Performance Based Bonus System ( Pbbs )

A Performance-Based Pay system is an increasingly popular compensation method used by organizations to increase productivity. A goal for all companies is to try and remain competitive and control costs, this is a reason for performance-based pay systems becoming more popular. This type of system attempts to link compensation to performance. (Gena Richter, 2002) These systems are directly tied to organization or individual performance and are most effective when based on objective measures of quantity or quality of performance. If we wish to have a direct impact on work motivation, it must be linked directly to the performance of desired behaviors. In order for to put this type of system into place, performance evaluations must be conducted regularly , as well as training and development for those with performance that isn't quite up to par. These additional resources will be necessary for our organization if we implement a performance based pay system. (William B. Bernathy, Ph. D., 2004)

This program the most struggle in the Personnel Cost and Allocation area because two items, Benefits and Staffing Patterns and Scheduling, in this area have lowest scores and third item achieved just a middle score. These very poor results in this area can dramatically reflect on quality of program. Therefore, the program provides some benefits such as 6 paid sick/personal days per year and receives 5 or more paid vacation days during their first year of employment, the number of vacation days not increase with increasing years of employment. The program not provides vital benefits such as cover even portion of the cost for health insurance even for full-time staff and

One reason, was it took an entire year to receive feedback from management on their competency and how effective they were on the job. An employee whose an over achiever and always manages to go above average, would be looking for only positive evaluation assessments after a year. When informed of negative responses or areas of improvement, this leaves an employee in surprise and confused. Also, the employees were not provided any feedback/ recommendations as it related to their performance. Someone who’s a top performer rely on feedback and constructive criticism to help them stay on top.

To better represent the amount of work a manager is doing instead of a franchisee, a bonus system is definitely needed. However, we would recommend Bachand to modify the bonus system, to better motivate and direct the managers towards the overall objective of PK.

Imagine a scenario where all the workers don't have a target , we might end up with a failure because some of the workers might start shirking because the owner didn't set them a target so maybe after 2 product created they will start shirking on the job.If we think about it, let us assume that if you are a student and you don't have a target you might just end up with a D, but if you set a target such as a 1st you will do your best to achieve it. However if you don't achieve the maximum grades you might still end up with a 2;1 which is still good. Solution- the owner has to set a target to the employees and maybe also do it as a sort of competition. Perhaps some owners might set a target which might seem impossible to achieve, but if the owner is rational and think that he has to set a target that will not discourage the workers it will increase the willingness to compete with their time and beat the time. Also maybe to increase the expectations of good performance, as I said previously make it a competition. For example the first 3 worker that go beyond the target will receive a reward, this will definitely increase their performance and incentive them not to shirk. However, this solution might still have disadvantages because they might end up with conflict with each other.

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

KYCRB could tie its current reward system to a performance management system after they creating one in place. The rewards given are tangible and intangible returns that are benefiting and satisfying their employees for example cash compensation. However, the new performance management system will let employees be aware of their performance in the organization and allow them to gain more rewards such a recognition and status, employment and security and learning opportunities for their active and dedicated performance. Nevertheless, with the performance system being fair presents perception of distributive Justice so workers are rewarded base on work. It will increase motivation to perform within the organization. If the environment is a

As stated by Peter F. Drucker, “Management is about human beings. Its task is to make people capable of joint performance, to make their strengths effective and their weaknesses irrelevant.” Performance management is essential to achieving an organization 's mission statement and business goals, and also in attracting, retaining, and motivating qualified employees. There are many benefits and reasons why an organization should execute a performance management system. Performance appraisals establish the basis for qualifying, recognizing, and rewarding employee contributions. In this paper, I will discuss what performance management is, the problems with the current performance management system at my organization, how other organizations have succeeded in their performance management system and how I would advise management at my current organization to improve our performance management system.

Performance management is one of the most important activities of HR. It is not enough to simply go through the business as usual and much disliked annual exercise of assessing performance and driving rewards based on a performance assessment. The information system will be drive and modifies goals as needed, assesses performance against goals, and provides instant feedback which will give them an indication of their strength and weaknesses thus focusing on skill development and motivate employees to stay with the organisation. However this may lead to Substitution of individual judgments and Challenge the nature of an organisation and the role of management

Employees require motivation, reward and encouragement for maximum productivity. Punishment to workers not performing is also mandatory to prevent cases of poor performance. Ethical considerations must be looked at and employees must follow rules and company policies for plans made by management to be successful. Workers and management relate like a family and this has enabled the company perform to its expectation. These plans are aimed at ensuring total customer satisfaction and delight.

The purpose of this document is to establish and institute policies, procedures, and guidelines, delegate authorities and assign responsibilities regarding Tester Widget Inc. performance management. Tester Widget Inc. utilizes the pay-for-performance program. The pay-for-performance program, otherwise known as a pay pool, is one of the latest programs used to find out how to increase workforce motivation, job satisfaction, and production (Ibironke, Adeo, & Hungbo, 2011 413-417). The focus of this program is for managers to motivate the mid-level workforce, increase job satisfaction and productivity (Heinrich, 2007).

A central reason for the utilization of performance appraisal Pas is performance improvement (initially at the level of an individual employee, and ultimately at the level of an organization. Other fundamental reasons include as a basis for employment decisions eg promotion, terminations, transfers, as certain criteria is reached to aid expectations and to establish personal objectives for training programs, transmission of objectives feedback for personal development. As a mean of documentation to aid in keeping track of decisions and legal requirements named in wage and other fringe benefits administration. And is used for formulation of job criteria and selection of individual who is best in performing organization tasks.

Instead of jumping to different achievement goals as problems arise, the visions and beliefs should have been determined first and that would help shape the overall goal of the company. While working towards goals such as profitability and growth, the visions and beliefs help keep employees in line and to some extent control the minimum expectations of the development of products, thus possibly lessen or avoid problems that did arise. The incentive scheme were not properly designed to take into account effects of employee actions and the impact it would have on the company as a whole and other stakeholders. It should some what reflect and reiterate these visions instead of promoting and motivating employees to be self interested in their own affairs and achieving the targets at “all costs”. All in all, there were minimal controls and checks in place, it was more of a one way push towards the goals and not looking back

Keeping employees motivated in addition to creating incentives and/or additional ways for employees to receive more compensation will create better performance overall within an organization. Contrary if company B gives their employees incentives to perform, without any motivational tactics they probably will not have as many top performances as company A, in addition the company may only seek short term rewards verses have long term success. Lack of motivation for employees within an organization, can cause long term damage for the company’s success. Different things motivate everyone; therefore there should be a system in place to keep employees motivated for the long term success of the company. In the MBM textbook under the concept of incentives, compensation, and motivation, there are a couple of different views of how it should be applied within an organization. We will discuss The Social Role of Profit, Personal Profit and Losses, and the way Market-Based Management view how incentives, compensation, and motivation should be applied and the things that effectively drive employees’ actions while at work.

An incentive pay program can reward employees who continue to produce superior work or encourage employees who already produce good work to best. Sometimes, use an incentive system when employees are lack of enthusiasm of getting down to work and improving things. If everyone in the same job classification gets the same pay, there is no real incentive to do an outstanding job (French, 1990). Various incentive plans used to motivate all employees such as production staff, sales staff, administrative staff and managerial and professional staff on an individual basis. To be improved employee work performance, the incentive pay programs need to be fairly matched with the employees’ expectation. Properly designed and maintained incentive pay program has the potential to increase employees’ productivity and work performance.