Download - presentation (2).ppt
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8/19/2019 presentation (2).ppt
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Pay-for-Performance
and Financial
Incentives
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Presented To :
Sir Javaid Paracha Presented By :
Arslan Haider (13029)
Toqeer Shair (13031)
Baqar !a"#an (13032)
Adeel !a"#an (13033) Arslan Ali (1303$)
%o&yri'ht 200 Pearson *d+cation %anada 12,2
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What is Pay for Performance:
Performance-related pay or pay for performance isa salary &aid relatin' to ho- -ell one -or./
any e"&loyers +se this standards,ased syste" or
eval+atin' e"&loyees and or settin' salaries/Standards,ased "ethods have een in de facto +se or
cent+ries a"on' co""ission,ased sales sta: they
receive "ore &ay or sellin' "ore and lo- &eror"ers do
not earn eno+'h to "a.e .ee&in' the o -orth-hile
even i they "ana'e to .ee& the o/
http://en.wikipedia.org/w/index.php?title=A_salary&action=edit&redlink=1http://en.wikipedia.org/wiki/Employerhttp://en.wikipedia.org/wiki/De_factohttp://en.wikipedia.org/wiki/De_factohttp://en.wikipedia.org/wiki/Employerhttp://en.wikipedia.org/w/index.php?title=A_salary&action=edit&redlink=1
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oney and otivation
Variable Pay
&lan that lin.s &ay to &rod+ctivity
&roitaility or so"e other "eas+re o
or'ani#ational &eror"ance
acc+rate &eror"ance a&&raisal or
"eas+rale o+tco"es is a &recondition oreective &ay,or,&eror"ance &lans
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Ty&es o 4ncentive Plans
individ+al incentive &ro'ra"s
'ro+& incentive &ro'ra"s&roit sharin' &lans
'ainsharin' &lans
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Touqeer Shabbir
%o&yri'ht 200 Pearson *d+cation %anada
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4ncentives or 5&erations
*"&loyees Piece-or. &lans 6 strai'ht7 '+aranteed
Standard ho+r &lan
Tea" or 'ro+& incentive &lan
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4ncentives or Senior ana'ers and
*8ec+tives
Short-term Incentives
annual bonus
Short-term Incentives
annual bonus
Long-term Incentives
capital accumulation plans
Long-term Incentives capital accumulation plans
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Ann+al Bon+s , ecisions
*li'iility
+nd si#e
eter"inin' individ+al a-ards
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;on',Ter" 4ncentives
Stoc. o&tions Boo. val+e &lan Stoc. a&&reciation ri'hts Peror"ance achieve"ent &lan !estricted stoc. &lans Phanto" stoc. &lans Peror"ance &lans
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Arslan Ali
%o&yri'ht 200 Pearson *d+cation %anada
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4ncentives or Sales&eo&le
Salary
Plan
(i8ed salary)
Salary
Plan(i8ed salary)
ommission
Plan
(&ay in direct
&ro&ortion
to sales)
ommission
Plan(&ay in direct
&ro&ortion
to sales)
ombination
Plan
(salary &l+s
co""ission)
ombination
Plan(salary &l+s
co""ission)
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4ncentives or 5ther ana'ers and
Proessionals!erit Pay salary increase a-arded to an e"&loyee ased on individ+al &eror"ance eectiveness ased on validity o
&eror"ance a&&raisal syste"
so"eti"es &aid as a l+"& s+" -itho+tchan'in' ase salary
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4ncentives or Proessional
*"&loyees on+s re&resents s"all &ortion o total &ay
incentives ased on res+lts lon'er than
one year
+&,to,date eq+i&"ent and acilities
s+&&ortive "ana'e"ent style
s+&&ort or research &+lications
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5r'ani#ation,
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Adeel !a"#an
%o&yri'ht 200 Pearson *d+cation %anada
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Scanlon Plan
evelo&ed y Joe Scanlon l93>
en'a'es "any or all e"&loyees in a
co""on eort to achieve a co"&any?s&rod+ctivity oectives
any res+ltin' incre"ental cost,savin's
shared a"on' e"&loyees and theco"&any
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@ainsharin' Plans:
S+ccess actors
%lear '+idelines re'ardin' &lan chan'es%lear '+idelines re'ardin' &lan chan'es
Joint develo&"ent o the &lanJoint develo&"ent o the &lan
%oo&eration et-een "ana'e"ent and lao+r %oo&eration et-een "ana'e"ent and lao+r
*ective co""+nication*ective co""+nication
Settin' achievale 'oalsSettin' achievale 'oals
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@ain sharin' Plans
Philosophy
of
ooperation
Involvement
SystemIdentity
Scanlon Plan
ompetence
Sharing of
"enefits
#ormula
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Princi&les or *ective
4"&le"entation o 4ncentives &ay or &eror"ance lin. incentives to career develo&"ent and
challen'in' o&&ort+nities lin. incentives to "eas+rale co"&etencies "atch incentives to the c+lt+re o the
or'ani#ation
.ee& 'ro+& incentives clear and si"&le over,co""+nicate re"e"er 'reatest incentive is the -or. itsel
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*"&loyee !eco'nition Pro'ra"s
;ac. o reco'nition and &raise is the 1
ca+se o e"&loyee t+rnover
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*"&loyee !eco'nition Pro'ra"s:
Beneits cost,eective: &raise and "odest 'its i"&roves e"&loyee attit+des and
&rod+ctivity creates strate'ic chan'e i reco'nition
criteria ali'ned -ith strate'y
+els achieve"ent o hi'h &eror"ers i"&ortant co""+nication tool