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 Towers Perr***** ***** 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 ***** buzzword of most corporate environments is 'teamwork,' and performance incentives are often tied to collective group efforts, or to the *****ganization's success as a whole. But ***** *****n ***** performance modifier, an employee *****s a personal benchmark, upon ***** h***** or her incentive is given or withheld, ra*****r than primarily relies ***** the eff*****ts of others or the company to secure h***** or *****er bonus.

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

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


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