Establish Develop Teach Link Use a wide high accurate supervisors rewards range standards of performance how to do closely to of increase performance appraisal appraisals and performance systems to give feedback Figure 5: Guidelines for Effective Merit-Pay Systems Source: Cascio, F. W. (1998) Effective incentive system strategy is the system which allows one-time supplements to basic payment (Cascio, 1998). Properly designed incentive programmes work because they are based on two well-accepted principles: (i) increased motivation improves performance (ii) recognition is a major factor in motivation. Such incentive programmes must strictly follow the rules: the rules of the system should be brief, clearly and understandable. Be simple: employees need to know precisely what they are expected to do. Be specific: every employee should have a reasonable chance to gain something Be attainable: measurable objectives are the foundation on which incentive plans Be measurable: are built. Some money for the programme will be wasted. Simple
Establish high standards of performance Develop accurate performance appraisal systems Teach supervisors how to do appraisals and to give feedback Link rewards closely to performance Use a wide range of increase Figure 5: Guidelines for Effective Merit-Pay Systems Source: Cascio, F. W. (1998) Effective incentive system strategy is the system which allows one-time supplements to basic payment (Cascio, 1998). Properly designed incentive programmes work because they are based on two well-accepted principles: (i) increased motivation improves performance (ii) recognition is a major factor in motivation. Such incentive programmes must strictly follow the rules: Be simple: the rules of the system should be brief, clearly and understandable. Be specific: employees need to know precisely what they are expected to do. Be attainable: every employee should have a reasonable chance to gain something Be measurable: measurable objectives are the foundation on which incentive plans are built. Some money for the programme will be wasted. Simple