MGT 305 STUDY GUIDE CHAPTER 7 Motivation and Rewards page 150 -155 Intrinsic and Extrinsic Rewards

s page 151 Intrinsic rewards positively valued work outcomes that the individual receives directly as a result of task performance; they do not require the participation of another person or source. -intrinsic rewards were largely an issue in the concept of job enrichment -jobs high content jobs, in terms of the two-factor theory, or jobs high in core characteristics will create intrinsic rewards ( a feeling of achievement after completing a challenging task in a job designed with a good person-job fit is an ex.) Extrinsic rewards positively valued outcomes that are given to an individual or group by some other person or source in the work setting. -Ex: sincere praise for a job well done or symbolic tokens of achievement employee of the month awards. Anything dealing with pay and benefits which must be well managed in all aspects of the integrated model for their motivational value to prove positive in terms of performance impact. Pay for Performance page 151 - 154 Merit pay-Advantages of and problems with Merit Pay is a compensation system that bases an individuals salary or wage increase on a measure of the persons performance accomplishments during a specified time period. - A merit pay should create a belief that the way to achieve high pay is to perform at high levels. -should be based on realistic and accurate measures of individual work performance -should be able to discriminate between high and low performers in the amount of pay increases awarded. -merit aspects of pay should not be confused with across-the-board cost-ofliving adjustments Problems: -When they emphasize individual achievements and fail to recognize the high degree of task interdependence that is common in many organization strategies and environmental challenges if they are to be effective.

Pay for Skills page 154 Skilled based pay - is a system that rewards people for acquiring and developing job relevant skills in number and variety relevant to the organizations need - pay of mix and depth of skills people posses, not for particular job assignment they hold - One of the fastest-growing pay innovations in the United States Advantages -Employees cross-training- workers learn to do one anothers jobs -Fewer supervisors workers can provide more of these functions themselves -More individual control over compensation workers know in advance what is required to receive a pay raise Disadvantages -Possible higher pay and training cost that are not offset by greater productivity -Possible difficulty of deciding on appropriate monetary values for each skill Pay as Benefits page 154 -155 *Problems with incentive pay plans not tied to individual productivity *Reasons for and problems with flexible benefit plans Flexible Benefit Plans are pay systems that allow workers to select benefits according to their individual needs Performance Management page 155 157 Performance Management is the process of managing performance measurement and the associated human resource management decisions. Sequence of steps 1. Identify and set clear and measurable goals 2. Take performance measurements to monitor goal progress 3. Provide feedback and coaching on performance results 4. Use performance assessment for human resource management decisions such as promotions, transfers, terminations, pay raises, training, and career development Performance measurement criteria and standards page 156 - 157 Output measures access actual work results Activity measures of performance assess work efforts or inputs, as opposed to outputs -Such measures of work inputs or activities are typically based on observation -output measures are often obtained directly from production records -Activity measures can be used on their own or as supplements to output Measures

-Activity measures are alternatives when output measures are difficult or just not possible to use. -Activity measures can also be more useful for employee feedback and development than output measures alone. Performance Appraisal page 157 - 165 Performance appraisal methods page 158 Ranking a comparison technique of performance appraisal that involves the rank ordering of each individual from best to worst on each performance dimension. The simplest of the performance techniques

Forced distribution is a method of performance appraisal that uses a small number of performance categories, such as very good, good, adequate, poor, and very poor, and forces a certain proportion of people into each. -This method forces all categories to be used to avoid rating everyone as outstanding, poor, average, or the like. -This method may be a problem if most of the people are truly superior performers or if most of the people perform about the same. Laws protecting against job discrimination -job discrimination occur when someone is denied employment, a job assignment, or a career advancement opportunity because of reasons that are not related or job performance. -the enemy of good human resource management and everyone should be familiar with the laws Equal pay Act of 1963 requires equal pay for men and women performing equal work in an organization Title VII of the Civil Right Act of 1964 (as amended) prohibits discrimination in employment based on race, color, religion, sex, or national origin Age Discrimination in Employment Act of 1978 Prohibits discrimination against persons over the age of 40, and restricts mandatory retirement Pregnancy Discrimination Act of 1978 prohibits discrimination against a qualified individual on the basis of disability Family and Medical Leave Act of 1933- allows employees job guarantees for up to 12 weeks of unpaid leave of childbirth, abortion, or family illness.

Who Does the Performance Apprasial? Page 161 -162 Value of self and peer evaluations Self Evaluation- the individual rates his or her own performance. -very useful starting point for a performance review discussion with ones boss Peer Evaluation other members of the work team or person doing similar jobs rate the individual as a co-worker -helps incorporate broader perspective on an employees performance namely how well employees work fits with and supports that done by others 360 degree evaluation is a comprehensive approach that uses self-ratings, customer ratings, and ratings by others outside the work unit. Halo error results when one person rates another person on several different dimensions and gives similar rating for each one Leniency/strictness error Leniency error is the tendency to give relatively high ratings to virtually Everyone -likely a problem when peers assess one another, especially if they are asked to provide feedback to each other, because it is easier to discuss high ratings than low ones. Strictness error occurs when a rater tends to give everyone a low rating Recency error is a biased rating that develops by allowing the individuals most recent behavior to speak for his or her overall performance on a particular dimension Cultural bias errors managers must be aware of cultural backgrounds that they bring with them to the task of performance appraisal. Be careful not to criticize employees for cultural differences, such as time orientation or ideas of appropriate power distance, unless these differences adversely affect performance on a regular basis. Your instructors preferred performance appraisal technique 1. Be prepared (individual requirements) 2. Start positively 3. Get to the point ( Good or bad do it in a nice way) 4. End positively