COMMERCE 1BA3 Chapter Notes - Chapter 6: Organizational Culture, Job Enrichment, Peter Drucker
29 Mar 2017
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The money that employees receive in exchange for organizational membership is in reality a package made up of pay and various fringe benefits that have dollar values. Employees and managers seriously underestimate the importance of pay as a motivator. 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 performance. In general , the ability to earn money for outstanding performance is a competitive advantage for attracting, motivating and retaining employees. More common than pure piece-rate is a system whereby workers are paid a basic hourly wage and paid a piece-rate differential on top of this hourly wage. In some cases it is difficult to measure the productivity of an individual worker because of the nature of the production process.
