Motivation is practice CH6 notes.docx

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Management and Organizational Studies
Management and Organizational Studies 2181A/B
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Motivation is practiceMoney as a MotivatorMaslow and Alderfer pay should prove especially motivational to people who have strong lowerlevel needs Pay can also function to satisfy social selfesteem and selfactualization needs Expectancy theory provides the clearest answer according to expectancy theory if pay can satisfy a variety of needs it should be highly valent and it should be a good motivator to the extent that it is clearly tied to performanceThe ability to earn money for outstanding performance is a competitive advantage for attracting motivating and retaining eesLinking pay to performance on production jobsPiecerate a pay system in which individual workers are paid a certain sum of money for each unit of production completedMore common than pure piecerate is a system whereby workers are paid a basic hourly wage and paid a piece rate differential on top of this Wageincentive plans various systems that link pa to performance on production jobsBest example is Lincoln Electric companyPotential problems with wage incentivesLowered quality increase quantity at expense of qualityDifferential opportunity A threat to the esetablishment of wage incentives exists when workers have different opportunities to produce at a high levelReduced cooperation to maintain a high wage rate machinist might hoard raw materials or refuse to engage in peripheral tasksIncompatible job design as the size of the team increases the relationship between any individuals productivity and his or her pay decreasesRestriction of productivity The artificial limitation of work output that can occur under wage incentive plans sometimes it happens because workers feel that increased productivity due to the incentive will lead to reductions in the workforce More frequently ees fear that if they produce at an especially high level an employers will reduce the rate of payment to cut labour costsLinking pay to performance on whitecollar jobsclerical professional and managerialMerit pay plans systems that attempt to link pay to performance on whitecollar jobs
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