HTH 503 Lecture Notes - Lecture 9: Merit Pay, Victor Vroom, Piece Work

• School: Ryerson University
• Department: Hospitality and Tourism Management
• Course: HTH 503
• Professor: amritabhalla

Document Summary

Money and motivation: fixed pay: compensation that independent of performance level of individual, group/ org. (base pay, allowance that satisfy need of income stability, variable pay: any plan that ties pay to productivity/ profitability. Facilitate management of total compensation by keeping base pay inflation controlled. Top performance must get top pay to secure commitment (accurate performance appraisal/ measurable outcome can make effective pay-for- performance plan) Employees need to understand corporate strategy and how their work as individual ( line of sight , employee can relate own daily work to achieve corporate goal) Demotivators and edward deci: downside rely too heavily on extrinsic rewards which can destruct intrinsic motivation. Expectancy theory and victor vroom: motivation exert level of effort depends on expectancy (in terms of probability): a person"s expectation that effort will lead to performance instrumentality: the perceived relationship btw successful performance & obtaining reward. Valence: the perceived value a person attaches to the reward: vroom"s theory: motivation= e*i*v.