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ayments for meeting
or exceeding objectives.
2 here are a variety of pay systems that include
additional incentives for productivity of
employees.
Included are:
iecework system.
roduction bonus system
Commissions
ayments for suggestions
Group incentive plans
Gainsharing
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ayment according
to the amount produced.
2 his system pays people according to
how much they produce.
iecework pay systems are usually
based on an individual¶s performance, but
may be based on the department¶s overall
performance.
It is often used to pay independent contractors, for
example, farm workers and independent writers.
2 Employees in a production department may
receive a basic wage or salary plus a bonus
that consists of a payment for units produced.
his method has been used extensively in
manufacturing.
It is less common today.
inconsistent with producing quality because it
emphasizes quantity
often includes a quality factor where a bonus is paid
on good units produced
2 In a sales department, employees may
earn commissions.
the payment linked to the amount sales
completed
Most organizations that pay a commission also pay
a basic wage or salary.
2 In companies with suggestion programs,
employees are paid for suggestions for
improvements.
ypically, for the employee to receive
payment, the suggestion must be adopted or
save some minimum amount of money.
u common practice is for payment to be
linked to the saving realized.
2 he group incentive plan pays a bonus
when the group as a whole exceeds
some objective.
For example, a company may pay a bonus
when a department, sales region, or other
work unit meets sales goals.
he bonus may also depend on meeting
organizational goals either by itself or in
combination with work unit goals.
2 un extension of the group incentive plan.
he company encourages employees to
participate in making suggestions and
decisions on how to improve the way the
company or work group operates.
us performance improves, employees
receive a share of the greater earnings.
Seeks to motivate through financial rewards and
psychological rewards.
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2 In our society money is considered a
private matter, and most people don¶t
talk about what they earn.
2 Does secrecy help or hurt?
o motivate employees, the organization must
let them know what they hope to earn.
rganizations often publish pay ranges.
2 Making work interesting increases the
likelihood of employees giving work their
full attention and enthusiasm.
2 Some ways to make work more
interesting are
job rotation,
job enlargement, and
job enrichment
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2 [
involves moving employees from
job to job so as to give them more variety.
Job rotation requires that employees have relatively
broad skills.
his means the supervisor and organization must
provide for cross-training or training in the skills required
to perform more than one job.
he opportunity to learn new skills can in itself motivate
employees.
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2 [
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means that duties are
added to a job.
For example, in a factory a machine operator
may be given the added task of setting up the
machine.
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2 [
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is the incorporation of
motivating factors into a job.
he kinds of factors that are considered to
enrich a job are the ones Herzberg called
motivators.
Specific factors include
giving employees more responsibility to make
decisions,
more recognition for good performance, and
making jobs more challenging.
2 When jobs are modified to make them more
interesting, it is important for the organization
and supervisor to remember that not all
employees are motivated by the same things
or at the same time.
Some employees will see job modification as a way to
get them to do more for the same amount of money.
his may also be true of job rotation and job
enlargement.
2 unother way to make work meaningful is
to give employees some contact with the
people who receive and use their
products or services.
Sometimes the supervisor can arrange to
have workers visit the users of the products or
services.
2 For example, when a user of
manufactured products is having trouble,
a visit from employees may serve two
purposes.
First, employees may be able to help the user
of the product.
Second, employees will learn and understand
more about the product from the users¶ point
of view.
2 à
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the direct relationship
between expectations and performance.
his is similar to the well-used phrase of rself-fulfilling
prophesy.´
When a supervisor relates the message that he or she
does not expect employees to be able to accomplish a
task, it is likely they won¶t.
However, if the supervisor conveys high expectations,
employees are likely to succeed.
2 roviding rewards that are valued is very
important×
2 he content theories of motivation
indicate that a variety of rewards may
motivate and that not all employees will
value the same rewards at the same
time.
2 he supervisor¶s challenge is to determine
what rewards will work for particular
employees at particular times.
ulthough supervisors may not be able to control some
rewards such as wages or benefits,
they have great freedom to administer rewards such as
praise and recognition.
Supervisors may have discretion in job assignments and
additional training opportunities.
2 Whatever rewards the supervisor uses,
they should be recognized by the
employee as linked to performance.
If there is a connection, employees should be
aware of it and understand it.
Linking rewards to the achievement of
realistic objectives is a way to help employees
believe they can attain desired rewards.
2 If a supervisor is to succeed at motivating, he
or she has to remember that employees will
respond in varying ways.
2 us much as possible the supervisor should
respond to individual differences.
Communication with employees is a necessary
ingredient in learning about employees.
Encouraging employees to participate will help the
supervisor learn more about the employee.
eople also want to know how they are doing.
2 Feedback will provide the employee with
information to help them move closer to
accomplishing personal, department, and
company goals.
2 his will also provide the supervisor with an
opportunity to praise an employee.
2 he attention of the supervisor may also be
motivating to the employee whether the
feedback is positive or a corrective action.
2 Commissions: ayment linked to the
amount of sales completed.
2 Commissions may be the only source of
pay, such as for sales personnel who
sell real estate, or it may be a portion of
an employee¶s pay, such as in a
department store where a small
commission is added to wages.