Rewarding the Factory Workers: How to Select the Right Measures for an Effective Pay-for-Performance System
Journal Title: Advances in Research - Year 2017, Vol 10, Issue 5
Abstract
Aims: A Performance related pay (PRP) plan rewards employees with a financial payment, either consolidated or non consolidated, following an assessment of their performance and, typically, the achievement of objectives. Many different types of PRP schemes have been developed over the years. Regardless of the scheme chosen, a particularly critical factor in the design of a performance-related pay (PRP) plan concerns the choice of parameters or indicators on which variable pay should be determined. The research goal of this work is to develop an analytical model that can help companies to identify the optimal set of these parameters. Methodology: The model proposed in the paper has been developed through an empirical research methodology involving a large sample of companies. Data were collected by means of a questionnaire distributed to companies which have implementing for at least ten years a performance-related pay (PRP) scheme for shop-floor workers. Results: Descriptive and interpretative analysis of empirical results have identified a set of relationships between some company characteristics and the use of specific indicators for measuring the bonus to be given to the shop floor workers. The proposed model correlates three different typologies of companies (i.e. make to stock, make to order and engineering to order) with different types of indicators (i.e. profitability, productivity, efficiency and quality) which have to be used for bonus calculation. After having recognized to which category a firm belongs, it can easily identify the types of indicators to be used. Originality: The proposed model can actually help companies to identify the optimal set of parameters on which basing the PRP plan. A set of strong relationships have been recognized between some company characteristics and different types of indicators that should be employed for determining the variable bonus for shop-floor workers.
Authors and Affiliations
Roberto Panizzolo, Stefano Biazzo, Alberto Maria de Crescenzo
Keywords
Related Articles
- EP ID EP319384
- DOI 10.9734/AIR/2017/34518
- Views 83
- Downloads 0
Effect of Cultivars and Sowing Dates on Nutrient Uptake and Yield of Chickpea under Aberrant Climatic Conditions in Black Soils of Central India
Field experiments were carried out in Indian Institute of Soil Science, Bhopal, India to identify the most suitable variety, appropriate sowing time and their subsequent interaction on nutrient uptake...
Assessment of Stability Patterns in Some Selected Chilli Hybrids (Capsicum annuum L.)
Chilli or hot pepper belongs to the family Solanaceae having diploid chromosome number of 24. It is believed to have originated from South and Central America. The genus Capsicum includes twenty-seven species of which fi...
Comparative Production of Cellulase from Chemical and Biological Pretreated Groundnut Husk
Lignocellulose biomass was bioconverted with Aspergillus niger and Trichoderma viride to produce cellulase. Groundnut husk is a cheap and readily available substrate with potential for bioconversion. Cellulase production...
Breastfeeding Self-efficacy and Breastfeeding Outcomes among Tunisian Mothers Delivering in a University Hospital in Sousse (Tunisia)
Introduction: Despite the benefits of breastfeeding, neither its duration, nor its exclusivity are respected by the majority of mothers. Among the modifiable factors and sensitive to the interventions of health professio...
Determination of mtDNA Sequences by Using Novel Primers to Establish Intraspecific and Phylogenetic Relations of Hungarian Isophya (Orthoptera, Tettigoniidae) Species
Novel gene specific primers were designed for coding sequences of a part of 16S ribosomal RNA encoding gene and a piece of ND1 gene, separated by a short stretch of DNA that encodes a tRNA-Leu gene for Isophya species.