BUSI 3310 Lecture Notes - Lecture 34: Merit System
16 Mar 2018
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Document Summary
Motivation theories suggest that money can be a motivator to the extent that it satisfies a variety of needs, is highly valent, clearly tied to performance. Financial incentives and pay-for-performance plans have been found to increase performance and lower turnover. Lowered quality: they might increase productivity at the expense of quality. Differential opportunity: if workers have differential opportunities to produce at a high level, wage incentives might be hard to establish. Reduced cooperation: wage incentives that reward individual productivity might decrease cooperation among workers, workers might hoard raw materials or refuse to engage in peripheral tasks. Incompatible job design: the way jobs are designed can make it very difficult to implement wage incentives. Includes assembly lines: wage incentive systems can be designed to reward team productivity, as the size of the team increases, the relationship between any individual"s productivity and his or her pay decreases.
