BUS 272 Lecture Notes - Lecture 5: Merit Pay, Barista, Selective Perception

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 272
• Professor: Christopher Zatzick

Document Summary

A portion of an employee"s pay is based on some individual and/or organizational measure of performance: individual-based. Piece-rate wages (get paid for every thing done (ex. Merit pay: raise is giving based on performance (ex. : 0-5%), people don"t see it as such a important big pay because people not motivate by it. Based on performance evaluation made by supervisor: group-based. Gainsharing: companies share the gains with the teams (suggestions that improve efficiency and effectiveness of the team) Profit sharing: when the organization meets a goal (no profit no sharing) Employee stock ownership plans (esops): give you a stock option (buy it for less than the market price) Motivated to increase the price of the stock. Problem: unethical, your action won"t change the price (ex. Make sure close link in performance and pay. What constitutes performance and how is it measured: measured by supervisor, extremely biased (likes you or not, halo affect, selective perception)