...Incentive Plan 1 SAMPLE 1 Pratt Nursing Home’s Incentive Plan Introduction Human resource represents the most valuable asset to an organization and it is for this reason that an organization will go to great lengths in keeping its employees satisfied. Employee satisfaction is known to be a factor that can have a significant on the performance of employees and by extension the overall achievement of organizational goals. There are several techniques currently applicable in the field of human resource management that can be put into use to achieve this goal of maintaining a content staff. An incentive plan is one such technique mainly aimed at providing drive to achieve targets (Schoeffler, 2005). Business in the world today has seen the evolution of several plans available for application with widely varied results. An organization may choose to implement one plan or several incentive plans operating at once leaving employee’s to choose plans to pursue based on their individual goals. Despite the fact that all organizations would like to keep a staff that is highly motivated and productive it is not always possible to implement some of the plans based on factors that may be out of the organization’s control. For example, a non profit organization would find it impossible to implement a profit sharing plan. The selection of the incentive plan to use is dependent on the type of business among other factors and if properly implemented can provide a major boost to the organization...
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...different ways to motivate employees. Employers can motivate their workers as individuals, groups, teams, or the organization as a whole. Motivation takes forms like offering rewards, improving working conditions, or employee recognition. When people get motivated, they will have a reason to put more efforts on what they are doing. Base salary is only one aspect of a retention plan for important employees. Benefits and incentive plans are valuable perks in recruiting and retaining essential employees. Benefits are an established and integral part of the total compensation package. In order to have a sound benefits package there are certain basic considerations. By utilizing a flexible benefits package, employees are able to choose those benefits that are best suited to their individual needs. Incentive pay plans can be advantageous to both the employer as well as the employee. The success of an incentive pay plan depends on the organizational climate in which it must operate employee confidence in it, and its suitability to employee and organizational needs. Importantly, employees must view the incentive plan to be equitable and related to their...
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...USA Motors Will the incentive plan to reduce absenteeism succeed? Explain your opinion. The new incentive plan Jack Parks developed to reduce absenteeism is, “if a chronically absent employee exceeds the standard, then vacation, holiday, and sickness/accident pay would be cut by 10% during the next six months (Strayer University syllabus, P.8). If worker absence continues to exceed the allowable limits, then vacation, holiday, and sickness pay would be cut during the next six months by the actual percentage of absent days incurred by the chronic absentee”. In my opinion, this incentive plan will work. To me, you have some responsible employees and some irresponsible employees. This may work for those that are responsible that will use their time wisely and understands that they are employed to produce for the company and it cannot be done if they are not there. On the other hand, you have those irresponsible employees that take advantage of every chance they get to try to beat the system. So, for them, they will quickly realize that if they continue the excessive absences, they will lose their time, with no one else to blame. This would probably make them more cautious of taking unnecessary time off and maybe understand the effect it has on the company and other employees. How much absenteeism is really under the employee’s control? Based on a Google definition, absenteeism is regularly staying away from work or school without good reason. There are two different...
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...premium pay for working weekends & holidays * Incentive pay – (a.k.a. “variable pay”) is “pay for performance”, and commonly includes pieces work in production and commission sales. * Benefits – Indirect compensation that provides something of value to the employee * Skill-Based or Competency-Based Pay? * Pay members of workforce for individual skills or competencies that they bring to work, whether or note necessary to do their current job * Competency * Individuals knowledge in a particular area * Skills * Ability to apply the knowledge set in the field * At, Above, or Below the Market? * What you would pay for employees in relation to the market * Efficiency wage theory * Higher wages, get higher production * Wage Compression * Occurs when new employees require higher starting pay than the historical norm, causing narrowing of the pay gap between experienced and new employees * Fair Labor Standards Act * Minimum wage, overtime issues, child labor rules for U.S. based businesses * Minimum wage – the lowest hourly rate of pay generally permissible by federal law * Employees with specific duties are exempt from minimum wage, overtime, and child labor rules (e.g., salaried employees) * Overtime – A federally mandated, higher-than0minimum wage, required for non-exempt employees if the work more than 40 hours/week * Is currently set by...
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...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 work can be maintained...
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...way health care is now. Generally, the health care reform is a governmental policy. Many individuals hate the healthcare reform for one basic reason: They believe the American Healthcare System cannot be reformed. The practice of medicine has become so riddled with economic and legal affairs in America, that it seems most everyone has something invested in this decision and it leads people to believe it’s all about money. It is difficult to understand because the practice of medicine is not about financial gain, it is a humanitarian science geared toward the wellness of people, not the growth of bank accounts. Every citizen who contributes to their community should be free to live their life without making a choice between medicine and food, between cancer treatment and their kids’ college without the fear that they are one cold or flu away from unemployment or financial ruin. Many past presidents attempted to pass health care reform to name a few but not limited to be Nixon, Carter, Clinton, and now Obama. The attempt to pass a national health care plan date back to Teddy Roosevelt, some European countries had already implemented national health coverage and pensions by then. In this paper, I will discuss the various aspects of the Health Care Reform such as its purpose and plan. Many people argue that healthcare reform if done right with a public option to be in competition with the insurance giants making them keep their prices down will increase the number of Americans...
