Money and Motivation Incentives motivate workers See“systematic soldiering”without them Taylor standardized a fair day's work Which led to the scientific management movement Which in turn led to modern day HR practices ©2004 by UIBE Liu yuxin 9-6
© 2004 by UIBE Liu yuxin 9-6 Money and Motivation Incentives motivate workers See “systematic soldiering” without them Taylor standardized a fair day’s work Which led to the scientific management movement Which in turn led to modern day HR practices
1.1 Performance and Pay -Competition,shareholder value,and turbulence Businesses need an edge Question:What do you think that edge is? Pay attention ©2004 by UIBE Liu yuxin 9-7
© 2004 by UIBE Liu yuxin 9-7 1.1 Performance and Pay Competition, shareholder value, and turbulence Businesses need an edge Question: What do you think that edge is? Pay attention
1.2 How Does Pay Influence Individuals? Equity Theory Reinforcement Theory Expectancy Theory Agency Theory ