BUS 482 Chapter Notes - Chapter 10: Motivation, Eval, 1Time Airline

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 482
• Professor: Jim Utley

Document Summary

Traditional approach: reward employees for positions they fill as indicated by jd. Not necessarily by how they do work. Pay range determines min, midpoint & max rates for each job. Salary increases at year-end determined by seniority/% of one"s base salary. No relationship b/t performance management & rewards. Contingent pay (cp) = pay for performance = indivs rewarded based on how well they perform on job. Increases can be added to employee"s base salary or 1-time bonus. Variable pay = not added to base salary. Pm sys more effective when results directly tied to reward sys. Cp plans force orgs to define effective performance clearly & determine what factors lead to effective performance. Sorting effect = high performers attracted to orgs that reward high-level performance & remain w/in orgs that have implemented cp plans. Projects good image that org is fair. Cp plans enhance employee motivation to accomplish goals that match org needs.