Table 12.1 Programs for Recognizing Employee Contributions GAIN SHARING MERIT PAY PROFIT SHARING SKILL-BASED INCENTIVE PAY OWNERSHIP Bonus Bonus Design features Payment Changes in method base pay Frequency of Annually payout Bonus Equity changes Semiannually When stock or annually sold Weekly Monthly or quarterly Change in base pay When skill or com- petency acquired Production or Skill or competency costs of stand- acquisition of individuals Company stock returns Performance measures controllable Supervisor's appraisal of individual performance Individual out- Company put, productiv. profit ity, sales alone work unit Stronger in Stronger in smaller firms smaller firms Stronger in smaller units Encourages learning Clear per formance- reward connection Consequences Performance Relationship motivation between pay and per formance varies Attraction Over time pays better performers more Culture Individual competition Pays higher performers more Helps with all can help employees if lock in plan pays out employees Helps with all Attracts employees if learning plan pays out oriented employees Supports coop- Learning eration, prob- and flexible lem solving organization Individual competition Knowledge Sense of of busi- owner- ness and ship and cooperation cooperation Relates costs Relates costs to ability to to ability to pay pay Training and certification Setting and maintaining acceptable standards Costs Requires well. Setting and developed maintaining performance acceptable appraisal standards system Contingencies Management Some par- Control style ticipation desirable Type of work Individual Stable, indi- unless group vidual, easily appraisals measurable done Fits Fits participation participation Fits participation Fits participation All types All types All types Significant skill depth or breadth Review Table 12.1, on pg. 504, Chapter 12 discussed, recognizing employee contributions with pay. One comment that was stated is that an organization does not have to choose one program over another but can have a combination of programs. With that being said discuss two programs you feel would be a good fit for your organization and why