BU288 Chapter Notes - Chapter 6: Motivation, Computer Network, Telecommuting
Document Summary
Piece-rate 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. May fear that if they produce at a high level, rate of pay will go down. Merit pay plans systems that attempt to link pay to performance on white-collar jobs. Performance reviews that lead to some merit pay to be awarded. Some potential problem with the merit pay system are: low discrimination managers may not be able to tell good performers apart from poor performers, small increases merit increases could be too small to be effective motivators. Managers tend to underestimate the pay of their superiors and overestimate the pay of their employees. Using profit to motivate teamwork and cooperation: profit sharing - the return of some company profit to employees in the form of a cash bonus or a retirement supplement.
