Advantages Of Person Focused Pay

Decent Essays
Although there are numerous advantages to a person focused pay structure there are some dis-advantages for this type of pay structure. for an employer is the increased costs in training, hourly pay, and overhead costs. Obtaining additional skills makes employees better trained and receive higher pay levels. Person-focused pay systems may not work well with the already established incentive pay systems in that employees may prefer and work hardest for an incentive program rather than training to learn additional skills because the incentive pay is higher. Person-focused programs must create well-designed programs to entice employees and that can cost money. Additionally, putting a dollar amount to a new learned skill can be difficult.

Related Documents

  • Improved Essays

    This is where the employee gets paid for what they work, allowing greater…

    • 913 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    David And Goliath Summary

    • 1127 Words
    • 5 Pages

    David and Goliath written by Malcolm Gladwell is a book on how we perceive the concept privilege. We often assume people with higher degree of privilege will benefits more from the society than those who does not. The author disagree and explain why this is not the case. Through out the book, he applies the economical concept the law of marginal diminishing return to explain stories of successful people that benefitted from being an underdog. The story of David and Goliath is one the greatest stories on how an underdog succeeds in fighting a giant.…

    • 1127 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    Mitron Pay System

    • 435 Words
    • 2 Pages

    The person focused pay system at Mitron has allowed the organization to become very successful which lead to its competitive edge above other competitors. The idea surrounding the person focused system was established in effort of meeting the needs and wants of consumers. Person focused systems are great because they allow employees to receive incentives and pay according to how well they perform on the job. There were several advantages of the person focused pay system at Mitron. One being the fact that employees are paid for the knowledge and skill sets they bring into the organization.…

    • 435 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Results that are made during the design and implementation of a pay for performance system are critical. Therefore, company decision makers should sensibly consider their design options with full awareness of potential advantages and disadvantages. Organizations must adapt pay for performance systems to their mission and environment. Organizations have several options when designing a pay for performance system. These options include the coverage of a pay for performance system, the types of performance to be rewarded, how performance will be measured, the form that pay for performance will take, and the delegation and review of pay decision.…

    • 777 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    Smith Corporation wanted to increase the company productivity, by introduce a new wage system. This system, a piece wage system, was introduced in the early 1980s to increase productivity. Each worker is paid based upon the number of pieces produced. Aworker who produced a lot of pieces will receive a higher paycheck. implementation of the new system was increased the companies productivity.…

    • 116 Words
    • 1 Pages
    Decent Essays
  • Decent Essays

    Everyone is different and has different views, opinions and beliefs. Taking a person’s own views and opinions into account recognises them as an individual. A result of not taking a person-centred approach may be that the individual is unwilling to co-operate and their health, both physical and mental may…

    • 50 Words
    • 1 Pages
    Decent Essays
  • Decent Essays

    Person-centred support defines an approach which ensures that the support given to an individual with autism is given in a way that they want and need. This is a perfect way to discover what kind of support each person needs and how they want the support. The main aim of this is to put the person in control of the services that they want and to also ensure that the individuals needs are met; they should not be expected to fit in with an existing routine. When the person-centred support is given it is very important to be aware of the difficulties individuals with autism have regarding different environments as well as understanding the need for the person to feel safe and relaxed.…

    • 173 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    There are many times in our own lives where there is a price to be paid in order to gain knowledge about something. Take college as an example. There are many prices we must pay in order to achieve our ultimate goal of obtaining a degree. Countless hours are spent on classwork, studying, and researching new concepts. Sleep is sometimes lost as we cram for a big test the next day, and thousands of dollars are invested over the period of four years.…

    • 1023 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    It's about understanding concepts like the time value of money,…

    • 420 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Compensation can be a strategic tool for organizations to attract, retain, and motivate their employees. More than a wages and salary earned by employee, compensation also includes benefits provided. An official statement specifying a company’s standpoint on compensation is known as compensation philosophy. According to the article, “It essentially explains the “why” behind employee pay and creates a framework for consistency.…

    • 868 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Performance pay is expected to achieve all these goals by stimulating…

    • 648 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    Fortis, an international bank, currently focused in Belgium, has created a brand new system that enables to pay on a individual performance basis and in my opinion has had a positive cultural impact in Belgium. With that in mind, all workers for Fortis receive a partly fixed salary and partly variable salary depending on the how they perform in the workplace. This of course is varied throughout the company in different role classification, for example the employees found in the management category have a 16% increase possible in wage depending on how well they perform. Fortis has provided innumerable jobs for the population of Belgium and I believe that this newly installed payroll techniques addresses the problem of disemployment but also social problems that have risen as previously stated in current generations. It gives a stop to McJobs as they strive to perform better and better due to the incentive given and therefore rise throughout the ladder of power in the company.…

    • 1241 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Businesses would be able to better to retain those with the greatest talent if they can pay based upon the individual and his market value. Pay needs to move from a determination based upon job descriptions to being based upon a person’s professional development activities. Total compensation includes pay, recognition, promotion and development opportunities, and non-monetary benefits (Milkovich, 2010). The Walt Disney’s Company strategy incorporates a compensation strategy that rewards performance. This includes individual merit increases and the performance objectives to be met in order to receive them.…

    • 1099 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Introduction This is the first Managing Total Compensation case study. The title of this case study is So You Want to Lead an Orchestra! This case study will seek to provide thorough answers to the following four questions: Describe the orchestra’s pay structure in terms of levels, differentials, and job- or person-based approach. Discuss what factors may explain the structure.…

    • 872 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    The fair and equitable treatment of every organizations personnel is essential for the success of that organization. Taylor’s scientific approach is more specific in that he proposes monetary incentive. Weber alludes to this as well, however is more general in his ideas of how to rewarding an employee’s…

    • 1083 Words
    • 5 Pages
    Superior Essays