Contingent Pay Plan

TABLE OF CONTENT
1. Introduction
2. Case Study: DOW Agro sciences
2.1. Background
2.2. Implementation of Contingent Pay Plan
3. Conclusion
References
1. Introduction
The payment for functioning which is known as the Contingent pay(CP), refers to the
benefits to persons that is paid on the basis of the level of functioning of the
individuals in their work. Hence, the workers get an enhancement in their pay fully or
in part on the basis of the functioning on the work. Such enhancements in pay as
rewards could be either clubbed to the worker’s primary wage or could be given as
one-time reward. If the enhancements in pay are kept separate in the worker’s primary
pay, as seen in one-time rewards, they are referred to as variable salary.
Initially, the CP concepts were made use of to the high administration only. Slowly,
the application of CP concepts is found their application in marketing work also.
Presently, the CP concepts find its use widely. For instance, during the year 2001, in
US, 70 percent of employees got engaged through the institutions that execute certain
kind of variable salary concept, and several of such institutions link the variable salary
(e.g. rewards, one-time payment, charge, monetary benefits) straight away to
functioning. Likewise, a research on human resources (HR) methods globally
witnessed that institutions located in Canada, Taiwan, Latin America and US
normally stress the connection between functioning and salary.
2. Case Study: DOW Agro sciences

2.1. Background
An international player in offering the pest handling as well as biotechnology goods,

the Dow Agro Sciences which is located in Indianapolis in Indiana, is aimed at
enhancing the standard a well as the quantum of food distribution on earth and
presents a healthy and standard of life of the increasing population globally. The
workers of Dow Agro Sciences to the tune of roughly 6000 persons covering over 50
nations and possess global marketing to the tune of roughly 3 billion US$. The Dow
Agro Sciences is fully possessed subsidiary of Dow Chemical Firm.
Mission
The novel technology is offered by Dow Agro Sciences which goes beyond the
market requirements and enhances the standard of the increasing population globally.
They are able to make out this by means of committed pest restriction, helping in the
manufacture of plenty, healthy food distribution, and the making use of plants for a
convertible agriculture means in order to create novel and enhanced agriculture
products.
Vision
The Dow Agro Sciences is a top firm using chemical, genetic and biochemical
approaches to cater to the requirements of the agricultural and high-end markets.
Core values
In order to make sure the affluence and welfare of the workers, the clients and
stakeholders of Dow Agro Sciences, sustained and continued enhancement in gain is
imperative. The manner by which they access such aim is equally significant as aim
itself. The basic for their efficiency form the central values which they think of and
put to application.
2.2. Implementation of Contingent Pay Plan
The contingent salary plan is found to be a significant part of the strategies on human
resources globally, and at present act an important part in efforts to drive the
institutions towards accessing efficiency in order to achieve their aims. Even though it
is not a novel feature, these salary plans are seen as very significant recently,
frequently is seen as parts of a complete functional handling efforts ( differently
called as great functional job processes, greatly responsible and greatly engaged
strategies) with the objective of enhancing institutional functioning. Naturally, a few
critics made argument that several novel human resources handling applications are
sometimes successful if clubbed to additional profit dividing systems, like contingent
salary plans- view for instance, Levine and Tyson (1990). How these plans and varied
other aspects of human resources mechanism connect firmly are given to vast
discussion in HRM study paper (Mac Duffie (1995), Huselid (1995)).
The quality and utility of the contingent salary processes in Dow Agro Sciences made
shift conspicuously during the last 25 years which the Wirs/ Wers studies are
undertaken. In addition, the vast decrease in group trade linkages, the emanation of
human resource handling and different methods on handling systems, the
augmentation of goods trading rivalry, the internationalization of manufacture, and
shifts in political scenario during the past 25 years, all these have helped in
stimulating the eagerness in enhanced usage of different types of contingent salary.
Due to such aspects and connected shifts, the administrations in the institution
accessed increased avenues and also an increased requirement, in order to relate the
employees’ salary to scales of personal, group, and institutional functioning.
3. Conclusion
It appears evident that in making use of the contingent salary during the 21st century,
Dow Agro Sciences acts differently when compared to the earlier adopters in the
beginning of 1980s. Certainly there exists an enhanced capability to initiate
manifold kinds of plans in position; more probably the group types of salary
processes would be made use of; in addition, the availability of these plans are more
wider at present when compared to the position during 1980s and hence it makes less
likely to discuss about archetypal contingent salary job situation.
Also there exists a sound argument that a shift in strategy is in existence, may be even
thinking, in institutions on the feature and action of the contingent salary at Dow Agro
Sciences. Such a thing is not viewed simply in emanation of group (yet not personal)
types of contingent salary and such shifts of the features in “ideal” contingent salary
job situation.
References:
1. Lawler III, E.E (2003). Reward practices and performance management

system effectiveness. Organizational Dynamics, 32, 396-404.
2. Sturman, M.C, Trevor, C.O., Bourdreau, J.W. , & Gerhart, B. (2003). Is it
worth it to win the talent war? Evaluating the utility of performance-based
pay. Personnel Psychology, 56, 997-1035.

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TABLE OF CONTENT

2. Case Study: DOW Agro sciences

2.2. Implementation of Contingent Pay Plan

2. Case Study: DOW Agro sciences

An international player in offering the pest handling as well as biotechnology goods,

2.2. Implementation of Contingent Pay Plan

1. Lawler III, E.E (2003). Reward practices and performance management

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