TABLE OF CONTENT 1. Introduction 2. Case Study: DOW Agro sciences 2.1. Background 2.2. Implementation of Contingent Pay Plan 3.

Conclusion References 1. Introduction The payment for functioning which is known as the Contingent pay(CP), refers to the benefits to persons that is paid on the basis of the level of functioning of the

individuals in their work. Hence, the workers get an enhancement in their pay fully or in part on the basis of the functioning on the work. Such enhancements in pay as rewards could be either clubbed to the worker¶s primary wage or could be given as one-time reward. If the enhancements in pay are kept separate in the worker¶s primary pay, as seen in one-time rewards, they are referred to as variable salary. Initially, the CP concepts were made use of to the high administration only. Slowly, the application of CP concepts is found their application in marketing work also. Presently, the CP concepts find its use widely. For instance, during the year 2001, in US, 70 percent of employees got engaged through the institutions that execute certain kind of variable salary concept, and several of such institutions link the variable salary (e.g. rewards, one-time payment, charge, monetary benefits) straight away to functioning. Likewise, a research on human resources (HR) methods globally witnessed that institutions located in Canada, Taiwan, Latin America and US normally stress the connection between functioning and salary.

2. Case Study: DOW Agro sciences

2.1. Background An international player in offering the pest handling as well as biotechnology goods, the Dow Agro Sciences which is located in Indianapolis in Indiana, is aimed at enhancing the standard a well as the quantum of food distribution on earth and presents a healthy and standard of life of the increasing population globally. The workers of Dow Agro Sciences to the tune of roughly 6000 persons covering over 50 nations and possess global marketing to the tune of roughly 3 billion US$. The Dow Agro Sciences is fully possessed subsidiary of Dow Chemical Firm. Mission The novel technology is offered by Dow Agro Sciences which goes beyond the market requirements and enhances the standard of the increasing population globally. They are able to make out this by means of committed pest restriction, helping in the manufacture of plenty, healthy food distribution, and the making use of plants for a convertible agriculture means in order to create novel and enhanced agriculture products. Vision The Dow Agro Sciences is a top firm using chemical, genetic and biochemical approaches to cater to the requirements of the agricultural and high-end markets. Core values In order to make sure the affluence and welfare of the workers, the clients and stakeholders of Dow Agro Sciences, sustained and continued enhancement in gain is imperative. The manner by which they access such aim is equally significant as aim itself. The basic for their efficiency form the central values which they think of and put to application. 2.2. Implementation of Contingent Pay Plan The contingent salary plan is found to be a significant part of the strategies on human resources globally, and at present act an important part in efforts to drive the institutions towards accessing efficiency in order to achieve their aims. Even though it is not a novel feature, these salary plans are seen as very significant recently,

frequently is seen as parts of a complete functional handling efforts ( differently called as great functional job processes, greatly responsible and greatly engaged strategies) with the objective of enhancing institutional functioning. Naturally, a few critics made argument that several novel human resources handling applications are sometimes successful if clubbed to additional profit dividing systems, like contingent salary plans- view for instance, Levine and Tyson (1990). How these plans and varied other aspects of human resources mechanism connect firmly are given to vast discussion in HRM study paper (Mac Duffie (1995), Huselid (1995)). The quality and utility of the contingent salary processes in Dow Agro Sciences made shift conspicuously during the last 25 years which the Wirs/ Wers studies are undertaken. In addition, the vast decrease in group trade linkages, the emanation of human resource handling and different methods on handling systems, the augmentation of goods trading rivalry, the internationalization of manufacture, and shifts in political scenario during the past 25 years, all these have helped in stimulating the eagerness in enhanced usage of different types of contingent salary. Due to such aspects and connected shifts, the administrations in the institution accessed increased avenues and also an increased requirement, in order to relate the employees¶ salary to scales of personal, group, and institutional functioning. 3. Conclusion It appears evident that in making use of the contingent salary during the 21st century, Dow Agro Sciences acts differently when compared to the earlier adopters in the beginning of 1980s. Certainly there exists an enhanced capability to initiate manifold kinds of plans in position; more probably the group types of salary

processes would be made use of; in addition, the availability of these plans are more wider at present when compared to the position during 1980s and hence it makes less likely to discuss about archetypal contingent salary job situation. Also there exists a sound argument that a shift in strategy is in existence, may be even thinking, in institutions on the feature and action of the contingent salary at Dow Agro Sciences. Such a thing is not viewed simply in emanation of group (yet not personal) types of contingent salary and such shifts of the features in ³ideal´ contingent salary job situation.

References: 1. Lawler III, E.E (2003). Reward practices and performance management system effectiveness. Organizational Dynamics, 32, 396-404. 2. Sturman, M.C, Trevor, C.O., Bourdreau, J.W. , & Gerhart, B. (2003). Is it worth it to win the talent war? Evaluating the utility of performance-based pay. Personnel Psychology, 56, 997-1035.

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