presentation (2).ppt

8/19/2019 presentation (2).ppt

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Pay-for-Performance

and Financial

Incentives


2/23

Presented To :

Sir Javaid Paracha Presented By :

Arslan Haider (13029)

Toqeer Shair (13031)

Baqar !a"#an (13032)

Adeel !a"#an (13033) Arslan Ali (1303$)

%o&yri'ht 200 Pearson *d+cation %anada 12,2


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What is Pay for Performance:

Performance-related pay or pay for performance isa salary &aid relatin' to ho- -ell one -or./

any e"&loyers +se this standards,ased syste" or

eval+atin' e"&loyees and or settin' salaries/Standards,ased "ethods have een in de facto +se or

cent+ries a"on' co""ission,ased sales sta: they

receive "ore &ay or sellin' "ore and lo- &eror"ers do

not earn eno+'h to "a.e .ee&in' the o -orth-hile

even i they "ana'e to .ee& the o/

http://en.wikipedia.org/w/index.php?title=A_salary&action=edit&redlink=1http://en.wikipedia.org/wiki/Employerhttp://en.wikipedia.org/wiki/De_factohttp://en.wikipedia.org/wiki/De_factohttp://en.wikipedia.org/wiki/Employerhttp://en.wikipedia.org/w/index.php?title=A_salary&action=edit&redlink=1


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oney and otivation

Variable Pay

&lan that lin.s &ay to &rod+ctivity

&roitaility or so"e other "eas+re o

or'ani#ational &eror"ance

acc+rate &eror"ance a&&raisal or

"eas+rale o+tco"es is a &recondition oreective &ay,or,&eror"ance &lans


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Ty&es o 4ncentive Plans

individ+al incentive &ro'ra"s

'ro+& incentive &ro'ra"s&roit sharin' &lans

'ainsharin' &lans


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Touqeer Shabbir

%o&yri'ht 200 Pearson *d+cation %anada


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4ncentives or 5&erations

*"&loyees Piece-or. &lans 6 strai'ht7 '+aranteed

Standard ho+r &lan

Tea" or 'ro+& incentive &lan


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4ncentives or Senior ana'ers and

*8ec+tives

Short-term Incentives

annual bonus

Short-term Incentives

annual bonus

Long-term Incentives

capital accumulation plans

Long-term Incentives capital accumulation plans


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Ann+al Bon+s , ecisions

*li'iility

+nd si#e

eter"inin' individ+al a-ards


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;on',Ter" 4ncentives

Stoc. o&tions Boo. val+e &lan Stoc. a&&reciation ri'hts Peror"ance achieve"ent &lan !estricted stoc. &lans Phanto" stoc. &lans Peror"ance &lans


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Arslan Ali



12/23

4ncentives or Sales&eo&le

Salary

Plan

(i8ed salary)

Salary

Plan(i8ed salary)

ommission

Plan

(&ay in direct

&ro&ortion

to sales)

ommission

Plan(&ay in direct

&ro&ortion

to sales)

ombination

Plan

(salary &l+s

co""ission)

ombination

Plan(salary &l+s

co""ission)


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4ncentives or 5ther ana'ers and

Proessionals!erit Pay salary increase a-arded to an e"&loyee ased on individ+al &eror"ance eectiveness ased on validity o

&eror"ance a&&raisal syste"

so"eti"es &aid as a l+"& s+" -itho+tchan'in' ase salary


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4ncentives or Proessional

*"&loyees on+s re&resents s"all &ortion o total &ay

incentives ased on res+lts lon'er than

one year

+&,to,date eq+i&"ent and acilities

s+&&ortive "ana'e"ent style

s+&&ort or research &+lications


15/23

5r'ani#ation,


16/23

Adeel !a"#an



17/23

Scanlon Plan

evelo&ed y Joe Scanlon l93>

en'a'es "any or all e"&loyees in a

co""on eort to achieve a co"&any?s&rod+ctivity oectives

any res+ltin' incre"ental cost,savin's

shared a"on' e"&loyees and theco"&any


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@ainsharin' Plans:

S+ccess actors

%lear '+idelines re'ardin' &lan chan'es%lear '+idelines re'ardin' &lan chan'es

Joint develo&"ent o the &lanJoint develo&"ent o the &lan

%oo&eration et-een "ana'e"ent and lao+r %oo&eration et-een "ana'e"ent and lao+r

*ective co""+nication*ective co""+nication

Settin' achievale 'oalsSettin' achievale 'oals


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@ain sharin' Plans

Philosophy

of

ooperation

Involvement

SystemIdentity

Scanlon Plan

ompetence

Sharing of

"enefits

#ormula


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Princi&les or *ective

4"&le"entation o 4ncentives &ay or &eror"ance lin. incentives to career develo&"ent and

challen'in' o&&ort+nities lin. incentives to "eas+rale co"&etencies "atch incentives to the c+lt+re o the

or'ani#ation

.ee& 'ro+& incentives clear and si"&le over,co""+nicate re"e"er 'reatest incentive is the -or. itsel


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*"&loyee !eco'nition Pro'ra"s

;ac. o reco'nition and &raise is the 1

ca+se o e"&loyee t+rnover


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*"&loyee !eco'nition Pro'ra"s:

Beneits cost,eective: &raise and "odest 'its i"&roves e"&loyee attit+des and

&rod+ctivity creates strate'ic chan'e i reco'nition

criteria ali'ned -ith strate'y

+els achieve"ent o hi'h &eror"ers i"&ortant co""+nication tool

presentation (2).ppt

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