Human Resource Management



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Human resource management

Pay

  • Base Wage
    • Job Based Pay-paid for the job that is done
    • Competency Based Pay-pay is linked to job-relevant skills, knowledge, and experience
  • Incentive Pay-linked to job performance
    • can increase motivation
    • links employees to firm performance
    • works well when employees trust firm

Individual Incentives

  • Piece-Rate - Pay for each unit of output
  • Commissions - Pay from percentage of sales or profits
  • Bonuses - Lump sum payments
  • Merit Pay - Permanent increases in base pay linked to individual’s previous performance
  • Seniority - Increases over time

Team or Organizational Incentive

  • Gain Sharing - teams of employees share in gains from improvements in productivity or cost saving measures
  • Profit Sharing - A percentage of profits earned by a department or company
  • Stock Ownership
    • Options
    • Employee Stock Ownership Plans

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