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what are the meaning of financial rewards?
- symbol of success
- reinforcer and motivator
- reflection of performance
- can reduce anxiety
- culture values influence the meaning and value of money
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types of rewards in the workplace
- membership and seniority
- job status
- competencies
- performance based
- chart 6.1
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what is membership/seniority based rewards? what are its advantages and disadvantages?
- fixed wages, seniority increases
- most common type of rewards used
- advantages: guaranteed wages may attract applicants, reduce turnover
- disadvantages: doesn't motivate job performance, discourage poor performers from seeking work better suited to their abilities; may act as golden handcuffs
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job status based rewards
- includes job evaluation and status perks
- advt: job evaluation tries to maintain pay equity (higher payment for higher office), motivates competition for promotions
- disadvt: employees exaggerate duties, hoard resources, reinforces status, hierarchy, inconsistent with workplace flexibility
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competency based rewards
- pay increase with competency acquired and demonstrated
- skilled based pay
- advt: more flexible work force (multiskilled workforce), better quality, consistent with employability
- disadv: potentially subjective, higher training costs
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performance based rewards
- profit sharing: (ind)portion of profits (vested tool)
- shared ownership: (indiv) receive shares of company by buying shares at a lower cost (vested
- stock options: (indiv) sell market value, keep gain (vested)
- gain sharing: (team) bonus paid to team based on cost saving methods of practice
- balanced scorecard: (team and indiv) rewards for improved results
- awards/bonuses: indiv and team
- commissions: (indiv) based on volume
- piece rate: (indiv) pay for number of units produced. Higher pay more prodced
- 401Ks: retirement plan you invest in
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evaluation of organizational rewards
- positive effects:
- creates "ownership culture" (employees feel aligned with organization's success
- adjusts pay with firm's prosperity
- scorecards align rewards with several specific organizational outcomes
- concerns with performance pay:
- weak connection between individual effort and rewards
- rewards amounts affected by external forces
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how to improve reward effectivness
- link rewards to performance
- ensure rewards are relevant
- team rewards for interdependent jobs
- ensure rewards are valued
- watch out for unintended consequences
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job design
- assigning tasks to a job, including the interdependency of those tasks with other jobs
- organization's goal: to create jobs that can be performed efficiently yet employees are motivated and engaged
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job specialization
- dividing work into separate jobs that include a subset of the tasks required to complete the product or service
- advt: less time changing activities, lower training costs, job mastered quickly, better person matching
- disadvt: job boredom, discontentment pay, higher costs, lower quality, lower motivation
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describe the job characteristics model
- core job characteristics leads to critical psychological states
- skill variety, task identity and task significance leads to meaningfulness
- autonomy leads to responsibility
- feedback from job leads to knowledge of results
- all lead to work motivation, growth satisfaction, general satisfaction, work effectiveness
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what are the advantages of job rotation?
- minimize repetitive strain injury
- multiskills the workforce
- potentiallly reduce job boredom
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what are the job practices that motivate?
- job rotation
- job enlargement
- job enrichment
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job enrichment
- given more responsibility for scheduliing, coordinating, and planning one's own work
- -clustered tasks into natural groups (stitching interdependent tasks into one job)
- -est. client relationships (directly responsible for specific clients, communicate directly with those clients)
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what are the dimensions of empowerment
- self determination: employees feel they have freedom and discretion
- meaning: employees believe their work is important
- competence: employees have feelings of self-efficacy (beliefs that they can successfully complete a task)
- impact: employees feel their actions influence success
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how to support employee empowerment to ensure success?
- individual factors: possess required competencies, able to perform the work
- job design factos: autonomy, task identity, task significance, job feedback
- organizational factors: resources, learning orientation, trust
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