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Performance Related Pay

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❶Enron executives are a great example of taking advantage of a good thing. Emphasize long-term as well as short-term success.

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Employees felt betrayed, in addition to losing their jobs and retirement savings. America has an ethical issue because knowledge and techniques has been used to manipulate people unethically as well as to help them develop their potential.

People who lack respect for the basic dignity of the human being could learn organizational behavior ideas and use them for selfish ends.

Merit pay is a plan that most state agencies use. As times have changed and budgets are tight state government has cut back on merit play. The state merit programs were used to compensate employees for exceeding their work expectations.

It has been over eight years since the state has given out merit pay. Another misuse of the merit system is when an employee has performed above the call of duty and is over looked and an increase is given to a person that has been less productive but is good friends with the boss.

How do you keep an employee motivated when there is nothing extra to give them for doing a job well done? Often times just a simple recognition of a job well done will keep an employee motivated. Being that funding was tight and there were no pay raises being given out due to budget cuts our Deputy Director came up with this program. It was amazing how the employees reacted to this program because so many people were never given credit for a job well done.

What I found out through this program was that when people are given credit for going a great job they are willing to go that extra mile above and beyond to make sure they job is done and it is quality work that is produced. Often time managers would take the credit for a job they did not perform and were given incentives and they ones that had really done the job was left in the cold.

Organizations have to make sure that when incentives are given out that they people receiving the incentives are the ones that deserve them. In conclusion incentives are environmental factors that are established for the purpose of motivating a person.

Individual incentive programs give performance-based pay to individual employees. Team-based incentives of course aim to incentivize work teams. Incentives play an important part in motivating employees to do a good job. When an employee feels like the organizations appreciate them rather it is with bonus pay, paid time off, recognition, family leave, or good health benefits that are more willing to go that extra mile to make sure quality service is provided.

Benefits and incentives pay also helps to motivate employees they call in sick less are healthier happier people all because they feel more appreciated!! Accessed September 14, We will write a custom essay sample on Pay for Performance specifically for you.

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Organizational structure The design process can be broke down into three segments.


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Pay for Performance Pay for Performance plans were developed in the early ’s as a way to control costs. “Pay-for-Performance is a reimbursement plan that links payment to quality and efficiency as an incentive to improve the quality of health care and to reduce costs” (Shi & Singh, , p. ).

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Pay-for-performance plans Variable pay (organizational focus) A team or group incentive plan that ties pay to some measure of the firm’s overall profitability.

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Reimbursement and Pay-for-Performance Essay Words | 6 Pages. been a pervasive issue in health care because of the Pay-for-Performance (P4P) Programs. Performance measures such as productivity or profit related to the performance of a group have been of less importance in determining pay increases. Though skills have been reflected in pay differentials, pay systems have been seldom geared to the encouragement of skills acquisition and application.

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Besides, this pay-for-performance plans enable the employer to share the rewards to those employees which most responsible for attaining the aim of results. It also helps employers to setting clear standards of performance and giving the authorities to the management to handle the details. Base on the research of Rogan.  Chap 12 Pay for Performance and Financial Incentives Motivation, Performance, and Pay Incentives Financial rewards paid to workers whose production exceeds a predetermined standard. Individual Differences Law of individual differences The fact that people differ in personality, abilities, values, and needs.