Report on PFP System Analysis: Recommendations, Variables, Incentives

This report analyzes a Pay-for-Performance (PFP) system, focusing on its design, implementation, and impact on employee motivation and organizational performance. The report begins by discussing the appropriateness of incentive programs, with specific recommendations on how to structure the system, including the types of incentives, and the importance of linking them to employee performance. It then identifies key variables to be measured and provides recommendations on how to tailor the PFP system to different departments and situations. The report also considers how organizational characteristics might affect the PFP system and concludes by outlining circumstances under which a PFP system might not be in an organization's best interest. The analysis draws on academic research and includes references to support the recommendations. The report's findings are valuable for businesses seeking to implement or improve their PFP systems to enhance employee performance and achieve their organizational goals.

assignment
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The Design of PFP System for Mega Manufacturing:
Answer 1:
In my opinion, I believe that the program of incentive is appropriate. At Kanto, the current
program doesn't exist, and because of this, the employees are able to do the work of minimum
amount inefficiently as there are no incentives for them in order to motivate them to do the
minimum amount of work with the maximum one.
Answer 2:
According to me, there should be several plans which will vary by relying on the target of each
employee and their duties for the particular job. The plans should identify the expected output
from the employees individually and then evaluate the incentives according to their performance
as per the requirement of the job.
Answer 3:
Approximately 65 percent of the workers should be considered in the program of pay-for-
performance. The recruiters and the managers of the human resource which will be having a plan
for PFP will not be impacted by the income of the company as compared to others that have a
relationship with the generated revenue as they will be affected (Jiang et al., 2012).
Answer 4:
The basis for the payments of incentive should identify the expected output from the employee
and then evaluate the incentives according to their performance by setting a minimum standard.
Answer 5:
The various kind of incentives that should be included in the system is bonuses (quarterly), pay
increase, rewards, off for an extra time and the various item of non-monetary (recognition).

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Assessment Answers:
Answer 1:
The key variables which are to be measured are relied on the eloquent issues which were already
mentioned and if the situation is neglected in a department, team or a performance of an
individual. If there will be delays in the process of switching which will be related to the
assurance to a department, then the PFP system of a group-bases should be used. The department
of contracting and bids has large dissimilarity within the margins which further signifies that a
PFP system of group-based would fix and deal with the situation (Merchant et al., 2015).
Answer 2:
The changes in the characteristics of the organization which would impact the recommendations
can be the resource of the organization, a reduction in the resources of monetary aspects and the
tenacity of the organization.
Answer 3:
Being an individual, the circumstances which would lead to conclude that a system of PFP would
not be in the organization’s interest are system of the PFP which would influence employees to
work unethically in order to achieve the reward of incentive, if the system of PFP would
influence the employees to give wrong numbers which don’t inevitably contribute for the
companies benefit that would further indicate that the system of PFP is not in the organization’s
best interest.

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REFERENCES
Jiang, K., Lepak, D. P., Han, K., Hong, Y., Kim, A., & Winkler, A. L. (2012). Clarifying the
construct of human resource systems: Relating human resource management to employee
performance. Human Resource Management Review, 22(2), 73-85.
Merchant, K. A., Stringer, C. P., & Shantapriyan, P. (2015). The Anatomy of a Complex
Performance-Dependent Incentive System. Available at SSRN 2545149.