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symbolic value

Subjective and personal meaning or worth of a reward

task interdependence and the three types

Task interdependence leads to an increase in communications requirements. The three major forms of interdependence, as shown here, are pooled, sequential, and reciprocal. The higher the level of interdependence the greater the requirement for effective communication.

job sharing

Two or more part-time employees sharing one full-time job -may be desirable for people who only want to work part time or when job markets are tight.

A flexible reward system

allows employees, within specified ranges, to choose the combination of benefits that best suits their needs.

Risk propensity is

also an important behavioral perspective on decision making

Task identity:

the degree to which the job requires completion of a "whole" and an identifiable piece of work; that is, the extent to which a job has a beginning and an end with a tangible outcome

Organizations may benefit from telecommuting for 2 reasons

(1) they can reduce absenteeism and turnover since employees will need to take less "formal" time off (2) they can save on facilities such as parking spaces because fewer people will be at work on any given day.

Incentive system

Incentive systems are plans in which employees can earn additional compensation in return for certain types of performance. Examples include profit-sharing plans, stock option plans, and bonus systems. Getting an annual raise based on your job performance is a merit pay plan.

Incentive systems

Plans in which employees can earn additional compensation in return for certain types of performance

non-verbal communication

The way we communicate—our nonverbal behaviors and vocal tone—is more important to a message's meaning than the words we actually say. Nonverbal communications are not spoken or written. Some of the strongest and most meaningful communications are nonverbal—a fire alarm, a smile, an emoticon, a red traffic light, or a look of anger on someone's face. Controlling your nonverbal signals and vocal tone ensures that you reinforce your intended message

why job rotation and enlargement failed

They failed partly because they were intuitive, narrow approaches rather than fully developed, theory-driven methods. Consequently, a new, more complex approach to task design—job enrichment—was developed

Alternative dispute resolution

can be used when the negotiating parties are unable to negotiate a solution by themselves

Social learning theory

describes the role and importance of goal setting in organizations. This perspective suggests that feelings of pride or shame about performance are a function of the extent to which people achieve their goals.

The path-goal theory suggests that

directive, supportive, participative, or achievement-oriented leader behavior may be appropriate, depending on the personal characteristics of subordinates and the characteristics of the environment

Social networks help to

establish communication patterns in organizations.

Comparative methods

evaluate two or more employees by comparing them with each other on various performance dimensions. - popular comparative methods are ranking, forced distribution, paired comparisons, and the use of multiple raters in making comparisons -may require sophisticated development procedures and a computerized analytical system to extract usable information.

effective managers understand

how the perception of a given message changes depending on the viewpoint of those communicating. Because business is not conducted the same from culture to culture, business relations are enhanced when employees are trained to be aware of areas likely to create communication difficulties and conflict across cultures.*

poorly designed jobs can

impair motivation, performance, and job satisfaction

goal setting is clearly an important way for managers to convert motivation

into actual improved performance.

To reduce discrimination, the courts and Equal Employment Opportunity guidelines have mandated that performance measurements be based on

job-related criteria The courts and Equal Employment Opportunity guidelines have mandated that performance measurements be based on job-related criteria rather than on some other factor such as friendship, age, sex, religion, or national origin.

The Michigan and Ohio State studies each identified two kinds of leader behavior

one focusing on job factors and the other on people factors. The Michigan studies viewed these behaviors as points on a single continuum, whereas the Ohio State studies suggested that they were separate dimensions. The Leadership Grid further refined these concepts.

Job enlargement,

or horizontal job loading, is expanding a worker's job to include tasks previously performed by other workers. aka involves giving workers more tasks to perform Maytag was one of the first companies to use job enlargement

high context cultures

rely on nonverbal or situational cues or things other than words to convey meaning. For example, the Japanese tendency to say "I'll ask my boss" or "that could be difficult" when they mean "the answer is no" reflects their high-context culture. managers tend to make suggestions rather than give direct instructions.

Reciprocal interdependence

requires constant communication and mutual adjustment for task completion, such as a cross-functional research and development team, or an event-planning team, and creates the highest potential for conflict. this is the most interdependent way of doing work and has the highest communication needs.

The organization needs to decide what types of behaviors or performance it wants to encourage with a reward system because what is ___________ tends to recur.

rewarded

Goal difficulty

the extent to which a goal is challenging and requires effort. If people work to achieve goals, it is reasonable to assume that they will work harder to achieve more difficult goals. But a goal must not be so difficult that it is unattainable.

