Some of the observation about mistakes in four of the five HP plans that are reviewed by Michael Beer and Mark Canon are presented. It is suggested that employee expectations as well as the employee's task knowledge, the stability of the production situation and long- term consequences of the plan should be considered while designing incentive plans.
Discussion
As the article says that information is provided on two issues namely the implementation of pay-for-performance plans, and managerial decision-making regarding their initiation, modification and discontinuation which is critical in terms of understanding (Beer et ...