Chapter 6 Flashcards
Money relates to ….
our needs and our-selfconcept
Money
a symbol of achievement and status, a motivator, and an influence on our propensity to make ethical or risky decisions
To some extent the influence of money on human thoughts and behavior occurs consciously/nonconsciously
nonconsciously
Who attach more importance or value to money?
Men
Who are more likely to view money as a symbol of power and status as well as the means to autonomy?
Men
Who are more likely to view money in terms of things for which it can be exchanged?
Woman
The motivational effect of money is due more to it’s….
symbolic value than to what it can buy
job evaluation
systematically rating the worth of jobs within an organization by measuring the required skill, effort, responsibility, and working conditions
Fixed pay; advantages and disadvantages
+ May attract applicants
(-) Doesn’t directly motivate performance
Most employee
benefits; advantages and disadvantages
Minimizes stress of insecurity
May discourage poor performers from leaving
Skill-based pay structures
measurable competency-based reward systems in which employees receive higher pay based on how quickly or accurately they perform
specific tasks and operate equipment.
(usually more objective, but expensive because employees spend more time learning new tasks)
Competency-based rewards
Motivate people to learn new skills.
- lead to more flexible workforce, more creativity etc
gainsharing plan
a team-based reward that
calculates bonuses from the
work unit’s cost savings and
productivity improvement
employee stock ownership
plan (ESOP)
a reward system that encourages employees to buy company stock
stock options
a reward system that gives
employees the right to purchase company stock at a future date at a predetermined price
profit-sharing plan
a reward system that pays bonuses to employees on the basis of the previous year’s level of corporate profits
Companywide performance bonus
This type of reward distributes bonuses to some or all employees for achieving preset organizational goals or companywide productivity improvements. Hilcorp Energy Company pays annual bonuses to all employees calculated by the company’s production rate, midstream income, reserves, and operating costs.
Link rewards to performance
- gainsharing, ESOPs and other plans that use objective performance measures
- apply rewards as soon after the performance occurs, in a large enough dose
Ensure that the rewards are relevant
Companies need to align rewards with performance within the employee’s control. The more employees see a ‘line of sight’ between their daily actions and the reward, the more they are motivated to improve performance.
Reward systems also need to correct for situational factors. (so depending on the situation, e.g the economic status in a culture)
Use team rewards for interdependent jobs
Team rewards work better than individual rewards when employees work in highly interdependent jobs, because it is difficult to measure individual performance in these situations. Also enourages cooperation
Tend to support employee preferences for team-based work
Ensure that rewards are valued
Ask employees what they value
job specialization
the result of a division of labor, in which work is subdivided into separate jobs assigned to different people.
For example in a supermarket (cassiere, vakkenvuller etc)
Job design
The process of assigning task to a job, including the interdependency of those tasks with other jobs
Why would companies divide work into such tiny bits?
- Fewer skills and less knowledge to learn. They can master specialized jobs more quickly
- More frequent practice. (because of short cycle times. More practice with the task, so mastered quickly)
- Less attention residue from changing tasks.
- Better person-job matching. Job specialization tends to increase work efficiency by enabling employers to more precisely match employees with specific aptitudes
