Applied Performance Practices Study Guide

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APPLIED PERFORMANCE PRACTICES
* FINANCIAL REWARD PRACTICES
>Financial Rewards- the most fundamental applied performance practice in organizational settings. >Pay has multiple meanings
* Symbol of success
* Reinforcer and motivator
* Reflection of performance
* Can reduce anxiety

>Meaning of money varies
* Higher value to men than women
* Cultural values influence the meaning and value of money

TYPES OF REWARDS IN THE WORKPLACE
* Membership and Seniority
* Job Status
* Competencies
* Performance

1.) Membership- and Seniority- Based Rewards
* Fixed wages, seniority increases.
* (Sometimes called “pay for pulse”) represent the largest part of most paychecks. Sample Rewards:
* Fixed pay
* Most employee benefits
* Paid time off
Advantages:
* May attract applicants
* Minimizes stress of insecurity
* Reduces turnover

Disadvantages:
* Doesn’t directly motivate performance
* May discourages poor performers from leaving
* Golden handcuffs may undermine performance

2.) Job Status-Based Rewards
* Includes job evaluation and status perks.
* Job evaluation –systematically evaluating the worth of jobs within an organization by measuring their required skill, effort, responsibility, and working conditions. * Maintain feelings of equity (people in higher-valued jobs should get higher pay) and motivate employees to compete for promotion. Sample rewards:

* Promotion-based pay increase
* Status-based benefits
Advantages:
* Tries to maintain pay equity
* Minimizes pay discrimination
* Motivates employees to compete for promotion
Disadvantages:
* Encourages hierarchy which may increase costs and reduce responsiveness * Reinforces status differences
* Motivates job competition and exaggerated job worth.
3.) Competencies-Based Rewards
* Pay increases with competencies acquired and demonstrated * Employees now...
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