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d criteria as performance and pany profits? 3. Performance versus Membership Will pensation emphasize performance and tie pay to individual or group contributions, or will it emphasize membership in the anization — logging in a prescribed number of hours each week and progressing up the anizational ladder? 169。 2020 by Prentice Hall 107 The Nine Criteria for Developing a Compensation Plan (cont.) 7. Moary versus Nonmoary Awards Will the pensation plan emphasize motivating employees through moary rewards like pay and stock options, or will it stress nonmoary rewards such as interesting work and job security? 8. Open versus Secret Pay Will employees have access to information about other workers’ pensation levels and how pensation decisions are made (open pay) or will this knowledge be withheld from employees (secret pay)? 9. Centralization versus Decentralization of Pay Decisions Will pensation decisions be made in a tightly controlled central location, or will they be delegated to managers of the firm’s units? 169。 2020 by Prentice Hall 109 Percent of Salary in the Form of Bonus and Longterm Ine for Various Pay Salary Brackets 8865605550454032251670102030405060708090O v e r$750$550$750$450$550$350$450$250$350$200$250$165$200$135$165$105$135$65$105$25$65Percent of Base Salary 169。 2020 by Prentice Hall 1011 Individualbased Compensation ? Individualbased pensation programs are more suitable when: ? The firm has a relatively educated workforce with both the ability and the willingness to learn different jobs ? The pany’s technology and anizational structure change frequently ? Employee participation and teamwork are encouraged throughout the anization ? Opportunities for upward mobility are limited ? Opportunities to learn new skills are present ? The costs of employee turnover and absenteeism in terms of lost production are high 169。 2020 by Prentice Hall 1013 Pay Schedule of a Large Restaurant Designed Using a SkillBased Approach Skills 5 4 3 ? Create new items for menu ? Find different uses for leftovers (., hot dishes, buffets) ? C