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by Umaima Masood4 views·Updated Nov 21, 2020
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  1. Hello, everyone.
  2. So I will be talking about pay for performance schemes.
  3. These air basically rewards given to employees on the basis
  4. off their individual or collective performance, and are given in
  5. addition to salary.
  6. These awards for incentives are therefore based on past performance.
  7. On are given in order to reinforce and enhance future
  8. performance off the employees.
  9. So basically there three types of pay for performance schemes.
  10. The first type is individual performance plans.
  11. Um, as the name indicates, these individual performance plans reward
  12. employees based on their own individual performance.
  13. The first category off individual performance plans are merit raises
  14. or increments, so merit raises are basically humiliated traditions to
  15. base pay depending on performance, resulting in increasing base pay.
  16. So in this, the basic salary off employees permanently increases
  17. on the instrument is dependent on the performance off deploys.
  18. It's advantage is that it reduces the risk off employer
  19. receiving no return on pain trees.
  20. So since then, Clement is dependent on performance.
  21. Employees feel more motivated to improve the performance even further
  22. in future toe earn This morning's on their improved performance
  23. increases return for the employer, so the employer also gets
  24. benefit off.
  25. It Moreover, since the addition toe base pay is permanent,
  26. it can increase attraction and retention of stuff.
  27. This way.
  28. However, married Implements also has his drawbacks.
  29. The first is that employees may fail to see clear
  30. line of sight between performance and the outcomes on.
  31. Also, since the increments is permanent, it can cause employees
  32. to feel more relaxed on reduced the productivity.
  33. In this case, then the implement would become a financial
  34. burden for the company on occur and can compromise cost
  35. effectiveness off the pay system as well.
  36. Moreover, married implements emphasize individual is, um, instead of collectivism.
  37. So in countries, start promote a collectivist culture.
  38. Um, such as South Asian countries and Latin America.
  39. There are married Married implements might not work.
  40. The next type of individual performance plans we have our
  41. merit bonuses in this payments are conditional rather than cumulative
  42. on does not permanently become part of basically, so employees
  43. have toe earn their bonus every year based on their
  44. performance form married bonuses.
  45. Um, its advantages that it motivates employees to perform good
  46. every year so that they can earn this bonus also
  47. every year.
  48. However, such promises are risky because there's no guarantee that
  49. you will get them on may not be compatible for
  50. cultures with high uncertainty wardens such as Latin America, Japan,
  51. in Eastern Europe.
  52. So in such confuse things might not work.
  53. The next type of individual performance plans are discretionary bonuses.
  54. Um, these are lump sum awards given to employees for
  55. their outstanding performance.
  56. Made a description of supervisor or senior management.
  57. So in this no formal press formal performance, appraise it
  58. is done on senior managers gives rewards based on their
  59. own judgment off who performed better.
  60. Um, its advantages that it communicates.
  61. The importance of good performance on indicates how much the
  62. company values good performance.
  63. However, absence off former performance assessment may make award allocation
  64. seem very arbitrary on it can backfire as well.
  65. If the employees feel that the rewards are being given
  66. for unjust reasons or for reasons other than their performance,
  67. this can then create hostility between going, says Well, so
  68. that is, it's drawback.
  69. The next type of individual performance plan is known.
  70. Cash recognition awards.
  71. Um, he's air basically non monetary benefits given based on
  72. performance. However, they can also be given toe all employees
  73. irrespective off the performance.
  74. Its advantages that they're usually less expensive and hold great
  75. intrinsic value.
  76. However, these might not be enough by themselves to motivate
  77. employees and may need to be paired with other monetary
  78. benefits, Um, so that they can sufficiently motivated improve their
  79. performance. Next, I will talk about the different types of
  80. rewards that recovered in individual performance plans.
  81. The first are piece rates.
  82. Eso. They're basically pretty straightforward in this.
  83. Your income depends on how much output to produce per
  84. day on are rewarded for each piece.
  85. Produce these air usually used in labor intensive manufacturing jobs.
  86. Um, they're not much what, mostly issues nowadays, our sales
  87. commission on dubious bonuses.
  88. So in Sales commission, it basically mostly is used for
  89. in retailing sectors, such as consumer retailing insurance on real
  90. estate. They're simple to set and measure, but can also
  91. encourage aggressive.
  92. I am deceptive selling practices on the reasons that since
  93. the competition between sales workers is increased so much they
  94. might they might have to resort to deceptive practices in
  95. orderto earn their sales commission.
  96. Ah nde last was not the least.
  97. There is school based bonuses also that discovered in individual
  98. performance plans.
  99. Basically, these bonuses are linked directly toe.
  100. Individual goals on their, therefore, can be used for any
  101. rule. However, if the goals are too easy or too
  102. tough for the employees, these gold based bonuses might not
  103. be able to motivate aunts and incentivize employees enoughto work
  104. harder and say they and so they would be in
  105. effect If, um so these are all the individual performance
  106. plans now?
  107. Um, now we continue the presentation and talk about collective