and evidence (CAHRS Working Paper #95-04). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies. http://digitalcommons.ilr.cornell.edu/cahrswp/194 This article is available at...
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...please contact hlmdigital@cornell.edu. Employee Compensation: Theory, Practice, and Evidence Abstract [Excerpt] As organizations continue to face mounting competitive pressures, they seek to do more with less and do it with better quality. As goals for sales volume, profits, innovation, and quality are raised, employment growth is often tightly controlled and in many cases, substantial cuts in employment have been made. To accomplish more with fewer employees calls for effective management of human resources. Typically, the employee compensation system, the focus of this chapter, plays a major role in efforts to manage human resources better. Keywords employee, compensation, organization, profit, human, resource, manage, pay, market Disciplines Human Resources Management Comments Suggested Citation Gerhart, B., Minkoff, H. B. & Olsen, R. N. (1995). Employee compensation: Theory, practice, and evidence (CAHRS Working Paper #95-04). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced...
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...reality. A critical topic in the planning session was the antiquated compensation programs. The senior managers agreed that the compensation programs were too complicated and they conflicted with the key themes of the company’s new strategy. The base pay program emphasized the hierarchy of the organization and was not customer focused. The incentive plans were tied to individual accountability rather than group effort. The recognition programs were too limited in both was selected and who used them. Change needed to happen quickly if ACE Technology was going to regain its market leadership. Bill knew that changing the compensation plans was going to be very challenging, but it was too important to be delayed. As he entered his office, Bill thought, “ What do I do now?” Bill called his management team together to discuss linking human resources programs to the organizations’s new business strategy. He reviewed the changing conditions in the business environment and the rise of the new competitive forces. Although there were many opinions, few team members disagreed about the need to change. Bill reviewed the mission, vision, and values of the company. Although his staff members had heard this before, Bill outlined the company’s strategy against the critical success factors. Bill’s team began to see the pay program in context of the new strategy. The team members were able to examine what programs support or defend the new goals. Their discussion consumed most of the three-hour...
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...to make the compensation plan more effective and competitive, Plastec needs to compare their wage including variable pay and benefits with other employers. Recruiting and retaining machine operators has been a recurring problem for Plastec, and this is a result of lack of professional development in addition to the unattractive compensation plan. The company needs to provide appropriate benefits that cover the middle aged with a mix of employees who are single and others who have families. Paul, the HR manager from Plastec Company has seen employees from the organization express that pay and benefits for employees are not as good as competitors such as Acme’s through several exit interviews. John, one of the managers at Plastec has also heard employees expressing this as well. Paul can identify using some simple methods which can compare Plastec Company pay and benefits with their competitors. Paul will need to determine if the organization will pay for labor below market, at market or above market. With the issue at Plastec Company, one can assume that the organization is paying below market. Benefits such as holiday and vacation with Acme have been perceived better in their organization. Paul can use numerous recourses to determine comparable pay and benefits both locally, nationally, and globally. After he determines that the raw data on benefits such as pay, unemployment benefits, Social Security contributions, retirement, holiday and vacation benefits between Plastec...
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...Productivity of Police Service Employees Introduction In 1973, the city manager of Orange California is looking to boost the pay of police officers, without alienating the taxpayers. The city manager determined the police force is highly educated and intelligent allowing for the agreement of the incentive plan focusing on reducing reported crimes in the city. The experiment is designed to determine if an incentive pay program can increases police productivity. Indentifying the experiments control group, pilot group, independent variable, and dependent variables are essential to determining the experiment’s reliability and validity. Experiment The city of Orange California entered into agreement with the City of Orange Police Association to increase officers pay based on reported crimes in four categories, rape, burglary, robbery, and auto theft. Murder and assault were not included in the incentive plan because homicide and assault are considered a crime of passion, and larceny frequently involves theft from businesses (Staudohar, n.d., p. 520). The incentive plan could increase the agreed 7.5 percent pay increase in 1973 and six percent in 1974. The incentive increase for a reduction of 10% is an additional 2% and 3% for a reduction of 12% in reported crime (Staudohar, n.d., p. 520). In 1973 and 1974, the police officers received the maximum pay increases allowed by the contract. The qualitative factors considered in determining police productivity, is the reduction...
