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 ***** Towers Perrin survey identified? Explain it in managerial terms?

The Towers Perrin survey indicates that 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 *****ten seems like ***** buzzword of most corporate environments is 'teamwork,' and performance *****s are ********** tied to collective group efforts, or to the *****ganization's success as a whole. But ***** ********** ***** performance *****, an ***** sets a personal benchmark, upon which his or her incentive is given or withheld, rather than primarily relies upon the eff*****ts of others or the company to secure ***** or her bonus.

The benefits of using th***** rewards system is ********** an employee can do stellar work, even if ***** company is failing, and this creates an incentive for employees ***** continue to push themselves ***** hig***** and higher levels ***** per*****mance, even ***** they are afraid that the company will not meet its own desired r*****ue 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 ********** once again.

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


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