The primary objectives of the proposed MGOA pay for performance was to return MGOA back to financial stability by motivating the doctors to increase their clinical productivity, ensuring repeated performance, allocating all departmental cost to the doctors and eliminating the salary protection presently provided for low performance. The compensation plan attempted to reward the doctors for number of surgeries they could perform (clinical productivity) in any given period. The new MGOA pay for performance was tied to clinical activities and this, in a way, underestimated the relevance and contribution of teaching and medical research. While Rubash's argument that "financial security will allow MGOA to achieve its mission" was true, he failed to realize the negative effect of possible misalignment of his proposed pay strategy with the organization mission on the motivation of the physicians. Without a strong medical research activities, MGOA would lose its medical research reputation and this would had a long term effect on the output and number of patients, which could in turn led to decline in revenue. Expectancy Theory:
Rubash goal was to drive productivity in order to increase MGOA revenue, and he figured out he could achieved this by motivating the doctors to increase their clinical productivity and making each one of them take full responsibility for his cost. However, the Expectancy theory reveals that employee motivation is an outcome of how much an individual wants a reward (valence), the assessment that the likelihood that the effort will lead to expected performance (expectancy) and the belief that the performance will lead to reward (instrumentality). This theory concentrates on the following relationship as it applies to MGOA pay for performance strengths and weaknesses: Effort-performance relationship (Expectancy):
This relationship examines the likelihood that the MGOA doctors' effort be recognized in their performance appraisal. Rubash pay...
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