Human Resource Management Topic Pay For Performance And Employee Benefits.pdf

Is there another incentive plan you think would work better for the pressers?. Is there another incentive plan you think would work better for thepressers?. Payment differences according

HUMAN RESOURCE MANAGEMENT

TOPIC

PAY FOR PERFORMANCE AND EMPLOYEE BENEFITS

Subject : Human Resources Management

Instructors : Mrs Đào Thị Ngọc Mai

JOB ASSIGNMENT SHEET

2 Đinh Hồng Ngọc Title page, introduction, 4.1.1, 4.1.2 ,4.4,

4.5,4.7, 4.8

100%

3 Lê Thị Thanh Ngọc Làm báo cáo, ppt, hình ảnh, 4.1.1, 4.1.2 100%

4 Đỗ Thị Ái Quỳnh Làm báo cáo, 4.1.1, 4.1.2, 4.2, 4.3, 4.6 100%

Pay-for-performance compensation can come in many varieties depending

on your organization’s budget, compensation philosophy, and organizational goals.When designing a pay-for-performance plan, you’ll want to consider the outcomesyour organization is looking to achieve, the frequency with which you’ll rewardemployees, and the total increase you’ll be budgeting to fund these programs Thereare two general categories of pay-for-performance compensation: merit payincreases and variable pay programs As you look to implement a pay-for-performance program in your organization, you can use either of these two types ofpay-for-performance plans – or both – to incentivize employee performance anddrive your desired outcomes

THANK YOU TO THE LECTURER

Report on Human Resource Management made by group 7 Member fromFaculty of Finance and Banking, Hoa Sen University in October 2022.

Thank you for a wonderful semester I appreciated your caring dispositionand teaching style As a sophomore, I had the opportunity to learn from excellentand dedicated instructors Thank you for incorporating humor and evenperformances Thank you for leading our discussion section This class waschallenging at times but there was value in being exposed to the material Thankyou for your efforts in grading communication and individual feedback

Thanks a lot!

TEACHER’S COMMENTS

TABLE OF CONTENTS

TEACHER’S COMMENTS 5

INTRODUCTION 7

4.1 CASE STUDY 8

4.1.1 Case summary 8

11-22 Is there another incentive plan you think would work better for the pressers? Describe it 8

1 Individual Employee Incentive Plans 14

3 Hybrid Incentive Plans 15

There are many methods of calculating salary for employees in the world Inparticular, the 3P salary system is considered to be the most fully developed andwidely applied The 3P salary system is a salary payment method applied in modernenterprises, aiming to create a salary suitable to the working capacity of employees

In which, the amount of salary that the employee receives in the month will beequal to the sum of the individual factors The 3 factors are: Salary Job Location,Personal salary, Performance salary

By paying salaries according to individual performance, businesses can also exploitthe capacity of employees If in the past, employees often thought that they onlyneeded to ensure the ability to fully complete the assigned work, then with thepolicy of paying more for good people and effective workers, employees willautomatically have goals goals and motivation at work

At the same time, by evaluating performance on the basis of commonachievements, enterprises have created a connection between individuals and thecollective results, thereby easily building and implementing a commondevelopment strategy

4 MAIN CONTENTS

4.1 CASE STUDY

4.1.1 Case summary

Carter Cleaning Company

Jack Carter has questioned himself whether hour payment is a good idea His basicpolicy has been to pay employees an hourly wage, except that his managers doreceive an end-of-year bonus depending, as Jack puts it, “on whether their stores dowell or not that year.”

Initially the employee could drop 12 to 15 pieces when he got paid 8$/h When thechange is deployed, he progresses 25 to 35 pieces per hour and earns 0.33$ per item

he cleans On the whole, the experiment worked well The sales and employee'swork efficiency increase as payment methods shift from hourly wage toperformance payment

However, The quality of Walt’s work has dipped a bit, plus his manager has tospend a minute or two each hour counting the number of pieces Walt pressed thathour

Questions

11-20 Should this plan be extended to pressers in the other stores?

11-21 Should other employees (cleaner/spotters, counter people) be put on a

similar plan? Why or why not? If so, how, exactly?

11-22 Is there another incentive plan you think would work better for the

pressers? Describe it.

