Compensation: Methods and Policies

CHAPTER 11- COMPENSATION: Methods and Policies Determination of Individual Pay: Manage must address to two questions in order to determine how employees are paid. First, how one employee is paid relative to another employee within the same company and performing the same job junction. Second, if the pay is different, then on what basis was this distinction determined-experience, skills, performance, seniority, higher performance, merit or some other basis.

Organizations apply pay differentials to recognize employees’ different contribution to the organization, to communicate a changed emphasis on important job roles, skills, and knowledge, to emphasize the norms of the organization without having employees change jobs, that is promotion, to avoid violating the internal equity norms and to recognize market changes between jobs (page 328).

Methods of Payments: 1)Flat Pay: Unionized firms normally implement the single flat rate of pay method by collective bargaining rather than differential rates of pay. These firms still recognize the differences between employees’ seniority and experience but choose not to recognize these variations when setting wage rates. 2) Payment for Time Worked: This is the most common way employees are paid in the form of wages (nonexempt and hourly paid) or salary (exempt and annually or monthly paid).

Pays can be adjusted upward in 4 ways namely; general increase across the board, individual merit increase based on performance, cost of living adjustment (COLA) and seniority. 3) Variable Pay: Incentive Compensation. Based on international and global competitive, American businesses have now increasingly turned to variable pay plans as an attempt to link pay to performance and productivity to be competitive internationally.

Pay methods can be flexible and can be built into the variable compensation plan by taking a total compensation approach which include the following three elements namely; base pay (serves as platform for variable pay), variable pay ( gainsharing, winsharing, lumpsum bonuses, individual flexible pay, etc) (page 330). Incentive compensation is a method of paying employees on the basis of their output either individually, to the work group or on an enterprisewide basis. 1) Merit Incentive is pay related to the individual performance.

Traditional merit is pay from a higher base salary after the annual performance evaluation. 2) Individual Incentive: This is the oldest form of incentive plan where individuals are paid for units produced. The following forms are included under this method; piecework, production bonus and commission. Piece work can be straight piece work (sawing mill) or standard-hour plan (mechanic shop). Production bonus refers to employee hourly rate plus a bonus when the employee exceeds the standards (page332).

Commission is based on the percentage of sales in units or dollars. 3) Team Incentive: This includes the entire groups’ incentive used to build the team culture. 4) Organizational Incentive: Reward based from shared profits generated by the employees’ efforts or money saved from the employees efforts to reduce cost (page 346). 5) Garnishing Incentive: These are “companywide group incentive plans that unite employees to improve organizational effectiveness through a financial formula for distributing organizationwide gains” (page 356. )

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyStudyWriters
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business and administrative studies
Excellent job
Customer 452773, March 17th, 2023
Business and administrative studies
great job as always
Customer 452773, February 26th, 2023
Impressive writing
Customer 452547, February 6th, 2021
Human Resources Management (HRM)
excellent job
Customer 452773, June 25th, 2023
Business and administrative studies
Thank you for your hard work
Customer 452773, October 19th, 2023
Business and administrative studies
looks good thank you
Customer 452773, March 3rd, 2023
Thank youuuu
Customer 452729, May 30th, 2021
excellent job
Customer 452773, August 12th, 2023
Business and administrative studies
Customer 452773, February 23rd, 2023
Human Resources Management (HRM)
Customer 452773, July 11th, 2023
Business and administrative studies
excellent job thank you Your Score 166.25/ 175- A 1. Current Culture 15% of total grade 18.37 Criterion "1. Current Culture" has textual feedback Criterion Feedback I see interesting points, though, in general they are not about the culture.
Customer 452773, June 4th, 2023
Business and administrative studies
excellent job! got an A, thank you
Customer 452773, May 24th, 2023
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp