Human Resource Management – Pay for Organizational Performance
Pay for Organizational Performance
Two important ways, the organizations measure their performances are in terms of their profits and their stock price. In a competitive market place, profit results when an organization is efficiently providing products that customers want at a price they are willing to pay. These organization level incentives can motivate employees to align their activities with the organizational goals. Linking incentives to the organization’s profit exposes employees to a high degree of risk.