Improving labor productivity through performance-based incentive programs: a case study of PLDT
Date
1994-03
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Abstract
This paper is written in support of the assertion that incentive pay systems is a strategic action taken by firms as a means of adopting to an ever changing economic environment in order to ensure corporate profitability. Linking the means to the end is the effectiveness of incentive schemes in promoting a perception of harmony of interests between employer and employees fostering an improvement in labor-management relations. This is useful in inducing cooperative effort which translates to greater labor productivity. Based on productivity measures and financial performance ratios, PLDT's incentive program can be considered succesful in improving labor productivity and company profitability. This conclusion can be explained by the interrelated internal and external factors that influence the efficacy of the incentive scheme.
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Keywords
Labor Productivity, Incentive Programs, PLDT