CHAPTER 6 summary

CHAPTER 6 summary - CHAPTER6...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 6 APPRAISING AND REWARDING PERFORMANCE Types of pay that are required for a complete economic reward system 1. Job analysis and wage surveys rate jobs, comparing one job with another to determine  base pay 2. Performance appraisal and incentives rate employees on their performance and reward  their contributions. 3. Profit  sharing  rates  the  organization  in  terms  of  its  general  economic   performance  rewards, and profit sharing MONEY AS A MEANS OF REWARDING EMPLOYEES Money-  valuable because of the goods and services that it will purchase. - Medium of exchange for allocation of economic resources - Social medium of exchange. - Has status value when it is being received and when it is being spent. APPLICATION OF THE MOTIVATIONAL MODELS Drives-   achievement-oriented  employees  maintain   a symbolic  scorecard in  their  minds  by  monitoring their total pay and comparing it with that of others.  - Money relates to other drives, since people can use it to buy their way into expensive  clubs  and give  them the  capacity to influence  others, such as  through  political  contributions. Needs-  Herzberg model  states that pay is primarily a hygienic factor, although it may have at  least sort term motivational value as well.  Expectancy-     if money is to act as strong motivator, an employee must want more of it  (valence),   must   believe   that   effort   will   be   successful   in   producing   desired   performance  (expectancy),   and   must   trust   that   the   monetary   reward   will   follow   better   performance  (instrumentality). Expectancy theory states that: Valence  X  Expectancy  X  Instrumentality  =  Motivation SITUATION LEVEL  OF  PERFORMANCE LEVEL OF  ECONOMIC  REWARD INSTRUMENTALITY  CONDITION 1 High High Desirable 2 High Low Undesirable
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
3 Low High Undesirable 4 low Low Desirable Behavior   modification.   Employees   can   see   that   there   is   a   direct   connection   between  performance and reward. The undesirable states are situations 2 and 3, where rewards are  withheld from high performers or given to low performers. When these conditions are allowed to 
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/14/2011 for the course ECON 103 taught by Professor Profkinney during the Spring '11 term at Athens Tech.

Page1 / 5

CHAPTER 6 summary - CHAPTER6...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online