chapter 12 Flashcards
financial rewards paid ot workers whos eproduction exceeds some predetermined standard
financial incentives
the ratio of outputs divided by the inputs
productivity
output standards devised based on careful, scientific analysis
fair days work
management approach based on improving work methods through observation and analysis
scientific management movement
any plan that ties pay to productivity or profitability, usually as one time lump payments
variable pay
motivation that derives from the pleasure someone gets from doing the job or task
intrinsic motivation
a persons expectation that his or her effort will lead to performance
expectancy
the perceived relationship between successul performance and obtaining the reward
instrumentality
the perceived value a person attaches to the reward
valence
using contingent rewards or punishment to change behavior
behavior modification
a system of pay based on the number of items processed by each individual worker in a unit of time, such as items per hour or items per day
piecework
an incentive plan in which a person is paid a sum for each item he or she makes or sells, with a strict proportionality between results and rewards
straight piecework
any salary increase awarded to an employee based on his or her individual performance
merit pay
plans that are designed to motivate short term performance of managers and which are tied to company profitability
annual bonus
the right to purchase a stated number of shares of a company stock at today’s price at some time in the future
stock option
a payment companies make in connection with a change in ownership or control of a company
golden parachute
team incentive plan
a plan in which a production standard is set for specific work group, and its members are paid incentives if the group exceeds the production standard
incentive plan in which all or most employees can participate
organization-wide incentive plan
a plan whereby employees share in the company’s profits
profit-sharing plan
an incentive plan developed in 1937 by Joseph scanlon and designed to encourage cooperation, involvement, and sharing of benefits
scanlon pan
an incentive plan that engages employees in a common effort o achieve productivity objectives and share the gains
gain-sharing plan
plan that puts some portion of employees normal pay at risk if they dont meet their goals, in return for possibly obtaining a much larger bonus if they exceed their goals
earnings at risk pay plan
a corporation contributes hares of its own stock to a trust in which additional contributions are made annually. the trust distributes the stock to employees on retirement or separation from service
employee stock ownership plan
