Essay - Customizing Bonus Plans: What is the Individual Performance Modifier that...


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Customizing Bonus Plans: What is the individual performance modifier that the Towers Perrin survey identified? Explain it in managerial terms?

The ***** Perrin survey indicates ***** 62% of companies with organization-wide incentive plans included an individual ***** modifier, in which an employee is measured against pre-established personal goals for the year that are set irrespective of company performance. Today, it often seems like the buzzword of most corporate environments is 'teamwork,' and performance incentives are often tied to collective group efforts, or to ***** *****ganization's success as a whole. But ***** *****n ***** performance *****, an employee sets a personal benchmark, upon which h***** or ********** incentive is given or withheld, rather th***** primarily relies upon the eff*****ts of others or the company to secure his or her bonus.

***** benefits of using this rewards system is that an employee can do stellar work, even if ***** company is failing, ***** this creates an incentive for *****s to continue to push themselves to hig***** *****d ********** levels of *****, even if they are afraid that the company will not meet its own desired revenue targets. The individual per*****mance modifier can act as an obvious morale boost for good employees during flagging years of profit and hopefully generate more ***** ***** that brings the company into *****ability once again.

However, by disassociating ***** from collective demonstrations of excellence, corporate culture may become more fractured. Further*****, while it prevents mediocre employees from 'coasting' when the company is doing well, if employees fail to profit because their salaries are deemed lacking in an atmosphere of bounty, ***** ***** cause resentment between employees who profit and employees who do not profit from the

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