Professional Documents
Culture Documents
Introduced by :
Abeer F. Agami
Amira M. Ali
Hanan Seif
It is any type of financial reward that is provided
only when certain specified performance results
occur.
Frequency of payout
Group
Organizational
Merit pay
Incentive pay
Profit sharing
Ownership
Gain sharing
Annual pay increases are usually linked to
performance appraisal ratings.
Sales Commissions
Basic commission on sales volume
One-third of salary
Satisfy all the criteria listed for bonus schemes
Gainsharing
A form of group compensation based on group or plant
performance (rather than organisation-wide profits) that
does not become part of the employee’s base salary.
Group incentives
Tend to measure performance in terms of physical output.
Profit Sharing
Any procedure by which an employer pays, or
makes available to all regular employees, in
addition to their base pay, current or deferred
sums based upon the profits of the enterprise.
Challenges:
Agreement over division of profits
between company and employees.
Possibility of no payout due to financial
condition of company.
Ownership
Stock option
An employee ownership plan that gives
employees the opportunity to buy
the company’s stock at a previously fixed
price.
Questions???