COMMERCE 4BE3 : chapter 1
23 Jan 2012
School
Department
Course
Professor
Document Summary
Cndn firms spend 40-70% on their budgets to compensate their employees. Purpose of a comp. system: to help create a willingness among qualified persons to join the org. & to perform the tasks needed by the org. Extrinsic rewards: derive from factors surrounding the job context. Intrinsic rewards: derive from factors inherent in the work itself job content. Incentive: a promise that is a specified reward will be provide if the employee performs a specified behav. = intended to induce valued behav. (rewards recognize value behav. ) Reward system: the mix of intrinsic & extrinsic rewards provided to its members by an org. Comp. system: deals only w/ the economic or monetary part of the reward system total rewards: a comp. philosophy that considers the entire spectrum of rewards that an org. may offer to employees. Reward strategy: the plan for the mix of rewards to be provided to members, along w/ the means through which they will be provided.
