Essay about Compensation Plans: Targeting Incentives

Essay about Compensation Plans: Targeting Incentives

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Incentive based compensation plans are one of the most conversed topics organizations that have been dealing with for quite some time. There have been several philosophies, formulas, and plans used but in the end, each type of plan has created unfavorable and optimistic results. The questions have always been whether the positive that comes from incentives plans are worth the challenges they create. In examining some of the plans that offer individuals, team based, and long-term incentives, they all vary in different ways that they are applicable, administered and designed, and beneficial to the organization’s objectives.
Individual Plan
The Balanced scorecard plan could be a feasible option for an individual plan for a General Manager for a restaurant like Bob Baumhower’s Wing’s Sports Grille. This position requires the ability to forecast sales, plan labor and productivity, and analyze budgets and its impact on the financial health of the organization. The manager work about 80 hours a week and sometimes feels under appreciated. This type of plan could compensate the general manager for their ability to manage and guide the expected behavior of subordinates to meet their goals by creating a set of norms that are consistent and in line with the company financial and operational goals. This type of plan has a considerable amount of emphasis on metrics besides financial performance metrics to balance out the expectations for the unit. It also targets operational performance where leadership would have measureable outcomes; a scorecard could include customer loyalty, employee retention, internal efficiency, and competitive position (Hanks, 2013). The type of plan is a good for this position because it does not only measure financial...

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...s to have investment opportunities in the company’s growth from a pre-tax status. Most of the employees have knowledge in the areas that they work in; this is can result in a retention issue that can an adverse affect on the company success, which depends tremendously on consumers shopping there because of the knowledge of the associates.

Works Cited

Hanks, R. (2013). The balanced scorecard: a practical approach. Retrieved from
Lowe's Company. (2014). Employee stock purchase plan. Retrieved from
MacKechnie, C. (2014). Characteristics of a profit sharing plan. Retrieved from
Milkovich, G., Newman, J., & Gerhart, B. (2014). Compensation. (11th ed.). New York: McGraw-Hill.

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