COMM 292 Chapter Notes - Chapter 5: Employee Stock Ownership Plan, Job Enrichment, Variable Cost
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COMM 292 Full Course Notes
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From theory to practice: the role of money. Most commonly used reward in organizations is money. Theory x suggests individuals need to be extrinsically motivated can be extrinsically motivated by money. Maslow"s hierarchy of needs basic needs must be met and money can satisfy these. Motivation-hygiene theory suggests money not necessary but suicient condition for individuals to be motivated. People who value money highly score higher on attributes like sensation seeking, competitiveness, materialism. Must understand what to pay employees and how to pay them. We consider 4 major strategic rewards decisions that must be made: 1. What to pay: establishing a pay structure: process of initially setting pay levels can be rather complex and entails balancing internal equity and external equity. External equity: external competitiveness of organization"s pay relative to pay elsewhere in industry: some organizations like being pay leaders by paying above market. But paying too much can make products/services too. How to pay: rewarding individuals through variable-pay expensive.
