Company focused on making company success inc

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company; focused on making company success - inc. employee satisfaction & work motivation (b/c psychologically experience ownership, exercise influence over the business of company) Problems: - manager may focus more on the short term - when share prices fall, employees only lose potential gains (not real $$) so this may not induce them to work hardest Challenges to Pay-for-Performance ( employees must share in risks & rewards of company ) programs : - hard to measure performance sometimes - some ppl prefer that wages kept w/ inflation - employees worry about potential drop in earnings Teamwork incentive pay awarded to individuals: -ve effect on group cohesiveness & productivity (colleagues compete against each other) Unions - union workers (many in Canada), paid on basis of seniority & job categories, have few opportunities to receive performance-based pay - uncontrollable factors may affect if they receive bonuses - manager’s ability to hand out rewards limited b/c of collective agreement Public Sector Employees - (those who work for local, provincial, federal gov’t) work is often of service nature → hard to measure productivity - many are unionized
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P ART 2: S TRIVING FOR P ERFORMANCE - research suggests using Goal-Setting Theory Ethical Consideration s - employees may manipulate performance to inc. bonuses - e.g. managers may pressure employees to do work w/o recording the hours (b/c have to keep payroll costs below fixed targets to receive reward by superiors) MOTIVATING BEYOND PRODUCTIVITY Commissions beyond sales (determined by customer satisfaction and/or sales team outcomes) e.g. meeting revenue & profit targets Leadership effectiveness (employee satisfact’n, measure of how manager handles employees) New goals (reward employees who continue to achieve specific new goals, e.g. quality measures, customer satisfact’n) Knowledge workers in teams (rewards linked to performance of knowledge workers) Competency and/or skills (rewards based on employees’ abstract knowledge/competencies) e.g. social skills, customer service, knowledge of technology Comparing Various Pay Programs Approach Strength Weakness Variable Pay Motivates for performance Cost-effective Makes clear link btwn organizational goals & individual rewards Uncontrollable outside factors that affect productivity Earnings vary form yr to yr Can cause unhealthy competition among employees Team-based Rewards Encourages individuals to work together effectively Promotes goal of team-based work Difficult to evaluate team performance Possible equity problems if all members paid equally Skill-based Pay (pay based on how many skills an employee has / how many jobs he can do) Inc. skill levels of employees Inc. flexibility of workforce Can reduce # of employees needed Employers may end up paying for unneeded skills Employees may no be able to learn some skills (thus feel demotivated) APPLY MOTIVATION THEORIES WISELY Motivation Theories Are Culture-Bound - Managers should consider a country’s cultural orientation when designing/implementing rewards GLOBE/Hofstede Cultural Dimension Reward Preference
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P ART 2: S TRIVING FOR P ERFORMANCE
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