11-23 A store manager’s job is to keep total wages to no more than 30% of sales

and to maintain the fuel bill and the supply bill at about 9% of sales each Managers can also directly affect sales by ensuring courteous customer service and

by ensuring that the work is done properly What suggestions would you make to Jennifer and her father for an incentive plan for store managers?

4.1.2 Case solutions

11-20 Should this plan be extended to pressers in the other stores?

For me, I think this plan shouldn’t be extended to pressers in the other stores.Because, Walt can generally press 25-30 pieces per hour, with the small increase inpay, and he generally earns his target wage but the quality of Walt’s work hasdipped a bit, made his manager has to spend time counting how much pieces Waltpressed that hour

11-21 Should other employees (cleaner/spotters, counter people) be put on asimilar plan? Why or why not? If so, how, exactly?

I think this plan only applies to a few positions in the company There are manyreasons to apply this plan to employees and other stores because it will bringbenefits such as work efficiency, profit for the company When these plans areapplied to the company, other employees will work diligently, with purpose, andthus they will do better However, they should make sure they wash their clothesproperly As is the case with Walt, he can press more than 25 shirts per hour, but thequality has dropped from before That would be good for him for making a littlemore money, but it would also greatly reduce customer satisfaction In the long run,the company's revenue will decrease Instead of using a plan like Jack Carter, it

makes more sense to use a customer satisfaction method that makes more sense forthe company This both motivates employees to work better and customers will alsofeel more satisfied with the store's laundry service.

11-22 Is there another incentive plan you think would work better for the pressers?Describe it

Combination plans

This type of plan includes all variations of salary plus other monetary incentiveplans The variations include base salary plus commission on all sales, salary plusbonus On sales over quota, salary plus commission plus bonus, and so on

A combination plan design benefits your top performing employees Your businesscan leverage a combination plan to establish additional retirement allocation for topperformers & key employees This allows for many variations of incentives thathelp you find and retain top employment talent

Merit pay

Merit pay is the type of compensation a company uses to reward higher-performingemployees with ongoing additional pay Merit pay is sometimes called incentivepay or pay-for-performance, and it involves giving employees base pay increases orbonuses based on their performance

11-23 A store manager’s job is to keep total wages to no more than 30% of salesand to maintain the fuel bill and the supply bill at about 9% of sales each Managerscan also directly affect sales by ensuring courteous customer service and byensuring that the work is done properly What suggestions would you make toJennifer and her father for an incentive plan for store managers?

Jennifer and her father should definitely consider implementing an incentive plan Ithink the Carter Cleaning Company should look into introducing bonuses of sortswhether that be annual bonuses, monthly bonuses, etc I think by introducing this itwould allow the employees to have something to work for and I think it wouldincrease the overall quality of their work and their work environment

Payment differences according to type of clothes (merit pay)

bonus for the most efficient store(s)

Profit-sharing , gainsharing, performance plans, annual bonus

Allowing more free time when targets are met

4.2 What is an incentive plan?

Incentive plans are a type of employee compensation structure that uses certain

rewards to motivate team members to work harder and achieve specific goals.

This type of compensation goes beyond the paycheck and benefits that allemployees should receive for the hours they work

Examples of incentive pay include: Cash, including commission, year-end

bonuses, sign-on bonuses, and performance bonuses Shares or company stock options.

4.3 How do employee incentive plans work?

Incentive plans are a type of employee compensation structure that uses certain

rewards to motivate team members to work harder and achieve specific goals.

This type of compensation goes beyond the paycheck and benefits that allemployees should receive for the hours they work.

Business and organization leaders often will use incentive plans as a way to bolstersales and keep employees motivated The aim is to strategically leverage incentives

to drive specific outcomes and align employee actions with your organization’sgoals

To instill an employee incentive plan, you’re going to need your team members onboard, pick incentives they’ll actually work hard for, and make sure that everyone’s

on the same page regarding organizational objectives

4.4 What are the benefits of employee incentive plans?

Here are how incentive plans benefit your company:

Increased employee motivation and productivity With concrete targets,

employees can better focus on the tasks that support these efforts And, withincentives and prizes to motivate them, employees will work even harder to achievethose goals

Increased employee retention rates Fun prizes and rewards can create a

more engaging atmosphere for employees, motivating them to continueadding value to your organization for the long run

Set goals to guide overall progress An incentive compensation plan can not

only keep your employees on track but also better align your overallorganizational progress with your specific strategic goals

Here are how incentive plans benefit employees:

Fun rewards for meeting certain targets Who wouldn’t love getting an

extra PTO day or a GrubHub gift card for accomplishing a task?