Group cohesiveness is

the extent to which a group is committed to remaining together; it results from forces acting on the members to remain in the group.

Communication

the process of transmitting information from one person to another to create a shared understanding and feeling.

two-factor theory of motivation

(theory contends that employees can be motivated by positive job-related experiences such as feelings of achievement, responsibility, and recognition)

why pay is important to organizations

- an effectively planned and managed pay system can improve motivation and performance. -employee compensation is a major cost of doing business—well over 50 percent in many organizations—so a poorly designed system can be an expensive proposition. -since pay is considered a major source of employee dissatisfaction, a poorly designed system can result in problems in other areas such as turnover and low morale.

Practical ways to empower others include

-Articulating a clear vision and goals -Fostering personal mastery experiences to enhance self-efficacy and build skills -Modeling successful behaviors -Sending positive messages and arousing positive emotions in employees -Connecting employees with the outcomes of their work and giving them feedback -Building employee confidence by showing competence, honesty, and fairness

The research of Edwin Locke and his associates

-clearly established the utility of goal-setting theory in a motivational context -Locke's goal-setting theory of motivation assumes that behavior is a result of conscious goals and intentions. -the challenge is to develop a thorough understanding of the processes by which people set their goals and then work to reach them.

extended work schedule

-requires relatively long periods of work followed by relatively long periods of paid time off. These schedules are most often used when the cost of transitioning from one worker to another is high and there are efficiencies associated with having a small workforce.

When a new group or team is formed it typically goes through several stages of development. Traditional research on small groups per se (as opposed to teams) has focused on a four-stage development process:

1) mutual acceptance, (2) communication and decision making, (3) motivation and productivity, and (4) control and organization

empowerment only enhances organizational effectiveness ______________________ conditions exist

1) the organization must be sincere in its efforts to spread power and autonomy to lower levels of the organization. Token efforts to promote participation in just a few areas are unlikely to succeed. 2) the organization must be committed to maintaining participation and empowerment. Workers will be resentful if they are given more control only to later have it reduced or taken away altogether. 3) the organization must be systematic and patient in its efforts to empower workers. Turning over too much control too quickly can spell disaster. 4) the organization must be prepared to increase its commitment to training.

a goal is a meaningful objective. Goals are used for two purposes in most organizations.

1) they provide a useful framework for managing motivation. 2) goals are an effective control device (control meaning the monitoring by management of how well the organization is performing)

management by objectives, or MBO

A collaborative goal-setting process through which organizational goals cascade down throughout the organization First, the overall goals are communicated to everyone. Then each manager meets with each subordinate.

Organizational barriers

A firm's hierarchical structure and culture can influence who is allowed to communicate what to whom, and may limit how messages can be sent. Organizational barriers to communication come from the hierarchical structure and culture of the organization. Numerous hierarchical levels or department specializations can make communication across levels and departments difficult. Different hierarchical levels typically focus on different types of information, which can interfere with communication.

Flexible reward system

A flexible reward system allows employees to choose the combination of benefits that best suits their needs (usually within a fixed range or budget). A younger worker might prefer to have daycare assistance, a midcareer worker might prefer a more generous healthcare plan, and older workers might want greater contributions to their retirement plans.

Participative pay system

A participative pay system may involve the employee in the system's design, administration, or both.

360-degree feedback

A performance appraisal method in which employees receive performance feedback from those on all sides of them in the organization also called multi-source feedback

balanced scorecard, or BSC

A relatively structured performance management technique that identifies financial and nonfinancial performance measures and organizes them into a single model

flexible time vs core time

All employees must be at their workstations during core time, but they can choose their own schedules during flexible time. Thus, one employee may choose to start work early in the morning and finish by mid-afternoon, another to start in the late morning and work until late afternoon, and a third to start early in the morning, take a long lunch break, and work until late afternoon.

reward system

All organizational components, including people, processes, rules and procedures, and decision-making activities, involved in allocating compensation and benefits to employees in exchange for their contributions to the organization

awards

Awards and prizes are frequently used to reward outstanding performance. This manager is getting an award for achieving the most revenue growth in the company.

Base pay

Base pay is the amount of pay received as a reward for work.

job specialization

Breaking jobs down into small component tasks and standardizing them across all workers doing those jobs *Frederick Taylor: argued that jobs should be scientifically studied, broken down into small component tasks, and then standardized across all workers doing those jobs

Indirect compensation

Employee benefits provided as a form of compensation are called indirect compensation.

