The new incentive policy : Realtors can receive up to four hours of floor time per month if they had a transaction in the last three months. Realtors receive one additional hour of floor time per month for exceeding three transactions in a three month period. If there are four transactions in a three month period, Realtors receive one additional hour. If there are five transactions, Realtors receive two additional hours. Six transaction lead to three hours and so on. Realtors receive one additional hour of floor time per month for referring one person to Frank's training program. They receive for two people three hours for three people and so on.
a)
Over here If we talk about Stacey she has been a Realtor with Franks Brokerage firm for last 15 years and old employee, As she was on vacation, hence she was unaware of this new incentive policy, as she was on vacation which means she had insufficient transactions hence system did not allow her to sign up for floor time. On the other hand Trina received 20 hours of floor time. Trina performed well as she had staff that helps her sales and Trina even hired a person to find Realtors to go to training seminars. In this case the situation should have been dealt treating everyone equally, yes it is true that the performer needs to be rewarded however there should be equal policy for every employee. As Stacey came resume to work after a gap she was unaware of the new policy structure hence Franks should have designed a different incentive structure for her. And also for new comers.
b)
As Stated Stacey was old employee working with Franks firm for last 15 years and she been to vacation during February ans was gone in late March, Hence she was unaware of the new Incentive policy structure. Hence she was not possessing enough transactions and when she resumed to work the system did not allow her to sign up for floors hours. Also this incentive plan was unfair to new comers who were not getting floor time. Therefore Should have designed for developed the other incentive plan for people like Stacey who was very old employee and she would have performed well in past as she was associated with the firm for last 15 years. And there should have been different approach or strategy for new comers also as they did not get floor time.
Hence Frank should have discussed a different incentive policy structure for Stacey as she would not be devoting productive time to work due to her vacation. In this way the situation have been treated in egalitarian way.
c) Some of the Incentive plans : Incentives are awards provided or given out when pre-determined objectives have been achieved within the firm. When an employees performance exceeds a pre-determined target they tend to be granted a form of incentive payout . This pay out can be a one off payment, a bonus or take the form of an addition to basic pay which then remains until the next decision period. Bonuses in the future become contingent on future performance whereas additions to base pay become part of the compensation landscape once it is granted, being independent of future performance sometimes, opportunities for career progression are seen in an incentive device because they ultimately entail financial rewards, and in various cases, involve opportunities for growth and development. Below are some of the incentives classifications.
1) Individual vs group incentives : Individual incentives induce hard work and discourage mediocre employees from joining the organization
The employee must be capable of attaining the desired level of performance.
The employee must consider the reward valuable and highly dependent on performance.
Group incentives include profit sharing, Team or group incentives could introduce a sense of collective responsibility within the staff with the aim of achieving superior performance through team effort.
2) Short term vs Long term incentives : Short term includes annual bonuses and commissions based on the proceeding periods performance. Incentives can be deferred or long -term in the sense that the benefits are not realized until after some time period has elapsed. Example can be contributions to the pension funds for company executives and non-vested options awarded to employee.
3) Financial vs Non financial type of incentives : Financial incentives are monetary or cash benefits. Non financial incentives includes non-monetary benefits that do no always involve cash awards. Like company vehicle (cars), recognition and opportunities for training and development plans.
