Chapter 8 Flashcards
Name 3 Employee involvement programs
- Participative management
- Representative participation
- Quality circles
Explain 3 Employee involvement programs
- Participative management
- Representative participation
- Quality circles
- Participative management – joint decision making between employees are their supervisors
- Representative participation – representation of employees who participate in organizational decision making instead of all workers participating in decision making, in form of works councils and board representatives.
- Quality circles – volunteer group composed of workers who meet to talk about workplace improvement, and make presentations to management with their ideas, especially relating to quality of output in order to improve the performance of the organization, and motivate and enrich the work of employees.
Profit-sharing plan
various incentive plans introduced by businesses that provide:
1. direct (cash) or
2. indirect (stock) payments to employees
that depend on company’s profitability in addition to employees’ regular salary and bonuses
Gainsharing
- program that returns cost savings to the employees, usually as a lump-sum bonus. It is a productivity measure, as opposed to profit-sharing which is a profitability measure
Employee stock ownership plan
plan in which employees can buy company’s stock for below-market prices as benefits.
Flexible benefits
enable employers to select the benefits that suit them. There are also 3 main types of benefits plan: modular plans, core-plus plans and flexible spending plans.
How to construct employee recognition programs? – Intrinsic rewards
Financial motivators (pay plans, wage) are effective in short-term, while intrinsic rewards are crucial motivator in long-term. Intrinsic rewards can be just informal thank you as well as the whole formally developed program. Intrinsic rewards plans are inexpensive but are vulnerable to politics of management.
