ADMS 3490 Study Guide - Midterm Guide: Job Performance, Work Motivation, Differentiator
3 Jan 2018
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Ppl prefer predictable pay (hard to budget for life) Costs are substantial rigidity (hard to remove benefits) Cause excessive employee stability (hard to fire poor performers) Base pay job evaluation (most dominate), market price, skill based. Factors determining pay; location, law, work environment, unionized groups negotiating. Pay affects an organization: pay to motivate, budget the finances, benefits attract/retain ppl. Reduce the need for other types of mechanisms for controlling employee behaviour. Set standards (set high goals for high performance) Supports strategy (human relations approach relies on social rewards) For low lvl employees it"s the majority of pay. ^why use base; easy to measure, stable, easy to price value to the employer, controllable to individual employee. Market pricing = avg amount of pay the industry offers. Lack of control of compensation strategy (kind of outsourcing your strategy) Job evaluation = base pay by ranking all jobs according to their value to that firm.
