Textbook notes-Chapter 6-Motivation in Practice

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University of Toronto Scarborough
Management (MGH)
Andrew Davidson

1 CHAPTER 6 MOTIVATION IN PRACTICE MONEY AS A MOTIVATOR - according to expectancy theory, if pay can satisfy a variety of needs, it should be highly valent, and t should be a good motivator to the extent that it is clearly tied to performance - research on pay and financial incentives is consistent with the prediction of need theory and expectant theory Linking Pay to Performance on Production Jobs piece rate: a pay system in which individual workers are paid a certain sum of money for each unit of production completed the prototype of all schemes to link pay to performance on production job wage incentive plans: various systems that link pay to performance on production jobs - compared with straight hourly pay, the introduction of wage incentives leads to increase in productivity Potential problems with wage incentives 1) lower quality - increase productivity at the expense of quality - cant control it if its service (ex. interviews) 2) differential opportunity - problem when workers have diff opportunities to produce at high level - in expectancy theory terminology, workers will differ in the expectancy that they can produce at a high level 3) reduce cooperation - wage incentives that reward individual productivity might decrease cooperation among workers 4) incompatible job design - some job designs make it hard to implement wage incentives -ex. assembly lines - as team increase, individuals productivity and pay decrease thus removing the intended incentive effect 5) restriction of productivity - wo wage incentives, we expect productivity to be distributed in a bell-shaped manner (some bad, some good, lots in middle) - Z47N07884209L208.42094,3L31472,O,J7002039,-4:9ZK,9.4389L9:908,1,L7,8 work and artificially limit their output accordingly restriction of productivity: the artificial limitation of work output that can occur under wage incentive plans - happens cuz workers feel that increased productivity due to the inventive will lead to www.notesolution.com
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