Purchase Solution

Pros and Cons of Linking Pay to Performance

Not what you're looking for?

Ask Custom Question

What are the pros and cons of linking incentive pay to individual performance? How can organizations address the negatives?

Purchase this Solution
Solution Summary

This solution explains the pros and cons of linking incentive pay to individual performance. A detailed explanation of how organizations can address the negatives is also provided.

Solution Preview

One of the biggest problems, which is a major con to linking incentive pay to individual performance is that it creates a potentially hostile atmosphere. Employees want the incentives, and they know that the incentives bring larger amounts of pay. ...

Purchase this Solution
Free BrainMass Quizzes
Motivation

This tests some key elements of major motivation theories.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Introduction to Finance

This quiz test introductory finance topics.

Operations Management

This quiz tests a student's knowledge about Operations Management

Learning Lean

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Benefits and issues of a merit pay system

    By linking the pay of employees to performance, the organization will be able to retain high performing employees and will motivate workers to give their 100 percent towards the organization.

  • Electroinc Health Record: Pro's and Con's

    The pros and cons of electronic health records are examined.

  • Employees, Pay Levels and Recruitment

    The pros and cons of having an organizations "pay level" below, at and above market are also discussed, as well as the various sources an organization can use to recruit from and the pros and cons of them.

  • First, Consider the fact that during the past few years, man

    Yet at the same time many of these firms have retained "key employees" and CEO by giving them huge compensation increase. This has created large inequities in the workforce within some organization. What are the pros and cons of such action?

  • Pros and Cons for Pay-for-performance

    549618 Pros and Cons for Pay-for-performance Pay-for-performance programs use financial incentives to improve quality of health care and/or contain costs. What are the pros and cons of this approach?

  • Pros & Cons of Performance-Based Pay

    546626 Pros & Cons of Performance-Based Pay What are the advantages and disadvantages of performance-based pay? Explain why employees in an organization should or should not earn pay based on performance.

  • Affects of pay on Worker Performance

    Remember, you want to address only the pros and cons of a pay for performance system coming to all salaried and hourly employees. - One of the pros of a pay for performance wage system is the fact that this type of system may prompt employees to give

  • Compensation: Pros & Cons of Disclosure

    Assess the pros and cons of your organization's communication approach in regard to compensation practices. Offer a different strategy that would provide more value to your organization as well as its employees.

  • Compensation and Bennefits at SEIIC

    *Discuss the pros and cons to the trends/approaches identified in compensation. Variable pay Pros and Cons: The biggest pro of this system is that it rewards those whose work has stood above and beyond the others over the year.

View More Related Solutions