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13 Cards in this Set
- Front
- Back
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Incentive Pay
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Forms of pay linked to an employee's performance as an individual, group member, or organization member.`
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Piecework Rate
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Wage based on amount workers produce.
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Straight Piecework Plan
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Incentive pay in which employer pays the same rate per piece, no matter how much worker produces.
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Differential Piece Rates
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Incentive Pay in which piece rate is higher when a greater amount if produced.
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Standard Hour Plan
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An incentive plan that pays workers extra for work done in less than a preset "standard time".
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Merit Pay
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System of linking pay increases to ratings on performance appraisals.
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Commissions
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Incentive pay calculated as percentage of sales.
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Gainsharing
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Group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees.
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Scanlon Plan
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Gainsharing program in which employees receive a bonus if the ratio of labor costs to sales value of production is below a set standard. Target Ratio: Labor Costs/Sales Value of Production. Goal = TR x Sales Value of Production. Gain = Goal - Actual.
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Profit Sharing
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Incentive pay in which payments are a percentage of organization's profits and do not become part of employees' base salary.
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Stock Options
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Rights to buy a certain number of shares of stock at a specified price.
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Employee Stock Ownership Plan (ESOP)
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Arrangement in which organization distributes shares of stock to all its employees by placing it in a trust.
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Balanced Scorecard
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Combination of performance measures directed toward the company's long- and short-term goals and used at the basis for awarding incentive pay.
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