Management and Organizational Studies 3342A/B Lecture : Chapter 10.doc

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Chapter 10 pay for performance: performance appraisal and plan. Linking organization strategy to compensation and performance management: employers want employees to perform in ways that lead to better org performance, employee performance = f(s,k,m) where. S = skill and ability to perform task. K = knowledge of facts, rules, procedures. M = motivation to perform: the way that compensation systems are designed is intimately linked to the stability of performance measures, performance measurement related to compensation: Low variability few swings in overall corp performance. Cell a provide wide range of rewards beyond just money. Cell c emphasize monetary rewards with large incentive component. High variability regular and large performance swings in overall corp. Cell b provide wide range of rewards beyond just money. What theory and research say: motivation a process involving the determination of what is important to a person and offering it in exchange for desired behaviour.

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