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 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 ***** company performance. Today, it often seems like ***** buzzword of most corporate environments is 'teamwork,' and ***** *****s are often tied to collective group efforts, or to the organization's success as a whole. But w*****h an individual performance modifier, an employee *****s a personal benchmark, upon ***** his or her incentive is given or withheld, rather than primarily relies upon the efforts of others or the company to secure ***** or her bonus.

The benefits of using this rewards system is that an employee can do stellar work, even if the company is failing, ***** this creates an incentive for employees ***** continue to push themselves to hig***** *****d *****her levels of performance, even if 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 ***** will that brings ***** company into profitability once again.

However, by dis*****sociating incentives from collective demonstrations of excellence, corporate culture may become more 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 from the

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