One advantage of a pay-for-performance policy is that it encourages employees to increase production, while a downfall is that it can lead to a decrease in quality, according to the Local Government Association. The basic premise for a pay-for-performance policy is that with greater financial reward, employees want to work harder. If introduced in the right way, a policy like this can foster an organizational culture where success is encouraged.Know More
According to The Guardian, pay-for-performance policies are a great way to pick up production if output has decreased recently. It may be a sign that workers are either lacking motivation or are simply bored with their jobs. Offering pay for meeting performance targets can be a great way to reinvigorate workers because it gives them a tangible goal to work toward.
On the other hand, pay-for-performance policies can be detrimental to an organization if not implemented properly. For example, if the policy is introduced on a group basis, some employees might have to pick up the slack of those workers who contribute very little. Also, parts of the job that cannot be measured suffer because there is no incentive to work hard in those areas. Pay-for-performance policies can also increase jealousy within a working environment if it is felt that employees are not being compensated fairly for their efforts.Learn more about Health Insurance
The main advantage of population control seems to be the increase in economic stability and better living conditions, while the most common disadvantages are the difficulty in enforcing such a policy and the lack of success because of this according to a report published by the University of Omaha. There are many other advantages and disadvantages to consider as well.Full Answer >
The major advantage of circuit switching is that it has a predictable performance that can be guaranteed. Once the circuit has been established, the communication is typically error-free and relatively fast.Full Answer >
The primary advantage of the percentage-of-sales method is that companies find it to be a simple method for allocating resources to advertising by using sales performance or forecasts as an anchor. The greatest disadvantage is that advertisers disagree that sales should determine advertising, instead feeling that advertising actually drives sales.Full Answer >
The most significant advantage of achieving economies of scale is a reduced cost per unit of production. Most other advantages stem from this primary benefit. A lower cost per unit allows a business to earn greater profit even when maintaining a similar price point. The company could pass on cost savings to customers by operating with a low-price strategy.Full Answer >