COMM 151 Lecture Notes - Merit Pay, Profit Sharing, Motivation
28 Feb 2013
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Document Summary
According to maslow and alderfer, pay is especially important for people with strong lower level needs. Also when you receive increase in pay, it might give you prestige among friends and family, signal competence (abilities) as a worker and demonstrates that boss cares about you. Using the hierarchy of needs, pay can also function to fulfill the needs of social, self esteem, and self actualization. (the above is the example) Financial incentive is consistent with the predictions of need theory and expectancy theory. Piece rate: a pay system in which individual workers are paid a certain sum of money for each unit of production completed. Wage incentive plans are various systems that link pay to performance on production jobs. E. g. worker gets paid a hourly basic rate but also gets monthly bonus on the products produced. An review report showed that productivity increased by 30% with installation of piece rate. Lower quality: workers try to produce more sacrificing the quality.
