Textbook Notes (362,768)
Canada (158,052)
MGHD27H3 (37)
Grover (7)
Chapter 6

Chapter 6 Notes

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University of Toronto Scarborough
Management (MGH)

CHAPTER 6: MOTIVATION IN PRACTICE MONEY AS A MOTIVATOR capture extrinsic motivation - Maslow & Alderfer: pay can satisfy lower level needs by exchanging for food & shelter; pay raise can also satisfy all other higher level needs by giving you prestige in front of ppl to signal your competence & boss care about you - Pay is a motivator:ectancy theor-> if pay satisfy a variety of needs then it should have high valent and a good motivator to the extent that it is clearly tied to performance - Increase performance & lower turnover - Linking Pay to Performance on Production Jobs Piece ratea pay sys in which individual workers are paid a certain sum of $$ for each unit of production completed link pay to performance Usually combined with hourly wages ex. $8hr + $0.30unit produced Wage incentive planvarious sys that link pay to performance on production jobs Lead to substantial ^ in productivity When individual productivity is hard to measure -> group incentive - Potential Problems with Wage Incentives Lowered Quality:when ppl care only about speed, quality may be lowered Differential Opportunitif factors like supply of raw materials, quality of production equipment or work environment differ among diff workplace then workers will differ in the expectancy that they can produce at high level Reduced Cooperation:when reward based on individual productivity then ppl begin to only care bout themselves and wont help others ex. keeping shop cleanunload supplies Incompatible Job Designhard to implement wage incentives in certain jobs such as assembly line -> cant track individual productivity so can only use group, but when team has many ppl, impact of ones performance on team is mincant link to pay then Restriction of Productivity: wo wage incentive generally have bell shape productivity w wage incentive ppl afraid productivity over expectation will cause firms to lower piece rate so end up work more to make same amount wo incentive so they tend to restrict their productivity at certain level - Linking Pay to Performance on White-Collar J(clerical, professional, managerial) Generally tie salesprofitability of firm to these jobs salesppl earn commission on sales Hard to find indicator of individual performance for most of whitsubject toobs judgment of the performers manager Merit Pay Planssys that attempt to link pay to performance on white collar jobs Managers periodically evaluate employee performance and award some amount of merit pay to ppl over their basic salaries White collar workers support performance be important determinant of pay Merit pay used with greater frequency -> firms use it as alternative to wage ^ to attract & keep employees Page 1 of 9 www.notesolution.com
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