ADM 2337 Chapter Notes - Chapter 9: Escalator, Scatter Plot, Total Rewards
4 Apr 2016
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Total rewards: an integrated package of all rewards (monetary, non-monetary, extrinsic and intrinsic) 1-direct compensation (ch 9&10): wages and salaries, incentives, bonuses, commissions. Strategic compensation: compensation of employees in ways that enhance motivation and growth while at the same time aligning their efforts with the objectives, philosophies and culture of the organization. 4-to mesh employees" future performance with organizational goals. Also equitable in terms of what other employees are receiving for their contributions. The strength of their motivation is proportional to the magnitude of the perceived inequity. Equity theory explains how people respond when they feel they have received less or more than they deserve. 2- expectancy theory: employees should exert greater work effort if they have reason to expect that it will result in a reward (outcome) that they value. Predicts that one"s level of motivation depends on the attractiveness of the rewards sought and the probability of obtaining those rewards. Goals can be challenging but must be attainable.
