文档介绍：Human Resource ManagementGaining petitive Advantage Chap012 Recognizing Employee Contributions with Pay
Human Resource Management:
Gaining petitive Advantage
Chapter 12
Recognizing Employee Contributions with Pay
Copyright ? 2010 by the McGraw-panies, Inc3>. All rights reserved.
McGraw-Hill/Irwin
McGraw-Hill/Irwin ?2010 The McGraw-panies, All Rights Reserved CH 12
Learning Objectives
Discuss how pay influences individual employees.
Describe three theories that pensation’s effect on individuals.
Describe pay programs for recognizing employees’ contributions to anization’s ess.
List pay programs’ advantages and disadvantages.
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Learning Objectives
Describe bine incentive plans in a balanced scorecard.
Discuss issues related to executives’ performance-based pay.
Explain the importance of process issues such munication pensation management.
List major factors in matching pay strategy to anization’s strategy.
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Introduction
Organizations have discretion in deciding how to pay.
Each employee’s pay is based upon individual performance, profits, seniority, or other factors.
Regardless of cost differences, different pay programs can have different consequences for productivity and return on investment.
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Pay Influences Individual Employees
3 Theories pensation’s Effects:
Reinforcement
Theory
Agency
Theory
Expectancy
Theory
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How Pay Influences 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- interests of the principals (owners) and their agents (managers) may
nolonger converge.
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Agency Costs
Agency costs may be minimized by the principal choosing a contracting scheme that alignsagent’s interests with principal's interests.
6 Factors that Influence Type ofContract:
risk aversion
e uncertainty
job programmability
measurable job es
ability t