Topic 9: Rewards Flashcards
What are reward systems used to do?
- Attract and retain staff.
- Motivate effort.
- Motivate change in behavior.
What do process theories tell us about how rewards should be designed?
- Create a perception that effort will lead to rewards
- Ensure that rewards are viewed as fair and equitable
- Manage situation factors
- Design jobs so that effort can lead to high performence
- Hire qualified employees or train employees to appropriate level
How do we categorise rewards based on what kind of need they fulfill?
- Intrinsic rewards satisfy higher order needs
- Extrensic rewards satisfy lower order needs
What does content theory tell us about rewards and how they should be designed?
- Rewards should be both intrinsic and extrinsic.
- Needs are dynamic - a satisfied need is no longer a need.
- A satisfied need leads to a focus on a higher order need.
What is Frederick Herzberg’s theory?
Motivator Hygiene theory
(It was rejected due to lack of evidence.)
Explain Motivator Hygiene Theory
The idea that:
- Employees have job satisfaction when they fulfill their growth and esteem needs
- Experience dissatisfaction when they have poor working conditions, security and other unfurfilled lower needs.
Importantly
- Having the lower needs furfilled meerly prevents dissatisfaction.Only the characteristics of the job itself can motivate employees.
What kinds of things are hygiene factors?
PSSCeBePI
- Pay
- Status
- Security
- Working Conditions
- Fringe Benifits
- Policies and Administrative Practices
- Interpersonal Relations
What kinds of things are motivators in the motivator-hygiene model?
MCReFeRaGJ
- Meaningful work
- Challenging work
- Recognition for accomplishments
- Feeling of achievement
- Increased responsibility
- Opportunities for growth and advancement
- The job itself
What types of rewards do we look at?
- Wage
- Seniority
- Job status
- Competency based
- Task performence (seperate by levels)
How does wage act as a motivator?
SMPA
- Symbol of success
- Reinforcer and motivator
- Reflection of perforrmance
- Can reduce anxiety
What are the advantages / disadvantages of benefits that increase with seniority
Advantages:
- Guaranteed wages may attract job applicants
- Seniority-based rewards reduce turnover
Disadvantages:
- Does not motivate job performance
- Discourages poor performers from leaving
- May act as golden handcuffs (tie people to the job) - A continuance commitment rather than affective commitment
What are the advantages & disadvantages of job status based rewards (includes evaluation and importance of job).
Advantages:
- Job evaluation tries to maintain fairness (pay equity).
- Motivates competition for promotions.
Disadvantages:
- Employees may exaggerate duties, hoard resources.
- Encourages bureaucratic hierarchy.
- Reinforces status mentality.
What are competency based rewards?
- When pay increases with competency acquired and demonstrated (usually within pay groups).
- A Narrow variation - Skill-based pay, pay increases with mastery of measurable skills learned.
What are the advantages and disadvantages to competency based rewards
Advantages:
- Creates incentive to learn: more flexible workforce, better quality consistent with employability
Disadvantages:
- Potentually subjective
- Higher training costs
What are the three level of rewards? Give Examples.
- Organisational (profit sharing, stock options).
- Team (bonuses, gainsharing).
- Individual (bonuses, commisions, piece rate).
