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Variable pay as a way of motivating people

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Variable-pay programs are an effective way of motivating people. For that reason, it has been implemented in many companies. For example: in IBM the Salesmen are rewarded according to such a program, while the System Engineers are not.

Is that a wise decision? Why do you think it was adopted in such form?
Illustrate your position by your experience.

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Solution Summary

Variable pay as a way of motivating people is examined. The wise decision is given.

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I think that variable pay programs used as a way to motivate people can be both good and bad.

One advantage to variable pay programs would be that employees are being paid for their actual success and work input. The employee can see that the harder they work, the more they are paid. This also allows for increased ability to make more money than just an hourly rate. This can be an incentive ...

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