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“Incentive Pay Programs


  • Analyze the advantages of person-focused and job-based pay plans to determine which would be least preferable for companies in the technology industry. Explain your rationale.
  • Discuss at least (2) two disadvantages associated with team-based incentive pay plans. Provide examples to support your rationale.

Respond to a classmate:


Job-based pay plans identify the job and assign a pay structure for that role.  It would take into consideration experience and education and adjust the pay plan accordingly.

Ideally, it would be good to combine the two.  The knowledge one obtains needs to be transferable to job performance. If I had to choose the least preferable method for a technology company it would be the job-based plan because an employee in a technology company would need to be continually growing in knowledge, skills and competencies.  An degree in IT/IS may not be relevant a few years down the line. Ongoing education is critical to success in that industry.

A couple of disadvantages of the team-based incentive plans would be team members that perform at different levels.  An employee that is highly motivated may take on more than their share of the workload while those that are less motivated may have a tendency to slack off.  This scenario could lead to resentment and a hostile work environment.  This type of incentive plan can also make it difficult to provide counseling and mentoring for individual growth or feedback.

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