COMMERCE 2BC3 Lecture 9: Chapter 9 - HR [130636]
14 Dec 2017
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6 o o o o o o o o o o o o. Pay for performance (incentive pay, variable pay, or performance-based pay): variable forms of pay designed to recognize and reward employees" performance that are based on measures of individual or group contributions to the organization"s success. Pay plans are typically used to energize, direct, or control employee behavior. E. l. thorndike"s law of effect states that a response followed by a reward is more likely to recur in the future. The implication for compensation mgmt. is that high employee performance followed by a monetary reward will make future high performance more likely. High performance not followed by a reward will make it less likely in the future. The theory emphasizes the importance of an employee"s actual experience of a reward in terms of motivating future actions. Also focuses on the link between rewards and behaviors, it emphasizes expected rewards.
