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Management Compensation Discussion

1. The suggestion system has been a major element in any employer plan to encourage greater employee involvement. Explain the factors that failed many systems.

2. Describe the various kinds of short-term incentives used by organizations, and explain why organizations design them. APA FORMAT.

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1. One of the key factors that have failed many suggestion systems is the fact that some managers have actually mistreated employees that provided suggestions that their theses managers or others were not happy with. An example of a situation of this nature is when a staff member suggests that there be a different methodology utilized in the completion of assembly-line duties within a given department, and upper-level management agrees with the suggestion, and make the necessary changes. This individual's immediate manager becomes envious, and or angry with the staff member, and begins to treat them harshly. Another factor that has caused the failure of the suggestion system in many organizations is the fact that some organizations are not sincere in utilizing this suggestion system. Some organizations have only implemented the suggestion system in order to psychologically influence the staff members that they are contributing to the decision-making process within the organization, when in fact the ...

Solution Summary

This solution describes important aspects of compensation management.