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    188宝金博页面版: S13 Rewarding for business performance-Armstrong's Handbook of Reward Management Practice

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    内容提示： 13. REWARDING FOR BUSINESS PERFORMANCEKey learning pointsIntroductionFinancial rewards related to business or organizational performance (sometimes knownas company-wide or factory-wide schemes) are a popular form of reward – the 2009 e-reward survey found that 59 per cent of respondents had such schemes.The three types of formal organizational schemes are:? Profit sharing – The payment of sums in cash or shares related to the profits ofthe business.? Share ownership schemes – Employees are given the oppor...

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    13. REWARDING FOR BUSINESS PERFORMANCEKey learning pointsIntroductionFinancial rewards related to business or organizational performance (sometimes knownas company-wide or factory-wide schemes) are a popular form of reward – the 2009 e-reward survey found that 59 per cent of respondents had such schemes.The three types of formal organizational schemes are:? Profit sharing – The payment of sums in cash or shares related to the profits ofthe business.? Share ownership schemes – Employees are given the opportunity to purchaseshares in the company; 29 per cent of the respondents to the 2009 CIPD rewardsurvey had such schemes.? Gain-sharing – The payment of cash sums to employees related to the financialgains made by the company because of its improved performance; only 3 percent of the CIPD (2009) respondents had such schemes.AimsThe aims of relating rewards to business performance are to:? increase the commitment of employees to the organization;? enable employees to share in the success of the organization;? stimulate more interest in the affairs of the organization;? focus employees’ attention on what they can contribute to organizational successand bring areas for improvement to their attention;? obtain tax advantages for employees through approved share schemes – such‘tax-efficient’ schemes enable the business to get better value for money from itsexpenditure on employee remuneration.Profit sharing? Profit sharing is a plan under which an employer pays to eligible employees, asan addition to their normal remuneration, special sums related to the profits of thebusiness.

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