Compensation Plan

Compensation Plan

Introduction

This assignment will look into the incentives system of a hypothetical company and will also provide recommendations on how the system of incentives and compensation can be improved.

Discussion

Incentives are based on the number of units. The workers receive compensation proportional to excess production that is accomplished, combined with a system of fixed remuneration and allowances determined by law. The payment of an incentive for production units does not automatically lead to higher levels of productivity, due to their effect on group pressures that exceed those average levels of performance.

Production Bonds are paid for exceeding certain levels of production ...