Healthy sense of competition and teamwork By nature, incentivecompensation plans will motivate employees to work harder on theirindividual tasks But it can also inspire them to work together, especially ifyour goals involve multiple roles collaborating

Bigger investment in organization success Because employees are

working towards specific goals and are being rewarded for them, they have abigger stake in your organization’s long-term success

The benefits that you reap will likely depend on the type of plan you implement andhow successful it is Usually, incentive plans are pretty flexible and can be adapted

to your unique organizational structure However, they’ll likely fall into twocategories: Individual and Team-based incentive plans

4.5 The Difference Between Individual vs Team-Based Incentive Plans

When creating an incentive compensation plan, organization leaders need to first

consider if their work environment better supports an individual or team-based program There are advantages and disadvantages to both

Depending on the mix of industry and position types, certain organizations thrive

on one form of incentive over another Let’s discuss the advantages anddisadvantages of both individual and team-based incentives

1 Individual Employee Incentive Plans

Individual employee incentive plans are compensation programs that focus on targets and rewards for just one team member.

An advantage of an individual incentive program is the recognition it givesindividuals for their efforts This type of recognition not only motivates the topperformer to keep up the good work up but also can motivate others

By storytelling how top performers achieve their goals, other team members haveinspiration as to how they too can become stronger contributors

However, individual incentives also have their fair share of problems For starters,

an overly competitive environment can be created Workers may even be pushed tocross boundaries and make questionable ethical decisions to reach goals, whichdefinitely should not be encouraged by your compensation strategy

2 Team-Based (Group) Incentive Plans

Team-based or group incentive plans are similar to individual ones except the rewards are for groups of employees and are based on group or organizational performance

An advantage to group incentives is positive peer pressure One article mentionsthat employees are often motivated by the fear of letting down their team members.While each team member brings their own unique skillset and experience, thesedifferences also can balance a team and motivate everyone to do their best in theirassigned roles.

In a best-case scenario, group incentives can empower employees to workharmoniously In the worst-case scenario, the exact opposite could happen For example, possible infighting with unmotivated or outright defiant employeescan result in a hostile work environment Low-performing employees then feeloverwhelmed with pressure to perform at levels that they are not ready for

3 Hybrid Incentive Plans

To curb the possible challenges from either individual or group incentive plans,some leaders lean toward a hybrid plan This type of plan includes an overall groupincentive as well as individual incentives for top performers

This allows employees who individually go above and beyond to be rewarded while simultaneously recognizing group efforts and values

The hybrid approach also gives other employees an opportunity to gain somerecognition for their efforts for the whole collective This lowers the chances of anoverly competitive environment developing Careful monitoring and transparentreporting also can ease possible negative competition and dishonesty in order toachieve goals

Astrology® asked Michael Maciekowich, Astron Solutions’ National Director, for his

take on the difference between the two types of plans Mike shares with us that:

The difference between individual and team-based incentives relates to defining theoutcomes and ensuring there is a clear ‘line of sight’ regarding controlling theachievement of those outcomes

Individual incentives focus on each employee in his/her efforts to meet job-relatedoutcomes and/or special projects Individual incentives tend to use goals that followthe SMART acronym (Specific, Measurable, Achievable, Realistic, and Time-Bound) Success in achieving team-based goals is dependent upon accuratelydefining the team that will be included in the plan, such as a unit, department, ororganization

In this case, the focus is on defining outcomes that require collective efforts toachieve Rewards are often shared equally among the team members The mostsuccessful hybrid plans are those that are established as a team-based plan withoutcomes requiring collective efforts, and with the distribution of awards based onindividual performance in contributing to that collective effort

4.6 Advantages and disadvantages of incentives

ADVANTAGES

Healthy competition ( Bonus would lead to a more progressive and competitiveworking environment Employee incentives simply take advantage of the humandesire to “win.”)

Clearly defined goals (It can improve the work-flow and work methods.)

employee retention( Incentive plans make employees hardworking and innovative.)When employees are dedicated, supervision costs can be reduced

DISADVANTAGES

Quality of work may suffer ( For enhanced incentives, they may sacrifice quality.)Inter-personnel relationships may suffer (Incentive plans can lead to disputesamong workers since some earn more than others.)