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Human Resource Management – Pay for Organizational Performance

Pay for Organizational Performance

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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.

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