COMM 181 Chapter Notes - Chapter 8: Total Rewards, Employee Benefits, Equity Theory
Document Summary
It is important to know that employee recognition and rewards include all forms of pay, rewards, and recognition received by employees for the performance of their jobs. Direct compensation encompasses employee wages and salaries, incentives, bonuses, and commissions. Designing the rewards and recognition system goes beyond determining what direct and indirect compensation to provide employees. Research has shown that companies that make the rewards strategy a part of the overall organizational framework have (cid:271)ette(cid:396) pe(cid:396)fo(cid:396)(cid:373)a(cid:374)(cid:272)e tha(cid:374) those that do(cid:374)"t: linking rewards to organizational objectives. Pay is a quantitative measure of an employee"s (cid:396)elati(cid:448)e (cid:449)o(cid:396)th. The theory states that individuals form a ratio of their inputs (abilities, skills, experiences) in a situation to their outcomes (salary, benefits) in that situation. Pay-for-performance standard is the standard by which managers tie direct compensation to employee or organizational effort and performance: the bases for compensation. Work performed in most private, public, and not-for-profit organizations has traditionally been compensated on an hourly basis.
