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