MSCI211 Chapter Notes - Chapter 6: Organizational Commitment, Job Sharing, Telecommuting

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Can link pay to performance on white-collar jobs. Performance reviews that lead to some merit pay to be awarded can stimulate performance. Good for individuals who see a strong link between rewards and performance. Only pays when the organization makes a profit. Creates a sense of legal and psychological ownership for employees. Aligns employee"s goals/interests with those of the organization. Can facilitate goal establishment, goal accomplishment, and employee development. Lowered quality can increases productivity at the expense of quality. Differential opportunity workers may be given a higher opportunity for incentives than others. Restriction of productivity may fear that if they produced at a high level, pay rate will fall. Low discrimination managers may not be able to tell good performers apart from poor performers. Small increases merit increases could be too small to be effective motivators. Pay secrecy may damage the motivational impact of a well-designed merit plan. Many factors beyond the control of employees can affect profits.

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