HROB 3010 Chapter Notes - Chapter 1: Procedural Justice, Organizational Commitment, Pension

• School: University of Guelph
• Department: Human Resources and Organizational Behaviour
• Course: HROB 3010
• Professor: Rhonda Gordon

Document Summary

Incentives/variable pay compensations for an employee doing exceptional work (bonus awards, benefits). Different companies have different values, different cultures, different methods for evaluating employee performance and also different compensation measures. The present value of the future stream of earnings means that the value of cash earnings now will be worth more than it will be in the future. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows: relational returns are non-financial returns from work. Give some examples of relational returns and explain why/how they would be motivating. Some examples of relational returns are: recognition and status, employment security, challenging. There are lots of people that would much rather prefer a job they enjoy and find stimulating than how much money they make. Money is not only motivator in the workplace. Explain how procedural justice is important in designing and implementing a pay system.