BU354 Chapter Notes - Chapter 12: Piece Work, Merit Pay, Victor Vroom
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Efforts to a(cid:272)hie(cid:448)e orga(cid:374)izatio(cid:374)"s strateg(cid:455) through (cid:373)oti(cid:448)ated e(cid:373)plo(cid:455)ees i(cid:374)(cid:272)lude fi(cid:454)ed a(cid:374)d variable compensation plans. Fixed pay is compensation that is independent of the performance level of the individual, group or organization (ex. Variable pay is linking pay with productivity, profitability or some other measure of organizational performance. Fundamental promise of variable pay is top performers must get top pay to secure their commitment to the organization. The goal is treat workers like partners and get them to think of the business goals as their own. States the best way to motivate someone is to organize a job to provide challenge and re(cid:272)og(cid:374)itio(cid:374) (cid:374)eeded to satisf(cid:455) (cid:862)higher le(cid:448)el(cid:863) (cid:374)eeds su(cid:272)h as a(cid:272)(cid:272)o(cid:373)plish(cid:373)e(cid:374)t a(cid:374)d re(cid:272)og(cid:374)itio(cid:374) Extrinsic motivation is addi(cid:374)g (cid:373)ore h(cid:455)gie(cid:374)e"s (cid:894)fa(cid:272)tors outside the jo(cid:271) itself working conditions, salary, and incentive pay) Intrinsic motivation is motivation that derives from the pleasure someone gets from doing the jo(cid:271) or task, (cid:272)o(cid:373)i(cid:374)g fro(cid:373) (cid:862)(cid:449)ithi(cid:374)(cid:863) the perso(cid:374)
