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Supporting Lectures: Review the following lectures: Establishing a Strategic Pay Plan Pay for Performance and Financial Incentives Discussion Questions Before beginning work on this discussion forum, please review the link “Doing Discussion Questions Right” and any specific instructions for this topic. Before the end of the week, begin commenting on at least two of your classmates’ responses. You can ask technical questions or respond generally to the overall experience. Be objective, clear, and concise. Always use constructive language, even in criticism, to work toward the goal of positive progress. Submit your responses in the Discussion Area. Tasks: Respond to one of the discussion questions below: Discussion Question One: Experts state that compensation can positively affect performance in many ways. Visit the South University Online Library and locate articles that are linked to compensation based on the employees’ work performance. Post the article in the forum and discuss how you believe compensation influences a company’s performance. Think about things like an employee’s psychological state, satisfaction with compensation, sense of fairness, competitor’s salary, etc. Discussion Question Two: The textbook has much discussion about pay-for-performance plans. This issue does not apply to executives only. It is a broader concept with a purpose of focusing attention on key goals. Answer the following questions: Why have pay-for-performance plans become more popular? What elements are required to make them successful? Does industry influence the success of pay-for-performance? Submission Details: To support your work, use your course and textbook readings and also use the South University Online Library. As in all assignments, cite your sources in your work and provide references for the citations in APA format. Your initial posting should be addressed at 500–1000 words as noted in the attached PDF.Establishing a Strategic Pay Plan Employee Pay Rates or Compensation When we discuss a pay rate or a compensation plan, we include all the mechanisms associated with the employment and the value or worth of each individual employee. The key to compensation is to align the rewards with the strategy. In other words, the compensation package produces the behavior results of the speci�c goals achieved. Managers utilize various instruments in setting the pay scales that are speci�c to the job or the task in question. Firms need to have some keen considerations for compensation. Determining the Pay Worth Firms use several approaches to setting a pay rate. One such approach is the federal guidelines of establishing a minimum wage. Other methods are based on the market, i.e., “what are the competitors paying,” by utilizing survey methods. In a union environment, the pay rate is negotiated based on several factors of the union or management binding contract. Understanding and establishing a methodology involved in the approach to promote a competitive pay plan become very bene�cial to the �rm’s mission, vision, and values. Establishing the Pay Plans The only way an established pay plan could work is if managers could understand the basic factors in determining the pay rates—outlining all the direct and indirect �nancial payments such as the job evaluation’s equity or worth, the ranking within each job and function, the job classi�cation, and the competency required to perform the tasks and skills of the position. In some instances, geography plays a large role in pay basecation, cost of living, dif�culty attracting candidates, etc. Basic System of Pay Plans For many �rms, keeping the system simple helps avoid any type of discrimination. When I worked in human resources (HR), we established classi�cations and grades. Each section had its own vertical pay rate range. This is a good system to understand as well as research on. Remember when you are dealing with such a sensitive issue as pay, you need to know the law. Determinants of Wages Review each tab to know more. Personal Perception of Wage Cost of Living Labor Union Government Legislation Ability to Pay Supply and Demand Productivity It is de�ned as an organized association of workers, formed to protect and further their rights and interests in both private and public sectors. A union negotiates with the employer of the members (employees within the union) regarding compensation, working hours, and overall health and well-being of the union workers membership. Additional Materials From your course textbook, Human Resource Management, review the following chapter: Establishing Strategic Pay Plans From the South University Online Library, read the following article: Best Laid Plans: Establishing Fairness Early Can Help Smooth Organizational Change (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp? sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxyPay for Performance and Financial Incentives Remember an HR focus is on developing pay plans based on salaries and wages. Incentives are important in any pay plan. It is extremely bene�cial to understand how managers use incentives to motivate employees. The main topics we’ll discuss here are money’s role in motivation; individual employee incentive and recognition programs; incentives for salespeople, managers, and executives; team- and organization-wide incentive plans; and employee engagement that adds further to other �nancial and non�nancial bene�ts that comprise the third component of employee compensation packages. Money is Motivation Many �rms and managers apply different perspectives to motivate the employees above and beyond the scheduled psychological contract commitment that they established with the �rm. Such perspectives include the pay-for-performance or the incentive plan. Incentive plans are pay-for- performance of what each of us accomplish. To go above and beyond what we are paid, �rms apply the term, variable pay, which in other words is an incentive plan. However, this feature is tied into a speci�c type of goal, which is achieved from metrics and measurements that the �rm would have established and exceeded. This is some type of pro�tability, through pro�t sharing or by the money paid in excess of salary for exceeding the speci�c expectations. Research some great incentives, both positive and negative, in order to get a better feel of this concept. Different Incentives for Different Positions In some instances, a variable pay incentive could be distributed to all the employees for meeting a targeted goal of the �rm or a speci�c department, or for a speci�c team achievement. In other instances, certain positions are paid only on the basis of an incentive—a motivating metric to achieve goals or sales above the expectations. Employees who work on full commission have an opportunity to earn unlimited income based on sales results. These results of course alternate based on performance quotas and metrics. It is important to know the law of pay. How People Prefer to Be Incentivized at Work Additional Materials From your course textbook, Human Resource Management, review the following chapter: Pay for Performance and Financial Incentives From the South University Online Library, read the following article: Financial Incentives, Professional Values, and Performance: A Study of Pay-for-Performance in a Professional Organization (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp? sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx? direct=true&db=edsjsr&AN=edsjsr.41683978&site=eds-live)  https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?direct=true&db=edsjsr&AN=edsjsr.41683978&site=eds-live