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In our busy multi- tasking world where work, family, and leisure are often intertwined, there's much to consider when trying to build high- performance work settings that also fit well with individual needs and goals.

accounts for the level and persistence of a person's effort expended at work.


Intrinsic rewards are valued outcomes directly through task performance.


rewards are valued outcomes given by some other person.


is that you earn more when you produce more and earn less when you produce less.

performance-contingent pay

pay links an individual's salary or wage increase directly to measures of performance accomplishment.

Merit pay

sharing rewards employees in some proportion to productivity gains.

Gain sharing

sharing rewards employees in some proportion to changes in organizational profits.

Profit sharing

options give the right to purchase shares at a fixed price in the future.


plans give stock to employees or allow them to purchase stock at special prices.

Employee stock ownership

pay rewards people for acquiring and developing job-relevant skills.

Skill-based pay

(1) identify and set clear and measurable performance goals,
(2) take performance measurements to monitor goal progress,
(3) provide feedback and coaching on performance results, and
(4) use performance assessment for human resource management decisions such as pay, promotions, transfers, terminations, training, and career development.

Four steps in the performance management process.

measures of performance assess achievements in terms of actual work results.

Output measures

Activity measures of performance assess inputs in terms of work efforts.

Activity measures

in performance appraisal orders each person from best to worst.


in performance appraisal compares each person with every other.

Paired comparison

distribution in performance appraisal forces a set percentage of persons into pre-determined rating categories.

Forced distribution

in performance appraisal assigns scores to specific performance dimensions.

Graphic rating scales

rating scale links performance ratings to specific and observable job- relevant behaviors.

The behaviorally anchored rating

record actual examples of positive and negative work behaviors and results.

Critical incident diaries

evaluation gathers evaluations from a jobholder's bosses, peers, and subordinates, as well as internal and external customers and self-ratings.

A 360 evaluation

means a performance measure gives consistent results.


means a performance measure addresses job- relevant dimensions.


is the process of specifying job tasks and work arrangements.

Job design

used systematic study of job components to develop practices to increase people's efficiency at work.

Taylor's scientific management

standardizes work to create clearly defined and highly specialized tasks.

Job simplification

increases task variety by combining into one job two or more tasks that were previously assigned to separate workers.

Job enlargement

increases task variety by periodically shifting workers among jobs involving different tasks.

Job rotation

builds high- content jobs that involve planning and evaluating duties normally done by supervisors.

Job enrichment

allows a full- time job to be completed in fewer than the standard five days.

A compressed work week

hours gives individuals some amount of choice in scheduling their daily work hours.

Flexible working hours

one full-time job is split between two or more persons who divide the work according to agreed- upon hours.

job sharing

is when employees agree to work fewer hours to avoid layoffs.

Work sharing

is work done at home or from a remote location using computers and advanced telecommunications.


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