PSYCH238 Lecture Notes - Lecture 6: Merit Pay, Job Design, Plans

• School: University of Waterloo
• Department: Psychology
• Course: PSYCH238
• Professor: Doug Brown

Document Summary

Piece-rate: refers to a pay system in which individual workers are paid a certain sum of money for each unit of production they complete. Wage incentive plan: various schemes to link pay to performance on production jobs: wage incentives have some potential problems when they are not managed with care: Lowered quality can increase productivity as the expense of quality. Differential opportunity a threat to the establishment of wage incentives exists when workers have differential opportunities to produce at a high level. Reduce cooperation wage incentives that reward individual productivity might decrease cooperation among workers. The scanlon plan - stresses participatory management and joint problem solving between employees and managers, and uses the pay system to reward employees for cooperative behavior. Job design: refers to the structure, content, and configuration of a person"s work tasks and roles. Stretch assignments: provide employees challenging opportunities to broaden their skills by working on a variety of tasks with new responsibilities.