MGCR 222 Chapter Notes -Motivation, Job Enrichment, Reward System
14 Feb 2013
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Document Summary
Money is the most commonly used reward, but it may not play a large role in motivation. An effective reward system links pay to performance, which is consistent with expectancy theory predictions. Variable-pay programs: portion of an employee"s pay is based on some individual/organizational measure of performance. Price-rate pay plan: an individual-based incentive plan in which employees are paid a fixed sum for each unit of production completed. Gain sharing: a group based incentive plan in which improvements in group productivity determines the total amount of money to be shared. Profit-sharing plan: an organization wide plan in which the employer shares profits with employees based on a predetermined formula. Employee stock ownership plan (espo): a company-established benefit plan in which employees acquired stock as part of their benefits (gain ownership). Skill-based pay: based on how many skills an employee has or how many jobs they can do.
