Mgt655 Incentives Can Be Too Powerful Case Study

Assignment 3

MGT 655

April 14, 2019

Reflection Assignment

The foundation of any success compensation plan is that it serves to drive the right employee behavior and that it is linked to strategy and operational success. The most important part of the system is the metrics or measures on which compensation is based. Selecting the wrong measures can result in rewarding undesirable behavior and decision making. Achieving or maintaining a competitive advantage in any field requires constant review and updating of plans and strategies.

Although employees should know how to perform their jobs; linking compensation to an appraisal is very important, depending on the job. It could be viewed as a reward or a positive re-enforcer. Simply telling the employees that if you don’t just do your job, but also, do a great job and go above and beyond for the company, this is our way of showing appreciation. It is important for an organization to understand what drives an employee.

When working at a job with excellent benefits, the chances of getting a monetary incentive with a performance appraisal is very slim, in my opinion. I’ve worked for an employer that didn’t have great benefits, but compensation was linked to performance appraisal. Everything about the organization was linked to money, that’s how they tried to drive employees to do things. The money was cool for those who really needed it. Someone like me, I really didn’t care for the more. For one, it would force me to be in a different tax bracket and majority of the compensation would go towards taxes. Therefore, it’s important to understand if an employee would prefer monetary or non-monetary. Due to the benefits not being great, the employer has to make up.

At my current job, compensation isn’t linked to performance appraisal, but the benefits are awesome. My supervisor understands that we would prefer free-time off versus anything monetary. Some Friday’s she allows us to work a half of a day when we’re not busy, other times she gives us a time frame and everyone has to pick what day they would like off, and she also, but us college gear to wear on Friday’s. To us, non-monetary essential and better than monetary essentials.

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