Communication channels are greatly opened between the supervisor and employee, and helps them craft long-term solutions to performance issues. The role that the supervisor plays in making way for increased employee productivity and effectiveness is especially considered. Compensation is the subject of Chapters 7 and 8, dealing with internal wage structures and incentive pay. Wage structures deal with equity issues in terms of what people get paid in contrast to others, both within and outside the organization. While compensation is not the only reason people work, and certainly there are many other factors that have a large effect on personal satisfaction, it is important to understand how compensation affects employee motivation and morale, as well as business viability.
Agriculture makes a large use of incentive pay, most typically in the form of piece rate.
A number of incentive pay strategies are discussed along with the potential benefits and drawbacks. A persistent lack of understanding in the area of incentive pay management has frequently kept agricultural employers from benefiting from this immensely powerful tool. The potential exists to help employees earn substantially greater amounts while the farm employer reduces total labor costs. Supervisor power is the subject of Chapter 9. Power can only be maintained when it is not abused.