BUS 272 Chapter 5: Applications of Motivation

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Immediacy of reward is crucial to reinforce continued behavior. Other challenges to pay-for-performance programs: the challenges for pay-for-performance programs can be affected by how and where they are implemented by, teamwork, unions, public sector employees, fairness and equity , ethical considerations. Types of compensation: variable-pay programs: a portion of an employee"s pay is based on some individual and/or organizational measure of performance. Piece-rate wages, bonuses: individual-based, group-based, organizational-based. Gainsharing: critical issue: ownership and some sort of participative element is essential to make these types of compensation programmes work. Creating effective reward systems employee recognition: employee recognition programs use multiple sources and recognizes both individual and group accomplishments. In contrast to most other motivators, recognizing an employee"s superior performance often costs little or no money. Beware the signals that are sent by rewards: often reward systems do not reflect organizational goals:

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