BMW Financial Services compensation would be considered merit pay. Merit pay is defined as increases to pay based on criteria set by the employer. (Milkovich, Newman, & Gerhart, 2014, p. 14) At BMW Financial Service targets and job responsibilities are created by management for each employee. These targets and job responsibilities are given to the employees as a balance scorecard. The balanced scorecard serves a metric for achievement. (BMW Financial Services, 2008) The balance scorecard along with the employee annual review determines employee merit increase each year.
Short term incentive plans are plans that focus on achieving performance goals for the year which contribute to sustainable shareholder value. BMW Financial Services has an associate bonus program. The objective of the associate bonus program is to award associates for both their personal contributions to the company as well as the overall success of the company. (BMW Financial Services, 2016) The program awards
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Monetary incentives are money-based rewards given when an employee meets or exceed expectations. (Lewis, 2016) Non-monetary incentive plans are awards that tend to with a promise of an opportunity such as time off work. (Lewis, 2016) BMW Financial Services offers many non-monetary incentives. The paid time off work at BMW Financial Services includes three weeks of vacation with an additional week given after 5 years of employment, five floating holidays, five days of sick time per year, five days of bereavement for immediate family members and 9 paid holidays. Another non-monetary program offered by BMW Financial Services is their employee car program. The BMW associate have the opportunity to lease a new BMW or Mini at a very discounted rate. The monthly payment includes insurance and maintenance. If the associate chooses to be on the program the associate receives a new vehicle every 6 months or 6,000
Mujtaba, B. G., & Shuaib, S. (2010). An Equitable Total Rewards Approach to Pay for Performance Management. Journal of Management Policy and Practice vol. II (4), 111-121.
Balanced Scorecard The balanced scorecard (BSC) is a strategy used in organizations to determine their performance measures (Meredith & Shafer, 2016). The BSC provides knowledge into four perspectives of an organization; financial performance, customer performance, internal business process performance, and organizational learning and growth (Meredith & Shafer, 2016). There are many elements of the BSC, including the strategy map which displays the cause and effect relationships between the four perspectives to achieve a specific organizational goal (Meredith & Shafer, 2016).
Does meritocracy still exist in America? Are many talented people who have worked hard throughout their lives going to get deserving rewards and promotions? Does the word meritocracy invented by Michael Young in 1958 still make sense to all of us? Many people still think that meritocracy exists in America because America is the land of opportunities. However, meritocracy does not really exist in America because many hard working people still do not have adequate benefits for their lives and an uncertain future.
For many years in United States, equal salary pay for women has been a major issue that women have been fighting for decades. This began back in World War II, when the National Labor Board urged equalize the salary rates for women with the same rates that males were getting of the same professions. (Rowen) Although, traditionally most women do not work to provide for there family and there are not so many independent women during World War II. After World War II more women lost their jobs to veterans returning to the workforce. Women in the workforce after the war have been discriminated ever since. The idea of women as weak and cannot perform there jobs
These two questions take in to account two important variables about rewards, what and how. “Extrinsic rewards can be used to motivate employees to acquire new skills or knowledge about the job. Once the knowledge and skills are acquired, the employees will feel intrinsically motivated to complete a given task.” –Kendra Cherry (about.com)
The notion of the Balanced Scorecard was described as "a framework for multi- dimensional performance evaluation and performance management." This framew...
Human Resource Management is a fundamental part of a company designed to maximize employees’ performance in service of the organization’s strategic goals and objectives. One of the ways to create company’s competitive advantage is to boost productivity of the employees. Employee’s productivity depends on how satisfied they are with the task that they have been assigned to do. In the past several decades developed nations such as Canada has developed a unique way to increase employees’ morale and productivity, in addition to job enrichment. This method is called total rewards program.
A Balanced Scorecard can be defined as a “performance management tool which began as a concept for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy” (Wikipedia 2009, ¶ 1). Scents & Things will need to develop a balanced scorecard that will assist in meeting and help define the company’s values, mission, vision, and SWOT analysis. The balance scorecard is made up of four perspectives; financial, customer, learning and growing, and internal process. This paper will define each of the four perspectives objectives, performance measures, targets, and initiatives. The paper will also show how the perspectives relate to Scents & Things vision, mission, values, and SWOTT analysis.
Merit pay is a term used to describe the compensation of a person base on its merit. It rewards people based on their high achievements not just base on there job description. Susan Heathfield (2016) describes Merit pay as additional pay for those with higher performance. Heathfield also stated that she believes that it sends a powerful message and encourages other to increase their effort. Many have argued regarding the incorporation of merit pay in the education system, whether it is encouraging or f it is discouraging to those who do not receive the special pay increase.
The Balanced Scorecard is a strategic planning and management system used to align business activities to the vision and strategy of the organization by monitoring performance against strategic goals. It is used extensively in business and industry, government and non-profit organizations worldwide to provide a framework that not only provides performance measurements, but helps planners identify what should be done and measured.
Merit pay for teachers At any given institution, enhancing results is a critical goal. Maintaining a motivated labor force increases the likelihood that they will be more productive and regard institutional goals as their own personal goals. They will appreciate working more if they feel that they are more than adequately sharing in the benefits associated with the attainment of institutional goals. From an institutional perspective, the best of ensuring such an environment is to offer an attractive pay and a reward scheme that encourages the employees to improve their performance and hence optimize their output.
Reward management involves defining, facilitating, and encouraging performance. The positive effects a successful RM system can provide to employee performance and in turn organisational success and competitive advantage are clear. This appeal has driven many organisations to take up RM as part of their performance management stratagem.
Attracting and retaining the most talented employees is essential for long-term organizational success. An important component to attracting and retaining such employees is the design and implementation of an effective compensation and benefit system. Assuming the role of a highly regarded human resource consultant hired to review, analyze, and revise the compensation and benefit system utilized by my city’s largest employer, Holland Enterprises, this paper presents a revised compensation and benefit strategy that suits the firm. This proposal describes how an effective compensation and benefit system could contribute to organizational effectiveness in the firm, the principle components of the revised compensation and benefit system for the
Formalized compensation goals serve as guidelines for managers to ensure that wage and benefit policies achieve their intended pur¬pose. The more common goals of compensation policy include to reward employees’ past performance, to remain competitive in the labor market, to maintain salary equity among employees, to motivate employees’ future performance, to maintain the budget, to attract new employees, and to reduce unnecessary turnover. It is important for the organ...
Management spends a huge amount of time to design incentive systems and schemes to motivate their workers and to ensure they work in their best possible manner. Motivating workers by giving them decent pay helps in winning employees heart to make the work done efficiently, significantly and effectively. The most effective way to motivate people to work productively is through individual incentive compensation (Pfeffer, 1998). An attraction of getting more is a powerful incentive to people for high performance. While most people agree that money plays a major role in motivating people, in organizations there is a widespread belief that money may also have some undesirable effects on morale.