BUSI 3310 Lecture Notes - Lecture 33: Employee Stock Ownership Plan, Profit Sharing, Job Performance
16 Mar 2018
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Document Summary
The money that employees receive in exchange for organizational membership is a package made up of pay & various other fringe benefits that have dollar values: insurance plans, sick leave, vacation time. Employees & managers underestimate the importance of pay as a motivator. Research on financial incentives is consistent with the predictions of need theory and expectancy theory. Research suggest that pay may be the most important & effective motivator of performance. General, the ability to earn money for outstanding performance is a competitive advantage for attracting, motivating, and retaining employees. Piece rate: individual workers are paid a certain sum of money for each unit of production completed. Various schemes that link pay to performance on production jobs are called wage incentive plans. Compared with straight hourly pay, the introduction of wage incentive usually leads to a substantial increase in productivity. Attempts to link pay to performance on white-collar jobs: often called merit pay plans.
