MGHD27H3 Chapter 6: Textbook Notes - Chapter 6
Document Summary
Westjet motivates their employees by employing: a profit-sharing plan, an employee stock ownership plan, jobs that are designed to provide employees with freedom and autonomy, and alternative working schedules. Discussed in this chapter will be four motivational techniques: money, job design, management by objectives, and alternative working schedules. Employees and managers seriously underestimate the importance of pay as a motivator. According to maslow and alderfer, pay is especially motivating in order for people to achieve strong lower-level needs (e. g. money for food, shelter, other necessities in life) Pay can also make you look prestigious among your friends (social need) as well as make you feel competent (self-esteem need) Financial incentives and pay-for-performance plans have been found to increase performance and lower turnover. The ability to earn money for outstanding performance is a competitive advantage for attracting, motivating, and retaining employees. Wage incentives have some potential problems when they are not managed with care.
