Method for applying the basic elements of reinforcement theory in an

Method for applying the basic elements of

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Method for applying the basic elements of reinforcement theory in an organizational setting Starts by specifying behaviors that are to be increased (such as producing more units) or decreased (such as coming to work late). 1. These target behaviors are then tied to specific forms or kinds of reinforcement. 2. Ex) Emery Air Freight. Management felt that the containers used to consolidate small shipments into fewer, larger shipments were not being packed efficiently. Through a system of self-monitored feedback and rewards, Emery increased container usage from 45% to 95% and saved over $3 million during the first three years of the program What are the various incentives systems? p.494 Reward System The formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded Merit Pay Pay awarded to employees of the basis of the relative value of their contributions to the organization Merit Pay Plan Compensation plan that formally bases at least come meaningful portion of compensation on merit Incentive Reward Systems Incentive reward systems are among the oldest forms of performance-based rewards (over 100 years) Piece-rate Inventive Plan The organization pays an employee a certain amount of money for every unit she or he produces Individual Incentive Plans Reward individual performance on a real-time basis Most likely to be used when performance can be measured in units of output of similar measures, not subjective assessment of performance by a superior Incentive pool: the amount of money shared Sales Commissions Perhaps the most common form of individual incentive Paid to people engaged in sales work Base Hourly Wage + additional income based on total volume of sales generated in a given period of time The portion of salary based on commission is simply not guaranteed and is paid only if sales reach some target level CHAPTER 16 Know types of power and what they do. p.515 Power – the ability to affect the behavior of others One can have power without actually using it Legitimate Power
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Power granted through the organizational hierarchy It is the power defined by the organization to be accorded to people occupying a particular position Reward Power The power to give or withhold rewards, such as… salary increases, bonuses, promotions, praise, recognition, and interesting job assignments The greater the number of rewards a manager controls and the more important the rewards are to subordinates, the greater the manager’s reward power Coercive Power The power to force compliance by means of psychological, emotional, or physical threat Referent Power Base on identification, imitation, loyalty, or charisma. Expert Power Derived from information or expertise The more important the information and the fewer the people who have access to it, the greater degree of expert power possessed by any one person In general, people who are both leader and managers tend to have a lot of expert power What are the various leadership behaviors/traits?
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