2300 book notes

Bonus salary levels are based on performance levels

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Unformatted text preview: r good performance o self-efficacy - a person's belief about his or her ability to perform a behavior successfully PAY AND MOTIVATION • all theories described in this chapter allude to the importance of pay and suggest that pay should be based on performance • merit pay plan - a compensation plan that bases pay on performance • Salary Increase or Bonus o which one is more motivational? bonus; ! salary levels are based on performance levels, cost-of-living increases ! • • a current salary increase may be affected by other factors in addition to performance ! organizations rarely reduce salaries, salary levels tend to vary less than performance levels do ! bonuses on the other hand can indirectly and exclusively based on performance employee-stock option - a financial instrument that entitles the bearer to buy shares of an organization's stock at a certain price during a certain period or under certain conditions examples of merit pay plans o piece-rate pay - pay based on individual's product production o commission pay - individual pay based on a percentage of sales o profit sharing - employees receive a share of an organization's profits Planning and Strategy Planning - a process managers use to identify and select appropriate goals and courses of action for an organization Strategy - a cluster of related managerial decisions and actions to help an organization attain one of its goals STEPS IN PLANING STEP ONE - DETERMINING THE ORGANIZATION'S MISSION AND GOALS Mission Statement - broad declaration of an organization's overriding purpose, what it is seeking to achieve from its activities • identifies what is unique or important about its products to its employees and customers • distinguishes or differentiates the organization in some ways from its competitors STEP TWO - FORMULATING A STRATEGY • Managers analyze current situation and then conceive and develop the strategies necessary to attain the organization's mission and goals STEP THREE - IMPLEMENTING STRATEGY • managers decide how to allocate the resources and responsibilities required to implement strategies among people and groups within the organization The Nature of the Planning Process • managers o 1. establish and discover where an organization is at the present time o 2. determine where it should be in the future and its desired future state o 3. decide how to move it forward to reach that future state • why planning is important • • • o 1. necessary to give the organization a sense of direction and purpose ! everyone knows the direction they are going o 2. a useful way of getting managers to participate in decision making about the appropriate goals and strategies for an organization ! higher level managers talk to lower level managers and ask for input o 3. helps coordinate managers of different functions and divisions of an organization to ensure they all pull in the same direction and work to achieve its desired full state ! coordinate sales forecast with how much inventory is purchased to meet demand o 4. can be used as a device for controlling managers within an organization ! who bears the responsibility; managers are motivated due to such accountability...
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This document was uploaded on 02/18/2014 for the course BCOR 2300 at Colorado.

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