Question

Expert Q&A Done Your organization has two business units. One unit is a long-established manufacturer of a product that competes on price and has not been subject to many technological innovations. The other business unit is just being started. It has no products yet, but it is working on developing a new technology for testing the effects of drugs on people via simulation instead of through lengthy clinical trials. 1. Would you recommend that the two business units have the same pay programs for recognizing individual contributions? 2. Why or why not? 3. If not, what might you otherwise recommend?

Answer 1

There ought not be same pay structure to perceive the individual commitment in both the units. Unit 1 is now in running mode and there is no or next to no vagueness simultaneously. They ought to have high segment of fixed pay on the grounds that there is no extension for development.

Second unit is advancement based which needs a ton of inspiration for the people to perform at their ideal dimension. Here , there ought to be exceptionally high factor pay alongside the fixed pay since they are working in an uncertain circumstance with no reasonable and characterized objective.