Chapter 20 Objective 4

• Commission systems

• ​Piecework

• Group Incentives and team awards

• Bonus and profit-sharing plans​

​Financial Incentives

• Competitive Compensation

• Time- or output-based compensation

​Wage or Salary Levels

​Compensation and Incentives for Employees

Multiple Choice

Which of the following is not a financial Incentive?

• Commission systems

• Bonus Incentives and team awards

• Competitive compensation

• Bonus and profit- sharing plans

​Performance-Based Compensation Plans

• ​Setting feasible goals

• Employees​ are a high priority

• Consistent updates on goals ​

• ​Pay is dependent upon performance

  • H​igh performance: High reward

  • Low performance: Low reward

​

Some text here about the topic of discussion

Multiple Choice

Which of the following is an example of a performance-based compensation plan?

• Commission based system

• Timed based compensation

• Stock Ownership plan based upon years of service

• Gender based compensation

​Employee Stock Ownership Plan

• ​American Mortgage Network

  • Each employee who works for that company is able to get a certain share of the company's stock (motivation I'm performance)

  • Good way to bring ​people in

  • Don't bare all ownership/weight

  • if owner sells company the employee gets a part of the share

  • Tax advantages

Multiple Choice

What is not a benefit of SOP?

• Tax advantages

• More employee investment

• Risk adverse

• Divides risk