IRE260H1 Chapter Notes - Chapter 6: Job Performance, Job Design, Motivate (Company)
18 Oct 2018
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Linking pay to performance on production jobs. Piece-rate: pay system in which individual workers are paid a certain sum of money for each unit of production completed. Wage incentive plans: various systems that link pay to performance on production jobs. Compared with straight hourly paym, the introduction of wage incentives usually leads to substantial increases in productivity. Lowered quality: wage incentives can increase productivity at the expense of quality. Differential opportunity: a threat to the establishment of wage incentives exists when workers have different opportunities to produce at a high level. Reduce cooperation: wage incentives that reward individual productivity might decrease cooperation among workers. Incompatible job design: in some cases, the way kbs are designed can make it very difficult to implement wage incentives. Restriction of productivity: the artificial limitation of work output that can occur under wage incentive plans; can decrease the expected benefits of the incentive system. Linking pay to performance on white-collar jobs.
