Applied Performance Practices Study Guide

APPLIED PERFORMANCE PRACTICES * FINANCIAL REWARD PRACTICES Financial Rewards- the most first harmonic applied exercise practice in organizational settings. profit has multiple meanings * emblem of success * Reinforcer and motivator * Reflection of performance * Can crucify anxiety Meaning of money varies * Higher value to men than women * Cultural determine influence the meaning and value of money TYPES OF REWARDS IN THE WORKPLACE * rank and Seniority * Job Status * Competencies * Performance 1. Membership- and Seniority- Based Rewards * mend wages, longevity change magnitudes. * (Sometimes called ease up for pulse) represent the largest part of most paychecks. Sample Rewards * Fixed pay * Most employee benefits * Paid time off Advantages * May overstretch applicants * Minimizes stress of insecurity * Reduces turnover Disadvantages * Doesnt directly go performance * May discourages poor performers from leaving * Golden handcuffs may misdirect performance 2. ) Job Status-B ased Rewards * Includes job military rank and status perks. Job evaluation systematically evaluating the worth of jobs at heart an organization by measuring their essential skill, effort, responsibility, and working conditions. * Maintain feelings of candour (people in higher-valued jobs should get higher pay) and motivate employees to compete for promotion. Sample issues * Promotion-based pay increase * Status-based benefits Advantages * Tries to maintain pay equity * Minimizes pay discrimination * Motivates employees to compete for promotion Disadvantages Encourages hierarchy which may increase costs and reduce responsiveness * Reinforces status differences * Motivates job competition and exaggerated job worth. 3. ) Competencies-Based Rewards * Pay increases with competencies acquired and demonstrated * Employees now receive pay increases within each pay band partly based on how advantageously they have acquired new knowledge and skills. * Skill-based pay-is a variation of c ompetency-based pays in which employees atomic number 18 payed for the number of skill modules mastered and consequently the number of jobs they can perform.Sample Rewards * Pay income based on competency * Skill-based pay Advantages * Improve workforce flexibleness * Tends to improve quality * Consistent with employability Disadvantages * Subjective measurement of competency * Skill-based pay plans are expensive 4. ) Performance-Based Rewards Here are some of the most hot individual, team and organizational performance-based rewards * Individual Rewards * Bonuses- many employees receive individual bonuses for accomplishing a specific task or exceeding annual performance goals. Commissions- really estate agents and other gross revenuepeople typically earn commissions in which their pay increases with sales volume. * Piece rate systems reward employees based on the number of units produced. * police squad Rewards * Bonuses- employees earn a bonus based on how well their put in meets or exceeds specific financial goals. * Gainsharing Plans- a reward system in which team members earn bonuses for reducing costs and increasing labor capability in their work process. * Organizational Rewards Employee Stock Ownership Plans (ESOPs) a reward system that encourages employees to buy stock in the company. * Stock Options- a reward system that gives employees the right to purchase company stock at a future date at a predetermined price. * Profit-sharing Plans- a reward system that pays bonuses to employees based on the previous years direct of corporate profits. * Balanced Scorecard (BSC) a reward system that pays bonuses for change results on a composite of financial, customer, internal process and employee factors.