Accounting technicians scheme west africa
Download 3.37 Mb. View original pdf
|
- Navigate this page:
- A.15.4 Designing and Implementing Incentive Schemes
- Stock (Shares) Ownership Plans
| Job Evaluation Results: The relative value of each job and the relationship among the wages offered for jobs in an organisation maybe determined by job evaluation. A.15.3 Establishment of Methods of Compensating Employees There are many methods of remunerating employees. The most popular are Piece rate, by which employees are paid on the basis of output and Time rates, by which employees are paid on the basis of time spent on the job. ab Piece Rate (Payment by Results): Under the piece rate system the worker is paid indirect proportion to his/her output. This method is used where the output of each worker can easily be measured and a relationship between the employee’s effort and output could be established the job is standardized, repetitive and workflow is regular. b) Time Rate: Under a time rate system, the employee is paid according to the time spent on the job. This method of remuneration is used where it is not easy to measure or distinguish units of output workflow is irregular and beyond the control of employees and it is not easy to establish a relationship between employee’s effort and output. A.15.4 Designing and Implementing Incentive Schemes Incentives refer to rewards made to employees (in addition to their normal pay) with a view to motivating them to increase their performance. Financial incentives pay systems often used areas follows ab Piece Rate: In this system a standard piece rate is established by management and the pay of the individual employee is determined by multiplying the number of units produced by the piece rate. b) Stock (Shares) Ownership Plans: Under this system, employees are allotted the company’s shares, and are entitled to receive dividends. c) Commission: There are several variants of financial incentive pay systems based on commission, but, generally the employee is rewarded on the basis of sales volume. The higher the volume of sales made by the employee the higher the commission paid to him. Most salesmen are rewarded through commissions. db Bonuses:bi This refers to rewards offered to employees at periodic intervals for high performance. In some organisations, the bonus is paid across board to every employee in 209 the organisation (or a department/section) when profits are good. e) Download 3.37 Mb. Share with your friends:
|