High uncertainty avoidance certainty in compensation

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High Uncertainty Avoidance Certainty in compensation systems seniority-based pay skill-based pay Individualism Compensation based on individual performance pay for performance individual incentives stock options Humane Orientation (Hofstede’s quality-of-life dimension) Social benefits & programs flexible benefits workplace child-care programs career-break schemes maternity leave programs Important to consider internal norms of a country when developing incentive plans: - Many motivation theories assume consistency in needs across society; but different cultures have different needs e.g. Maslow’s hierarchy of needs doesn’t work in Japan, where security needs are most valued - Motivation theories rely on motivating individuals thru individual rewards e.g. does not work in Japan, either – they reply on group processes - Individualists (Canada & US): equity theory emphasized; Collectivists: employees expect reward to reflect their individual needs & performance & to be > their inputs (entitlement attitude) Beware the Signals Sent by Rewards - “the folly of rewarding A, while hoping for B” 3 major obstacles: 1. Individuals are unable to break out of old ways of thinking about reward and recognition practices. - management emphasizes quantifiable behaviours - management reluctant to change existing performance system - employees have entitlement mentality (don’t support changing reward system b/c are comfortable w/ current behaviours rewarded) 2. Organizations often don’t look at big picture of their performance system. - rewards allocated @ subunit levels → units compete against each other 3. Both management and shareholders often focus on short-term results. - don’t reward employees for longer-range planning
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P ART 2: S TRIVING FOR P ERFORMANCE CAN WE JUST ELIMINATE REWARDS? Creating Motivating Work Environment 1. Abolish Incentive Pay paying employees generously/fairly → they don’t feel exploited, take pay off their minds → so focus on goals of company (NOT paycheque) 2. Re-evaluate Evaluation make performance appraisals more like a two-way conversation to trade ideas & Q’s (feedback) - don’t continuously, NOT as competition - discussion should NOT be tied to compensation - provide feedback, NOT control them by offering/withholding rewards 3. Create Conditions for Authentic Motivation change the way workers are treated is more important than changing how they’re paid - help employees, NOT putting them under surveillance - listen to their concerns, think about problems from their viewpoint - provide feedback so they know what they’ve done right & what needs improvement 4. Encourage Collaboration ppl often perform better in well-functioning groups where they get feedback & learn from each other 5. Enhance Content ppl usually most motivated when jobs give them opportunity to learn new skills, provide variety in tasks, enable them to demonstrate competence - carefully match ppl to their jobs - give them opportunity to try new jobs -for jobs fundamentally unappealing: - acknowledge frankly that the task is not fun - give meaningful rationale for why it must be done - give much choice in how task is completed 6.
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  • Spring '08
  • fatin
  • JCM, public sector employees, …job

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