Incentive-Pay-Plans薪酬激勵計劃課件

1、Incentive Pay SystemsIncentive Incentive Pay PlansDesigned to relate pay directly to performance.Incentive pay plans strengthen performancereward relationship: Motivate employees.Advantage: Not permanent; must be earned each yearIncentive Pay PlansDesigned toIncentive Pay PlansMost programs tie pay

2、directly to profitability.Incentives can be rewarded several times per year: Creates more direct link with pay & performance.Incentive Pay PlansMost prograRequirements of Incentive PlansIf incentives are based on Performance, employees must believe performance is accurately and fairly Evaluated.Key

3、Issue in performance measurement: Trust in Management.Requirements of Incentive PlanIndividual IncentivesTied to Individual Performance.Advantage: Employees can see relationship between what they do and what they get. Drawback: Competition among employees. Individual IncentivesTied to IPiece Rate Pl

4、ansSimplest & most common type of incentive.Employee paid set amount for every unit produced.Differential Piece Rate plan (Frederick W. Taylor): Pays one rate for all acceptable units up to standard and higher rate for all pieces produced if output exceeds standard.Piece Rate PlansSimplest & mosPlan

5、s Based on Time Saved Standard Hour Plans:Based on time saved; give employee bonus for reaching production level in less than standard time.Plans Based on Time Saved StPlans Based on CommissionsRewards employees based on their sales volume:Straight Commission Combination of Salary plus CommissionAdv

6、antages?Disadvantages?Plans Based on CommissionsRewaIndividual BonusesMerit Pay Increase: Reward based on performance but also perpetuated year after year.Bonus: Reward offered on a one-time basis for high performance.Advantage?Potential Drawbacks?Individual BonusesMerit Pay InSuggestion SystemsOffe

7、r cash incentives for employee suggestions that result in either increased profits or reduced costs or improved customer relations.CommunicationProceduresSuggestion SystemsOffer cash iIncentives for Managerial PersonnelAnnual BonusesLong-Term Performance PlanningStock OptionsIncentives for Manageria

8、l PersAnnual BonusUsually based on Organizational/Group performance: Profits.Annual Cash Bonus: Most commonAnnual BonusUsually based on OLong-Term Performance PlansManagerial incentives based on attainment of certain long-term corporate financial performance goals:Opposed to more common annual bonus

9、 plans.Share plans or unit plans:How do these work?Long-Term Performance PlansManStock Options for Managerial PersonnelHow do Stock Options work?What does it mean to be “underwater”?What is the intent behind stock options?Potential Drawbacks?Phantom Stock Plans: Protects holder if value of stock bei

10、ng held decreases.Stock Options for Managerial PRestricted Stock PlansGives stock shares, subject to certain restrictions, to participating managers.Major restriction of most plans?Advantage of restricted plans?Restricted Stock PlansGives stStock OptionsPremium-Priced Options: Exercise price of opti

11、on set significantly above current market price. Advantage?Performance-Vesting (Price-vesting) Options:Set at market price, but only exercisable if stock price reaches/exceeds price goal in defined periodStock OptionsPremium-Priced OpStatus of Executive PayTrend toward special types of equity grants

12、 relating executive rewards to actual company performance, including:Premium-priced, performance-vested optionsRestricted stock plansStatus of Executive PayTrend tGroup IncentivesBest where jobs are interdependent.Encourages employees to exert peer pressure on group members to perform better.Drawbac

13、ks?Group IncentivesBest where jobSelf-Directed/Self-Managed Work TeamsWhat is team responsible for?Intent? Self-Directed/Self-Managed WorOrganization-wide IncentivesReward all members of organization based on performance of the entire organization.Lincoln Electric plan:Year-end bonus fund for employ

14、ees based on co. profitsEncourages employees to unite with management to reduce costs and increase production. Organization-wide IncentivesReOrganization-Wide IncentivesCommon organization-wide incentive plans:Gain-Sharing plansScanlon-type plansEmployee Stock Ownership Plans (ESOPs)Organization-Wide IncentivesCoVariable PayLinking a percentage of employee pay to certain performance accomplishmentsMakes a percentage of potential total pay dependent on performance.Benefits?Variable PayLinking a percentaMaking Incentive Plans Wor