Chapter Twelve

Concept and Brief Description: This chapter focuses primarily on incentives. Its interesting really, the fact that we actually have to be bribed to do our best. I'm not saying it shouldn't be like that, I do it too, but it is strange to think of it that way. The business world is competative and the ones who are the farthest ahead are the ones with the highest overall performance. How do they have such high numbers, it has to do with their employees. You treat your employees well and they will do the same for you. The next question is what incentives would work best in your particular company and with your particular employees.

Emotional Hook: I wonder if incentive pay for executives is part of the reasons for the tough economy and its struggle to bounce back. If they have the opportunity to manipulate the numbers in their favors at a time when the economy is looking to decline, they might take it to ensure their way of life remains the same. Just a thought...

Key Points: 1. Are ethical values becoming hard to maintain in the business world today with the incentives so appealing to those in executive positions? 2. Considering your employees and involving them where ever possible is a valuable tool for employee satisfaction. Communication is KEY! 3. Are performance bonuses the best way to go for individual incentives? And is profit sharing the best way to go on group incentives?

Question: I don't quite understand merit pay and the graph provided.