ADMS 3490 Chapter Notes - Chapter 5-8: Organizational Citizenship Behavior, Motivation, Piece Work

• School: York University
• Department: Administrative Studies
• Course: ADMS 3490
• Professor: Parbudyal Singh

Document Summary

With its review of performance pay plans, this chapter has completed our discussion of the menu of compensation options for inclusion in a compensation strategy. You are now ready to tackle the compensation strategy formulation process. You have learned that each type of performance pay has distinct advantages and disadvantages, tends to serve different objectives, is applicable to and different circumstances. Individual performance pay plans - piece rates, sales commissions, merit pay (which includes merit raises, merit bonuses and promotions), and special-purpose incentives - generally focus on promoting task behavior. While each type of individual performance pay can be effective when properly designed and applied in the right circumstances, each can also cause a variety of unintended negative consequences if poorly designed or applied in the wrong circumstances. Whenever possible, intrinsic motivation to motivate task behavior is superior to extrinsic motivation.