Answered Essay: Explain the similarities and differences between merit pay, incentive pay, and person-

Explain the similarities and differences between merit pay, incentive pay, and person-focused pay. Explain the role of performance appraisals in merit pay programs.

Expert Answer

In order to improve performance of the employees in an organization, firms come up with various payment methods viz. merit pay, incentive pay, person-focused pay etc.

Merit pay – Merit pay is awarded to individual employees based on their performance.

Incentive pay – Incentive pay is awarded to employess both based on their individual performance and the organizational performance.

Person-focused pay – Person-focused pay is awarded to employees for acquiring and implementing knowledge and skills relevant to the job.

Below are the similarities and differences between the three methods –

Similarities –

All the three types of pay are aimed at rewarding employees based on performance or skills.

Merit pay is awarded based on the performance of an individual whereas incentive pay is awarded based on the performance of an individual as well as an organization.

Differences –

Merit pay and person-focused pay are more of subjective whereas incentive pay is objective.

Merit pay doesn’t require a lot of research whereas incentive pay requires ample research to clearly arrive at a specific percentage.

Merit pay is dependent on management opinions and perspectives on an individual employee whereas incentive pay is tied to the actual results achieved by the organization and individual.

Role of performance appraisals in merit pay programs –

Performance appraisal is the review and evaluation of the performance of employees which is done on an yearly basis based on certain parameters.

In a merit pay program, the performance appraisal plays a vital role in determining the amount of the pay. The parameters used in the performance appraisal is determined based on observation of the employee’s performance, the actual output tied to his/her work, the impact made by the employee, peer review and feedback, managerial review and feedback, any additional initiatives the employee has taken throughout the year etc.

Buy Essay
Calculate your paper price
Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

24/7 Customer Support

Our agents are ready to help you around the clock. Please feel free to reach out and enquire about anything.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

HOW OUR ONLINE ESSAY WRITING SERVICE WORKS

Let us write that nagging essay.

STEP 1

Submit Your Essay/Homework Instructions

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.

STEP 2

Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.

STEP 3

Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.

STEP 4

Receive your Paper

After Editing, your paper will be sent to you via email.

× How can I help you?