19 terms

Chapter 8

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
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
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