MGMT 2430 Chapter Notes - Chapter 12: Employee Stock Ownership Plan, Lump Sum, Merit Pay
16 Mar 2017
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Money and motivation: fixed pay compensation that is independent of the performance level of the individual, group, or organization. Intrinsic motivation motivation that derives from the pleasure someone gets from doing the job or task: expectancy a perso(cid:374)"s e(cid:454)pe(cid:272)tatio(cid:374) that their effort (cid:449)ill lead to perfor(cid:373)a(cid:374)(cid:272)e. Instrumentality the perceived relationship between successful performance and obtaining the reward: valence the perceived value a person attaches to the reward. Incentive for salespeople: commission plan, salary plus commission plan, special incentive plans, performance awards such as spot bonuses, etc, recognition awards such as employee of the year, etc. Group/team incentive plans: key issues, cooperation vs. competitiveness, equal vs. equitable distribution of rewards. Individual allocation decisions: should group or organization decide, timing issues. Implementing group incentive plan: set work standards for each member of a group, set work standard for the group as a whole. Types of gain-sharing plans: scanlon plan, desig(cid:374)ed to lo(cid:449)er la(cid:271)our (cid:272)osts (cid:449)ithout lo(cid:449)eri(cid:374)g le(cid:448)el of a fir(cid:373)"s a(cid:272)ti(cid:448)it(cid:455)
