Answer to Question #178760 in Management for Faizan Aslam

Question

       Develop a pay-for-performance system for professors at your college or university. Explain how you would evaluate and reward performance?

Answer 1

Performance-based pay is compensation that's tied to employees' contributions to a company. This kind of pay structure ensures that only the top-performing employees survive. Businesses say it's a great way to improve employee performance.

So in addition to evaluating and rewarding employees for their individual contributions, management should consider group based appraisals, profit sharing, gain sharing, small group incentives and other system modifications that will reinforce team effort and commitment.