Chapter 6: Work Motivation in Practices
Does Money Really Motivate?
o Satisfies needs
o Highly desirable
o Linked to Performance
o Do not ignore intrinsic motivation
Pay for performance – Individual Plan
o Wage incentive plan – Various systems that link pay to
performance on production jobs
o Piece rate systems – A pay system in which individual
workers are paid at a certain sum of money for each
unit of production completed.
White Collar jobs (often offer few objective performance
criteria to which pay can be tied)
o Merit pay plans – Systems that attempt to link pay to
performance on white collar-jobs
Pay secrecy – not knowing how much other is paid Restriction on Productivity: Artificial limitation of work output that can
occur under wage incentive plans.
-- Hypothetical Productivity Distributions
Pay for Performance – Using pay to motivate teamwork
-- Team Based
Profit sharing – The return of some company profit to
employees in the form of a cash bonus or a retirement
Employee stock ownership plan (ESOPS) – Incentive plans
that allow employees to own a set amount of a company’s
share and provide employees with a stake in the company’s
future earnings and success.
Gain sharing - A group pay incentive plan based on
productivity or performance improvements over which the
workforce has some control.
Skill-based pay: A system in which employees are paid
according to the number of job skills they have acquired. Alternative Work Arrangements
Flextime: An alternative work schedule in which arrival and
departure times are flexible
Compressed workweek – An alternative work schedule in
which employees work fewer than the normal five days a
week but still put in a normal number of hours per week
Job and Work Sharing
o Job Sharing: An alternative work schedule in which two
part-time employees divide the work of a full-time job
o Work Sharing – Reducing the number of hours
employees work to avoid layoffs when there is a
reduction in normal business activity
Telecommuting - A system by which employees are able to
work at home but stay in touch with their offices through the
use of communications technology, such as computer
network, voice mail, and electronic messages Mostly Needs Theories is the best theory.
Job scope – The breadth and depth of a job
Breadth – The number of different activities performed on a job.
Depth – The degree of discretion or control a worker has over how