Motivating employees by compensation plans

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Reference no: EM1371800

A new manager recently was given an project to make two possible wage schemes for a design firm. The manager came up with the following packages: (1) Each employee will start at $15 per hour and will work eight hours per day; (2) each employee will receive $8 per hour and one-tenth of 1 percent of profits (expected profits are $80,000 per day if everyone puts out maximum effort). Which program will motiviate the employees more? Which program would you choose? Why?

Reference no: EM1371800

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