HUMAN RESOURCE MANAGEMENT PRACTICE - Fichier PDF

Reward management ❚ 639Payment-by-result schemesPayment-by-result (PBR) schemes provide incentives to workers by relating their payor, more usually, part of their pay to the number of items they produce or the timetaken to do a certain amount of work. The main types of PBR or incentive schemes forindividuals are piece work, work measured schemes, measured day work and performance-relatedpay. Team bonus schemes are an alternative to individual PBR andplant-wide schemes can produce bonuses that are paid instead of individual or teambonuses, or in addition to them. Each of these methods is described in Table 42.3together with an assessment of their advantages and disadvantages for employersand employees, and when they are appropriate.Table 42.3Comparison of shopfloor payment-by-result schemesSelect Main For employers For employees Whenfeatures Advantages Disadvantages Advantages Disadvantages appropriatePiece Bonus directly Direct Lose control Predict and More difficult Fairlywork related to motivation; over output; control to predict and limitedoutput. simple, easy quality earnings in control applicationand to operate. problems. the short- earnings in the to workterm; regulate longer-term; involvingpace of work work may be unitthemselves. stressful and productionproduce RSI. controlledby theperson egagriculture,garmentmanufacture.Work- Work Provides what Schemes are Appear to Ratings are For shortmeasuredmeasurement appears to be a expensive, provide a still prone to cycleschemes used to ‘scientific’ time- more subjective repetitivedetermine method of consuming objective judgement work wherestandard relating and difficult method of and earnings changes inoutput levels reward to to run and relating pay can fluctuate the workover a period performance; can too easily to because of mix oror standard can produce degenerate performance; changes in designtimes for significant and cause employees work changesjob/tasks; increases in wage drift can be requirements arebonus based productivity, because of involved in outside the infrequent,by reference to at least in loose rates. the rating control of down timeperformance the short-term. process to employees. is restricted,ratings ensure andcompared fairness. managecontinued