HRM 3490 Lecture Notes - Lecture 2: Cognitive Evaluation Theory, Reward System, Job Satisfaction

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Types of reward problems: failure to produce designed behaviour. Reward systems simply have no impact on behaviour. If the behaviour the organization needs isn"t occurring, or it is occurring only among certain employees, it causes serious problems but also produces undesirable behaviour, or behaviour that has negative consequences. Solution: implement a pay for performance system that reduces lateness, and abseetism to generate desired behaviour, or generate sales volume if there is a lack of sales. Harmful variation of the problem: the reward system fails, to produce the desired behaviour: production of desired behaviour and undesirable consequences. Occurs when the reward system does indeed generate the desired behaviour, but with anticipated negative consequences. Solution: generate better behaviours, the organization should dedicate the time spent towards implementing greater incentives tailored to the desired behaviour, otherwise the behaviours will deem itself to be a negative impact towards the organization.

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