HRMT 70015 Chapter Notes - Chapter 5: Absenteeism, Rush Hour, Job Enrichment
13 Nov 2020
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From theory to practice: the role of money. 40% of canadian employees would take a pay cut to workers for an employer if there were better opportunities. Internal equity = worth of the job to the organization. External equity = competitiveness of an organization"s pay relative to pay in its industry. Pay is often the highest single operating cost for an organization. How to pay: rewarding individuals through variable-pay programs. Variable-pay program = pay for performance; bases a portion of an employee"s pay on some individual, group, and/or organization measure of performance: e. g. piece-rate, merit-based, bonuses, employee stock ownership plans, used to compensate salespeople and executives. Flexible benefits = individualize rewards by allowing each employee to choose the compensation package that satisfies their current needs: cons: costly to administrate + hard to identify motivational impact. Recognition programs and other ways of increasing employee"s intrinsic motivation work.
