Ch 5: Motivation in Action

variable-pay program

pay plan that bases a portion of an employee’s pay on some individual and/or organizational measure of performance

piece-rate pay plan

individual-based incentive plan in which employees are paid a fixed sum for each unit of production completed

merit-based pay

individual-based incentive plan based on performance appraisal ratings

profit-sharing plan

organization-wide incentive in which the employer shares profits with the employees based on a predetermined formula

employee stock ownership plan (ESOP)

company-established benefit plan in which employees acquire stock as part of their benefits

flexible benefits

benefits plan that allows each employee to put together a benefits package individually tailored to their situation

job characteristics model (JCM)

proposes that any job can be described in terms of five core job dimensions

• skill variety

• task identity

• task significance

• autonomy

• feedback

skill variety

degree to which the job requires a variety of different activities

task identity

degree to which the job requires completion of a whole and identifiable piece of work

task significance

degree to which the job has a substantial impact on the lives or work of other people

autonomy

degree to which the job provides substantial freedom, independence, and discretion to the individual in scheduling the work and determining the procedures to be used in carrying it out

relational job design

constructing jobs so employees see the positive difference they can make in the lives of others directly through their work

job sharing

practice of having two or more people split a 40 hour week job

telecommuting

working from home at least two days a week on a computer that is linked to the employer’s office

employee involvement and participation (EIP)

participative processes that use the input of employees and are intended to increase employee commitment to an organization’s success

participative management

process in which subordinates share a significant degree of decision making power with their immediate superiors

representative participation

system where employees participate in organizational decision making through a small group of representative employees