Production Management Incentive Compensation Systems At IMC

The unprecedented demand for capital investment in the mining industry today has intensified management's interest in every known technique which will help to reduce operating costs and increase production. One proven approach leading to the accomplishment of this objective is well known in the mining industry and is gaining added prestige, particularly where keen competitive conditions exist. This approach is in the area of incentives applied to mining productivity. An investigation of many incentive plans now in use throughout the mining industry revealed a predominant number of conventional type plans, Most of these plans are designed to reward the hourly-paid employee on the basis of percent over and above a standard hourly or daily ton rate, By contrast, this search failed to divulge any incentive plan solely and independently developed for production management employees. This does not mean that such plans in the mining industry are nonexistnet, but it does indicate that production management incentive systems are scarce or are being kept under wraps.