The advantages of offering a piecy rate pay to the furniture builders at Metropolitian furniture company: The advantages would gear towards rewards for extra productivity, knowing that they are being paid directly for their performances. Employees are normally paid yearly for their performances that they have done throughout the year of working for a company. The builders would work harder, because they are aware that they will receive incentive pay for the extra work that they are doing. This also implies that they will go beyond the normal effort to get the furniture completed within the time frame given. Another advantage is that the builder would get out more furniture that they have normally done in the past. The other advantage would …show more content…
make the regular work hours flexible, because the builders are performing harder and producing more pieces than they would regularly do. There are so many employees who have to leave one job to go to another in or to have enough income, and by the company providing flexible hours, they could probably work another shift at regular pay. The advantages of offereing a team based incentive plan: The team based incentive plan provides every employee to work together and it also encourages cooperation from all employees, which is unlike done on a job. Team work could really move a company for in so many directions; such as financial growth, culture, dependency and performance. The builders would have the advantage of working together oppose to working along, which could take longer to produce the same piece of furniture. The other advantage of team work is having a employees being promoted within the company. The team work system gives skills to leaders, who are looking forward into moving to the area of management. Promoting within the company can relieve extra training of job duties or training of how the company functions and what the job really consist of. Sally should consider the team based incentives pay because it could entourage cooperation from the employees. It would be cost efficient than trying to pay one employee from the piece rate pay plan. When operating by the piece rate plan, there is no certain budget in place to make sure, the company does not go over the yearly projected budget. Sally have to understand that the plan is good, but as a manager there are still rules and guidelines that she must follow as well. Sally should make sure that everyone is aware of the incentive plan that is being out in place.
The idea of both plan has its advantages as well as disadvantages. The disadvantages is, if she gives the piece pay rate to certain builders that could destroy the team based plan. Also, there is no set amount that they have budgeted for this plan, unless they add it on the following year to make sure that it is includedin the plan. The advantages of the piece pay plan is that it is beneficial to the builder to is working hard to make sure that all deadlines are being met. If the piece pay plan is not included, than some for of recognition should be implemented to reassure the builder that his extra effort is not going unnoticed. The disadvantage of not having the team base plan in place is that the builders do ot want to do more work, but still receiving the same pay without receiving any incentives. As long as communication is being provided to each builder, than there should not be any misunderstand as to why certain builders received more pay for the work that they have done. The advantage of receiving pay beyond the builders regular pay, would have the employees feeling that they are appreciated for all of the hard work that they are
doing. Sally should examine both plans and work the plan that works best for their furniture company. Sally should stand by the team based plan, but reillirate that the extra efforts will also add to what has already been established beyond the team and regular pay. The budget for the upcoming years should also reflect the new incentive plans, and by incorporation the plans that could also benefit the area of customers service and inventory. Customers are very satisfied when they can rely on the furniture company to have the item in stock or available for purchasing, without being told that the item is either discountinued or out of stock. The team and piece pay plan would be a great advantget for the Metropolitan Furniture Company.
...s by producing more pieces. Manufacturing factories charge less money per hour if they are producing more pieces.
Whether the government should impose a tax on employers to provide workers with benefits such as unemployment insurance or mandate employers to provide workers with benefits, which are normally benefits such as health insurance or workers compensation will ultimately depend on how much their employees value the benefit. Mandated benefits are those benefits that are protected by federal law. Firms are liable to make these benefits available to their employees and failure to do so will result in severe penalties. Payroll tax is relatively different from mandated benefits for the reason that payroll taxes are imposed on the wage of employees, which are either paid by the workers or the firm. When analyzing to see how successful a mandated
We can see that piecework is a direct indicator of the employees output. In addition, the year end bonus is linked with the profit the company earns. The guaranteed employment provides employees the base line for their life, so they don’t have to be worried about getting fired or searching for other jobs, which makes them more concentrated on their jobs. From the combination of these three components, employees can have confidence to work and to understand that their performance will be measured properly.
PAY INCENTIVES. According to Taylor, “What the workmen want from their employers beyond anything else is high wages.” This “economic man” assumption led Taylor to believe that piece rates were important to improved productivity . Under traditional piece-rate plans, an individual received a fixed amount of money for each unit of output. Thus, the greater the output, the greater the pay. In his determination to find a better way, Taylor attempted to improve the traditional piece-rate scheme with his differential piece-rate plan.
