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 ***** Perr***** ***** indicates that 62% of companies with organization-wide incentive plans included an individual performance modifier, in which an employee is measured against pre-established personal goals for the year that are set irrespective ***** 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 the organization's success as a whole. But ***** an individual performance modifier, an ***** ********** a personal benchmark, upon which h***** or her incentive is given or w*****hheld, rather than primarily relies ***** the efforts of others or the company to secure his or her bonus.

***** benefits of using t***** rewards sys*****em is ***** an employee can do stellar work, even if ***** company is failing, and this creates an incentive for *****s ***** continue to push themselves to higher 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 ***** that brings the company into profitability 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 company is *****ing well, if employees fail to profit because their salaries are deemed lacking in an atmosphere of bounty, ***** may cause resentment between employees who profit and employees ***** do not profit from the

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