Rewarding Performance: Individual & Group & Merit Incentive Pay


Topic:Rewarding Performance: Individual & Group & Merit Incentive Pay

The speech should include answering the following questions, and showing some tables to the class in order to make them easily understand the questions.


· Compare and contrast merit pay and merit bonuses (Please also create a table with some key words and I will put on my PowerPoint in order to make the class easily to understand, it does not mean you just create a table but you also need to write a speech script for this question, the table is just for showing to the class, I still need the speech script in response to the question).

· Which is fairer to the individual?

· Which is better for the organisation?

· Explain how compa-ratios can be used to manage the performance of people above and below the mid-point of a base pay grade.

2. Individual results-based pay or recognition rewards? (and create tables for showing to the class)—-in this part, you are required to explain what are these two different types of approach, maybe compare and contrast them, discuss their adva and disadva or more.


· What are firms hoping to achieve by introducing profitsharing and gainsharing?

· How likely are they to achieve this outcome?

· Explain how a variable pay system could be based on goal-sharing, and discuss the advantages and disadvantages. ( also create a table of the advantages and disadvantages of variable pay system).

4. Team-based rewards: a good idea? How can the ‘free rider’ problem be avoided?

NOTE: this is a speech/presentation, so the language used here should be very oral, this speech script should include not just the main content, but also some opening remarks ( such as greetings , some transitional sentences like ‘lets move on to the first activity…’) . The whole complete speech script is required.

Compulsory Reading (must read these readings before you start work on this speech draft)

Shields, J. (2007) Managing Employee Performance and Reward: Concepts, Practices, Strategies, Cambridge University Press, Melbourne.

Chapter 16 ‘Recognition rewards’: 387-398

Chapter 17’Results-based individual incentives’: 399-412.

Shields, J. (2007) ‘Collective short-term incentives’, Ch 18 in Managing Employee Performance and Reward: Concepts, Practices, Strategies, Cambridge University Press, Melbourne: 413-46

Shields, J. (2007) ‘Collective long-term incentives’, Ch 19 in Managing Employee Performance and Reward: Concepts, Practices, Strategies, Cambridge University Press, Melbourne: 447-466.

(How to access online textbook :

1. Go to

2. Sign in: Email address: 470176383@qq.comPassword: 123456

3. Click My eBook bookshelf and you will see the textbook ‘ Managing employee performance and reward’

(Note you may need to download Adobe Digital Editions software so you can read the book online)

Further references ( these are some useful articles for you to write this speech script)

Altmansberger, H. N. & Wallace, M. J. (1995) ‘Strategic Use of goalsharing at Corning: Taking Incentives beyond gainsharing’, ACA Journal, Winter. 64-73.

Beer, M. and Cannon, M. (2004), ‘Promise and peril in implementing pay-for-performance’, Human Resource Management, 43(1): 3-20.

Bohlander, G. and Snell, S. (2004), ‘Pay-for-performance: Incentive rewards’ (Extract), Ch 10 in Managing Human Resources, International Student Edition, Thomson South-Western, Mason Ohio: 426-444.

Cooper, C.L., Dyck, B. &Frohlich, N. (1992) ‘Improving the Effectiveness of Gainsharing: The Role of Fairness and Participation’, Administrative Science Quarterly, 37, 471-476; 487-488.

Carey, P. (1995), ‘Gain sharing: A Metal industry case study’, in O’Neill, G. and Kramar, R. (eds.), Australian Human Resource Management, Pitman, Melbourne, 179-90.

Long, R. (1996) ‘Profit sharing and employee share ownership schemes’, Warner, M. (ed), International Encyclopedia of Business and Management. London, Routledge, 4151-4161 (Sections 1, 3, 4, 5, 9, 11).

Long, R. (1997), ‘Motives for Profit Sharing: Study of Canadian Chief Executive Officers’, Relations Industrielles, 52(4), 712-733.

Kessler, I. and Purcell, J. (1992), ‘Performance Related Pay: Objectives and Application’, Human Resource Management Journal, 2(3), 16-33.

Nelson, B. (1996) ‘Dump the cash, load on the praise’ Personnel Journal, July, 65-70.

Nkomo, S., Fottler, M. and McAfee, R.B. (2005), ‘Allocating merit raises: 68 Exercise’ in Applications in Human Resource Management, 5th ed., Thomson South-Western, Mason Ohio: 231-233.

O’Neill, G. (2002), ‘Incentive compensation’, extracts from Ch. 13 in R. Stone, Human Resource Management, 4th ed., John Wiley and Sons, Brisbane: 473-481.

Stone, R. (2008), ‘’Employee remuneration’, extracts from Ch. 11 in R. Stone, Human Resource Management, 6th ed., John Wiley and Sons, Brisbane: 451-458.

Zingheim, P. and Schuster, J. (2000), ‘Total rewards and the six reward principles’, extract from Ch 1, and ‘Rewarding the salesforce’, extract from Ch 12, Pay People Right! Breakthrough Rewards to Create Great Companies, Jossey-Bass, San Francisco: 5; 248-253; 259-265.