Question: Please explain why all of these can cause problems in the work environment and why? Job Evaluation: A system based on the relative worth of
Please explain why all of these can cause problems in the work environment and why?
Job Evaluation: A system based on the relative worth of jobs. Many feel that higher-level employees perform sufficiently different work and should be paid at a higher rate. This may be contributing to an unspoken morale problem. This system may help protect the company against discrimination claims, as employees would receive equal pay for equal work.
Performance-Based Pay System: Standards would be established for all jobs that could have standards, and employees would be paid a base hourly wage plus a bonus if their productivity exceeds the standard.
Team Incentive Plan: The workforce would be grouped into as many teams as practicable and standards set for the teams. Workers would receive a base hourly wage plus a bonus based on the teams performance.
Piece Rate System: Piece rates would be established for all jobs that could have a piece rate determined, and all workers would be paid on each unit produced. If it were a service job, it would be paid on such items as orders taken, calls made, etc.
Employee Stock Ownership Plan (ESOP): Similar to profit or gain sharing, employees would be paid their bonus with company stock. Employees would feel like they were part owners of the business and could help prevent hostile takeovers (employees would be unlikely to vote for the sale of their company). (If non-profit, this option is not available.)
Guaranteed Cost of Living Adjustment (COLA): All employees would have their wages increased each year according to the local cost of living increase, based either on an equal percentage or equal dollars. This is a clause in many union contracts, which helps employees feel the company is doing its best to maintain an acceptable standard of living.
Merit Increases: All employees would receive an annual performance appraisal and receive a merit increase if deserved.
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