Professional Documents
Culture Documents
theory
Expectancy theory
Reinforcement Theory
Behavior
Expectancy Theory
Expectancy
If I attempt this level of
performance, am I likely to
succeed?
Motivational Force =
E*I*V
Instrumentality
If I achieve this level of
performance, am I likely to be
rewarded?
Valence
What value do I place on the
rewards available to me?
Incentive Programs
Differ
by
payment method
frequency of payout
ways of measuring performance
choice of which employees are covered
Fitting
organizational structure
management style
type of work
Types of Plans
Merit
Pay
Individual Incentives
Profit Sharing
Ownership
Gainsharing
Group Incentives
Alternative Reward Systems
Individual Incentives
reward
individual performance
payments are NOT rolled into
base pay
performance is usually measured
as a physical output rather than
subjective ratings
Profit Sharing
payments
Ownership
encourages
Gainsharing
sharing
management commitment
need to change or a process of continuous improvement
management acceptance & encouragement of employee input
high levels of cooperation and interaction
employment security
information sharing on all productivity and costs
goal setting
commitment of all involved parties to change and
improvement
agreement on a performance standard
calculation that is understandable, perceived as fair, closely
related to managerial objectives
Group Incentives
Focus
to cash --
travel
merchandise
earned
time off
symbolic awards
plaques, coffee cups, bananas
Incentive Plans
is clearly communicated.
Plan is understood by employees and management.
Bonuses are easy to calculate.
Employees participate in administrating the plan.
Employees believe they are being treated fairly.
Employees believe they can trust the company and
that they have security.
Bonuses are awarded as soon as possible after the
desired performance.