MGT 462 Lecture Notes - Lecture 7: Organization Development, Organizational Structure, Job Satisfaction
Document Summary
Organizational strategy is the guiding force that determines what employee bheivaors are needed. Employers want employees to perform in ways that lead to better organizational performance. Organizational success ultimately depends on human behavior which is influenced by hr practices. Hr and compensation decisions/practices should be designed to help employees behave in a way that supports the company strategy. Goals of compensation - reinforce desired behaviors and well-designed pay systems. Make it easier to recruit and hire good employees (attraction) Ensure good employees stay with the company (retention) Encourage employees to perform well on their jobs. Take their knowledge and abilities and apply in ways that contribute to organizational performance. Part of the compensation is to motivate employees to build further knowledge and skills (development) Yes they work but have to be tailored to the situation. Incentives work in some situations and not in others. A low-incentive component is appropriate in organizations with highly variable annual performance.
