COMM 292 Chapter Notes - Chapter 5: Flexible Spending Account, Motivation, Job Satisfaction
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COMM 292 Full Course Notes
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From theory to practice: the role of money. Most commonly used reward in organizations is money. Money leads to autonomy but not well-being or happiness. People who desire money score higher on self-esteem and need for achievement. Pay is not a primary factor driving job satisfaction, but it does motivate people. Pay is a key factor in losing top talent. Process of setting pay levels entails balancing internal equity (worth of job to organization) and external equity (external competitiveness of an organization"s pay relative to pay elsewhere in the industry) How to pay: rewarding individuals through variable-pay programs. 4 major forms of individual-based variable-pay programs: piece-rate wages. Piece-rate pay plan employees are paid a fixed sum for each unit of production: merit-based pay. Merit-based pay plan based on performance appraisal ratings. Main advantage people thought to be high performers can get bigger raises: bonuses. An annual bonus is a significant component of total compensation for many jobs.
