Recognizing And Rewarding Day 24 Flashcards Preview

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Flashcards in Recognizing And Rewarding Day 24 Deck (50)
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1

Organizations have wide discretion in setting performance-related pay called

Incentive pay

2

This is pay specifically designed to energize, direct, or conte employees' behavior

Incentive pay

3

Organizations select incentives based on (3)

Costs
Expected influence on performance
Fit with the organization's broader HR policies and goals

4

Organizations can tie incentive pay to (4)

Individual performance
Profits
Seniority
Other measures of success

5

Three types of incentives

Individual incentives
Group incentives
Organizational incentives

6

Law of effect

What is rewarded gets done.

7

Two major rewards at work

Money
Praise

8

Individual incentives (5)

Piecework rate
Standard hour plan
Merit pay
Performance bonuses
Commission

9

Wage based on the amount workers produce

Piecework rate

10

Piecework rate is best for work that is

Stable, repetitive, worker paced, and easily measured

11

Piecework rate fits best with _______ between jobs

Low interdependence

12

Piecework rate is rarely used because (5)

Most jobs have no physical output
Individuals focus only on the incentive
Does not fit with team approach
Does not reward obtaining multiple skills
Rewards output at the expense of quality or service

13

An incentive plan that pays workers extra for work done in less than a preset "standard time"

Standard hour plan

14

Standard hour plan

An incentive plan that pays workers extra for work done in less than a preset "standard time"

15

Piecework rate

An incentive plan that pays wages based on the amount workers produce

16

Advantage of standard hour plans

They encourage employees to work as fast as they can and be efficient, can potentially bill more hours in a week than worked

17

Disadvantage of standard hour plans

Employees may not necessarily care about quality or service

18

System of linking pay increases to ratings on a performance scale
Requires quality performance appraisal
Supervisor provides most performance info

Merit pay

19

Most common individual incentive system

Merit pay

20

Merit pay

System of linking pay increases to ratings on a performance scale

21

Disadvantages of merit pay (5)

Discouraged teamwork
Too much reliance on supervisor for rating
Pay increase are not representative of performance and/or are too small to be motivating
An annuity based on the past rather than the present
Fail to account for short-term fluctuations in performance

22

Incentive not built into base pay so employees must re-earn it every year
Usually given in addition to or in place of merit "pay" incentives

Performance bonuses

23

Advantages of performance bonuses

Allows organizations to be flexible, year to year, in terms of what they want to reward

24

Incentive pay calculated as a percentage of sales, revenue, or profitability

Commissions

25

Commissions

Incentive pay calculated as a percentage of sales, revenue, or profitability

26

3 types of commissions

Straight commission
Salary-plus-commission
Commission-plus-draw

27

2 disadvantages of commissions

Contaminated - some things employees cannot control
Deficient - (make the sale regardless of the long term cost)

28

Group incentives (2)

Gainsharing
Bonuses and rewards

29

Measures increases in productivity or effectiveness and distributes part of the gain back to employees

Gainsharing

30

Gainsharing

Measures increases in productivity or effectiveness and distributed part of the gain back to employees