MANA 362 Lecture Notes - Lecture 7: Equity Theory, Total Rewards, Piece Work
22 Sep 2018
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Document Summary
Strategic advantages of well-designed compensation: motivates employees, contributes to the attainment of organizational goals, reinforces the organization"s culture, etc. > importance of thinking in terms of total rewards ( nancial direct, nancial indirect, non- nancial comp. ) %1: individuals are motivated by a sense of fairness in rewards distribution. This results from: a social comparison with others, i. e. , the referent(s) based on perceptions of: > the perceived value of the work, and whether pay is perceived to be equal to it. Internal factors: compensation strategy/policies, organization"s objectives to lead, lag, or match competitors, worth of the job, internal relationships among jobs (see job evaluation, employee"s relative worth, individual employee performance, ability to pay, organization"s resources and pro ts. Job evaluation: systematic process of determining the relative worth of jobs within an organization, based on: skill, e ort, responsibility, working conditions. External factors: economy, current economic conditions, labour market conditions.
