COMMERCE 1BA3 Chapter Notes - Chapter 6: Blue-Collar Worker, Merit Pay, Motivate (Company)
3 May 2018
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Chapter 6
CONTEXTUAL PROCESS THEORIES OF MOTIVATION
1st theory: Reinforcement theory (refer to chapter 2)
2nd theory: Establishing an OB-mod program
• Define target behaviour
o Which behaviours are highly desirable vs not desirable
• Measure frequency od behaviour
o Must collect data, create a base
• Set reasonable performance goals
o People have guideline
• Monitor behaviour
o Looks at the behaviour they are portraying now, why has this occurred
• Administer awards
3rd Theory: Money as A Motivator
• Money is something that can be thrown at you
• Shortlisted: salary negotiations, go talk to Teal after school
• Direct and indirect compositions
➢ Pay for Performance
• This term started and utilized first with shop floor labours, and factory workers
o blue collar motivated by money, how much they make, production worker
makes 5 widgets thye get 50$ versus someone making 2 widets making 20$
• These two terms:
o 1. The piece rate pay system:
▪ Fred Taylor originated the term
▪ Pay system in individual worker is paid for each piece finished, does
not motivate quality
o 2. Wage incentive pay:
▪ systems that link pay to performance
▪ x dollars per hour, every unit above we will pay you extra x dollars
▪ tradition, never have in a white collar environment, we offer on
commission
➢ Merit Pay Plans
• Pay for performance jump to white collar
• A lump sum of bonuses based on overall productivity over the year/performance
o Try to keep secret, doesn’t stay secret long
o Small increases are not effective
o Doesn’t always work giving general pay, underachievers will receive more,
overachievers less than deserved
➢ Pay to Motivate Teamwork
• Profit Sharing: the return of company profit to employees in the form of cash bonus or
retirement supplement
• Gain Sharing: group incentive plan based on productivity or performance improvement
over which the work force has controlled. Workers come together to improve, therefore
productivity improvement and more money to the workers and company in total!!
o More common in blue collar
o Those who helped will get more money
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
1st theory: reinforcement theory (refer to chapter 2) 3rd theory: money as a motivator: money is something that can be thrown at you, shortlisted: salary negotiations, go talk to teal after school, direct and indirect compositions. The piece rate pay system: fred taylor originated the term, pay system in individual worker is paid for each piece finished, does not motivate quality, 2. Wage incentive pay: systems that link pay to performance, x dollars per hour, every unit above we will pay you extra x dollars tradition, never have in a white collar environment, we offer on commission. To provide employees in stake in the company"s future and success: skill based plan: pay you for extra accreditation, you can do more, get more pay. 4th theory: job design theory: what i can do to the job to improve people"s motivation, the structure, content and configuration of a person"s work tasks and roles.
