MAN 4330 KANG EXAM 1 Questions and Graded Answer
Advantages of the Efficient Approach - Able to carry out tasks efficiently
Reduces amount of time that employees might spend thinking
Minimal errors
Lower the number and level of competencies required of new hires
Opens up a wider pool of job candidates, and jobs can be staffed more quickly
Employee training can be more focused
Labor costs are low
Compensation - monetary and non-monetary rewards employees receive in exchange for
work they do for organization
Delayered Structure - Having few levels of pay
Disadvantages of Efficiency Approach - Lack complexity and variety and can lead to
boredom, fatigue, and diminished job satisfaction
High turnover
Efficiency Approach - Focuses on maximizing employee productivity by specializing and
simplifying jobs so that employees make fewer mistakes and maintain a high level of
performance according to preset job procedures
Egalitarian Structures - Levels: Fewer
Differentials: Small
Work Organization: Teams
Fairness: Equal Treatment
Behaviors: Cooperation
, Employee Ability - The sorting effect
Employee Motivation - The incentive effect
Equity Theory - Employees will be motivated to work harder when they believe that their
compensation is at the right level for the work they are doing.
Lack of fairness or justice --> demotivation
Equity Theory - When employees perceive an inequity, they can be predicted to make on
of four choices:
1. Reduce effort
2. Ask for raise
3. Rationalize the inequity
a. Distort perceptions of self/others
b. choose a different referent
4. Look for another job
Equity Theory Formula - On "Person" Outcomes (rewards)
Inputs (contributions)
Hierarchical Structure - Levels: Many
Differentials: Large
Work Organization: Individual performers
Fairness: Performance
Behaviors: Opportunities for promotion
Incentive Effect - The degree to which pay influences individual and aggregate motivation
Advantages of the Efficient Approach - Able to carry out tasks efficiently
Reduces amount of time that employees might spend thinking
Minimal errors
Lower the number and level of competencies required of new hires
Opens up a wider pool of job candidates, and jobs can be staffed more quickly
Employee training can be more focused
Labor costs are low
Compensation - monetary and non-monetary rewards employees receive in exchange for
work they do for organization
Delayered Structure - Having few levels of pay
Disadvantages of Efficiency Approach - Lack complexity and variety and can lead to
boredom, fatigue, and diminished job satisfaction
High turnover
Efficiency Approach - Focuses on maximizing employee productivity by specializing and
simplifying jobs so that employees make fewer mistakes and maintain a high level of
performance according to preset job procedures
Egalitarian Structures - Levels: Fewer
Differentials: Small
Work Organization: Teams
Fairness: Equal Treatment
Behaviors: Cooperation
, Employee Ability - The sorting effect
Employee Motivation - The incentive effect
Equity Theory - Employees will be motivated to work harder when they believe that their
compensation is at the right level for the work they are doing.
Lack of fairness or justice --> demotivation
Equity Theory - When employees perceive an inequity, they can be predicted to make on
of four choices:
1. Reduce effort
2. Ask for raise
3. Rationalize the inequity
a. Distort perceptions of self/others
b. choose a different referent
4. Look for another job
Equity Theory Formula - On "Person" Outcomes (rewards)
Inputs (contributions)
Hierarchical Structure - Levels: Many
Differentials: Large
Work Organization: Individual performers
Fairness: Performance
Behaviors: Opportunities for promotion
Incentive Effect - The degree to which pay influences individual and aggregate motivation
