Pay for performance schemes may take several forms

Assignment Help Business Economics

Reference no: EM13744031

1. There are several compensation schemes that employers may use to motivate workers.

A. “Pay for performance” schemes may take several forms. One is a piece rate scheme, in which there is an explicit mathematical formula that translates workers’ output into pay. (For example, a worker might be paid $5 per unit of out put he or she produces.) A second scheme awards workers a year-end bonus that depends on their annual performance review. Question: All else equal, would Caucasian or African-American workers have a stronger preference for the piece rate relative to the bonus system? Why?

B. Women are more likely than men to hold jobs that pay workers a piece rate, but less likely to hold jobs that promise workers raises if they perform well. Why might that be? (Hint: This is not about discrimination.)

C. Why might it be more problematic to use a piece rate scheme to motivate a sales representative who sells computers than one who sells furniture?

D. Briefly explain how job- or industry-specific human capital (or occupational licensing, for that matter) can make employees more diligent in their jobs, even if employers do not pay efficiency wages designed to elicit greater honesty.

Reference no: EM13744031

Questions Cloud

Chosen organization and the project description : Submit a short brief of your chosen organization and the project description. The brief should include and not be limited to background on the company, the area where you will focus your submission, and the type of deliverable (database, website, das..

Explain the relationship between price elasticity of demand : Total revenue is calculated as the quantity of a good or service sold multiplied by its market price. Thus, it is a measure of how much money a company makes from selling its product. The core objective of a firm is maximizing profit. Explain the rel..

Increasing workers cash wages by an equivalent amount : One type of benefits involves giving workers discounts on the firm’s products. We noted that this type of system could reduce the firm’s costs by reducing some marketing expenses. Explain why offering such discounts (as opposed to increasing workers’..

Conducting the same practice of non-price competition : Budweiser (now owned by a Belgium based beer company called InBev), Miller and Coors who together produce 85% of all beer consumed in the US, each spend well over $250 million a year on television advertising campaigns, promoting their beer brands. O..

Pay for performance schemes may take several forms : “Pay for performance” schemes may take several forms. One is a piece rate scheme, in which there is an explicit mathematical formula that translates workers’ output into pay. (For example, a worker might be paid $5 per unit of out put he or she produ..

Explain the steps of the scientific method earl utilized : Describe the steps of the scientific method Earl utilized and Describe the remaining steps Earl will use if he decides to use the scientific method to determine what made the people sick

Competitive markets normally lead profit maximizing firms : ”Most commercial fish species in nearly every ocean and sea are being rapidly depleted in what marine biologists and other specialists warn is evolving into one of the worst ecological disasters of modern times. According to the United Nations, the w..

The mass loss of c02 and h20 per gram of nahc0 : Calculate the stoichiometric ratio for the mass loss of C02 and H20 per gram of NaHC0

User Account

All Pages