MANA 443 Lecture Notes - Lecture 10: Expectancy Theory, Job Performance, Performance Appraisal
2 Feb 2017
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Chapter 10: pay-for-performance: performance appraisal and plan design. Almost all canadian and u. s. companies use performance-based pay or benefits to some extent; for example: Increases to base salary are generally based in whole or in part on the individual"s performance. Many employees receive part of their total pay from a cash incentive plan based on company, business unit/team and/or individual performance. These plans are hard to design and administer. Not everyone agrees that they work. (some objectives might not be fair) Some company links the increases of base salary to individual"s performance. Some people feel that pfp is unfair. External environment (bad economy and you can"t control) Team-based pay for performance (i have a lazy and unreliable team member) First, many companies/people believe that properly designed performance-based pay systems motivate people to higher levels of job performance. Second, many companies/people believe it is important to align total levels of pay with the company"s/unit"s/individual"s performance.
