Topic 5&6 Flashcards
External Reward Positioning
how rewards compare to those in other orgs
External Equity
employee perceptions about worth of their work conditions and rewards compared to those of individuals outside the company
Reward Surveys
aggregations of reward information gathered from other market orgs
public market survey sources
Government - BLS, broad rarely specific enough to provide data on benchmark jobs
Self report - qualifications and motives can be suspect. additional source, used by candidates to define expectations
popular press - same pros cons as self report
other survey sources
Subscription - standardized, industry specific
Custom - costly, time consuming
concerns with integrating survey data into org
Pay forms - total compensation vs cash compensation vs variable vs benefits; merge only if same pay form
Matching benchmark jobs - compare job descriptions
Aging the data - adjust for shifts in market over time
maslow hierarchy
physiological safety/security social ego/esteem self actualization
reinforcement theory
BF Skinner
behavior is a function of its consequences
reinforcement principle
when positive consequenses follow a behavior that behavior is more likely to be seen in the future
negative consequenses discourage a behavior
timing principle
the sooner the reward/punishment after a behavior, the greater the impact of the action on the behavior
variability principle
new behaviors are more quickly acquired when reward/punishment is more frequent
BF Skinner
reinforcement theory
Victor Vroom
Expectancy Theory
Expectancy Theory
relationships between effort, performance and rewards/outcomes
motivation is also function of how much employee values a reward
expectancy perception
can I perform at the level required for the reward?
those who believe they can perform at a level to earn a reward are more motivated
instrumentality reward
if I perform will I receive the reward?
odds of getting a reward
valence perception
do I value the reward?
Law of unintended consequenses
not all consequences of a reward system are foreseeable
less desirable behaviors may be the outcome
Tournament theory
people are highly motivated to receive extremely valuable rewards
Distributive Justice
Equity theory
comparison of ratio of an employees inputs/rewards to ration of inputs/rewards of others
Three types of justice theory
Distributive (equity)
Procedural
Interactional
Procedural Justice
focuses on the process by which the reward distribution system was determined
ways to enhance procedural justice
employees have voice in design of system
employees receive explanation for reward decision
multiple sources of information used whenever possible
every system needs a correcting mechanism (ie grievance system)
Interactional justice
perceptions of the degree that employees are treated with respect
grow out of whether managers act professionally
