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Motivating by Job Design: The Job Characteristics Model

job rotation

periodic shifting of an employee from one task to another

cross training

periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level

3 strengths of job rotation

reduces boredom, increases motivation, helps employees better understand how their work contributes to the organization

3 indirect benefits of job rotation

more skills gives more flexibility, adapting to changes, filing vacancies

3 drawback of job rotation

training costs increase, productivity is reduced, disruptions with new employees

what is a draw back of job rotation for supervisors

spend more time monitoring and answering questions

variable pay program

pay plan that bases a portion of an employees pay on some individual and/or organizational measure of performance

what are variable pay programmes used for

to compensate salespeople and executives

what percent of companies in the US have some form of variable pay plan

70

piece rate pay plan

workers are paid a fixed sum for each unit of production completed

merit based pay plan

pays for individual performance based on performance appraisal ratings

what is an advantage of the merit based pay plan

people thought of high performance can receive bigger raises

what can merit pay plans allow individuals

perceive a strong relationship between their performance and the rewards they receive

2 disadvantages of merit pay plans

only valid as the performance ratings and pay raised fluctuates with the economy

bonus

rewards employees for recent performance rather than historical performance

skill based pay plan has 2 aka

competency based or knowledge based pay

skill based pay

set pay level on the basis of how many skills employees have or how many jobs they can do

disadvantage of skill based pay

people can learn all skills needed for program

profit sharing plans

organization wide program that distributes compensation based on some established formula designed around a company's profitability

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