Chapter 5 Flashcards
Internal vs. External Equity For Pay
internal: the worth of the job to the organization
external: the competitiveness of an organizations pay relative to industry standards
Variable Pay programs
a reward program in which a portion of an employees pay is based on some individual or organizational measure of performance
Individual Based (Variable Pay)
Piece-rate wages
merit based pay
bonuses
skill based pay
Piece-rate pay
individual based incentive plan in which employees are paid a fixed sum for each unit of production (peanuts at baseball games)
Merit-based
Pay based on performance appraisal ratings
Bonus
individual based incentive that rewards employees for their recent performance
Skill Based Pay
individual incentive plan that sets pay levels on the basis of how may jobs or skills an employee has/can do
Group-based Variable Pay
Gainsharing
improvements in group productivity determine the total amount of money to be shared
Organizational-Based Variable Pay
Profit Sharing
Employee Stock ownership plans (ESOPs) and stock options
Challenges to pay-for performance
teamwork
unions
public sector employees
Ethical considerations
Issues W Rewards
Rewards dont often reflect organizational goals
individuals are stuck in old patters of reward/recognition
organizations dont look at the big picture
mngment and shareholders focus on short term results
Job Characteristics Model (JCM)
1- skill variety 2-task identity 3-task significance 4- autonomy 5-feedback
MPS (Motivational Potential Score)
(skill variety+task identity+task signif)/3
X feedback X autonomy
Ways to Redesign Jobs
Job Rotation Job Enrichment Flextime Job Sharing Telework
Job Enrichment
vertical expansion of jobs, in which the employee controls the planning, execution and evaluation of the work
