Coordination And Control Incentives

PHT has a very competitive performance measurement and incentive system. They make sure their employees are well compensated for their hard work and dedication to the company. PHT has a performance and incentive program that is based on the CSI an ESI. Even though, not well defined, employees who perform well based on the CSI and ESI are entitled to semi-monthly and monthly bonuses. All of the bonuses offered are formula based, for example, the sales representative and the assistant

Weyerhaeuser uses a pay for performance system and utilizes a performance management process (PMP) to evaluate employee’s annual performance and that performance rating is used in calculating the individual’s merit pay increase. Over the years, Weyerhaeuser’s pay for performance compensation strategy has undergone several changes and improvements. The company utilizes merit increases where an individual’s yearly increase is based on how well they have performed against objectives. Performance management is directly tied to compensation in a pay for performance system and is based on how well an individual performs during the year against specific, measurable goals is tied to how much they will receive in a merit pay system. According to Milkovich, Newman and Gerhart (2014, p. 337), ‘a merit pay system links increases in base pay (called merit increases) to how highly employees are rated on a performance evaluation.” How well your merit pay system works and is seen by the employees as effective, fair, and a tool to increase motivation and retention is based on how well performance is actually measured and the ability to quantify performance. Though there are challenges with the merit pay system, Heathfield (n.d., par. 9) shares, “even with the limitations that exist in the awarding of merit pay, merit pay is your best opportunity to ensure that your outstanding performers remain with your company and continue to make their

In today’s current market, according to the salary structure survey performed by WorldAtWork and Deloitte Consulting LLP (October 2012), the

Championing a cause is a beautiful way for ordinary citizens to be involved in political activism. The modern party activist is more likely to be driven by purposive incentives than ever. This switch away from material and social incentives, driven by an increased awareness of social issues, has allowed party lines to blur in a way that has improved America's political sphere, and has allowed the increased participation of citizens in the democratic process.

Pay and reward systems exist in the form of pay, bonuses and benefits, financial and non-financial and designed to improve performance, increase motivation, staff retention and increase profitability. Appreciation and gratitude is widely received as reward and the opportunity for training and development for career progression.

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

To foster competitiveness and deliver better results, there is a program called STACK where employees are ranked based on the work done and their incentive is decided based on it. Better the rank, better the incentives.

The PDP was designed in such a way that allows the graduates to learn each unit of the Supervalu business. As an individual this looks promising because the graduate will get exposure to multiply departments in which will help shape them into a well-rounded person. The PDP is designed for a two year rotation that crosses three businesses units in the company. The idea of the rotation is to help the upcoming employee and the company because it develops skills related to all the three areas of the business and will help the overall business to grow. An area that may need changing is the requirement for the graduate because currently the standard is a 4 year degree with a minimum GPA of 3. A proposed idea is to not isolate to that one requirement rather look at the graduate holistically. If the company wants to diversify their workforce they should consider other criteria’s like major accomplishments, projects, or involvement with the school. Also another recommendation is to give the chance for existing employees to grow in the company. A way that this could be accomplished is by having both the managers and employees nominate the names of potential people to be a part of PDP. A way to drive this program internally is to create an incentive for the employees because it will help motivate them to

The six features of an effective total rewards program include: focusing on alignment, taking the employees views into account, measuring / managing costs, the greater use of incentive based pay, having effective communication / education and managing the reward program. The combination of these factors is helping firms to more efficiently monitor the sales force.

The major difference is that an incentive system enforces rewards for personal gains to achieve a goal, while a command and control system enforces standards such as laws and regulations to achieve a goal. With that being said, I strongly believe that the command and control system is not only superior, but a more secure way to regulate the financial industry as well. As a matter of fact, an instability of an incentive system is that it can encourage greed causing contentious behaviors among employees complaints about unfair pay distribution or overwork and stress. Inside Job clearly catches some of the anti-banker mood, and the public is quite right to be outraged at how banks refinanced at the taxpayers' expense are paying outsized bonuses.

Pay for performance systems have further been proven to have two advantages for organizations: attracting more high-quality employees and motivating employees to exert more effort at their jobs. (Gordon, Kaswin) This paper will show the positive benefits of performance pay as

O’Neil (1998) suggests six minimal criteria for the design of a performance based pay system. The first of these criteria is that the reward system should be self-funding, that is, the performance increases should as a minimum offset the cost of the rewards provided. The second criterion is that the distribution of the rewards must be consistent, fair and justifiable. In addition reward plans must be transparent and clearly communicated. The third criterion

When leaders talk about performance, we look at our business environment. How do we enhance the performance process use to strengthen our high performance workforce? This positive impact is created by employee engagement or empowerment. These types of leadership engage

Through bureaucracy bashing, the company focused on removing work that added little value to customer satisfaction. This was accomplished through establishment of the Putting People First (PPF) program that also resulted in employee empowerment as the program was aimed to benefit employees as individuals first leading to a feeling of respect and belief they were part of the change moving forward. The focus on continuous improvement included creative financing, marketing, and a movement towards privatization and globalization. Lastly, addressing organizational cultural was one of BA’s biggest challenges in re-energizing through change.

Although research generally confirms that pay-for-performance plans can influence greater outcomes, it is unclear how effective different pay plans are relative to each other (Park, 2012). Like most things in business, compensation is something that requires evaluation, study, assessment, strategy, modeling and integration.  Achieving a pay for performance culture does not happen without paying attention to the behaviors, activities, rewards and motivations that have to be linked and reinforced through a well engineered and successfully executed process.  Actually if that process does not tie rewards to shareholder financial objectives, employ the proper mix of compensation elements, result in meaningful dollars, embrace performance that employees can impact and are effectively communicated and reinforced, then the results it produces will likely fall short (Vision Link Advisory Group, 2013).