BU288 Lecture 12: Motivation practice
Document Summary
Potential problems with wage incentives: lowered quality, differential opportunity, reduced cooperation, incompatible job design, restriction of productivity. Linking pay to performance on white collar jobs: merit pay plans is systems that attempt to link pay to performance on white collar jobs. Employees receive a cash bonus based on organization profits. Many factors beyond the control of employees can affect profits. Employees can own a set amount of the organization"s shares. Only pays when the organization makes a profit. Creates a sense of legal and psychological ownership for employees. Aligns employee"s goals and interests with those of the organization. Employees receive a bonus based on a predetermined formula when measured costs decrease. Employees are paid according to the number of job skills they acquire. Provides employees with a broader picture of the work process. It is difficult for employees to see the impact of their actions on organization profits.
