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 performance 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 ***** incentives are often tied to collective group efforts, or to the *****ganization's success as a whole. But ***** an individual perform*****ce *****, an ***** ********** a personal benchmark, upon ***** h***** or *****er incentive is given or withheld, ra*****r than primarily relies upon the eff*****ts of others or the company to secure his or her bonus.

The benefits of using this rewards system is ***** an employee can do stellar work, even if the company is failing, ***** ***** creates an incentive for employees to continue ***** push themselves to hig***** and ********** levels of performance, even ***** 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 ***** profit and hopefully generate more ***** ***** that brings the company into *****ability once again.

However, by disassociating incentives from collective demonstrations of excellence, ***** culture may become ***** fractured. Furthermore, while it prevents mediocre employees from 'coasting' when the company is doing 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 who do not profit ***** the

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