MHR 505 Lecture Notes - Lecture 1: Pearson Education, Self-Determination, Job Evaluation
25 Oct 2015
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Document Summary
Money plays an important role in rewards but not only source. Golden handcuffs- poor performers don"t leave due to benefits- creates continuance commitment. Job evaluation- systematically rating the worth of jobs within an organization by measuring their required skill, effort, responsibility and working conditions. Gain sharing plans- team based rewards that calculate bonuses from the work unit"s cost savings and productivity improvement. Employee share ownership plans- reward system that encourage employees to buy company shares. Share options- reward systems that give employees the right to purchase company shares at a predetermined price at a future date. Esop and share options- give ownership culture and employees feel aligned with organizations success. Profit sharing- less ownership but advantage of automatically adjusting employee compensation with the firm"s prosperity thereby, reducing the need for layoffs and negotiations of pay. Ensure that rewards are relevant- giving frontline bonuses due to production output. Watch out for unintended consequences- incentive to pizza delivery guy causes more accidents.
