HRM 3490 Lecture Notes - Lecture 5: Prevailing Wage, Job Performance, Social Forces

• School: York University
• Department: Human Resources Management
• Course: HRM 3490
• Professor: Parbudyal Singh

Document Summary

Pro: highly motivational in producing task behavior: reduce need for external control of employees through supervision, link compensation to output, compensation to employer ability to pay, reduce risk, provide specific info about standard level of output expected. Workers control own prod, interdependence bw workers is low, unit of production can be measured and priced, ind perform limited number of tasks, tasks don"t change frequently. Sales commissions: receive certain % of gross sales, commission rate varies depending on p/s sold (complement to base pay rather than a substitute) strait commission: no base pay at all. Hidden costs: firm nto paying sales rep when they make no sales, not receiving sales revenue either. High turnover=recruiting and training costs: fix: ibm commission not based on revenues but on profitability of sales (60%) and customer satisfaction (40%) Merit pay: recognize/encourage continuing good performance by ind employees (combo w base pay) If not why waste time attempting to measure variations.