COMM 292 Chapter 5: OB Ch.5 (c) Alyssa Leung
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COMM 292 Full Course Notes
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From theory to practice: the role of money. Money may be the most commonly used and desired reward. But relationships (with coworkers, boss) are equally if not more important. How to pay: rewarding individuals through variable-pay programs variable-pay programs a portion of the pay is based on the employee"s performance (earnings fluctuate) turns fixed costs into variable costs -> reduces expenditure when performance is low. Individual-based incentives greater emphasis on extrinsic motivation. Paid a fixed sum for each unit of production completed. Pure" piece-rate plan: paid solely for what is produced. Modified": base hourly wage + piece-rate differential. Can lead to an increase of overall performance -> achieve company"s goals. May be misleading as appraisals maybe be invalid. Pay raise pool fluctuates and may have little relation to performance. Reward employees for recent (rather than old) performance. May result in negative behaviour -> employees may believe they should receive bonuses.
