Ch. 12 Flashcards Preview

MGMT 471 > Ch. 12 > Flashcards

Flashcards in Ch. 12 Deck (12):
1

Incentive Pay

- forms of pay linked to an employee's performance as an individual, group member, or org. member
- motivate employees
- effective

2

Piecework Rate

wage based on the amount workers produce

3

Straight Piecework Rate

employer pays the same rate per piece

4

Differential Piece Rates

piece rate is higher when a greater amount is produced

5

Standard Hour Plan

pays workers extra for work done in less than a preset standard time

6

Merit Pay

linking pay increases to ratings on a performance scale

7

Gainsharing

measures improvements in productivity and effectiveness and distributes a portion of each to employees

8

Scanlon Plan

employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard

9

Profit Sharing

payments are a percentage of the org.'s profits and do not become part of the base salary

10

Stock Options

rights to buy a certain number of shares of stock at a specified price

11

ESOPs

org. distributes shares of stock to all its employees by placing it in a trust

12

Balanced Scorecard

combination of performance measures directed toward the company's long and short term goals used as the basis for awarding incentive pay