Reward Systems

salary technical supervision company policies interpersonal relations working conditions

Hygiene factors according to Herzberg's theory: (dont motivate employees, but if they are missing or inadequate they can cause employee dissatisfaction)

Merit Pay:

increase in salary at the end of the year for high performance

Bonuses:

motivate employees to make high achievement to earn extra money at the end of the year

achievement recognition responsibility advancement work itself

Motivational factors according to Herzberg's theory:

1. determine their needs 2. determine whether to use intrinsic or extrinsic motivators 3. create the rewards system 4. implement the rewards system 5. evaluate the results

What are the steps to creating an employee rewards plan?

1. Employees possess greater amounts of innovation, creativity, and are more customer centered 2. employees create more production helping customer appreciation and leading to raised employee retention rates

Why is employee motivation important to an organization?

Piecework:

employee guaranteed a minimum hourly rate for meeting a predetermined standard output, with each unit of output above this standard, the employee will receive more income

Team Compensation:

employees are given rewards for a successful team that works to accomplish goals

Stock Compensation:

employees are given stocks in the company, allowing them to feel that they have a stake in the business

Competency-Based Compensation:

encourages employees to attain new skills through education, are rewarded with a higher salary

Individual Incentive Plans:

motivation system based off performance of the employee including commissions given to sales employees