Outline your plan for the creation of a performance-based compensation system by including: how…

Outline your plan for the creation of a performance-based compensation system by including:

  • how the three management tiers (managers, vice presidents, CEO) interact with one another relative to performance measurement and pay. You will explain the relationship between the tiers, levels, and positions. Note this addresses managers. The employee level is not included in the discussion. As well, note that the concept of performance-based compensation systems (pay for performance) is a different concept than performance management systems. Performance-based pay may be used at times in performance management, but it has its own entity.
  • what elements of compensation you will include and why (explore various types to demonstrate depth and breadth)
  • how each element will be administered. Discuss how performance should be established, including the formulation of goals and metrics on how performance will be monitored.
  • how specific elements in your new system will improve performance, including motivation, and organizational outcomes as an improvement to the current structure
  • your argument for or against managers in different countries being paid in local currency vs. Canadian dollars.

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