COMMERCE 1BA3 Lecture 4: 1BA3 - Lecture 4
1 Feb 2017
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Document Summary
Employees and managers seriously underestimate the importance of pay as a motivator. The motivation theories suggest that pay is a very important motivator. Pay can satisfy lower-level needs as well as social, self-esteem, and self-actualization needs. If pay can satisfy a variety of needs, it should be highly talent, and it should be a good motivator. Competitive advantage for attracting, motivating, and retaining employees. Piece-rate: individual workers paid a certain sum of money for each unit of production they complete. Wage incentive plans: various schemes link to pay to performance on production jobs. Usually leads to sustainable increases in productivity. Lowered quality: requires a system to monitor and maintain quality, unethical behaviour possible. Differential opportunity: workers have differential opportunities to produce at a high level. Reduced cooperation: hoarding and ghting over resources may result. Incompatible job design: linkage between performance and pay decreases with team size. Restriction of productivity: arti cial limitation of output to avoid reduction in workforce.
