March 4th Class Reflection

In this class we discussed incentive pay and how it can be used. There are three different options to base the pay: individual performance, group performance, and company performance. There are certain requirements that effective incentive pay plans should follow:

1. Measures are limited to the organizational goals
2. Employee's believe they can meet performance standards
3. Organization gives employee the resources they need to meet their goals
4. Employee value the reward given
5. Employee believe the reward system in fair
6. Pay Plan takes into account that employees may ignore any goals that are not rewarded