COMMERCE 1BA3 Chapter 6: chapter 6
2 Dec 2016
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Document Summary
Money can give you prestige and can actually function to satisfy social, self-esteem and self actualization needs. According to expectancy theory, pay should be a good motivator to the extent that it is tied to performance. Workers are paid certain sum of money for each unit of production completed. E. g stitcher gets paid 50 cents for every clothe he stitches together. When difficult to measure individual productivity companies use wage incentive plans. Wage incentives can increase productivity at the expense of quality. Workers have different opportunities to produce at higher level. In expectancy theory terminology, workers will differ in the expectancy that they can produce at a higher level. Different job designs can make it difficult to implement wage incentives. The bigger the size of the team the less of an impact on your productivity. The artificial limitation of work output that can occur under wage incentive plans.
