However, money is much more than an object of compensation for an employees
contribution to organizational objectives.
Money relates to our needs, our emotions, and our self-concept. It is a:
symbol of success, achievement, and status
Job Status-Based Rewards
Includes job evaluation and status perks
o Job evaluation tries to maintain pay equity
o Motivates competition for promotions
o Employees exaggerate duties, hoard resources
o Reinforces status, h
Two of the main ways to increase job enrichment:
1. Clustering tasks into natural groups (natural grouping approach)
Stitching highly interdependent tasks into one job; by forming natural work units,
jobholders have stronger feelings of responsibil
Experienced responsibility - feel personally accountable for the outcomes of own
effort (affected by autonomy employees must be assigned control of their work
environment to feel responsible for their successes and failures).
Knowledge of results -
Job specialization can undermine the motivational potential of jobs.
As work becomes specialized, it tends to become easier to perform but less interesting.
As job become more complex, work motivation increases but the ability to master the
Money and financial rewards are not the only things that motivate people to join an
organization and perform effectively. Companies can also motivate employees by
designing interesting and challenging jobs.
Some jobs have very few tasks and usually
Employee stock ownership plans (ESOPS)
Employees own company stock - some employees own company
These plans encourage employees to buy company stock, usually
at a discounted price or through a no-interest loan
The financial i
Job status-based pay has not been completely abandoned, because the broad pay
groups reflect job status (e.g., the technical staff pay range is lower than the senior
executive pay range). Within those pay groups, however, employees are rewarded for
Almost every organization rewards employees to some extent on the basis of the status
or worth of the jobs they occupy.
Job evaluation: systematically rating the worth of jobs within an organization by
measuring their required skill, effort, respons
Dividing work into separate jobs that include a subset of the tasks required to
complete the product or service
o Frederick Winslow Taylor
o Advocated job specialization
o Taylor also emphasized person-job ma