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    Pay For Performance and Financial Incentives

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    Varun Vaid
    The document discusses pay for performance and financial incentives in compensation management. It defines various types of incentives including financial, moral, coercive, personal, and social incentives. Financial incentives are monetary benefits offered to encourage certain behaviors. Pay for performance refers to transferring money or goods conditional on measurable actions or targets. The document also outlines advantages like motivation and inducement, as well as disadvantages like quality deterioration. It discusses using incentives in human resources and marketing contexts. Total compensation programs aim to attract, retain, and motivate employees using direct financial rewards like salaries and bonuses as well as indirect rewards like insurance and benefits.

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    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Pay For Performance and Financial Incentives

    Uploaded by

    Varun Vaid
    270 views16 pages
    The document discusses pay for performance and financial incentives in compensation management. It defines various types of incentives including financial, moral, coercive, personal, and social incentives. Financial incentives are monetary benefits offered to encourage certain behaviors. Pay for performance refers to transferring money or goods conditional on measurable actions or targets. The document also outlines advantages like motivation and inducement, as well as disadvantages like quality deterioration. It discusses using incentives in human resources and marketing contexts. Total compensation programs aim to attract, retain, and motivate employees using direct financial rewards like salaries and bonuses as well as indirect rewards like insurance and benefits.

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    Pay for Performance and Financial Incentives

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    The document discusses pay for performance and financial incentives in compensation management. It defines various types of incentives including financial, moral, coercive, personal, and social incentives. Financial incentives are monetary benefits offered to encourage certain behaviors. Pay for performance refers to transferring money or goods conditional on measurable actions or targets. The document also outlines advantages like motivation and inducement, as well as disadvantages like quality deterioration. It discusses using incentives in human resources and marketing contexts. Total compensation programs aim to attract, retain, and motivate employees using direct financial rewards like salaries and bonuses as well as indirect rewards like insurance and benefits.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    270 views16 pages

    Pay For Performance and Financial Incentives

    Uploaded by

    Varun Vaid
    The document discusses pay for performance and financial incentives in compensation management. It defines various types of incentives including financial, moral, coercive, personal, and social incentives. Financial incentives are monetary benefits offered to encourage certain behaviors. Pay for performance refers to transferring money or goods conditional on measurable actions or targets. The document also outlines advantages like motivation and inducement, as well as disadvantages like quality deterioration. It discusses using incentives in human resources and marketing contexts. Total compensation programs aim to attract, retain, and motivate employees using direct financial rewards like salaries and bonuses as well as indirect rewards like insurance and benefits.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    Pay for Performance and Financial

    Incentives
    Compensation Management

    Group members Surbhi Jain Ravisha Kedia Sheril James Priya Mandal

    Incentives
    Definition-

    Variable rewards granted according to variation in the achievement of specific results.

    Types of Incentives
    Financial

    Incentives Moral Incentives Coercive Incentives Personal Incentives Social Incentives

    Financial Incentives
    DefinitionMonetary benefit offered to consumers, employees and organization to encourage behavior or actions which otherwise would not take place.

    Pay For Performance


    DefinitionPerformance for Pay or P4P is- Transfer of money or material goods conditional on taking a measurable action or achieving a predomination performance target.

    Advantages of Incentives
    Inducement

    & motivation. Earing of employee. Reduction in the cost of production. Reduce supervision, better implementation of equipment, reduced absenteeism, turnover increase output.

    Disadvantages
    Product

    quality deteriorates, maintenance of

    quality. Introduction of new machine/methods may have difficulties. Disregard for safety & security. Setting of pieces or houses rate may involve difficulties. Difficulties in determining the standard performance.

    Wide scope
    HR:

    Employee motivational program designed to encourage commitment to increasing productivity or in achieving some worthwhile objective such as reducing the number of manhours lost due to accidents. Customer motivational program designed to encourage them to buy more of the firm's products. Also called bonus scheme or incentive program.

    Marketing:

    Scope..
    Universal

    appearance Confined application Industries which require quality control

    Types of incentive schemes


    Earnings

    vary in the same proportion as output. vary proportionately more than output.

    Earnings

    Other schemes
    Earnings

    vary less proportionately than output. Earnings differ at different levels of output.

    Total Compensation Program


    It

    is a comprehensive plan or structure of compensation for employees of an organization. It consists of direct and indirect financial rewards. In modern times, it is even more important because of the changing role of HR in management.

    Objectives
    Attract

    employees Meet legal requirements Retain valued employees Encourage performance Motivate personal growth Sustain high morale

    Direct financial rewards


    Wages

    and salaries: Usually comprises of the base pay. Bonuses and commissions: Additional pay for performance of services. Incentives: Monetary benefits paid to workers for outstanding performance. Employee stock option: It is a call option on the common stock of a company.

    Indirect financial rewards


    Life-insurance

    & long-term disability coverage: Coverage can be equal to 100% annual salary for life insurance, 60% for disability. Benefits: Medical plans, fringe benefits, statutory benefits and Employee Assistance Program.

    THANK YOU

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