National Semiconductor 's Hybrid Incentive Plan

1168 Words Sep 18th, 2014 5 Pages
National Semiconductor’s Hybrid Incentive Plan

Overview
National Seminconductor saw an issue with the current incentive structure in the organization and they set out to redesign a new incentive structure. The new incentive would be aligned with the strategic business plan. They would organize a company-wide task force that would be inclusive of all levels of the business and all job grades creating a vast array of experience from all levels within the company to create a “fair” incentive plan. The task force subcommittees would have a specific area to research and would include benchmarking, communication, fit and integration, assessment of readiness for incentive plan, and incentive plan design. In the goal setting phase the task force came up with three levels of goal difficulties to include baseline goals (80% success rate), challenging goals (50% success rate), and stretch goals (20% success rate). They tied these goals to both financial and operational goals. They would disburse these rewards using the equal dollar payout as they felt it was more geared to the team goal incentive system and favored the lower pay grades within the company. They would receive 2 – 5% of the total business unit’s payroll for challenging goals and 4-10% could be expected for stretch goals.

Question 1 The task force itself may have had competing goals. Where might this have happened?
I think that allowing the task force to create the incentive plan structure as well as the goal structure…

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