ADMS 3490 Chapter Notes - Chapter 4: Fixed Cost, Job Analysis, Piece Work

• School: York University
• Department: Administrative Studies
• Course: ADMS 3490
• Professor: Parbudyal Singh

Document Summary

Indirect pay for about 15 percent of total compensation or performance pay, e. g. commission. Base pay: wages, e. g. hourly pay. Easy to price in terms of its value to the employer (j. e) Easy to attribute to individual employees: controllable by the individual employee (merit, relatively stable, base pay. Supports a particular managerial strategy: demonstrates a commitment, does not directly motivate task behaviour (entitlement, does not directly contribute to citizenship behaviour (voluntarily undertake special. Linked to (cid:448)aria(cid:271)ilit(cid:455) i(cid:374) a(cid:374) e(cid:373)plo(cid:455)er"s a(cid:271)ilit(cid:455) to pa(cid:455) (cid:894)fi(cid:454)ed (cid:272)ost(cid:895) behaviours/projects beneficial to the organization) Is not self-correcting (fixed: performance pay, performance pay. Disadvantages: motivates employees to demonstrate key behaviours, can reduce the need for other types of mechanisms for controlling employee behaviour (self- managing, reflects set performance standards, make pay more variable (rather than a fixed cost) Supports specific managerial strategies, e. g. increased sales, etc.