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...COMPENSATION: Acquire qualified personnel: compensation needs to high enough to attract applicant. Pay level must respond to the supply and demand of worker in the labor market. Retain current employee: employee must quit when compensation levels are not competitive, resulting in high turnover Reward desired behavior: pay should reinforce desired Control cost: a rational compensation system helps an organization obtain and retain worker at a reasonable cost. With effective compensation management workers might be over paid or under paid. Comply with legal regulation: A sound wages and salary system consider the legal challenges imposed by the government and ensure the employee compliance. Further Administrative Efficiency: Wages and salary should be properly designed to be managed efficiency PRINCIPLES OF COMPENSATION FORMULATION: Main factors affecting wage or compensation levels within an organization 1) Externals relatives 2) Salary 3) Individual worth REWARD VS RECOGNITION Employee reward system refers to programs set up by a company to reward performance and motives employees on individual and group levels. Employee recognition programs are often combined with reward programs the retain a different purpose altogether. DESIGNING A REWARD PROGRAN: The keys to developing a reward programs are as follows: * Identification of company or group goals that the reward programs will support. * Identification of the desired employee performance or behavior that will reinforce...
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...qualities, skill, ability, punctuality etc. are also considered. The employer compensates the high labor cost by increasing the price of the products. Differential Piece rates A wage plan based on a standard task time whereby the worker receives increased or decreased piece rates as his or her production varies from that expected for the standard time. Also known as accelerating incentive. 2. Define Sales Commission, and explain the conditions that should exist/be met within a position for this pay-for-performance methodology to be successful. Answer: The amount of money that an individual receives based on the level of sales he or she has obtained. The sales person is provided a certain amount of money in addition to his/her standard salary based on the amount of sales obtained. Conditions that should exist: 1. Organizations must tailor pay for performance systems to their mission and environment 2. A pay for performance system can only be effective if employees value the pay or recognition that the organization offers in return for high performance, understand what is required of them, believe that they can achieve the desired level of performance, and believe that the organization will actually recognize and reward that performance. Those conditions are not likely to be achieved unless an organization meets certain requirements. These requirements...
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...Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Introduction 3 Introduction to Python 4 Input, Processing, and Output 10 Modularizing Programs with Functions 21 Decision Structures and Boolean Logic 30 Repetition Structures 39 Value-Returning Functions 48 Input Validation 60 Arrays (Lists) 62 Sorting and Searching 72 Files 77 Menu-Driven Programs 94 Text Processing 96 Recursion 100 Object-Oriented Programming 102 GUI Applications and Event-Driven Programming 111 Appendix A Introduction to IDLE Page 1 Introduction Welcome to the Python Language Companion for Starting Out with Programming Logic and Design, 2nd Edition, by Tony Gaddis. You can use this guide as a reference for the Python Programming Language as you work through the textbook. Each chapter in this guide corresponds to the same numbered chapter in the textbook. As you work through a chapter in the textbook, you can refer to the corresponding chapter in this guide to see how the chapter's topics are implemented in Python. In this book you will also find Python versions of many of the pseudocode programs that are presented in the textbook. Page 2 Chapter 1 Installing Python Introduction to Python Before you can run Python programs on your computer you will need to install the Python interpreter. You can download the latest version of the Python Windows installer from www.python.org/download. The web site also provides downloadable...
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...Questions: 1. Consider the variable pay programs discussed in this chapter. Of which type of program is Applebee’s program an example? Explain. Answer: The variable pay program which Applebee’s International restaurant has adopted is Gain Sharing Plan. It is basically a technique that compensates workers based on improvements in the company's productivity. Gain sharing has a simple, but essential purpose to involve staff in helping to improve our business. Referring to the case study , Face(senior manager of Applebee’s International restaurant)decided to adopt the gain sharing policy in order to minimize travel cost by attracting own employees towards travel benefits. He offered free domestic tickets to those employees who will use travel for 6 or more times in a year. Thus this strategy gave excellent results to the company and they were able to overcome travel expenses. 2. If you were asked to revise the Applebee’s program to include more individual incentives, how might you do that? Answer: Employee motivation is a vital process to increase a company’s profitability. I believe that there are many ways to motivate your employer. You can use financial or intrinsic rewards to motivate the employees. In some extend financial rewards fall back, and intrinsic rewards get the employees motivation. In this case, motivating the employees to use a proper system and fly more than six times a year is a great deal of management. For this purpose you have to develop incentive...
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... | |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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