Defined as methods of rewarding people for their
contribution to the organisation.
Pay is a key factor affecting relationships at work.
The level and distribution of pay and benefits can have a
considerable effect on the efficiency of any
organisation, and on the morale and productivity of the
Organisations develop pay systems that are appropriate for
them, that provide value for money, and that reward
workers fairly for the work they perform.
Pay Systems- Objectives
Retain and motivate suitably qualified workers
Move towards, or encourage, teamwork
Change organizational culture and attitudes
Simplify the existing system
Reduce conflict arising from the existing system
Comply with the law on equal pay
Shop Floor Incentive Bonus Scheme
Shop-floor incentive schemes are based on
the principle of payment-by-performance.
These schemes reward the number of items
produced, the time taken to do a certain
amount of work and/or some other
measure of performance. They may relate
to part or all of the pay received by an
F. W. Taylor(1911), stated that the object
of shop-floor incentive scheme was to
reward the input of labor within closelydefined tasks and by so doing, to stimulate
people to work at a faster pace and
increase their output.
This is in accordance with the
instrumentalist view of motivation which
is closely associated with ‘Taylorism’.
The view that employees will only
work harder if they get more money
still dominates thinking about shopfloor incentive schemes