The issue of equal pay between genders is still a problem in today’s society. Not to mention the argument of equal pay between genders of different ethnicities and minorities. A white man no matter his age, is unfairly paid more than a black or Mexican man. As well as a white woman can be paid more than both a black or Mexican man, and her ethnic female colleagues. Women of color are paid less than their male counterpart, not to mention the gaping wide wage gap between women of color and a white man. The many factors leading into why the wage gap exists or still exists is that men are stronger, and deserve bigger salaries. This is the main idea of sexism, and that women should earn less than men. When in some
Efficiency in teamwork is complex and does not always come with ease, a lot of work and group problem solving is essential to any good team. Many people think tasks are quite simple from the exterior but when looking closely at a task it is apparent that there are many details that go into the success of a surgery, flying a plane, designing a building, etc. Nobody can do it alone, together, it takes time and effort to make quick decisions and communicate to get the job done correctly. It is hard, and does not always work out. When constructing a building, there is a large process that involves calculations, designs, adjustments to clients needs, planning, and then building to code and hoping the whole thing doesn't come crashing down. To create
designed a structure to adjust with the market, slowly, the impact on the workers would not
Pay-for-knowledge plans have been hypothesized to offer many advantages to organizations and employees. For example, many analysts suggest that organizations experience greater work force flexibility, leaner staffing, greater work force stability, higher quality of output, lower absenteeism, less turnover, and higher productivity . Likewise, analysts also say that employees in pay-for-knowledge systems may benefit from higher motivation, higher job satisfaction, higher pay satisfaction, increased feelings of self-worth, more opportunities for growth and development, increased job security, improvements in the quality of worklife, and higher organizational commitment .
The first advantage is no seniority factor. Employees that have little experience benefit from this type of competency based pay since the level of seniority has little bearing on compensation. Instead, employees are paid based on how well they perform. Performance is based on leadership skills or attention to details.
“Person-focused pay plans generally reward employees for acquiring job-related competencies, knowledge, or skills rather than demonstrating successful job performance” (Martocchio, 2013, p. 100). One of the advantages of a person- focused pay system is that employer obtain a huge benefit from it in the sense that every employee becomes more valuable because they are acquiring more knowledge about the job as a result, their productivity increases, they can fill in for any coworker that is out of work for vacation, or for any other reason. . (Martocchio, 2013).
takes longer time of the process and constraints the project requiring solo work but teamwork to implement effectively.
The rapid changes in today’s marketplace has forced businesses to find new ways of compensating workers in order to keep up with the ever so changing marketplace (Zaim. 2007). Traditional forms of compensation cannot effectively meet the needs of today’s market. Therefore, businesses must adapt by finding new ways to remain competitive or maintain its competitive advantage. Person-focused pay system is a method businesses can used to remain competitive in today’s market, as this system rewards employees for attaining job-related competencies, knowledge, and skills versus the tradition method of rewarding employees, performance based (Martocchio. 2013. P100).
The text lists three disadvantages of a person-focused pay system. Rising costs related to labor expenses, training expenses, and overhead expenses is one disadvantage of a person-focused pay system (Martocchio, 2013, p. 112). Zaim (2007) states that a component of the rising labor expenses is the cost to identify the skills in demand and evaluate the employees’ competency levels (p. 123). Jing Feng and Shu Hwa (2004) agree with this idea, adding that an employee’s failure to increase his or her contribution to the organization after receiving training creates serious difficulties for the organization (p. 402). The organization is expected to foot the cost of the employee’s wages and benefits, the costs of the training, and the increase in the employee’s wages when training is completed. These costs can be substantial, especially when the organization has a lot of employees. In the case of Mitron Computers, a person-focused pay system would be a disadvantage because the organization would have to pay for the wages and trainings upfront before the benefits of the
A person-focused pay program rewards employees through compensation for acquiring and implementing job related competencies, knowledge and skills and not for exhibiting and displaying successful job performance (Martocchio, 2013). Pay-for-knowledge compensation plans base employee’s pay on the number of jobs in the organization they can do rather than on the specific jobs they may be doing at a particular time. Typically, when hiring new employees, they start off at a base rate, and as they learn different jobs and skills in the company, their pay rates go up correspondingly. Thus, each additional skill that employees learn, pay raises are attached, encouraging them to become multi skilled (Curington, Gupta, & Jenkins, 1986).