Individual Performance Pay Plan vs Group Performance Pay Plan: Which is better for employees at Michelle Company?

The article discusses the advantages and disadvantages of Individual Performance Pay Plan and Group Performance Pay Plan for employees at Michelle Company. The author suggests that as an employee, Individual Performance Pay Plan would be a better choice as it allows for competitive spirit, identifies loopholes in the performer's work, and leads to enhanced motivation and hard work. The article also highlights the benefits of group performance pay plan for team building and strengthening teamwork.

Name – -
Student ID – -
Course – Human Resource Management Post – Diploma
HRPR301 – COMPENSATION AND BENEFITS (M)
Instructor– Michelle Woolf
TITLE
You are an employee working for Michelle Company. Would you
prefer to be compensated with an Individual Performance Pay Plan or
with a Group Performance Pay plan?

I could say that the pay for performance plans are ways of compensating the employees
based upon their productivity, used as a means to improve individual productivity by providing
them with incentives and benefits on each sale. Being an employee I would suggest group based
performance plan. First reason is based on my belief for team building. I belive that such
methods are used especially in professions such as sales and commission based jobs. I personally
feel that if group based method performance pay is used then it will align the interest of the
employees and staff members of the organization with the organizational development. I belive
that every employees should be inclined towards the team building. The group performance pay
plan is prepared to strengthen the team work. Raising the group performance and teamwork, the
payment and incentives are given as lump sum amount to the entire team on achieving the target.
Therefore, I think that one member of the team fails to perform he will receive his share,
similarly an increased effort will not increase the incentive. As An employee at Michelle
Company, Individual performance pay plan would be the chosen over Group Performance pay
plan for two reasons. Compensation is based upon the efforts given by the individual person not
team. I analyzed that this type of payment plan allows competitive spirit to grow and add more
chances to stay productive and not leaning on others for the work, the group payment plan, on
the other hands is responsible for the initiation of business politics and the blame game. The
individual performance plan will help identify the loopholes in the performer’s work and will
open ways to find a solution in order to achieve more. In this type of pay plan the input (Hard
work, ideas, skills, money, learning and efforts) is directly proportional to the output (Rewards,
awards, compensation, incentives.).
Secoundly I belive that the opportunity to gain awards and earn incentives and rewards
together with the base income leads to an improved motivation and a longer stay in the company.
I think that preferring this kind of payment plan will help achieve enhanced motivation and hard
work and reduced procrastination. The impact of procrastination will be seen directly on the
individual performance and pay benefits. I considered that there will be no impact of the low
performing team on an individual payment and incentive. With each achievement, there will be a
target to perform even better in order to provide quality product. The speed of delivery of results
will also be enhanced in order to take up new products to gain more incentives I think there is a
chance to earn more or less depending upon the requirement as opposed to group pay plan,

where even if we need more incentives in a month there are less chances we earn them through
individual performance in the group. i could infer that team work and group perforamance pay
will help other employees to feel motivated who are less effective in work.