PSYCH 338 Chapter Notes - Chapter 6: Human Factors And Ergonomics, Computer Network, Adam Grant

• School: University of Waterloo
• Department: Psychology
• Course: PSYCH 338
• Professor: Franki Kung

Document Summary

According to maslow and alderfer, pay should prove especially motivational to people. Also, using need hierarchy terminology, pay can also function to satisfy social, self- who have strong lower-level needs esteem, and self-actualization needs. According to expectancy theory, if pay can satisfy a variety of needs, it should be highly valent, and it should be a good motivator to the extent that it is clearly tied to performance. Research suggests that pay may be the most important and effective motivator of performance. The prototype of all schemes to link pay to performance on production jobs is piece-rate. Piece-rate: a pay system in which individual workers are paid a certain sum of money for each unit of production completed. More common than pure piece-rate is a system whereby workers are paid a basic hourly wage and paid a piece-rate differential on top of this hourly wage. Wage incentive plans: various systems that link pay to performance on production jobs.