Participation

Entails giving employees a voice in making decisions about their own work occurs when employees have a voice in decisions about their own work.

Job enrichment

Entails giving workers more tasks to perform and more control over how to perform them. based on the two-factor theory of motivation job enrichment relies on vertical job loading—not only adding more tasks to a job, as in horizontal loading, but also giving the employee more control over those tasks used by AT&T, Texas Instruments, IBM, and General Foods Some companies have found job enrichment to be cost ineffective, and others believe that it simply did not produce the expected results

flextime

Give employees more personal control over the hours they work each day gives employees less say about what days they work but more personal control over the times when they work on those days

flexible work schedules

Give employees more personal control over the hours they work each day sometimes called flextime

job design

How organizations define and structure jobs an important method managers can use to enhance employee performance

Because __________ is usually the most aware of an employee's performance and also controls organizational rewards and punishments, he or she is typically the person who provides performance feedback.

In most appraisal systems, the employee's primary evaluator is THE SUPERVISOR because this person is presumably in the best position to be aware of the employee's day-to-day performance. Further, it is the supervisor who has traditionally provided performance feedback to employees and determined performance-based rewards and sanctions.

Filtering

Information is intentionally withheld, ignored, or distorted to influence the message that is ultimately received. occurs when people receive less than the full amount of information due to the withholding, ignoring, or distorting of information. Filtering can happen when a sender manipulates information so that the receiver is more likely to perceive it in a favorable way.

Information overload

It is possible to have so much information that it is impossible to process all of it.

Job rotation

Job rotation involves systematically shifting workers from one job to another. While job rotation was intended to sustain motivation and interest, it really does little to address the problems of monotony and boredom created by job specialization. When job rotation is introduced, the tasks themselves stay the same. However, the workers who perform them are systematically rotated across the various tasks. issues: - if a rotation cycle takes workers through the same old jobs, the workers simply experience several routine and boring jobs instead of just one. - Rotation may also decrease efficiency.

Misperception

Messages are not always decoded by the receiver in the way the sender intended. occurs when a message is not decoded by the receiver in the way the sender intended. A misperception can occur because the sender's body language is inconsistent with the sender's words, and the receiver incorrectly interprets the body language to be the true message. A misperception can also be due to the receiver selectively perceiving favorable parts of the sender's message, distorting the message's meaning. Poor listening skills can also result in misperception.

The leadership continuum first proposed by Tannenbaum and Schmidt was the catalyst for these theories

Newer situational theories of leadership attempt to identify appropriate leadership styles on the basis of the situation

surface value

Objective meaning or worth of a reward

The Expatriate Compensation Balance Sheet

Organizations that ask employees to accept assignments in foreign locations usually must adjust their compensation levels to account for differences in cost of living and similar factors. Amoco uses the system shown here. The employee's domestic base salary is first broken down into the three categories shown on the left. Then adjustments are made by adding compensation to the categories on the right until an appropriate, equitable level of compensation is achieved.

Issues to Consider in Developing Reward Systems

PAY SECRECY Open, closed, partial Link with performance appraisal Equity perceptions EMPLOYEE PARTICIPATION By human resource department By joint employee/management committee FLEXIBLE SYSTEM Cafeteria-style benefits Annual lump sum or monthly bonus Salary versus benefits ABILITY TO PAY Organization's financial performance Expected future earnings ECONOMIC AND LABOR Inflation rate MARKET FACTORS Industry pay standards Unemployment rate IMPACT ON ORGANIZATIONAL PERFORMANCE Increase in costs Impact on performance EXPATRIATE COMPENSATION Cost-of-living differentials Managing related equity issue

Typical benefits provided by businesses include the following:

Payment for time not worked, both on and off the job. On-the-job free time includes lunch, rest, coffee breaks, and wash-up or get-ready time. Off-the-job time not worked includes vacation, sick leave, holidays, and personal days. Social Security contributions. The employer contributes half the money paid into the system established under the Federal Insurance Contributions Act (FICA). The employee pays the other half. Unemployment compensation. People who have lost their jobs or are temporarily laid off get a percentage of their wages from an insurance-like program. Disability and workers' compensation benefits. Employers contribute funds to help workers who cannot work due to occupational injury or ailment. Life and health insurance programs. Most organizations offer insurance at a cost far below what individuals would pay to buy insurance on their own. Pension or retirement plans. Most organizations offer plans to provide supplementary income to employees after they retire.

