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17 Cards in this Set
- Front
- Back
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Folly of Rewarding A while hoping for B
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THIS IS IMPORTANT
Explanations why-- objective, overemphasis on visible behaviors, hypocrisy, morality/equity not efficiency What behaviors are being rewarded at your orgzn? Are you being rewarded for A, but you think your mgr is hoping for B? “Prospective rewards and punishments that make us care about our own objectives” |
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Reward and Motivation Theories
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REWARD CONTINGENCIES CAN SHAPE BEHAVIOR
Equity theory Reinforcement theory Expectancy theory |
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Equity Theory
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Equity Theory part 2
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Social comparison
External (e.g., perceived fairness compared to others’ pay level) Internal (e.g., level of pay compared to the work I do) Methods for “restoring equity…” Work less, take more, leave, etc. Examples A Rod My friend Christine |
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Equity
Inputs/Efforts Work Quality Reliability Acceptance of responsibility Job knowledge Initiative Education Skills Intelligence Attitude |
Outcomes
Job security Pay Competent supervisor Job perks Adequate working conditions Status Recognition Advancement |
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intrinsic Motivation
Extrinsic Motivation |
Intrinsic Motivation: I do it ‘cause I love it!
Motivation from the positively valued outcomes that you receive just from doing the work/activity itself. Extrinsic Motivation: Show me the money! Motivation from the positively valued outcomes that you receive from some other person or source in the setting. |
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Motivation
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refers to forces within an individual that account for the level, direction, and persistence of a person’s effort expended.
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Comp and Motivation Principles
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Pay structure is about the JOB, not the individual employee
Changing pay structure? (e.g., hierarchical titles to broad bands) Let employees participate Communicate changes and reasons for them Use rewards to motivate! More of the behaviors you want (i.e. good perf) Fewer of the behaviors you don’t want (i.e. stealing) Deming: unfair to evaluate individual perf, because it’s the system, not the person With only individual incentives, employees may do what they’ll get paid for, and nothing else |
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Costco:
Pays higher salaries and benefits; lower turnover Costs more now Sam’s Club (Walmart) Pays lower salaries and benefits; higher turnover Costs more later Consider employee loyalty and perception of employer brand in this tradeoff… Attraction Productivity Retention (good times and bad) |
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Debate over executive comp and bonuses (i.e. in light of TARP)
Delayering and banding Skill-based pay (capability, not actual) Comparable worth (next slide) FLSA (next slide) |
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THIS IS IMPORTANT!
SKILL BASED PAY: Pay based on skills, not job ; Skill-based pay typically pays individuals for the skills they are capable of using rather than for the job they are performing at a point in time. Pay for knowledge or multi-skilled pay (1) depth skills, horizontal or breadth skills, vertical skills (2) Advantages and disadvantages |
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Current Trends and Issues Broadbanding
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BROADBANDING: The practice of using fewer pay grades and having broader pay ranges than in traditional systems OR reducing the number of job levels within an organization
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Broadbanding benefits
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Benefits
Encourages horizontal movement of employees Is consistent with trend towards flatter organizations Creates a more flexible organization Encourages competency development Emphasizes career development |
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Pay Equity.
Public policy that advocates remedies for any under evaluation of women's jobs Based on the idea that individuals should obtain equal pay Not just for jobs of equal content Also for jobs of equal value or worth Courts have consistently ruled that using the going market rates of pay is an acceptable defense in comparable worth litigation suits NO comparable worth legal mandate in the U.S. private sector |
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-minimum wage
-child labor under 14 prohibited -requires overtime payments for non-exempt -exempts highly paid comptuer workers -req overtime 1.5 pay for over 40 hours -req compenstory time at overtime 1.5 pay rate |
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Fair Labor Standards Act (FSLA) of 1938 (2)
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CURRENT CALIFORNIA MIN WAGE IS $8; ONE OF APPROX. 18 STATES ABOVE THE FEDERAL MIN WAGE ($7.25)
Exempt Employees Employees to whom employers are not required to pay overtime under the Fair Labor Standards Act. Executives, administrators, professional (learned or creative) employees, computer employees, outside sales persons Non-exempt Employees Employees who must be paid overtime under the Fair Labor Standards Act.: Hourly, Salaried non-exempt |
