Chapter 6 Summarized

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Department
Management and Organizational Studies
Course
Management and Organizational Studies 2181A/B
Professor
Hayden Woodley
Semester
Winter

Description
Chapter 6 – Motivation in Practice Money as a Motivator  Linking Pay to Performance on Production Jobs Piece­rate: A 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 Potential Problems with Wage Incentives Lowered Quality Differential Opportunity Reduced Cooperation Incompatible Job Design Restriction of Productivity: The artificial limitation of work output that can occur under wage incentive  plans Linking Pay to Performance on White­Collar Jobs Merit Pay Plans: Systems that attempt to link pay to performance on white­collar jobs Potential Problems with Merit Pay Plans Low Discrimination Small Increases Lump Sum Bonus: Merit pay that is awarded in a single payment and not built into base pay Pay Secrecy Using Pay to Motivate Teamwork Profit Sharing  Employee Stock Ownership Plans (ESOP): Incentive plans that allow employees to own a set amount  of a company’s shares and provide employees with a stake in the company’s future earning and success Gainsharing: A group pay incentive plan based on productivity or performance improvements over  which the workforce has some control  Skill­Based Pay: A system in which people are paid according to the number of job skills they have  acquired Job Design as a Motivator Job Design: The structure, content, and configuration of a person’s work tasks and roles Traditional Views of Job Design  Job Scope and Motivation Job Scope: The breadth and depth of a job Breadth: The number of different activities performed on a job Depth: The degree of discretion or control a worker has over how work tasks are performed Job Rotation: Rotating employees to different tasks and jobs in an organization The Job Characteristics Model Core Job Characteristics Skill Variety: The opportunity to do a variety of job activities using various skills and talents Autonomy: The freedom to schedule one’s own work activities and decide work procedures Task Significance: The impact that a job has on other people Task Identity: The extent to which a job involves doing a complete piece of work, from the beginning to  end Feedback: Information about the effectiveness of one’s work performance Critical Psychological States Outcomes Moder
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