文档介绍：Human Resource Management Chapter 12 Recognizing Employee Contributions with Pay
Recognizing Employee Contributions with Pay
After reading this chapter, you should be able to:
Describe the fundamental pay programs for recognizing employees' contributions to anization's ess1>.
List the advantages and disadvantages of the pay programs.
List the major factors to consider in matching the pay strategy to anization's strategy.
Chapter
12
Recognizing Employee Contributions with Pay
Explain the importance of process issues such munication pensation management.
Describe how . pay pare with those of other countries.
Chapter
12
Introduction
Organizations have a relatively large degree of discretion in deciding how to pay.
Differences in performance by an individual, group, organization, seniority, or skills determine the pay.
Regardless of cost differences, different pay programs can have very different consequences for productivity and return on investment.
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How Does Pay Influence Individual Employees?
Three different theories help pensation’s effects:
Reinforcement Theory
Agency Theory
Expectancy Theory
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? 2006 The McGraw-panies, Inc. All rights reserved.
How Does Pay Influence Individual Employees?
Reinforcement Theory - A response followed by a reward is more likely to recur in the future.
Expectancy Theory - Motivation is a function of valence, instrumentality, and expectancy.
Agency Theory -The interests of the principals (owners) and their agents (managers) may not converge.
Types of agency costs include:
perquisites
attitudes towards risk
decision-making horizons
McGraw-Hill/Irwin
? 2006 The McGraw-panies, Inc. All rights reserved.
Agency Costs
Agency costs may be minimized by the principal choosing a contracting scheme that helps align the interests of the agent with the interests of the principals.
The type of contract dep