Analyze the advantages to employees and to employers of a person-focused pay program to determine if this would be a good approach for all companies and organizations in the U.S. to pursue. Explain your rationale.


Compare and contrast the likely success of individual incentives, group incentives, and companywide incentives for improving employee performance.

Pay for performance is usually given for specific results in performance. Incentives are known to improve employee performance through motivation. Manufacturing processes are undergoing a constant change and organizations are forced to come up with different pay plans to motivate their employees. Individual incentives are known to induce high performance from employee. However, they are usually costly to maintain especially in a fast in-process turnover environment. On the other hand, group and company incentives are meant to empower people. The pay plan works under the principle that group output has a better effect on labor’s performance than average individual output (Martocchio, 2013). Therefore, individual incentives are more likely to give successful results on singularity of product and long runs. Group and company incentives work best in attempts to empower employees and encourage group performance.

Referring to the same company, create an outline for an incentive pay program that would benefit employees and the company / organization. Provide specific examples to support your response.

I would like to work with the Maryland Police Department. In this department, I will advocate for group incentive programs. This is mainly because police officers must be encouraged to work in groups where performance is evaluated in general. Two police officers should be designated to take care of specific areas and performance evaluated using information from residents of the specific area. Group incentive will not only improve performance but will also emphasize the importance of group work for effective running of activities.

Response to Marcus

It is very important that you mentioned the differences exhibited in employee preference on motivational factors. Identifying this helps the reader of this response understand that all the pay plans mentioned will enjoy some level of success depending on existing employee preferences. You also did mention that individualized pay plans will encourage better performance for employees and this will result in organizational success. However, you failed to give a clear description on the significance of group and company pay plans regarding continuous interactions and group motivations.

Use the Internet to research a company or organization to determine if a person-focused pay system would benefit the company you researched. Provide specific examples to support your response.

A person-focused pay system is a concept of paying employees depending on the kind of expertise and knowledge they bring to an organization. People with more skills and knowledge can run several simple and complex tasks and therefore, receive higher base pay than their peers receive (Martocchio, 2013). This concept can work well in a hospital setting. Here, physicians with more skills can receive more payment than those with fewer skills. This system should be encouraged to help save the resources of the organization by employing a minimum number of employees possible in the organization. Employing a person with more skills is more benefiting different people with different individual skills. The concept is also effective in this setting given that workers are given opportunities to advance their careers and improve on the quality of service delivery.

Analyze the advantages to employees and to employers of a person-focused pay program to determine if this would be a good approach for all companies and organizations in the U.S. to pursue. Explain your rationale.

Person focused pay system can encourage and improve the morale of few individuals with more skills and knowledge. The system is known to force employees to do new courses in order to improve on their job related knowledge and skills. Therefore, this system can discourage organizational performance by discouraging hard work. Further, paying employees depending on what they could do rather on what they produce can lead an organization to bankruptcy. The global legal environment is very risky and for this reason, differentiating employee pays on other basis other than performance or job-related results is an unnecessary risk (Martocchio 2013). Therefore, person-based pay system is not good for all organizations but can work well in a few institutions such as hospital settings.

Response to Esther

Your description of the benefits of person-focuses pay program for a dental assistant comes out clear and convincing. It is true that will various skills, it is rare for a dental assistant to make any form of mistakes even when the dentist is not close. Further, it is also more cost effective for the dentist in that he will to employ few staff.


Martocchio, J. J. (2013). Strategic compensation: A human resource management approach. Upper Saddle River, NJ: Pearson/Prentice Hall.

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