The Organizational Performance Pay Plan - 2445 Words

The Organizational Performance Pay Plan for The Fit Stop According to all the facts we have on the Fit Stop, we chose that the best suitable organizational performance pay plan for employees would be employee stock plans which are a plan through which employees acquire shares in the Fit Stop. We have chosen the three main employee stock plans i.e. employee stock bonus plan, employee share purchase plan and employee stock option plan. (Long, 2013) The following will be the design and implementation of the performance pay plan in the Fit Stop. Type of Pay Plan Definition Design Implementation Evaluation Period Employee Stock Bonus Plan The plan allows employees to receive shares in the Fit Stop at no cost to the employee. (Long, 2013) Will be established after employees have been on the job for 12 months The plan will be evaluated every 2 years from the date it is implemented Employee Share Purchase Plan (1000 shares) The plan allows employees to purchase shares in the Fit Stop at a specific cost. (Long, 2013) Will be established after employees have worked for the company for 18 months The plan will be evaluated every 3 years with possible cost benefit packages included Employee Stock Option Plan (1500 shares) The plan provides employees options to purchase shares in the Fit Stop at a fixed price within a limited time period. (Long, 2013) Will be established after employees have worked for the company for 24 months This plan will be evaluated every 3Show MoreRelatedImportance of Performance Appraisal1271 Words   |  6 PagesMany managers take the integrated approach known as Performance Management, to manage the performance, consisting of setting goals, training employees and then appraising and rewarding them (hrm). It can be explained as a process that consolidates goal setting, performance appraisal and development into single, common system, the aim of which is to ensure that the employee’s performance is supporting the strategic aims. (hrm book 315).. A performance management system would be only effective when theRead MoreHRM 531 Week 2 Knowledge Check Essay1628 Words   |  7 Pagesexchange for employee contributions. A. competency-based pay system B. employee stock ownership plan C. organizational reward system D. merit-pay method Bottom of Form Correct :Organizational reward systems include both financial and nonfinancial rewards for employee contributions. Materials Components and Objectives of Organizational Reward Systems Top of Form 2. ___________ bridge the gap between organizational objectives and individual expectations and aspirations. A. Read MoreThe Effects Of Attendance On A Company s Bottom Line980 Words   |  4 Pagesworkers which affects staff morale and employee service. Another effect felt by a company is financial costs. These costs include: overtime or agency cost for replacement workers, the cost of self-insured income protection plans and premium costs may rise for insured plans. In addition, a company will incur administrative costs which include; staff time is required to secure replacement employees or to re-assign the remaining employees and staff time is required to maintain and control absenteeismRead MoreCompensation1324 Words   |  6 PagesIntroduction Compensation is viewed differently, depending on the individual persons perspective (e.g. employee, manager, stockholders, etc.). An employee may view compensation as what is owed to him or her for work performed, while a manager may view pay as an expense. In order for an organization to have an effective compensation strategy, it must consider the various perspectives when creating the organizations compensation strategy. Milkovich, Newman, and Gerhart, authors of Compensation, defineRead MoreOperational Motivation Plan Essay902 Words   |  4 PagesOperational Motivation Plan This plan incorporates many aspects of motivation. It looks to some motivational theories described by Robbins as well as the opinions discussed in other articles. Robbins (2001) said that managers get things done through other people. They make decisions, allocate resources, and direct the activities of others to attain goals. Highlighting the positive elements will provide an excellent basis for management objectives, as well as theRead MoreThe Pay For Performance Plan1280 Words   |  6 PagesAbstract The pay-for-performance plan has been implemented in many organizations as a motivational strategy for workers. However, the plan remains a hard sell in public schools where teachers have deliberately turned down its implementation. Although the incentive program boosts individual performance, it undermines the effort of other staff members since; there is no universally accepted criterion that is used to gauge teachers’ performance apart from student test scores. Apparently, the lack ofRead MoreHuman Resource Professionals : Design And Install Incentive Pay Systems1700 Words   |  7 Pagesinstall incentive pay systems. Incentives are pay systems that reward employees for their efforts beyond normal performance expectations. In order to pay incentives, organizations measure employee performance at three levels; Individual level, Group level, and Organizational level. Individual level incentives are merit pay, skill-based pay, competency-based pay, piece rate pay, standard ho ur systems, employee suggestion systems and commissions (Heneman Gresham, 1998). Merit pay is provided to employeesRead MoreManagement Functions And Functions Of Management Essay1529 Words   |  7 Pagesfacilitate action. The purpose of the planning function is to align the vision, culture, employees and the organizational structure with the strategies, and this involves multiple levels across the organization. Ultimately, planning is a needed function for business success (Huff 2009). The leading function of management assists the managers in administering and overseeing the performances of the staff. Leading allows management to give help to the employees by guiding them towards achievementRead MoreDoc, Docx, Pdf, Wps, Rtf, Odt758 Words   |  4 PagesCompensation Strategy Challenges | * Human resource want to increase the performance, to retain key employees, bring new skilled talents to the company and they want to keep costs under a strict control. * Finding, motivating, developing and keeping employees is a key component of business success * The compensation components cannot be managed discretely, they have to be a part of the overall strategy - the company has to define the competitive compensation strategy.Compensation StrategyRead MoreMgoa Physician Analysis Essay854 Words   |  4 Pagesthe proposed MGOA pay for performance was to return MGOA back to financial stability by motivating the doctors to increase their clinical productivity, ensuring repeated performance, allocating all departmental cost to the doctors and eliminating the salary protection presently provided for low performance. The compensation plan attempted to reward the doctors for number of surgeries they could perform (clinical productivity) in any given period. The new MGOA pa y for performance was tied to clinical