Individual Pay Programs:Consequences Performance Programs Motivation Attraction Culture Costs Merit Pay -Change -High Individual -High in base performers competition maintenance Incentive Pay little -High Intra-group Good system performers competition of appraisal Profit Sharing some in -All Cooperation Variable small units Ownership Little -All Knowledge Ability to of business pay Gainsharing Little Retain Sense of Cost not employees ownership variable Skill-based Learning those who -Learning can be high want to learn ©2004 by UIBE Liu yuxin 9-12© 2004 by UIBE Liu yuxin 9-12 Individual Pay Programs: Consequences Performance Programs Motivation Attraction Culture Costs - High maintenance - Good system of appraisal - Variable - Ability to pay - Cost not variable - can be high - Individual competition - Intra-group competition - Cooperation - Knowledge of business - Sense of ownership - Learning - High performers - High performers - All - All - Retain employees - those who want to learn Merit Pay Incentive Pay Profit Sharing Ownership Gainsharing Skill-based - Change in base - little - some in small units - Little - Little - Learning