Pay For Performance

The company’s compensation programs are result oriented market focused and flexible. Pay for Performance is one of the key compensation program, which includes various pay, benefits and special programs offered by the company.

Pay for performance is an incentive program. A way to compare is when in sports a player can make more money for doing better or meeting certain goals. So if a pitcher pitches a no-hitter he may receive an additional bonus on top of his salary. Pay for performance concerning health care is looking at not only success rates but overall outcomes. This means Patient A has a surgery she comes through without complications, and she heals quickly, is discharged and when she comes back for a follow-up everything is moving along as the physician plan. This is a good outcome. Now if the same patient, acquires an infection,does not heal in a reasonable amount of time or dies then the outcome is not favorable and pay for performance is affected. because pay for performance is difficult to measure in long term situations many times, the outcomes are measured in sections such as various components that create a patient’s overall health rating. for instance, Patient B is 300 lbs suffers from high blood pressure, high cholesterol, and diabetes pay for performance would look at each component and see if the health services being provided are aiding in the betterment of the patients health. At the core pay for performance is more about accountability, keeping medical professionals abreast of what is really going on with patients regardless of income or background.

Pay for performance systems have further been proven to have two advantages for organizations: attracting more high-quality employees and motivating employees to exert more effort at their jobs. (Gordon, Kaswin) This paper will show the positive benefits of performance pay as

The team-based incentive pay plan financially compensates employees for the goals they meet as a collective group, rather than as individuals (). Employers who use the team-based incentive pay plan find that the approach brings a sense of urgency to the group effort. The team-based incentive results in greater performance and goal reaching than when individuals work on their own. Individuals who work under the pay plan are also able to gain a greater sense of cohesiveness. In the team-based incentive pay plan if you do not perform well, you would not receive a pay check. The people in the team-based incentive plan all recognize that the greater performance they have together the greater the payday would be for each member of the team.

“Year after year, as executive pay continues its inexorable climb, it's amusing to watch corporate directors try to justify the piles of shareholder money they throw at the hired help (Morgenson 1)”. There are many employees that go the extra mile and produce more for their company, but they often never receive anything extra in return. Due to this, they are less motivated to go the extra mile in the future. In contrast, incentive pay is beneficial to an organization’s overall production efficiency and effectiveness.

Pay for performance in healthcare provides financial incentives to clinicians or hospitals in order to improve health outcomes. Clinical outcomes, such as improved survival, are not easy to measure, therefore pay for performance systems usually measure process outcomes.

What knowledge, skills, and abilities are needed to perform the job of working in a customer service call center?

Ferracone, R. A., & Borneman, J. P. (2001). Putting pay for performance back into incentive programs. Compensation & Benefits Management, 17(4), 29.

Pay-for-performance is a payment approach which focuses on improving the quality of healthcare. This payment system focuses on providing financial incentives to providers who achieve health outcomes for their patients. Providers are typically evaluated on four metrics:

Traditionally, most employers compensated their employees based on a set hourly wage or annual salary (Martocchio, 2013). Today, there are many companies that utilize incentive pay programs to replace part or all of the base pay to manage payroll expenses and to connect pay to performance. Incentive pay, also referred to as pay-for-performance or variable pay, rewards individuals for partly or completely achieving a predetermined goal (Martocchio, 2013). Basically, incentive pay is compensation, outside of the employee’s regular wages, which can vary depending on whether or not the employee achieves predetermined goals (Martocchio, 2013).

The phrase “pay for performance” can mean different things to different people. This absence of clarity and comprehension can keep employers from meeting short-and long term objectives and employees from

Pay for Performance 31 4.1 Definition of the key ingredient/activity 31 4.2 Rationale of its importance 31 4.3 Potential impact on organizational outcomes 32 4.4 Organizational symptoms that suggest that the function is not being performed correctly 32 4.5 Key descriptive models 33 4.6 Key steps in executing the prescribed models, processes or techniques 33 4.7 Issues that could prevent this function from being successfully executed 36 4.8 Critical success factors/activities that must be completed in order to successfully execute this function 38 5. Performance Appraisal 40 5.1 Definition of the key ingredient/activity 40 5.2 Rationale of its importance 40 5.3 Potential impact on organizational outcomes 41 5.4 Organizational symptoms that suggest that the function is not being performed correctly 41 5.5 Key descriptive models 42 Figure 5.1 – Basic Learning Model 44 5.6 Key steps in executing the prescribed models, processes or techniques 44 5.7 Issues that could prevent this function from being successfully executed 46 5.8 Critical success

Pay for performance is not a recent idea. The concept that an employee receives pay for the quality of work that he or she has accomplished is seen in many areas of business. Pay for performance is the reason a customer may pay more for a certain mechanic to fix his or her vehicle than he or she would for another. The customer considers the completed work and pays more for the better job. Many teachers now think that they should have the same system of payment. While many have experienced pay for performance before, those in academics have discussed and tested the establishment of pay for performance for teachers, also known as merit pay, for generations in many areas of the world (Brewer, et al 46-47). Because one teacher has a higher

C) managers should receive a high bonus for the piece rate work of their employees

Pay for performance is to link employees’ salary or salary increase to his or her performance. It seems to be a reasonable or attractive idea but it often does not work well in organizations. Please use at least 4 motivation theories or models to explain why pay for performance may not work as expected—particularly in government and nonprofit organizations.