Chapter 10 Flashcards
Error of Omission
An employee who deserves a reward does not receive one
Intrinsic Motivation
Derived from an interest in or enjoyment from doing the task
Pay-For-Performance Program
Also called merit-pay; rewards employees based on some specific measure of their performance
Extrinsic Motivation
Motivation that comes from outside the individual, including performance bonuses
Variable Rewards
Link rewards to factors determined as valuable, including performance, skills, competence, and contribution (incentive)
Spot Awards
Awards given immediately when a desired behavior is seen
Error of Commission
An employee receives an undeserved reward
Incentive
A tangible or intangible motivation or encouragement for one to do something; also see intrinsic and extrinsic motivation
Variable Pay Plan
Pay for performance plans that put a small amount of base pay at risk, in exchange for the opportunity to earn additional pay if performance meets or exceeds a standard
Fixed Rewards
Pre-determined compensation (Salary and benefits)