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There are a variety of pay performance methods that organizations can adopt. One of these
methods is a system of organizational incentives. Many organizations put this pay performance
system in place in order to motivate their employees, as well as, encourage an increase in
employee commitment. In the book, Human Resource Management, this system in described
as “An organizational incentive system compensates all employees according to how well the
organization as a whole performs during the evaluation period. The basic concept behind
organizational incentive plans is that overall results depend on organization-wide efforts and
cooperation.” (Mathis, Jackson, Valentine, & Meglich, 2017). A company that recently began
using this method of incentive pay is General Motors. They had a record-setting year in 2016, in
regard to how profitable they were, and they are continually improving. GM sent 52,000 factory
workers home with profit sharing checks in the amount of roughly 12,000 dollars in 2017, and
they sent checks of 11,000 dollars in 2016 (USA Today). They wanted to reward their factory
workers for their hard work, and for their commitment to the company. However, they also
wanted to encourage employee commitment. In order to receive these checks, their factory
workers had to qualify first. They had to have worked 1,850 compensated hours in order to
qualify for this performance pay method. This requirement motivates the factory workers at
GM’s various facilities to show up, and it motivates them to remain committed to the
According to the authors of Human Resource Management, “The purpose of these [pay
performance] plans is to produce better organizational results by rewarding cooperation.
Organizational incentives get everyone in the company “rowing in the same direction.”
For example, the inherent conflict between marketing and production might be overcome
if management uses an incentive system that emphasizes organization-wide profits and
productivity” (Mathis, Jackson, Valentine, & Meglich, 2017).
The steps General Motors is taking, by implementing profit sharing, seems to be effective. They
have successfully motivated their factory workers to remain committed to their organization, and
to contribute to increased success of the company.
There are two verses in the Book of Proverbs that are in line with the topic of
performance pay. The first is Proverbs 28:19-20, “Those who work their land will have abundant
food, but those who chase fantasies will have their fill of poverty. A faithful person will be richly
blessed, but one eager to get rich will not go unpunished” (NIV, 2015). The second verse is
Proverbs 14:23-24 “All hard work brings a profit, but mere talk leads only to poverty. The wealth
of the wise is their crown, but the folly of fools yields folly” (NIV, 2015). These passages talk
about being willing to work hard for a reward. The incentive in these passages is that the
workers will be blessed, and they will be able to live comfortably. Similarly, the monetary
incentive that GM gave their workers can enable them to live more comfortably, but they have to
work for their reward.
Holy Bible NIV: New international version. (2011). Belfast: Biblica.
Pay for performance refers to when a company pays each position based on how the employee
is performing. Whereas, many jobs will pay everyone the same for the same job and maybe
increase a few cents per hour when they hit the year mark, nowadays. Pay for performance
allows employees to set personal goals and set themselves apart from other employees. It
provides motivation to be more successful. It offers a reason to go above and beyond, even if
the reason is money, it will increase employee performance. I am choosing to address,
individual pay for performance, specifically. The bible speaks of doing god work and performing
to the best of your abilities. It is evident that God has given us abilities but also a mind to be
able to learn and become the best versions of ourselves that we can be. Ecclesiastes 9:10
states: “Whatever the activity in which you engage, do it with all your ability…” It is so important
to be the best representation of God that we can be, not just for the compensation, but offering
something to do get workers to do their best is a tried and true method. Galatians 6:9 says:
“Let’s not get tired of doing what is good, for at the right time we will reap a harvest—if we do
not give up.” From these verses alone, I believe that God encourages us to do our best and to
know that whether it is appreciated or compensated here on earth or not, we must keep our
focus on Heaven.
Bizfluent explains that pay for performance plans have certain benefits, even though they do not
provide a sense of financial security. For an employee that is determined to excel in their
position, this is a plan for them. They would still be provided with a sense of security because
they are confident in their own abilities and will not stop until they have reached their goal. This
pay for performance method, increases motivation in a company. If you hire many self-sufficient
workers, then your business is in good hands and is on the right track for vast growth.
Bank of America is known to have a strong individual pay for performance system. Their
website gives information about how they implement their pay for performance method and why
they choose to go that route. Their system “rewards long-term, sustainable results” to grow their
company. the employees have many different ways to go about increasing their pay. The
employee is encouraged and always has an “ongoing dialogue with their manager”. The
employee’s experience and skillset play a role in the beginning of the pay for performance
process. The point of Bank of America’s system, is to “encourage and reward long-term results,
sustainable results.” The employee’s manager determines their pay. Everyone will receive
minimum wages but they are properly educated through trainings and classes to equip
themselves to earn the increased wages. Through the steps taken, the Bank of America
company strives to hire employees that will be a good and long-lasting fit for the company.
(2017) The implementation of this pay for performance system, has proven to reveal employees
that have the company’s best interests in mind. When the employee likes the company they
work for and are well-equipped with the resources needed to be successful, it proves to be
successful for all involved.
Mathis, R. L., Jackson, J. H., Valentine, S., & Meglich, P. A. (2017). Human resource
management. Boston, MA: Cengage Learning. (n.d.). Retrieved February 25, 2018, from
Recognizing and Rewarding Employee Performance. (2017, March 29). Retrieved February 25,
2018, from
The Advantages of Pay for Performance Plans. (n.d.). Retrieved February 25, 2018,

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