HRM303 Chapter Notes - Chapter 1: Performance Appraisal, Common Hardware Reference Platform, Reward System
10 Aug 2016
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Document Summary
Purpose of a compensation system: to help create a willingness among qualified persons to join the organization and to perform the tasks needed by the organization. Reward: anything provided by the job or the organization that satisfies an employee need. Extrinsic rewards: factors that satisfy basic human needs for survival and security, as well as social needs and needs for recognition. Intrinsic rewards: factors that satisfy higher order human needs for self-esteem, achievement, growth and development. Rewards are the positive consequences of performing behaviours desired by the organization. Incetives used to induce employees to perform behaviours they might not otherwise would. Incentives are used to induce valued behaviour while rewards serve to recognize valued behaviour. Incentive: promise that a specified reward will be provided if specified employee behaviour is performed. Reward system: mix of intrinsic and extrinsic rewards that an organization provides to its members. Compensation system: economic or monetary part of the reward system.
