HRM 3490 Chapter Notes -Job Satisfaction, Reward System, Organizational Identification
27 Oct 2011
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When a reward system has no impact on behaviour. When the reward system does indeed generate the desired behaviour, but there are also unanticipated negative consequences. Sears service technicians did generate increased sales, but cheated customers. When a reward system generates the rewarded behaviours, with no obvious negative consequences, but also serves to suppress other desirable behaviours that are not measured or rewarded. Auto retailer sales staff paid only on the basis of individual sales. Didn"t want to train new staff - competition. When employees believe that the rewards they receive are not consistent with the contributions they are making to the organization, or when they believe that the reward system is unfair. Can result in a variety of negative consequences: poor work performance, high turnover, poor customer service, employee dishonesty. An effective reward system should promote desired behaviour. Occurs when employees decide to join and remain with a firm.
