Week 5 Applied Performance Practices Flashcards
_____ (and other Financial rewards) are a fundamental part of _____ relationship
Money, employment
Financial rewards are also associated with our
needs, emotions and self-concepts.
Money is widely viewed as a symbol of
Power
Status
Prestige
Money is widely viewed as a source of
Security
Evil
Anxiety and feelings of inadequacy
Pay has multiple meanings
Symbol of success
Reinforcer and motivator
Reflection of performance
Can reduce anxiety
Types of Rewards in the Workplace
Membership and seniority
Job status
Competencies
Task performance
Membership/Seniority Based Rewards advantages
Attract job applicants
Reduce turnover
Membership/Seniority Based Rewards disadvantages
Do not motivate high performance
Discourage poor performers from leaving
Job Status-Based Rewards Advantages:
Includes job evaluation and status perks
Job evaluation tries to maintain fairness (pay equity)
Motivates competition for promotions
Job Status-Based Rewards Disadvantages:
Encourages bureaucratic hierarchy
Might undermine cost-efficiency and responsiveness
Reinforces status mentality
Encourages competition, not collaboration
Pay increases with acquired and demonstrated competencies
Competency-Based Rewards
Competency-Based Rewards - Skill-based pay increases with
mastery of measurable skills (modules/training)
What is 1 Competency-Based Rewards advantage, and 1 disadvantage?
Advantages
More flexible workforce, better quality, consistent with employability
Disadvantages
Potentially subjective, higher training costs
Systematically rating the worth of jobs within an organisation by measuring their effort, responsibility and working conditions.
Job evaluation.
Performance-Based Rewards
Individual rewards
Team rewards
Organisational rewards
Bonuses, commissions and piece rates are all typical
Individual rewards
Bonuses and gainsharing are both
Team rewards
Profit sharing, share ownership, stock options and balanced scorecards (BSC) are all types of
Organisational rewards
Team-based rewards that calculate bonuses from the cost savings of the work unit and productivity improvement.
Gainsharing plans:
Employee share ownership plan (eSOp):
an organisational reward system that encourages employees to buy company shares.
An organisational reward system that pays bonuses to employees on the basis of the previous year’s level of corporate profits.
Profit-sharing plan:
An organisational reward system that gives employees the right to purchase company shares at a future date at a predetermined price.
Share options:
Positive effects of Organisational Rewards
Creates an ‘ownership culture’
Adjusts pay with firm’s prosperity
Concerns with performance pay - Organisational Rewards
Weak connections between individual effort and rewards
Reward amounts affected by external forces
Keys to improving Reward Effectiveness
Link rewards to performance Ensure rewards are relevant Team rewards for interdependent jobs Ensure rewards are valued Watch out for unintended consequences
Th process of assigning tasks to a job, including the interdependency of those tasks with other jobs
Job Design
Organisation’s goal—
to create jobs that can be performed efficiently, yet employees are motivated and engaged
The result of a division of labour where work is subdivided into separate jobs and assigned to different people
Job specialisation
The practice of systematically partitioning work into its smallest elements and standardising tasks to achieve maximum efficiency.
Scientific management