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...Busby September 24, 2012 An organization cannot grow without change. Change is not always easy, but it can be beneficial to an organization’s success. The success of an organization can depend on innovative and fresh ideas. Innovation gives an organization the competitive advantage it needs to stay ahead of its competitors. Innovation also brings change as it relates to enhancing products and services to maintain the interest of the customers. Employees are not always open for change and sometime will rebuttal against any such transformation that is set in place to improve the organization’s structure or operation. Employees normally view change from a negative or positive perspective, because of such internal and external forces that cause the changes to take place. Synergetic Solutions Inc. internal forces of change entail employee structure, technological capacity, and to inspire employee’s to step up and work diligently to fulfill the plans of the organization. The organization was in a stagnating stage, which cause for the work environment and organizational structure to be redesigned from the present departmental structure to the new team base structure (UOP Simulation, 2012). Employees were custom to running things according to what works for them rather than what will enhance the company. Harold Redd, who is the CEO of the company, decided that implementing complex computing networks would allow for increase in revenue. Redd’s plans were to raise revenue to 80%, and reduce...
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...Running head: POLITICAL CAMPAIGN PRESENTATION Political Campaign Presentation Political Campaign Presentation Speech: Good afternoon everyone! I’d like to start off by addressing your concerns of the state of our economy, particularly the main problem in your community, and communities all over the country – Unemployment. Most of you probably have a lot of unanswered questions like – why is our unemployment still so high? Why is our economy not improving? Why is the government not doing anything about it? Why are American jobs being lost to overseas competition? Why are American workers being overlooked, and our economy continues to get worse day by day? These are questions that we hope to answer for you, and tell you what we plan to do to help the unemployment rates in your community. While there are many factors that contribute to unemployment, many of them cannot be controlled by anyone. Some of the contributing factors are rapid changes in technology, our recent recessions in the stock market and real estate, inflation, undulating business cycles, climate conditions, attitudes towards employers, employee values, and a person’s ability to look for employment. We have thoroughly researched these causes and issues, and we promise to provide answers to you, and solutions that will help solve the unemployment problem. One solution we would implement involves unemployment benefits, which are meant to...
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...growth of a billion dollar company. The Lincoln Electric Company, the world’s largest arc-welding manufacture and top producer of industrial electric motors, now employees over 4000 people and sales have topped $1 billion. But, how did they gain this overwhelming prosperity? Many have tried to figure it out, even studies have been conducted on Lincoln Electric’s organizational structure, James’ incentive management practices, and the keys to their success, and still no one has mastered it. They still operate today the same way they did year’s ago and it is working...for them. However, what does the future hold for Lincoln Electric? Will they be able to keep up with their high demand of productivity without lowering employee job satisfaction? We will examine different factors of Lincoln Electric such as the companies communication between employees, their problem solving techniques, and their conflicts, but the two most important factors we will analyze are: The incentive reward system - Its pro’s and con’s An effective organizational change process to position the firm’s incentives system for the future. Lincoln Electric did not feel it was important to regularly communicate with all of their employees, which is the reason behind the advisory board. The advisory board is a group of employees that meet bi-weekly to discuss any new ideas on ways to improve operations, increase productivity, job satisfaction, and how to raise profits. If an idea is implemented and...
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...Questions: 1. Imagine you are the new HR director at Zynga. What do you think you might do in this situation to limit the potential loss of a large number of very talented employees? a. As the new HR director at Zynga, I would first, plan to avoid a turnover. I would begin to formulate a plan to bring about more reasons for the employees I currently have to stay; this could include more incentives, more stocks, better health care, 401-K, but is not limited to these depending upon what would be catered best to the employees of Zynga. If worse came to worse, I would begin planning on who would be able to take places of those who left and eliminate jobs that are not actually needed and assign the “have to have” jobs to the most experienced employees that remain. 2. Are there any benefits or incentives that you can think of that might make more people want to stay on at Zynga after an IPO was complete and they could “get their money”? a. A “benefit” that would bring much stress relief to employees would be for them to take a small bit of pressure off of them. If the senior managers let their team know what is due by when and monitor halfway to the deadline (or sooner depending upon the priority of the assignment) rather than constantly monitor, that would help keep many of the employees. Along with that stress relief if the CEO and senior managers were less vocal and belittling, less stress would be upon the employees. b. Another benefit to the employees could be to offer those...
