Pay-for-performance system to increase productivity

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Reference no: EM132303907

H-P experimented with a pay-for-performance system to increase productivity and focus employees on the team rather than individual performance. Employees began to focus on doing what they needed to do to earn the rewards rather than on the many other things that would help the company, so managers redesigned the system.

What do you think were the biggest factors in the failure of the incentive program at HP? Support your answer with research.

Why might employees prefer to have only fixed pay and no incentive pay if the incentive pay system meant that they could earn more money? Is this common for certain employees? Explain.

What would you recommend that HP try instead of pay for performance to accomplish its initial goals of increasing productivity and focusing employees on the team rather than individual performance?

Reference no: EM132303907

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