BUS 2090 Chapter Notes - Chapter 6: Telecommuting, Job Enrichment, Peter Drucker
11 Mar 2013
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The money employees receive in exchange for organizational membership is in reality a package made up of pay & various fringe benefits that have dollar values. Pay can satisfy all types of needs. For those w/ lower level needs, pay can be used to buy shelter, food etc. For those w/ higher needs, the pay that comes with promotion can lead to prestige. According to expectancy theory, if pay can satisfy a variety of needs. It should be highly valent & should be a good motivator to the extent its clearly tied to performance. Piece-rate: a pay system in which individual workers are paid a certain sum of money for each unit of production completed. More common is a system where workers are paid a basic hourly rate and paid piece rate differential on top of that. Wage incentive plans: various systems that link pay to performance on production jobs.