Hackman and Oldham suggest that the three critical psychological states are triggered by the following five characteristics of the job, or core job dimensions:

People with strong needs for personal growth and development will be especially motivated by the five core job characteristics. On the other hand, people with weaker needs for personal growth and development are less likely to be motivated by the core job character Skill variety: Task identity: Task significance: Autonomy: Feedback:

purpose of performance appraisal

Performance measurement plays a variety of roles inmost organizations. This figure illustrates that these roles can help managers judge an employee's past performance and help managers and employees improve future performance. can indicate that an employee is ready for promotion or that he or she needs additional training to gain experience in another area of company operations. It may also show that a person does not have the skills for a certain job and that another person should be recruited to fill that particular role. Other purposes of performance appraisal can be grouped into two broad categories, judgment and development

Perquisites

Perquisites are special privileges awarded to selected members of an organization, usually top managers. They can include a car and driver, first-class travel, and a golf club membership. In the United States, the Internal Revenue Service has ruled that some perquisites or "perks" constitute a form of income and thus can be taxed.

programmed decisions vs nonprogrammed

Programmed decisions are well-structured, recurring decisions made according to set decision rules. Nonprogrammed decisions involve nonroutine, poorly structured situations with unclear sources of information; these decisions cannot be made according to existing decision rules.

the communication process

The communication process involves a number of steps. The process begins with encoding a message, then transmitting that message through a channel, and it then being decoded by the receiver. Feedback helps improve communication effectiveness, but, on the other hand, noise can block or distort it.

Goal acceptance

The extent to which a person accepts a goal as his or her own

Goal commitment

The extent to which a person is personally interested in reaching a goal

job characteristics theory

The job characteristics theory is an important contemporary model of how to design jobs. By using five core job characteristics, managers can enhance three critical psychological states. These states, in turn, can improve a variety of personal and work outcomes. Individual differences also affect how the job characteristics affect people. -Uses five motivational properties of tasks and three critical psychological to improve outcomes

Performance appraisal

The process of assessing and evaluating an employee's work behaviors by measurement (1) evaluates an employee's work behaviors by measurement and comparison with previously established standards (2) documents the results (3) communicates the results to the employee.

Empowerment

The process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility and authority empowerment is a somewhat broader concept that promotes participation in a wide variety of areas, including but not limited to work itself, work context, and work environment

compensation package

The total array of money (wages, salary, commissions), incentives, benefits, perquisites, and awards provided by the organization to an individual

Selective perception

We selectively see and hear based on our expectations and beliefs. occurs when we selectively interpret what we see based on our interests, expectations, experience, and attitudes rather than on how things really are

telecommuting

Work arrangement in which employees spend part of their time working off-site employees can maintain close contact with their organization and do as much work at home as they could in their offices. The increased power and sophistication of modern communication technology—laptops and smartphones, among others—is making telecommuting easier and easier

compressed work schedule

Work schedule in which employees work a full forty-hour week in fewer than the traditional five days -if everyone in the organization is off at the same time, the firm may have no one on duty to handle problems or deal with outsiders on the off day. On the other hand, if a company staggers days off across the workforce, people who don't get the more desirable days off (Monday and Friday, for most people) may be jealous or resentful. Another problem is that when employees put in too much time in a single day, they tend to get tired and perform at a lower level later in the day.

The rational approach views decision making as

a completely rational process in which goals are established, a problem is identified, alternatives are generated and evaluated, a choice is made and implemented, and control is exercised

According to Harvey Seifter,

a consultant specializing in relationships between business and the arts, the Orpheus Process consists of five elements designed to put this principle into practice:

Annual performance appraisals are convenient for

administrative purposes such as record keeping and maintaining a level of routine that helps keep everyone comfortable. Some organizations also conduct appraisals semiannually

The performance of any group is

affected by several factors other than its reasons for forming and the stages of its development

Teams are

an interdependent collection of at least two individuals who share a common goal and share accountability for the team's as well as their own outcome

semantics

another barrier that introduces noise into communications. Words mean different things to different people Asking for feedback helps the sender ensure that his or her intended meaning is the same as the one ultimately received.

Ambiguity is

another source of noise in communication

noise

anything that blocks, distorts, or changes in any way the message the sender intended to communicate.

