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 ***** Perrin survey 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 ***** *****s are ********** tied to collective group efforts, or ***** the *****ganization's success as a whole. But ***** ********** ***** performance modifier, an employee sets a personal benchmark, upon ***** his or her incentive is given or withheld, rat***** th***** primarily relies ***** 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 *****s ***** continue to push themselves to higher and ***** levels of *****, even if they are afraid ***** 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 profitability once again.

However, by dis*****sociating incentives from collective demonstrations of excellence, ***** 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, ***** ***** cause resentment between employees who pr*****it ********** employees ***** do not profit ***** the

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