Human Resources Management in Canada - Pay-for-Performance and Financial Incentives

These flashcards cover key concepts and definitions related to financial incentives and employee motivation in human resources management.

What is the main purpose of the chapter on Pay-for-Performance and Financial Incentives?

To explain how managers use incentives to motivate employees.

What are fixed pay plans?

Compensation that is relatively consistent and independent of the performance level of the individual, group, or organization.

What is variable pay?

Compensation that ties pay to productivity, profitability, or another organization performance measure and can be relatively inconsistent.

According to Frederick Herzberg, what is the best motivation?

A job that provides challenge and recognition.

What are the three components of expectancy theory proposed by Victor Vroom?

Expectancy, instrumentality, and valence.

What is merit pay?

Any salary increase awarded to an employee based on their individual performance.

What is a gainsharing plan?

An incentive plan that engages employees in a common effort to achieve productivity objectives and share the gains.

What is a straight piecework plan?

A set payment for each piece produced or processed.

What is the rationale for using team incentives?

Encourages cooperation through group planning, problem solving, and collaboration.

What are some effective practices for employee recognition?

Effective recognition is specific, immediate, personal, and spontaneous, and it builds confidence and pride.