Management of process & people in engineering industary Essay

Management of process & people in engineering industary - Essay ExamplePay system for engineering firms are regulated by industrial agreement. Antoni and Baeten have argued that profit related collapse can be a much viable election for engineering diligence in comparison to unconquerable rate reconcilement system. PFP in engineering industry is directed by collective bargaining power of engineers working in peculiar(prenominal) organization (Antoni and Baeten, 2007, p. 123). realization of Relevant Pay Systems Performance Related Pay Performance related profit is designed in order to measure accomplishment of individual or group in monetary terms. Organizations using capital punishment related pay believe increased pay can motivate employees to perform well. It is difficult to wee-wee a standard notion of surgical operation related pay because definition of performance varies from organization to organization. rough-cut performance related pay can be explained in the foll owing manner. Small engineering firms pay price to employees on the basis of each unit of output. Although it is oldest form of performance related pay except very few organizations use this model in practical sense. Companies offer individual performance pay contrivances in the form of fixed wage or performance related incentive. Engineers performance is measured in terms of his/her capability to produce target quantity of output in minded(p) timeframe. Cost to the company for engineers is adjusted in terms of fixed salary and variable pay. Variable pay is allocated to employees in the form incentives in order to motivate them to perform well. Individual measure of employees performance is subjective to assessment performed by bad-tempered supervised. Merit pay defines to pay hike due to skilful performance (Bryson et al., 2011). Bonus Scheme Research scholars have described bonus scheme as ego financing method which provides reward to employees with an intention to motivate them to perform well. Bonus scheme is not a static reward system because many organizations change measurement norm of bonus scheme in accordance to business requirement. Basically bonuses are additional payment to base salary and important thing to remember is that bonuses are not paid in periodic manner. There are no fixed performance criteria to link performance with bonus scheme. Labour law suggests that bonus scheme must not be gender biased while research scholars have divided bonus scheme into two broad categories. Single Factor Bonus Scheme In single factor bonus scheme employee performance is measured in terms of key organizational objectives such as productivity, profit, quarter bright gross sales target and other short term targets. Multi Factor Bonus Scheme Multi factor bonus scheme is complemented by long term corporate level business objectives. Bonuses are given to particular individual or department on the basis of their overall performance in a particular financ ial year (Amicus, 2006). Objective of Bonus Scheme Improving performance of employees in terms of profit, sales or productivity Motivating employees to deliver key objectives of business such as service quality, node relationship