COMMERCE 1BA3 Lecture Notes - Lecture 9: Merit Pay
13 Dec 2017
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Document Summary
Instead of getting what you normally get you have a form of motivation which normally comes in the form of money: low quality, differential opportunity, reduced co-operation. When you have a quantitative goal, you do not always get quality. People pursue things that are measured and rewarded. I. e. someone working the day shift of a restaurant may work longer but make less tips than a server working the dinner shift: people compare themselves to other people through their efforts and rewards. Issues with lump/sum bonuses or commission: end justifies the means , will do whatever it takes to hit that number . Issues with merit pay: merit pay low discrimination, small increases, pay secrecy, compounding effect. Assess her new job in terms of: skill variety. Her boss tells her exactly what order to do them in: feedback. Very little direct work feedback: task identity. She is only doing a portion of her work: task significance.
