Professional Documents
Culture Documents
Extrinsic rewards
Positively valued work outcomes that are given
to an individual or group by some other person
or source in the work setting.
6-5
Copyright © 2010 John Wiley & Sons, Inc.
Pay for performance – the concept that
monetary rewards are in whole, or in part,
linked to accomplishments (individual or
team).
Programs that provide incentives for employees to
increase their outputs.
In the 2008-09 economic recession, HRGURU finds
that employers are finding that ‘cash is still king’
when it comes to incentives.
6-7
Copyright © 2010 John Wiley & Sons, Inc.
Gain sharing
Gives workers the opportunity to earn more
by receiving shares of any productivity gains
that they help to create.
6-8
Copyright © 2010 John Wiley & Sons, Inc.
Profit-sharing plans
Reward employees based on overall
organizational profit.
Criticism: organizational profits are not always
a direct result of employees’ efforts,
6-9
Copyright © 2010 John Wiley & Sons, Inc.
Skill-based pay
Rewards people for acquiring and
developing job relevant skills.
6-10
Copyright © 2010 John Wiley & Sons, Inc.
Stock Options
Provide employees with an opportunity to
buy shares of stock at a future date at a
fixed price.
6-13
Copyright © 2010 John Wiley & Sons, Inc.
6-14
Copyright © 2010 John Wiley & Sons, Inc.
Performance management is:
Evaluative - lets people know where they
stand relative to objectives and standards;
6-15
Copyright © 2010 John Wiley & Sons, Inc.
Performance Measurement
Output measures
Activity measures
6-16
Copyright © 2010 John Wiley & Sons, Inc.
Performance appraisal
Formal procedure for
measuring and
documenting a person’s
work performance.
6-17
Copyright © 2010 John Wiley & Sons, Inc.
Comparative Methods of
Performance Appraisal
Paired Forced
Ranking
Comparisons Distribution
Raters rank
Raters compare Raters place a
order
each person specific
individuals from
with every other proportion of
best to worst on
person. employees into
overall
each
performance.
performance
6-19
Copyright © 2010 John Wiley & Sons, Inc.
6-20
Copyright © 2010 John Wiley & Sons, Inc.
6-21
Copyright © 2010 John Wiley & Sons, Inc.
360° Evaluation
Includes not only the evaluations of bosses,
peers, and subordinates, but also self-ratings,
customer ratings, and ratings by others with
whom the employee deals with outside the
immediate work unit.
6-22
Copyright © 2010 John Wiley & Sons, Inc.
Think of a performance management
discussion you have had with a
manager?
Did you look forward to the meeting?
6-24
Copyright © 2010 John Wiley & Sons, Inc.
Job design
Process through which managers plan and
specify job tasks and the work arrangements
that allow them to be accomplished.
Job rotation
Increases task variety by periodically
shifting workers among jobs involving
different tasks.
Disadvantages
For workers: increased fatigue and family adjustment
problems.
Advantages:
For workers: less burnout and higher energy level.
Advantages
For workers: flexibility, comforts of home, and choice of work
locations consistent with one’s lifestyle.
For organizations: costs savings, efficiency, and improved
employee satisfaction.
Disadvantages
For workers: isolation from co-workers, decreased identification
with work team, family distractions.
Disadvantages
For workers: added stress and potentially diminished
performance if holding two jobs, failure to qualify for benefits,
and lower pay rates than full-time counterparts.
› For organizations: when a person holds multiple part-time jobs,
the work burdens can be stressful; performance may suffer on
the job.