• Create an environment of motivation
• First Line manager is key

• Motivation: the process of arousing and sustaining goal-directed behavior
• Motivational theories attempt to explain and predict observable behavior

• Theory of motivation based on a hierarchy of needs
• Suggested worked to satisfy lower level needs before the higher level needs become motivating needs

1. Physiological needs
2. Safety and security needs
3. Love needs
4. Esteem needs
5. Self-actualization

• McGregor translated Maslow's needs Hierarchy into a theory concerning how to motivate people at work
• Lower Order Needs: Physiological, Saftey and security
• Higher Order Needs: Love, Esteem, Self-actualization
• Assumptions about work based on which set motivates workers

Manifest Needs: learned or acquired needs

• Achievement
• Power
• Affiliation

These make for better workers

• Examined the experiences that satisfied or dissatisfied people at work
• Motivation Factors: work conditions related to satisfaction of the need for psychological growth
• Hygiene Factors: work conditions related to dissatisfaction caused by discomfort or pain

• Equity theory: a social exchange process theory of motivation that focuses on individual-environment interaction
• Concerned with social processes that influence motivation and behavior

• suggest inequity of unfairness motivates people more than equity or fairness
• Inequity→Tension→Motivation to Act

1. Alter the person's outcome and inputs
2. Alter the comparison other's outcomes and inputs
3. Change who is used as a comparison other
4. Rationalize the inequity
5. Leave the organizational situation

• Distributive Justice: the extent to which individuals believe that the outcomes they receive are just/fair
• Procedural Justice: the degree to which processes used to reach a distribution are perceived as fair

1. Consistency
2. Bias Suppression
3. Accuracy
4. Correctability
5. Representativeness
6. Ethicality

• Expectancy and instrumentality concern a person's beliefs about how effort, performances, and rewards are related
• Effort→Performance→Reward

• Organization: Work Design
• Employee: personal life, training, and displaced anger

• The process of modifying behavior through the use of positive or negative consequences following specific behaviors
• Reinforcement, Punishment, and Extinction

• Learning occurs through the observation of others and the modeling of observing behavior
• Task-specific self-efficacy: an individual's beliefs and expectancies about his or her ability to perform a specific task effectively

• Specific
• Measurable
• Attainable
• Realistic
• Time-bound

• Increase work motivation and task performance (employee participation, supervisory goal commitment, and useful performance feedback)
• Reduce role stress, conflict, and ambiguity
• Improve performance evaluation (management by objectives (MBO) articulates what to do and how to do it)

• Variable Pay: pay for performance
• Incentive Pay

• Straight Piecework: an incentive plan under which employees receive a certain rate for each unit produced
• Differential Piece Rate: a rate under which employees who go above and beyond are paid more than those who do not
• Straight Hour Plan: an incentive plan that sets pay rates based on the completion of a job in a predetermined time
• Bonus
• Spot Bonus: unplanned bonus to key contributions to business goals

• Merit Pay Program (Merit Raise): links an increase in base pay to how successfully an employee achieved a performance standard
• Merit Guidelines

• Straight Salary
• Straight Commission
• Combo of Salary and Commission

• Team Incentive Plans
• Establishing Team incentive payments
• Gain haring plans: benefits both company and employees

• Profit sharing: pay based upon the profits of the enterprise
• Stock options
• Employee Stock Ownership Plans (ESOP)

Executive Pay Package

• Base salary
• Bonuses
• Stock Options
• Benefits
• Perks

• The process of creating a work environment in which people can perform to the best of their abilities

A process designed to help employees understand their roles, objectives, expectations, and performance success

3 Main Purposes

1. Strategic
2. Administrative
3. Developmental

• Error of central tendency
• Leniency or strictness errors
• Similar-to-me errors
• Recency errors
• Contrast and Halo errors

• Establishing Performance Standards
• Calibration

• Strategic Relevance
• Criterion Deficiancy
• Criterion Contamination
• Reliability

• Receiving multiple feedback on performance (manager, customer, peers, self etc.)

• Trait-based Methods (Graphic Rating/Mixed-Standard Scale Method)
• Behavior-Based Methods (Critical Incident/B.A.R.S./B.O.S.)
• Result-Based Methods (Productivity Measures/M.B.O.)

• Pay is a statement of an employee's worth by an employee
• Direct (wages/salaries)
• Indirect (benefits)
• Nonfinancial (reward programs)

• Serves to mesh the monetary payments made to employees in establishing a pay for performance standard

• An organizational policy prohibiting employees from revealing compensation information to anyone

• Non-Exempt Employees: employees covered by the overtime provisions of the Fair Labor Standards Act
• Exempt Employees: employees not covered by the overtime provisions in the Fair Labor Standards Act

• Employer's Compensation Strategy
• Worth of a job
• Employee' relative worth
• Employer's ability to pay

• Labor market conditions
• Area wage rates
• Cost of Living
• Collective Bargaining

1. Job Ranking
2. Job Classification
3. Point System

• A curve in a scatter gram representing the relationship between relative worth of jobs and wage rates