Week 3

Question 1

What is extrinsic and intrinsic rewards?

Answer 1

Extrinsic- Satisfy an employee’s basic need for survival, security and recognition, e.g, Good working conditions

Intrinsic- Refers to psychological ‘enjoyment’ and the satisfaction of ‘challenge’ that a worker derives from their work.

Question 2

What is the definition of a Reward?

Answer 2

Refers to a package of monetary, non-monetary and psychological payments that an organisation provides for its employees in exchange for a bundle of valued work- related behaviours

Question 3

What are the objectives of the reward system?

Answer 3

1- Support the organisation’s strategy

2- Retain capable employees so that turnover is held to an acceptable level

3- Motivate employees to perform

Question 4

What are some of the characteristics of a Bureaucratic job based pay model?

Answer 4

1- Base wage or salary
2- Based on cost of living and labour market
3- Evenly distributed between employees

Question 5

What are some of the characteristics of a Post Bureaucratic pay model?

Answer 5

1- Variable pay
2- Based on organisational performance
3- Differentiated

Question 6

What are some of the issues with performance related pay?

Answer 6

1- Risk of real or perceived bias in rating and ranking employees when measuring performance

2- When rewards are tied closely to short term performance, employees may not devote time towards longer term objectives.

Question 7

What is job evaluation and job grading?

Answer 7

Job evaluation- The main technique used to determine the internal value of jobs

Job grading- Placing jobs in a hierarchy or series of job grades with low skilled jobs as a low grade and high skilled jobs as a high grade.

Question 8

What is collective bargaining?

Answer 8

The framework within which negotiations regarding pay and working time take place often involving employer organisations.

Question 9

What are the factors affecting the importance of pay on employee motivation with examples?

Answer 9

1- Individual differences- Pay is more important for extroverts and high academic achievers than introverts.

2- Situational contingencies- pay is more important when pay varies across employers

• When there are pay cuts, the importance of pay increases