Former General Electric Ceo Discussion Board Repl
choose a pay for performance method from the following categories: Individual, Group, or Organizational performance and use the Internet to locate the website of a company which has recently introduced a new pay system. Then assess from the information, the drivers that were making the change necessary for the company, the steps and rationale of the system, implementation steps they utilized, and their results. Be sure to provide any URLs you used as a reference source for your answer.
Reply to the following students
I have chosen to research the pay for performance method category of individual performance. There are many different categories included within this category of different incentive options that companies can offer that all result in the heading of individual performance pay increase. A sub level to this method is the idea of targeting high performers which focuses on providing the top performing employees with significantly higher pay raises (Mathis, R. L., Jackson, J. H., & Valentine, S. R.). This incentive is brilliant in the way it motivates employees to perform better and in return they are given higher raises and more benefits. One company that recently has implemented this pay system of individual performance pay incentives is Procter & Gamble. Procter & Gamble made this move earlier this year with the surprising hiring of former General Electric CEO Nelson Peltz. “The first hint of Peltz-led change arrived in a July securities filing disclosing that P&G had revised its incentive pay plan for top managers, tying pay more closely to individual performance and less to corporate results” (Colvin, G). This move was described as “classic Peltz” as it is something that he has implemented into companies that he has worked for in the past and seems to be a method that he believes very strongly in. An article by cnbc stated that in November the Procter & Gamble stock prices had rose more than 5% this month alone (Imbert, F). It seems the results of this new pay incentive have not hurt the company and its success in any way. The company does show a raise in stock price which is hard to determine if it can be directly correlated to the implementation of a new pay incentive. The main drivers for this pay incentive change appears to follow the hiring of Nelson Peltz as it is a system that he knows and believes in. The pay system does however almost guarantee an increase in dedication and motivation with employees. Colossians 3:17 states, “And whatever you do, in word or deed, do everything in the name of the Lord Jesus, giving thanks to God the Father through him.”
Colvin, G. (2018, November 26). Nelson Peltz: The Investor That Tripped on GE & P&G. Retrieved from http://fortune.com/2018/11/26/nelson-peltz-ge-pg-s…
Imbert, F. (2018, November 30). Investors are piling into boring defensive stocks like P&G as 2018 comes to an end. Retrieved from https://www.cnbc.com/2018/11/30/investors-are-pili…
Mathis, R. L., Jackson, J. H., & Valentine, S. R. (2017). Human resource management (15th ed.). Stamford, CT: Cengage Learning.