Lecture 5 & 6 Flashcards
What is a reward system?
Reward is a monetary, non-monetary and psychological payments an organisation provides to employees in exchange for their work
What are objectives for reward systems?
- Support the org strategy
- Retain employees
- Be sustainable with financial means of org
- Recruit qualified employees
- Ensure internal and external equity
What are further objectives of the reward systems?
- Promote ‘org citizenship’
- Motivate employees
- Comply with legal regulations
- Strengthen the psychological contract
What is group bargaining power?
Employees being within a union to increase the amount of power they have over an organisation
What are features of bureaucratic job-based pay models?
Base wage/salary, based on cost of living and labour market, correlated with seniority, performance
What are features of Post-bureaucratic ‘strategic’ pay model?
Variable pay model, based on org performance, differentiation, based on individual, team and org performance, used as a means of communication
What is performance related pay?
Additional payment for the achievement of pre-agreed objectives or standards
How can performance related pay be unfair?
Subjective assessment of performance has the potential for procedural injustice
What are issues with performance-related pay?
- Risk of bias or inconsistency
- Short-termism
- greater insecurity and unpredictability of salaries
What is skill, knowledge and competency based pay?
Pay contingency on development of new skills, knowledge or competencies
What is profit related pay?
Employees receive a bonus based on the employers profits
What is employee share ownership?
A programme that facilitates employees acquisition of company shares
What is job evaluation?
Main technique to determine internal value of jobs
What is job grading?
Classifying jobs in a hierarchy from low grade (little skill and closely supervised), adding skills, knowledge and responsibilities with each grade
What role does pay have on employee motivation?
Employees self reported it having little affect on motivation but studies found incentive systems increased motivation.
What are individual differences affecting how much money is an incentive?
- High academic achievement
- Men > Woman?
- high performing employees
- people with high need of achievement
What are situational contingencies of pay affecting employee motivation?
- When pay varies between employers
- People reject low-paying job offers
- When pay cuts occur
- More important for job choice than decision to quit
- Pay has little motivation if it is unrelated to performance
What are flexible working practices?
Describes a type of working arrangement which gives a degree of flexibility on how long, where, when and at what times employees work
What are some examples of flexible working practices?
- Part-time
- Term-time
- Job-sharing
- Flexitime
- Compressed hours
- Annual hours
- Hybrid working
- Remote work
- Career breaks
- Commissioned outcomes
- Zero-hour contracts