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...are undoubtedly conscious of the convincing indication that authorizes that companies stand to increase when they distribute their profits with personnel. Furthermore, the article demonstrates how managers are mindful of the disagreement that to interest favorably experienced workers, companies must offer bonuses like higher salaries and stock options. This study detonates the misunderstanding that fiscal incentives function too inversely across the corporate scale to be exchangeable to low-level employees. Through widespread examination of asset building throughout all stages of the business, this study determines how one company decreased their turnover rates in half and reduced accident rates as well as training and recruitment expenses. There are several challenges of designing an asset-building program presented in this case study. Managers have a responsibility to cultivate a work atmosphere where the employee meets the requirements of the organization, and the organization meets the necessities of the employee. How to choose the right incentives so the profit sharing plan will motivate the employees is a difficult decision for any organization. In this case study, profit at the bottom of the ladder, building assets, linking asset building programs to improved performance are thoroughly examined. The authors examined the matter in their current study of organizations in nine different countries and the magnitude to which asset building had an influence on performance was...
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...Human Resource Management The design and management of reward systems present the general manager with one of the most difficult HRM tasks. This HRM policy area contains the greatest contradictions between the promise of theory and the reality of implementation. Consequently, organizations sometimes go through cycles of innovation and hope as reward systems are developed, followed by disillusionment as these reward systems fail to deliver. Rewards and employee satisfaction Gaining an employee’s satisfaction with the rewards given is not a simple matter. Rather, it is a function of several factors that organizations must learn to manage: 1. The individual’s satisfaction with rewards is, in part, related to what is expected and how much is received. Feelings of satisfaction or dissatisfaction arise when individuals compare their input - job skills, education, effort, and performance - to output - the mix of extrinsic and intrinsic rewards they receive. 2. Employee satisfaction is also affected by comparisons with other people in similar jobs and organizations. In effect, employees compare their own input/output ratio with that of others. People vary considerably in how they weigh various inputs in that comparison. They tend to weigh their strong points more heavily, such as certain skills or a recent incident of effective performance. Individuals also tend to overrate their own performance compared with the rating they receive from their...
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...Why Incentive Plans Cannot Work. By Alfie Kohn, Harvard Business Review, September-October 1993, Boston, Massachusetts The popular belief among U.S. employers is that some type of reward or incentive program motivates employees at all levels, from the top executive down, to perform their jobs better. Author Alfie Kohn challenges the very bedrock of this belief. He claims that social psychological research in all kinds of settings, including workplaces, shows that "rewards typically undermine the very processes they are intended to enhance." Research suggests that rewards succeed only on a temporary basis. "When it comes to producing lasting change in attitudes and behavior, however, rewards, like punishment, are strikingly ineffective." Because managers look only at short-term improvements, they fail to spot the harm caused over the long term. Studies during the last three decades, Kohn states, conclude that people who expect a reward for doing the job successfully do not perform as well as those who expect no reward. In one example cited, a Midwestern company, at the request of its union, eliminated an incentive system covering a group of welders. In the short term, their production, as expected, fell. Over a period of months, however, the welders' production rose and eventually reached a level that was as high or higher than it had been. Kohn also notes that the studies showed that "the more cognitive sophistication and open-ended thinking required, the worse people...
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...exchange relationship between the employee and the organization • It involves design, development, implementation, communication and the evaluation of reward strategy and process of the organization Compensation Objectives 1. 2. 3. 4. To reward employees’ past performance fairly, in line with efforts, skills and competencies To attract and retain competitive high performing employees To motivate the high performing employees and reinforce desirable employee behaviour To remain competitive in the labor market 5. 6. 7. To align employees’ future performance with organizational goals To communicate the employees their worth to the organization To provide employee social status • Strategic compensation – Using the compensation plan to support the company’s strategic aims. – Focuses employees’ attention on the values of winning, execution, and speed, and on being better, faster, and more competitive.. • IBM Strategic Compensation Planning • Strategic Compensation Planning – Links the compensation of employees to the mission, objectives, philosophies, and culture of the organization. – Serves to identify the net monetary payments made to employees with specific functions of the HR program in establishing a pay-forperformance standard. – Seeks to motivate employees through compensation. Compensation Policy Issues • • • • • • • • Pay for performance Pay for seniority Salary increases and promotions Overtime and shift pay Probationary pay Paid and unpaid leaves...
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... Figure 16-1. Risk levels for contract types. Each of the contract types has risk attached to it. As we go through these contract types, you need to learn who assumes the most risk, the buyer or the seller. Fixed price/lump-sum contracts In this type of contract, the seller assumes the greatest risk because the price is set. This means that the seller must comply with the contract and provide the service/product for a specific price. If the time it takes to deliver the service/product expands, the seller cannot charge for the extra time. The same would be true if extra materials were needed to deliver the service/product. If this occurs, the seller cannot charge for the extra materials because the price for the contract is already fixed. Incentives can be used with a fixed price contract based on meeting project deliverables or exceeding them. These deliverables could include schedules and costs as two of the measurements for incentives. In addition, some economic adjustment such as cost-of-living increases could be written into a fixed price contract. Cost-reimbursable contracts These contracts involve paying for the actual costs that the seller incurs plus an agreed upon fee that will represent the profit for the seller. For the most part, the buyer is buying direct costs, costs that are incurred because the project is being done. Indirect costs are often called either overhead or general and administrative costs. These...
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