Management and Organizational Studies 2181A/B Chapter Notes - Chapter 6: Human Factors And Ergonomics, Flextime, Telecommuting
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Ex west jet airlines makes all the employees shareholders so theyre motivated. Piece-rate : pay per peice produced at factory (ex 5 cents a car) Wage incentive: adding peice rate plus flat rate. Different opportunities (ex 5 cents a car or 10 cents a bucket) Less cooperation (people stealing materials from each other) Incompatible job design (ex team of 2 vs team of 100. Restriction of productivity (bell shape distribution of performance. With wage incentive, ppl will stop performing at certain level bc thats all theyre paid for) Merit pay: link pay to performance for white collar job (ex sales commission) Sometimes not used much these days bc dosent really work. Low discrimination (hard to say who is good/bad workers) Small increases (such little bonus, no one cares) Pay secrecy (some people don"t keep their pay secret and it dosent help when they see others getting more) Profit sharing: employees get small portion of profits.