MGHB02H3 Chapter Notes - Chapter 6: Job Rotation, Lump Sum, Motivation
Document Summary
Pay prove motivational to people who have strong lower level needs. Pay can satisfy social, self esteem, and self-actualization needs. Consistent with the predictions of need theory and expectancy theory. Piece rate: a pay system in which individuals workers are paid a certain sum of money for each unit of production completed. Wage incentive plan: various system that link pay to performance on production jobs. Wage incentives leads to substantial increases in productivity. Incompatible job design: the artificial limitation of work output that can occur under wage incentive plans. White collar jobs offer fewer objective performance criteria to which pay can be tied. Evaluated by the subjective judgement of the performer"s manager. Merit pay plans: systems that attempt to link pay to performance on white collar jobs. Used to attract and retain employees and as an alternative to wage increases. Seniority, the number of employees, and job level account for more variation in pay than performance.
