Frederick Herzberg said the best way to organize the job so that doing it provides the challenge and recognition th
motivate someone is all need to help satisfy "higher-level" needs
Instead of relying on hygienes, said "job content," or motivator factors.
Herzberg, managers interested in
creating a self-motivated workforce
should emphasize
motivation that derives from the pleasure someone gets from doing the jo
intrinsic motivation
task.
Edward Deci's downside to relying too They may backfire
heavily on extrinsic rewards
expectancy that his or her effort will lead to performance; instrumentality,
Psychologist Victor Vroom's says a perceived connection between successful performance and actually obta
person's motivation to exert some level the rewards;
of effort depends on three things valence, which represents the perceived value the person attaches to the
reward.
motivation = expectancy x expectancy x instrumentality x valence (according to Vroom)
instrumentality x valence
give income over and above base salary to individual employees who mee
individual incentive plans
specific individual performance standard.
, HROB 2290 Chapter 12
Informal Incentive Plans accomplishments that are not readily measured by a standard
provide payments over and above base salary to all team members when t
Group incentive plans group or team collectively meets a specified standard for performance,
productivity, or other work-related behaviour.
organization-wide incentive plans provide monetary incentives to all employees of the organization.
motivate employees through praise and expressions of appreciation for th
Non monetary recognition programs
work.
any salary increase awarded to an employee based on his or her individua
merit pay (merit raise)
performance; continuing increment; white collar employees
Employee share purchase/stock purchase shares of the firm's stock for employees by using cash from empl
ownership plans (ESOPs) (and sometimes employer) contributions.
profit-sharing plan most or all employees receive a share of the company's profits.
oldest incentive plan and still the most commonly used; Earnings are tied
Piecework directly to the worker's production levels—the person is paid a piece rate f
each unit that he or she produces or processes.
the incentive is expressed in units of time instead of in monetary terms (as
differential piece-rate plan
with the standard piece-rate system).
There are five elements in an executive salary, benefits, short-term incentives, long-term incentives, and perquisite
and managerial compensation package: