COMM 151 Chapter Notes - Chapter 6: Job Satisfaction, Employee Retention, Microsoft Powerpoint
26 Aug 2013
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Pay is motivational for people who have strong lower-level needs. Expectancy theory states that pay satisfies a variety of needs therefore it should be a good motivator to the extent that it is clearly tied to performance. Pay for performance plans have increased performance and lower turnover. Piece rate: a pay system in which individual workers are paid a certain sum of money for each unit of production completed incentive = make more units, get more money. Wage incentive plans: various systems that link pay to performance on production jobs. Usually leads to a big increase in productivity. Problems with wage incentive: lowered quality. Increase productivity at the expense of quality, want to make more units: differential opportunity. Workers will differ in the expectancy that they can produce at a level. If the supply of raw materials or equipment varies in different workplaces, some workers will be at a disadvantage under an incentive system: reduced cooperation.
