09 May DISCUSS WHY THOSE FACTORS ARE IMPORTANT TO CONSIDER AND THE ROLE EACH PLAYS IN DEVELOPING EFFECTIVE INCENTIVE PROGRAMS.
Compensation Package Problem: You are a member of a national human resource management society which provides web materials for members as well as on-line chat learning events with field experts. You have just finished reading a live chat presentation with the Martocchio leading author on strategic compensation. Martocchio says that when designing incentive pay programs there are 5 factors that should be considered. Whether the plan should be based on group or individual employee performance. The level of risk employees will be willing to accept in their overall compensation package. Whether incentive pay should replace or compliment traditional pay. The criteria by which performance should be judged The time horizons for goals long term short term or a combination of both. You are asked by the chat moderator to contribute to the learning event by choosing 2 of the 5 factors and posting chat on them. Discuss why those factors are important to consider and the role each plays in developing effective incentive programs.
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