Employee Union and Productivity Incentive Plans

Employee union

Organizations with unions should not try to persuade workers to decertify their union since these unions are a critical part of employee welfare. Reflectively, the basic building blocks of labor unions are identified as the need for collective bargaining and increased negotiation power. Labor unions are responsible for overseeing and formulating the political ideology of the laborers, and if need be, mediate jurisdictional conflicts among members. Besides, they are entrusted with the mandate of negotiating collective bargain treaties, mobilizing workers in organized groups, and reaching out to the un-unionized workers, and encourage them to forge a common identity for expressing any dissatisfaction at work (York 275).

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Since most labor unions operate in a flexible model, both the principal and the agent are allowed to balance their offers before striking a compromise deal. For instance, the union can lower the supply of labor, increase demand for labor, and negotiate an equilibrium wage bargain for its members. On the other hand, the principal (employer) has the option of controlling labor supply to operate within the Pareto efficiency brackets. Therefore, try to persuade workers to decertify their unions may be a recipe for go-slows and employee disloyalty, especially when the workers feel threatened by the approach used in persuading them (York 279).

Performance incentive plans

The need for incentive rewards as a form of promoting quality and productivity has made companies across the global village to adopt different incentive plans. Often, these plans are aimed at enticing the workforce to perform above the normal standards.

Performance incentive plans for all employees

Group incentive plans are aimed at giving rewards to a group or a team for outstanding achievement. Instead of concentrating on an individual, these plans attempt to promote quality through team encouragement. Often, based on the group’s overall performance, many firms pay the same quantity of incentive to all members of the group. This type of incentive plan is best suited “when quality is more important than quantity” (York 332). The main examples of incentives under this category include the annual salary increment, annual employee handshake rewards, and the basic allowances such as health, education, and emergency rewards. This type of incentive plan is common in developed countries such as the US, Britain, and Germany among others.

To increase productive behavior for all employees, it is vital to create a healthy work environment and personal growth perspectives that apply to all situations, labor efficiency is a critical element in optimal performance in any organizational environment. Among the merits of group incentive plans include minimization of envy between employees, acquisition of different learning skills from several interacting teams, and collective responsibility in the execution of duty. Besides, members of these teams are likely to adopt healthy competition as group interest will override that of self-interest (York 332).

Performance incentive plan for selected employees

As the oldest form of the incentive plan, piecework is “an incentive plan which employees receive for a certain rate for each unit produced” (York 335). Generally, a piecework plan’s merit is that “employees are paid based on their performances” (York 341). Thus, it inspires those who underperform to improve on their service delivery upon witnessing top achievers receiving rewards. Examples of piecework incentive include an individual promotion, compensation for meeting individual targets, and rewards for accomplishing special assignments outside the employee’s scope of duties. This type of incentive plan is restricted to specific situations and may not present quantifiable results in the long term. This incentive plan is common in emerging economies such as Malaysia, and Singapore, where performance is measured through an individual output.

Works Cited

York, Kenneth. Applied human resource management: Strategic issues and experiential exercises, New York: SAGE Publications, 2009. Print.

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StudyCorgi. (2021, March 11). Employee Union and Productivity Incentive Plans. Retrieved from https://studycorgi.com/employee-union-and-productivity-incentive-plans/

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"Employee Union and Productivity Incentive Plans." StudyCorgi, 11 Mar. 2021, studycorgi.com/employee-union-and-productivity-incentive-plans/.

1. StudyCorgi. "Employee Union and Productivity Incentive Plans." March 11, 2021. https://studycorgi.com/employee-union-and-productivity-incentive-plans/.


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StudyCorgi. "Employee Union and Productivity Incentive Plans." March 11, 2021. https://studycorgi.com/employee-union-and-productivity-incentive-plans/.

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StudyCorgi. 2021. "Employee Union and Productivity Incentive Plans." March 11, 2021. https://studycorgi.com/employee-union-and-productivity-incentive-plans/.

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StudyCorgi. (2021) 'Employee Union and Productivity Incentive Plans'. 11 March.

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