MGMT 3276 Lecture 6: OB Notes Ch.6
15 Dec 2019
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Many rewards [e. g. pay, vacation time, increase with seniority] Potential benefits include: attracts job applicants [steady income], reduces turnover. Rewards based on the status or worth of job positions high value given positions that require more: education, skills, effort, responsibility, difficult working conditions. Potential benefits include: can increase feelings of equity. Rewards based on the number of competencies [e. g. skills, knowledge, employees have acquired. Potential benefits include: may improve product, service quality or employability. Potential benefits include: motivates task performance and attracts high performers. These incentive systems pay employees according to how much they individually produce. Wage-incentive model = hourly + piece rate e. g. want to pay /hr and on avg. Potential pitfalls = lowered quality, differential opportunity, reduced cooperation, restriction of productivity group dynamics. Merit pay = attempt to link pay to performance managers" performance appraisal ratings. Managers" performance appraisal ratings seen as unfair subjective, biased, unwilling to discriminate between low and high performers.
