CH. 5: Motivation in Action Flashcards
what’s the most commonly used reward in organizations, & what else is a top priority for employees?
Money
- many emphasize relationships in the workplace
portion of employee’s pay based on individual&/ organizational measure of performance
Variable -pay programs
Individual- Based Incentives
- Piece-rate pay plans
- Merit Based
- Bonuses
- Skill- based pay
Group- based incentives
- Gainsharing: improvements in group productivity determine total amount of money to be shared
Organizational- based incentives
Profit- sharing Plans
- Employee Stock Ownership Plans (ESOP)& Stock options
- stock options give employees right to buy stocks in company @ later date for guaranteed price
permits each employee to create a package to suit individual needs (selections based on marital status, age, spouses’ benefits status, etc.
Flexible benefits plan
To set a pay level, there needs to be a balance between
Internal Equity- worth of the job to organization
External Equity- competitiveness of organizations pay relative to industry standards
Pros and cons to skill-based pay
- Easier to fill staff needs (interchangeable)
- improves communication
BUT - doesn’t address level of performance
- there may not be an immediate need for certain skills
Organization wide programs that distribute compensation based on established formula designed around a company’s profitability
Profit- sharing plans
The Job characteristic model (JcM)
Describes the job in terms of job dimensions:
- Feedback
- Autonomy
- Task identity
- Task significance
- Skill variety
4 basic emotional drive(needs) that guide people (ABCD)
Drive to Acquire (organizational rewards)
Drive to Bond (commitment to teamwork, frdship & openness)
Drive to Comprehend (effective job design)
Drive to Defend (performance management & resource allocation process)
Employees are paid a fixed sum for each unit of production completed
Piece- rate pay plan
Individual- based incentive plan based on performance appraisal ratings
Merit- based pay plans
Individual- based incentive plan that rewards employees for recent performance rather than historical
Bonus
Individual- based incentive plan that sets pay levels on the basis of how many skills employees have/ how many jobs they can do
Skill- based pay/ Competency/ Knowledge- based pay
Organization- wide incentive plan in which employer shares profits w/ employees based on a predetermined formula
Profit- sharing plan
A company- established benefit plan in which employees acquire stock as part of their benefits
Employee stock ownership plan (ESOP)
Periodic shifting of workers from 1 task to another
- reducing boredom, increasing motivation, & helps employees understand how their work contributes to the organization
Job Rotation
Vertical expansion of jobs
- expands employee’s freedom & independence
- Increases responsibility
- provides feedback so individuals can assess & correct own performance
Job Enrichment
Alternative Work Arrangements
Flextime
Job Sharing
Telework
- Employees work a set amount of hours but have some flexibility
- Core period for all + flexible set of hours determined by workers
Flextime
2 or more ppl splitting a 40 hour a week job
Job Sharing
Employees complete work @ home, with access to smartphones, tablets, & other devices
Telework
