Applied Performance Practices Study Guide
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
>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