Unit 7 Discussion Board

Pay for Performance Systems

You read about various methods used to reward employees for their individual performance and incentive plans to motivate employees. Based on your reading, answer the questions below in this Discussion.

  1. Describe some of the most significant benefits of a pay for performance system.
  2. Pay for performance also has its list of challenges. Discuss the main areas of concern with the implementation of a pay for performance system. How can organizations address the negative aspects of this type of system?
  3. How can the organization’s manner of creating and carrying out an incentive plan improve the effectiveness of the plan?

Support your response with information from the textbook or other academic source.

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