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BU288 (266)
Ping Zhang (73)
Chapter 6

Chapter 6 Comparison.docx

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Ping Zhang

Category Type Advantages Disadvantages 1. Money Wage Incentive - can increase worker productivity - lowered quality – can increases productivity Plans - attractive to workers for motivation at the expense of quality - differential opportunity – workers may be given a higher opportunity for incentives than others - reduced cooperation - incompatible job design - restriction of productivity – may fear that if they produced at a high level, pay rate will fall Merit Pay - can link pay to performance on white-collar jobs - low discrimination – managers may not be - performance reviews that lead to some merit pay able to tell good performers apart from poor to be awarded can stimulate performance performers - good for individuals who see a strong link between - small increases – merit increases could be rewards and performance too small to be effective motivators - pay secrecy – may damage the motivational impact of a well-designed merit plan Profit Sharing - sense of ownership - many factors beyond the control of - aligns employee goals with organizational goals employees can affect profits - only pays when the organization makes a profit - difficult for employees to see the impact of their actions on organization profits Employee Stock - creates a sense of legal and psychological - hard for employees to see connection Ownership ownership for employees between their efforts and value of the stock - aligns employee’s goals/interests with those of the- lose their motivational potential in a weak organization economy Gain Sharing - aligns organization and employee goals - bonuses might be paid even when the - encourages teamwork and cooperative behaviour organization doesn’t make a profit - employees might neglect objectives that aren’t included in the formula 2.Management Goal Setting - can facilitate goal establishment, goal - elaborate, difficult, time-consuming process
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