Professional Documents
Culture Documents
other systems since emphasis is on job behavior. Negative takes a long time to develop,
work best job behavior is observable, developing BARS for job that require creativity,
innovation, and problem solving is difficult.
Goal setting and MBO goals are the end states which reduce the intensity of needs and
motives. Goals setting systems 1. Increase motivation and job performance, 2. Reduce
stress of conflicting or confusing work expectations. 3. Improve the accuracy and validity
of performance evaluation work in the organization.
Rewards and reward systems rewards strongly influence employee effort and
performance. Reward system has heavy influence on perception.
Classifying rewards 2 categories 1. Extrinsic (given by the firm and do not occur as the
work unfolds further broken down as direct, indirect compensation, non financial
rewards), 2. Intrinsic (employee associate with the job itself)
Are Intrinsic more or less important that extrinsic? Intrinsic are more important in
influencing motivation and performance.
of labor costs exists in the firm. Company should have a history of labormanagement co-operation.
2. Profit sharing: - rational is that all employees contribute to the success and all
should share the profits.
Well designed team based reward system can strengthen competitive advantage in 6
ways. 1. Attraction and retention 2. Motivation and performance. 3. Skill development 4.
Organizational culture 5. Reinforcement and definition of structure 6. Cost
Rucker Plan shares base with the scalon plan. Incentive system that works in a selfdirected team environment. measurement of productivity is called value added which is
the difference between sales income from goods produced and the cost of material,
supplies, and outside service consumed in the production and delivery of the output.
Creates a line-of-sight which is a basic feature of any effective team bases system. Needs
to be established in a firm that values its work force and practices empowerment. If a
firm has downsized the following conditions must be met before a rucker or a gainsharing
plan is installed 1. No future wage freezes firm has returned to profitability 2.
Management team is stable. 3. Company is not being sold or spin-off. 4. Outsourcing of
non-essential functions completed. 5. Firm is using service based and market based
measures of customer satisfaction.
Summary Points