Date post: | 01-Dec-2014 |
Category: |
Education |
Upload: | monirujjaman-moon |
View: | 153 times |
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WELCOME
GROUP MEMBERS
• Rezwan Ahmed
• Tasnia Towhid
• Maidah Karim Disha
• Neel Kanto Das Shuvra
• Hijbullah Patwary
• Md. Monirujjaman
REWARD TO MOTIVATE
EMPLOYEES
INTRODUCTION
Why do we need to motivate?
Why do we need to reward?
Relation with major job attitude
Job satisfaction
Job involvement
Organizational commitment
Relation with biographical
characteristics
Turn over rate
Absenteeism
Productivity
Job satisfaction
PAY PROGRAMMES
• Piece Rate Pay
• Merit Based Pay
• Skill Based Pay
• Profit sharing Plans
• Gainsharing
PIECE RATE PAY
• Employees are paid only for what they
produce.
• No base salary.
• A fixed pay element and time period for
each unit.
• The more a employee can produce, the
more he can earn.
Example :-
An employee works at samsung company.
He produces 500 phones in 40 hours per
week. For each phone he is paid $2.00. so
for total 500 phones he will be paid
(500x2)=$1000.
If another employee works 10 hours extra
overtime and produces 100 extra phones
then he will get extra payment for his
overtime along with $1000.
RELATED THEOREM
• We can relate pay rate plan with Reinforcement Theory.
Nature of reinforcement:- reward given at fixed amounts of output.
Effect on behavior:- high and stable performance attained quickly.
MERIT BASED PAY
• Based on performance appraisal ratings
• Employees put maximum effort for best
performance
Expectancy Theory:
• Employees motivated to high level of effort
• Lead to good performance
• Organizational rewards and satisfy
personal goals
Limitations:
• Based on annual performance
• Pay raise pool fluctuates based on
economic condition
Examples:
• IBM
• Milken Family Foundation
Skill based pay
Advantages
• Increases flexibility of
workforce.
• Facilitates communication.
• Increases productivity.
Disadvantages
• Don’t address level of
performance.
• Can frustrate employees.
Related theorem
PROFIT BASED PLANS
ADVANTAGE
• Motivates employees to increase
performance
• Employees can earn more if
organizations profit increases
DISADVANTAGE
• Demotivates those employees that
do not get the share
• Can lessen employees performance
GAINSHARING
ADVANTAGES
• Payouts are self-funded from savings generated by
the plan
• Promotes morale, pride, and more positive attitudes
toward the organization
• Helps companies achieve sustained improvement
in key performance measures
• Rewards only performance improvement
• Enhances employee focus and awareness
DISADVANTAGES
• Requires a participative management style
• Requires that management openly shares information
related to performance measures
• Measures are narrower than organization-wide profit
and therefore gains may be paid even though profits
may be down.
THANK YOU