MGMT 2430 Study Guide - Final Guide: Job Enrichment, Motivation, Expectancy Theory
Chapter 12: Pay for performance and Financial Incentives
Questions:
1. Describe the impact of money of motivation.
• Fixed pay – independent of performance level
• Variable pay – plan that ties pay to productivity or profitability
• Treat employees like partners by rewarding them when firm does well
2. Discuss the motivators and hygiene theory (Herzberg)
• Best way to motivate someone is to organize the job so that doing it
provides the challenge and recognition we all need to help satisfy
higher level needs for things like accomplishment and recognition
• The factors (hygienes) that satisfy lower level needs are different from
those (motivators) that satisfy or partially satisfy higher level needs if
hygiene factors – factors outside the job like working conditions,
salary, incentive pay, are inadequate, employees become dissatisfied
• Managers should emphasize job content or motivator factors by
enriching jobs so they are more challenging, make job intrinsically
motivating, pleasure derived from doing the job
3. Discuss demotivators.
• Relying too much on extrinsic rewards may backfire
• Might detract from them the desire they have to do the job out of a
sense of responsibility
• Might detract from their intrinsic motivation
4. Discuss Vroo’s epectac theor. Know the formula and what each
represents.
• A perso’s otivatio to eert soe level of effort depeds o three
things
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