MGHB02H3 Lecture Notes - Lecture 6: Merit Pay, Profit Sharing, Job Performance
Document Summary
Money as a motivator: employees and managers underestimate the importance of pay as a motivator, according to maslow. Linking pay to performance on production jobs: piece-rate- individual workers are paid a certain sum of money for each unit of production they complete. Usually for workers who are paid a basic hour wage (), and a piece-rate on top of hourly wage ie. . 00/hour & sh. 30 for each unit produced: group incentives-when individual productivity is hard to measure ex. Monthly bonus for production over minimum quota: wage incentive plans-various schemes to link pay to performance on production jobs, wage incentives usually lead to substantial increases in productivity. Lowered quality: wage incentives increase productivity at the expense of quality especially hard to control for customer service, faster people process . Incompatible job design line use group incentives: sometimes impossible to identify and reward individual contributions to productivity ie. assembly.
