MGHB02H3 Lecture : Chapter 6 Notes
Document Summary
Lecture notes: chapter six, motivation in practice. Pay can provide for lower order needs such as food and shelter. It can also help to satisfy higher order needs such as esteem and prestige. Pay is potentially a good motivator to the extent it is clearly tied to performance. Research indicates that financial incentives and pay for performance plans can increase performance and lower turnover. The text suggests that pay may be the most important and effective motivator of performance. Piece rate workers are paid a certain sum of money for each unit produced often combined with a basic hourly rate. Often tied to quotas ie. piecework rate is paid for production over a certain standard quota. Wage incentive plans is the general term for these types of plans. Lowered quality plans may increase productivity at the expense of quality and it may be more costly to correct mistakes than to do it right the first time.
