1 / 12

Rewarding Teamwork

Rewarding Teamwork. Chapter 3. Variable (Incentive) Pay. ---Based on performance Advantages & disadvantages General Rule: Variable pay should not be > 15-20% of total compensation for individuals @ lowest level of organization. Why?

amber
Download Presentation

Rewarding Teamwork

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Rewarding Teamwork Chapter 3

  2. Variable (Incentive) Pay ---Based on performance • Advantages & disadvantages • General Rule: • Variable pay should not be > 15-20% of total compensation for individuals @ lowest level of organization. Why? • Proportion of variable pay can increase as employees move up organizational chart.

  3. Bonus Pool • How do you split it up? • What are you rewarding? • Behavior or results? • Individual effort or teamwork? • Consequences?

  4. Guidelines for Variable Team-Based Pay • Tie rewards to performance Make sure employee has control • Balance team & individual pay What %? • Make sure team compensation system compatible with rest of organization • How to divide it up? What are you promoting- cooperation or competition? • Decide on compensation criteria: bottom line results, contribution,behavior, attitude?What %?

  5. Guidelines for Variable Team-Based Pay • Decide on measurement periods & timing of payout • Shorter periods & faster payout motivate more but also increase administrative costs! • Share co. financial information with members.

  6. Recognition General Rules: • Not everyone should get it • Give in timely manner • Publicize it • Tie it to team performance • Personalize awards • Nomination should be simple • Recognize performance linked to org goals • To rewardefforts give noncash rewards • To rewardresults give cash rewards • Use tiers or levels to recognize different accomplishments or levels of contribution (let the team decide) Advantages & disadvantages?

  7. Profit sharing Corporate profits are distributed to employees Advantages? Disadvantages? Gainsharing A percentage of the value of increased productivity is given to employees(prearranged formula) Advantages? Disadvantages? Other Team-Based Pay

  8. Team Performance Appraisal • Purpose • Source of feedback • Personal development • Determination of pay • What is measured? • Job-based pay • Skill-based pay • Competency-based pay *Best for teams • Who measures it? • 360-Degree Feedback Advantages?

  9. Implementing 360-Degree FeedbackWhat do we need to think about? • Make it anonymous • Consider outside consultant for confidentiality • Determine which evaluation criteria to use • Decide who sees results • Initially only employee • Ensure action taken on feedback received • Initially do not tie it to compensation- use for learning & development • Decide who raters will be & who chooses raters • What is the ideal # of raters? • Consider training on “constructive feedback”.

  10. Rater Biases • Inflation bias • When do we do this? • Extrinsic incentives bias • What is the problem with this?? • Homogeneity bias • Halo bias • Fundamental attribution bias • Communication medium bias

  11. Reciprocity bias • Bandwagon bias • Recency bias • Conflict of interest End Results Meaningless evaluations Conflict Reduced learning Recommendations Training on biases Use objective measures of performance.

  12. Ratee Biases • Ratees don’t always interpret feedback as intended Egocentric bias: ratees tend to give themselves more credit than others & feel underappreciated Intrinsic interest bias: ratees become less enthusiastic about work when offered only extrinsic rewards Social comparison bias: ratees compare feedback with peers when interpreting evaluations Fairness bias: ratees more likely to accept poor outcome if procedure fair. How can we (as raters of performance) overcome them?

More Related