BUS 272 Lecture Notes - Lecture 5: Employee Stock Ownership Plan, Flexible Spending Account, Cognitive Evaluation Theory

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 272
• Professor: Lieketen Brummelhuis

Document Summary

Some recap from last chapter: theory x suggests that individuals need to be extrinsically motivated; maslo(cid:449)"s need hie(cid:396)a(cid:396)(cid:272)h(cid:455) theo(cid:396)(cid:455) suggests that i(cid:374)di(cid:448)iduals" (cid:271)asi(cid:272) (cid:374)eeds (cid:373)ust (cid:271)e met, including food, shelter, and safety-therefore more money can satisfy their these needs; *money is not the sole motivator for baby boomers and millennial employees. *people who highly value money score higher on sensation seeking, competitiveness, materialism, and control. Piece-rate wages, merit0based pay, bonuses, gainsharing, profit-sharing plans, stock options, and employee stock ownership plans are all forms of a variable-pay program, (cid:449)hi(cid:272)h (cid:271)ases a po(cid:396)tio(cid:374) of a(cid:374) e(cid:373)plo(cid:455)ee"s pa(cid:455) o(cid:374) so(cid:373)e i(cid:374)di(cid:448)idual, g(cid:396)oup, a(cid:374)d/o(cid:396) organizational measure of performance. Whe(cid:374) pa(cid:455) is tied to pe(cid:396)fo(cid:396)(cid:373)a(cid:374)(cid:272)e, the e(cid:373)plo(cid:455)ee"s earnings recognize the contribution rather than become a form of entitlement. For merit-pay to be effective, however, employees, need to perceive a strong relationship between their performance and their rewards. Projected level of future performance also plays a role.