COMM 292 Chapter 5: Motivation in Action
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COMM 292 Full Course Notes
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Pay is a major way of motivating employees. The worth of the job to the organization. External competitiveness of an organizations pay in terms of their competition. Best option is internal equity while still being competitive. Paying above can lead to higher motivation, better quality and less turnover. Pay plan that bases part of employees pay on an individual or organizational measure of performance. Merit-based pay, bonuses, gainsharing, stock options, price-rate wages. Employees are paid a fixed sum for each unit of production completed. Need to see a strong relationship between performance and their reward. Rewards employees for recent performance not historical performance. Sets pay levels on the basis of how many skills an employee has or how many jobs they can do. Improvements in group productivity determine the total amount of money to be shared. Rewards can still be earned if they are productive but not necessarily profitable profitable. Employer shares profit with employees based on a predetermined formula.
