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Shop Floor Incentive Bonus Scheme

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Shop Floor Incentive Bonus Scheme

  1. 1. Shop Floor Incentive Bonus Scheme
  2. 2. Pay Systems  Defined as methods of rewarding people for their contribution to the organisation.  Pay is a key factor affecting relationships at work.  The level and distribution of pay and benefits can have a considerable effect on the efficiency of any organisation, and on the morale and productivity of the workforce.  Organisations develop pay systems that are appropriate for them, that provide value for money, and that reward workers fairly for the work they perform.
  3. 3. Pay Systems- Objectives         Increase productivity Retain and motivate suitably qualified workers Improve quality Move towards, or encourage, teamwork Change organizational culture and attitudes Simplify the existing system Reduce conflict arising from the existing system Comply with the law on equal pay
  4. 4. Shop Floor Incentive Bonus Scheme  Shop-floor incentive schemes are based on the principle of payment-by-performance.  These schemes reward the number of items produced, the time taken to do a certain amount of work and/or some other measure of performance. They may relate to part or all of the pay received by an employee.
  5. 5.  F. W. Taylor(1911), stated that the object of shop-floor incentive scheme was to reward the input of labor within closelydefined tasks and by so doing, to stimulate people to work at a faster pace and increase their output.  This is in accordance with the instrumentalist view of motivation which is closely associated with ‘Taylorism’.
  6. 6. The view that employees will only work harder if they get more money still dominates thinking about shopfloor incentive schemes

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