Vroom's decision tree approach suggests

appropriate decision-making styles based on situation characteristics. This approach focuses on deciding how much subordinates should participate in the decision-making process. Managers assess situational attributes and follow a series of paths through a decision tree that subsequently prescribes for them how they should make a particular decision.

he worst conflict management behaviors

are avoiding the conflict, winning at all costs, displaying anger, demeaning the other party, and retaliating.

The five basic group performance factors

are composition, size, norms, cohesiveness, and informal leadership

the best conflict resolution behaviors

are perspective taking, creating solutions, expressing emotions, reaching out, and documenting areas of agreement and disagreement

most common types of rewards

base pay (wages or salary), incentive systems, benefits, perquisites, and awards.

The basic elements of decision making include

choosing a goal; considering alternative courses of action; assessing potential outcomes of the alternatives, each with its own value relative to the goal; and choosing one alternative based on an evaluation of the outcomes

The three types of alternative dispute resolution are

conciliation, mediation, and arbitration.

The foundation of good performance management

correctly identifying what should be measured and the selection of the best method(s) for measuring it.

Feedback

creates two-way communication that helps to check on the success of the communication and ensure that the received message is accurate

The message is the

encoded information being sent

Virtual teams and multicultural teams are

important emerging areas of teamwork that are relevant to most organizations today. Managers should strive to understand how to most effectively use these two kinds of teams.

The final group performance factor is

informal leadership: the emergence of an individual who engages in leadership activities but whose right to do so has not been formally recognized.

one-way communication

information flows in only one direction. The sender communicates a message without expecting or getting any feedback from the receiver.

Feedback

is a check on the success of the communication. The message receiver sends a new message back to the original sender, and the original sender assesses if the receiver understood the original message as intended. Repeating or paraphrasing the original message, asking for clarification, and asking if your conclusion is correct are forms of feedback

A quality circle

is a group of employees who voluntarily meet regularly to identify and propose solutions to problems related to quality. Quality circles quickly evolved into a broader and more comprehensive array of workgroups, now generally called "work teams." These teams are collections of employees empowered to plan, organize, direct, and control their own work. Their supervisor, rather than being a traditional "boss," plays more the role of a coach

Group composition

is most often described in terms of the homogeneity or heterogeneity of the members

Goal specificity

is the clarity and precision of the goal. A goal of "increasing productivity" is not very specific, whereas a goal of "increasing productivity by 3 percent in the next six months" is quite specific. Some goals, such as those involving costs, output, profitability, and growth, can easily be stated in clear and precise terms. Other goals, such as improving employee job satisfaction and morale, company image and reputation, ethical behavior, and social responsibility, are much harder to state in specific or measurable terms.

Verbal intonation

is the emphasis given to spoken words and phrases. For example, the simple words, "May I speak with you?" can be interpreted very differently if said in a cheery, upbeat tone versus a strong or angry tone.

decoding

is the interpretation and translation of the message back into something understood by the receiver. The decoded information is hopefully the same as the information the sender intended to communicate, but this is not always the case.

the channel is

is the medium used to send the message to the receiver, including voice, writing, graphs, videos, intranets, the Internet, television, and body language.

a participative pay system

may involve the employee in the system's design, administration, or both. A pay system can be designed by staff members of the organization's human resources department, a committee of managers in the organization, an outside consultant, the employees, or a combination of these sources.

Ambiguity of intent

means the receiver is uncertain about the message's consequences.

Encoding

occurs when the message sender converts a thought, idea, or fact into a message composed of symbols, pictures, or words.

Ambiguity of meaning

occurs when the receiver is not sure what the sender meant.

an interdependent collection

of at least two individuals who share a common goal and share accountability for the team's as well as their own outcome

Jargon

or technical language, may create ambiguity if the receiver is not trained to understand it. Contracts and other legal documents, tax codes and regulations, and technology instructions may be daunting to many people. Consider this example of a CEO whose use of jargon prevented audiences from understanding exactly what his company did. He described his company as "a premier developer of intelligent semiconductor intellectual property solutions that dramatically accelerate complex SOC designs while minimizing risk." After some coaching, he more clearly communicated the same information in the statement, "Our technology makes cell phones that are smaller, more powerful, and last longer on a single charge."*

two things are at the core of the balanced scorecard.

organizational vision and strategy. These must be clearly established and communicated throughout the organization by the top management team.

low-context cultures

people tend to say what they mean and to mean what they say, leaving little to subjective interpretation. low-context cultures rely on the words themselves to convey meaning. Germany, Switzerland, or North American cultures, communication tends to be more direct and explicit

goal difficulty and specificity are closely associated with

performance.

