Exam 2 Flashcards
(120 cards)
Financial Rewards
fundamental part of employment relationship
pay has multiple meanings to different people:
- symbol of success
- reinforce/motivator
- reflection of performance
- reduce anxiety
how is the value of money assumed
cultural values influence the meaning and value of money based on the individual
types of rewards in the workplace
- membership/seniority
- job status
- competencies
- performance-based
membership/seniority based rewards
- fixed wages, seniority increases
- most common
- advantages: guaranteed wages may attract job applicants, reduce turnover
- disadvantages: doesn’t motivate job performance (based on seniority), discourages poor performers from leaving, may act as golden handcuffs - ties people to the job
Ex: teacher who gets 10 year doesn’t try anymore
job status based rewards
includes job evaluation and status perks
- advantages: maintain pay equity, motivates competition for promotions
- disadvantages: employees exaggerated duties, hoard resources, reinforce status hierarchy, inconsistent with workplace flexibility
Ex: VP and higher get special lunches at the cafeteria - make all other employees feel under appreciated so they left
competency based rewards
pay increases with competencies acquired and demonstrated
skill-based pay
- advantages: more flexible work force, better quality, consistent with employability
- disadvantages: potentially subjective, higher training costs
performance based rewards
different levels of rewards
- organizational - profit sharing, share ownership, stock options, gainsharing, balanced scorecard
- team - bonuses, gainsharing
- individual - bonuses, commissions, piece rate
positive effects of organizational rewards
- creates an “ownership culture”
- adjusts pay with firm’s prosperity
- scorecards align rewards with several specific organizational outcomes
concerns with performance pay (organizational rewards)
- weak connection between individual effort and reward
- reward amounts affected by external factors
improving reward effectiveness
- link reward to performance
- ensure rewards are relevant
- team rewards for interdependent jobs
- ensure rewards are valued
- watch out for unintended consequences
** everyone values things differently
job design
- assigning tasts to a job - including interdependency of tasks with other jobs
- organization’s goal - create jobs that can be performed efficiently yet employees are motivated and engaged
job specialization
dividing work into separate jobs that include a subset of the tasks required to complete the product or service
evaluating job specialization - advantages
=less time changing activities
- lower training costs
- job mastered quickly
- better person-job matching
evaluating job specialization - disadvantages
- job boredom
- discontentment pay
- higher costs
- lower quality
- lower motivation
Job characteristics model
core job characteristics
- skill variety, task identity, task significance, autonomy, feedback from job
—>
critical psychological states
- meaningfulness, responsibility, knowledge of results, individual differences
—->
outcomes
- work motivation, growth satisfaction, general satisfaction, work effectiveness
job rotation
moving from one job to another
- benefits: minimize repetitive strain injury, multi skills in the workforce, potentially reduces job boredom
job enlargement
adding asks to an existing job
Ex: video journalist added to traditional news team
job enrichment
given more responsibility for scheduling, coordinating, and planning one’s own work
1. Clustering tasks into natural groups - stitching the highly interdependent tasks into one job
ex: video journalist assembling the entire product
2. Establishing client relationships
directly responsible for specific clients
communicate directly with those clients
Dimensions of empowerment
- self-determination = employees feel that they have freedom and discretion
- meaning - employees believe their work is important
- competence - employees have feelings of self-efficacy (belief that they can successfully complete a task)
- impact - employees feel that their actions influence success
supporting employee empowerment to ensure success
individual factors - possess required competencies, able to preform the work
job design factors - autonomy, task identity, task significance, job feedback
organizational factors - resources, learning orientation, trust
decision making
conscious process of making choices among one or more alternative with the intention of moving toward some desired state of affairs
- not a factual/logical process
- emotion = unconscious = where risk comes into play
rational choice decision process
- identify problem/opportunity (symptom v. problem)
- choose decision process (ex. nonprogrammer)
- Develop/identify alternatives (search, then develop)
- Choose best alternative (subject expected utility)
- Implement choice
- Evaluate choice
Problem identification process
problems and opportunities are not announced or pre-defined
- use logical analysis and non conscious emotional reaction during perceptual process
problem: emotional reaction piece