BUSI 4008 Lecture Notes - Lecture 6: Restricted Stock
26 Feb 2018
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Incentive systems: (individuals are believed to be more strongly motivated by the potential of earning rewards than by the fear of punishment) Negative incentive (punishment) things employees like to avoid. Monetary salary increases, bonuses & benefits. Non-monetary promotion, autonomy, recognition, participation in decisions, office assignments, preferred parking places, and titles. Monetary no raise and no bonus. Non-monetary interference in job from superiors, loss of job, assignment to unimportant tasks, no promotion, and humiliation. Purpose of incentives performance-dependent rewards, or incentives, provide the motivation for the alignment of employees(cid:859) natural self-interests with the org(cid:859)s objective. Incentive provide three types of management control benefits: The rewards attract attention and inform employees of the importance of often competing results areas cost, quality, customer service, asset management, and growth. The rewards signal which performance areas are important and help employees decide how to direct their efforts. Some employees need incentives to work harder and perform tasks well.