The creative process itself generally involves four phases:

preparation, incubation, insight, and verification. Managers can enhance or reduce creativity in their organizations through various means.

The classifications—certainty, risk, and uncertainty—

reflect the amount of information available regarding the outcomes of alternatives.

downside to MBO

requires individual, one-on-one interactions between each supervisor and each employee. these one-on-one interactions can often be difficult because of the time they take and the likelihood that at least some of them will involve critical assessments of unacceptable performance.

Integrative negotiation practices

seeking to meet the needs of both parties are generally best for establishing long-term solutions that maintain a healthy relationship between the two parties

People's degree of pride or disappointment is affected by their _______________

self-efficacy, the extent to which they feel that they can still meet their goals even if they failed to do so in the past.

Perquisites are

special privileges awarded to selected members of an organization, usually top managers.

A norm is a

standard against which the appropriateness of a behavior is judged and determines the behavior expected in a certain situation

The communication process

starts when a sender translates (encodes) information into words, symbols, or pictures and passes it to the receiver through some medium (channel). The sender then receives the message, and retranslates (decodes) it into a message that is hopefully the same as what the sender intended.

Prospect theory

suggests that people are more motivated to avoid losses than to make gains.

Intrinsic and extrinsic rewards carry both

surface and symbolic value.

Situation favorableness is determined by

task structure, leader-member relations, and leader position power. Leader behavior is presumed to reflect a constant personality trait and therefore cannot easily be changed

The core of performance management is

the actual measurement of the performance of an individual or group

Information is available regarding

the alternatives, outcomes, and values.

Knowledge of results:

the degree to which individuals continuously understand how effectively they are performing the job

Experienced responsibility for work outcomes:

the degree to which individuals feel personally accountable and responsible for the results of their work

Experienced meaningfulness of the work:

the degree to which the individual experiences the job as generally meaningful, valuable, and worthwhile

feedback:

the degree to which the job activities give the individual direct and clear information about the effectiveness of his or her performance

Task significance:

the degree to which the job affects the lives or work of other people, both in the immediate organization and in the external environment

Autonomy:

the degree to which the job allows the individual substantial freedom, independence, and discretion to schedule the work and determine the procedures for carrying it out

Skill variety:

the degree to which the job requires a variety of activities that involve different skills and talents

As a property, leadership is

the set of characteristics attributed to those who are perceived to use such influence successfully

Leadership as a process is

the use of noncoercive influence to direct and coordinate the activities of group members to meet goals.

Piecework programs

tie a worker's earnings to the number of units produced. Gain-sharing programs grant additional earnings to employees or work groups for cost-reduction ideas. Profit-sharing plans distribute a portion of the firm's profits to all employees at a predetermined rate.

The purpose of the reward system in most organizations is

to attract, retain, and motivate qualified employees.

A group is

two or more persons who interact with one another such that each person influences and is influenced by each other person

Once a receiver provides feedback to a sender, the sender and receiver have engaged in _______________

two-way communication

Organizational support is

whatever the organization does to help or hinder performance. -Positive support might mean providing whatever resources are needed to meet the goal -negative support might mean failing to provide such resources, perhaps due to cost considerations or staff reductions.

pooled interdependence

when employees work independently and their output is combined into group output. Because employees work independently, pooled interdependence has low communication requirements. An example of pooled interdependence is a call center in which customer service agents act relatively independently in handling calls.

Merit pay plans,

which base pay raises on the employee's performance

Profit-sharing plans,

which distribute a portion of the firm's profits to all employees at a predetermined rate

Long-term compensation

which gives managers additional income based on stock price performance, earnings per share, or return on equity

Gain-sharing programs

which grant additional earnings to employees or workgroups for cost-reduction ideas

Bonus systems

which provide managers with lump-sum payments from a special fund based on the financial performance of the organization or a unit

Employee stock option plans,

which set aside stock in the company for employees to purchase at a reduced rate

Piecework programs,

which tie a worker's earnings to the number of units produced

Common kinds of groups in organizations include

workgroups, teams, and informal groups.

In the original version of goal-setting theory, two specific goal characteristics were expected to shape performance.

—goal difficulty and goal specificity—