And Financial Incentives Pay For Performance

11Pay for Performanceand Financial IncentivesModule 11-1

Learning Objectives1. Explain how you would apply fivemotivation theories in formulating anincentive plan.2. Discuss the main incentives forindividual employees.3. Discuss the pros and cons ofcommissions versus straight payincentives for salespeople.Module 11-2

Learning Objectives4. Describe the main incentives formanagers and executives.5. Name and define the most popularorganization-wide variable payplans.6. Outline the steps in designingeffective incentive plans.Module 11-3

Money and MotivationStrategyPerformanceIncentive PayModule 11-4

Explain how you would applyfive motivation theories informulating an incentiveplan.Module 11-5

Motivation and Incentives Maslow’sHierarchy ofNeedsModule 11-6

Motivation and IncentivesHygiene Herzberg’sTwo-FactoryTheory Deci andMotivatorsdemotivatorsModule 11-7

Motivation and Incentives ExpectancyTheory, VictorVroomModule 11-8

Motivation and Incentives Behavior modification Incentive pay terminology Employee incentives and the lawModule 11-9

Review Money and motivationMotivation theoriesIncentivesTerminologyThe lawModule 11-10

Discuss the main incentivesfor individual employees.Module 11-11

Individual Employee Incentiveand Recognition Programs Piecework plans Merit pay as anincentiveo Straightpieceworko Standard hourplanso Pros and conso Differential payincreaseso Merit pay optionsModule 11-12

Individual Employee Incentiveand Recognition Programs Incentives for professional employees Nonfinancial and recognition-basedawardso Incentives managers can use Online and IT-supported awards Job designModule 11-13

Review PieceworkMerit payIncentives for professionalsNonfinancial rewardsOnlineJob designModule 11-14

The Pros and Cons ofCommissions vs. StraightPay Incentives forSalespeopleModule 11-15

Incentives for Salespeople Salary planCommission planCombination planMaximizing sales force resultsHow effective are your incentives?Module 11-16

Review Types of salesincentives Maximizing results EffectivenessModule 11-17

Describe the main incentivesfor managers and executives.Module 11-18

Incentives for Managersand Executives Strategy and the executive’s long-termand total rewards package Sarbanes-Oxley Act Short-term incentives, annual bonuso Eligibilityo Fund sizeo Individual performanceo FormulaModule 11-19

Incentives for Managersand Executives Strategic long-term incentiveso Stock optionso Stock option problemso Other stock planso Ethics and incentives Other executive incentivesModule 11-20

Review Strategy and long-term incentivesFederal lawShort-term incentivesStrategic long-term incentivesOther incentivesModule 11-21

The Most PopularOrganization-wide VariablePay PlansModule 11-22

Team & Organization-wideIncentive Plans Designing team incentiveso Engineered standardso Pros and cons HR inequities that undercut teamincentivesModule 11-23

Team & Organization-wideIncentive Plans Profit-sharing plansScanlon plansOther gainsharing plansAt-risk pay plansEmployee stock ownership plansModule 11-24

Review Team incentivesInequitiesProfit-sharingScanlon and gainsharingAt-riskESOPsModule 11-25

The Steps in DesigningEffective Incentive PlansModule 11-26

The Five Building Blocks ofEffective Incentive Plans Common mentModule 11-27

dule 11-28

incentive plan. 2. Discuss the main incentives for individual employees. 3. Discuss the pros and cons of . The Pros and Cons of Commissions vs. Straight Pay Incentives for Salespeople . Module 11-16 . Scanlon plans Other gainsharing p