Chapter 12 & 13 Thoughts

The past week we talked about chapter 12 and 13. Chapter 12 is about pay and chapter 13 is about benefits within an organization. In chapter 12 it talks about incentive pay and employee performance. Oftentimes companies use incentive pay to energize or control employee's behavior. To be effective incentive pay should encourage behaviors that are most needed. It also talks about the different ways that companies can recognize individual performance. They can use piecework rates, standard hour plans, merit pay, sales commissions, and bonuses. We learned about how companies link pay to their overall performance. This can help bring the company together as they all benefit if the company can hit certain goals.

Chapter 13 talks about benefits within an organization. We learned about how important benefits can be to help attract, retain, and motivate employees. There are many beenfits that employers must contribute to old age, survivors, disability, and health insurance. Social security is a program made possible through a payroll tax shared by employers and employees. Also, there are many categories of paid time off, vacations, and holidays, and sick leave. Medical insurance is one of the most valued employee benefits. Policies usually cover hospital expenses, surgical expenses, and visitis to physicians, with some companies even offering more. I didn't realize how many companies come up with additional benefits to attract employees. I think the different ways of providing benefits can be great ways to motivate employees.