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Unformatted text preview: concerns Other employees often find out anyway Without controls these systems may allow for discrimination o Public pay systems: Reduces perceptual mistakes Reduces discrimination Usually motivational But, making information public may create hard feelings May result in “average” increases to all subordinates to protect managers from complaints • Problems w/ focusing on extrinsic rewards: o Decreased task enjoyment o Can undermine feelings of autonomy • Building systems that work: o Rewards contingent on performance o Relevant rewards (e.g. profit sharing) o Valued and equitable rewards o Transparent criteria for how rewards are determined o Team rewards for interdependent jobs o Watch out for unintended consequences (e.g. quantity vs. quality)...
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- Fall '10
- Pay Systems