IRE260H1 Chapter Notes - Chapter 6: Organizational Commitment, Human Factors And Ergonomics, Computer Network
Document Summary
According to maslow and adelfer, pay should prove especially motivational to people who have strong lower-level needs as they can exchange for necessities such as food, etc. Thus using hierarchy terminology pay can also function to satisfy social, self-esteem, and self-actualization needs. According to expectancy theory, if pay can satisfy a variety of needs, it should be highly valent, and it should be a good motivator to the extent that is i clearly tied to performance. Research on pay and financial incentives is consistent with the predictions of need theory and expectancy theory. The prototype to link pay to performance on production jobs is piece-rate. In its pure form, piece-rate is set up so that individual workers are paid a certain sum of money for each unit of production they complete. In some cases, it is very difficult to measure the productivity of an individual worker because of the nature of the production process.