Personeel Management chapter 10 disscusion questions
Fabricio Morales
Michael Starr
Personnel Management
October - November, 2013
Discussion question Chapter 11
1; working individually or in groups, identify the factors for a successful incentive plan.
For an incentive plan to succeed, employees must have some desire for the plan. This desire can be influenced in part by how successful management is in introducing plan and convincing employees of its benefits. Encouraging employees to participate in developing and administering the plan is likely to increase their willingness accept it.
Compensation specialists also note the following as characteristics of a successful incentive plan:
Financial incentives are linked to valued behavior, the incentive program seems fair to employees, productivity/quality standards are challenging but achievable, and payout formulas are simple and understandable.
2; Contrast the differences between straight piecework, differential piece rate, and standard hour plans. Explain where each plan might best be used.
Straight 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.
Computing price rate: Although time standards establish the time required to perform a given amount of work, they do not by themselves determine what the incentive rate should be. The incentive rates must be based on hourly wage rates that would otherwise be paid for the type of work being performed. (Minutes per hour)
Michael Starr
Personnel Management
October - November, 2013
Discussion question Chapter 11
1; working individually or in groups, identify the factors for a successful incentive plan.
For an incentive plan to succeed, employees must have some desire for the plan. This desire can be influenced in part by how successful management is in introducing plan and convincing employees of its benefits. Encouraging employees to participate in developing and administering the plan is likely to increase their willingness accept it.
Compensation specialists also note the following as characteristics of a successful incentive plan:
Financial incentives are linked to valued behavior, the incentive program seems fair to employees, productivity/quality standards are challenging but achievable, and payout formulas are simple and understandable.
2; Contrast the differences between straight piecework, differential piece rate, and standard hour plans. Explain where each plan might best be used.
Straight 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.
Computing price rate: Although time standards establish the time required to perform a given amount of work, they do not by themselves determine what the incentive rate should be. The incentive rates must be based on hourly wage rates that would otherwise be paid for the type of work being performed. (Minutes per hour)