EXAM #2 Flashcards
Total Rewards
The sum total of all things in the work experience that affect or are available to an employee
Motivation
Psychological and physiological processes that underlie the direction, intensity, and persistence of behavior or thought
Performance Equation
Performance = Ability x Motivation x Opportunity
Need
Physiological or psychological deficiencies that arouse and drive behavior
Alderfer’s ERG theory
Involves existence needs, relatedness needs and growth needs, is not a strict hierarchy
McClelland’s need theory
Involves a combination of achievement needs, affiliation needs and power needs
Equity theory
- Deals with cognitive dissonance and dissonance reduction activities
- What goes into one’s job must equal what comes out
- Deals with perception of how fairly one perceives he is treated in an organization (one will be driven to take action if he feels he is treated unfairly)
Expectancy theory
Motivation is composed of a combination of expectancy, instrumentality and value of outcomes and rewards
SMART goal acronym
Specific Measurable Actionable Relevant Time bound
Compensation
The monetary rewards that reinforce behavior, organizational membership, performance and retention
“Exempt” Job
A job which is exempt from FLSA
“Non-exempt” Job
A job which is not exempt from FLSA
Merit Pay
Payment based on individual position in a rank order of possible pay grades – can help increase equity
Incentive Pay / Variable Compensation
Payment based on an employee’s overall achievement (payment is used to incentivize behaviors)
Profit Sharing
Payment based on a measure of the organization’s performance