Assessment Code: RWT1
Table of Contents
As manufacturers of high precision electronic test equipment, ABC Electronic Test Equipment is in a highly competitive industry that is always looking for the most highly qualified and skilled employees. Edward Lawler of the Center for Effective Organizations at the University of Southern California, the author of many books on compensation, believes that “employees value themselves in relation to the market place and if a competitor were to offer higher pay it is likely that employee will change companies” (Wilson, 2003). As we look towards the future this has …show more content…
There are possible issues with implementing a pay for performance plan. For instance, if rewards are based primarily on individual goals this could lead to unhealthy competition in the workplace that can breakdown teamwork. A pay for performance plan can lead to dissatisfaction among senior workers who feel they should be rewarded more than junior workers. Also, employee moral can become low if they are unable to meet goals due to reasons outside of their control or if performance goals are set at levels which may be unobtainable.
Analysis: Implementing a performance base plan could provide several benefits to the company in terms of