Pay-for-performance (PFP) continues to be a topic of debate. In America's public
school and health care systems, PFP is controversial issue. In some cases, such as
law enforcement and the military, there is a belief such a system would not work
at all.
Although the process has made inroads in business and is a means to help
determine promotions, pay, and retention, pay for performance has not been
consistently well received despite the successes experienced.
You have been asked by the organization's senior leadership to explore the
practicality of implementing a pay for performance program for your organization
(i.e., merit pay, variable pay, discretionary bonuses, and non-discretionary
bonuses) or one you are interested in working with. Before providing your
summary and recommendations, you will want to include the following points:
A brief background of the organization and industry.
Identify and discuss which, if not all, PFP plans you will be considering.
How the organization measure the effectiveness of the plan.
• Employees' perspective - advantages and disadvantages of PFP.
• Employer's perspective - advantages and disadvantages of PFP
• Include any additional information that will support your position and
recommendation; do not limit yourself to these points.
Note: If you determine that PFP would not work for the organization, please make
sure you the information you provide justifies your recommendation.
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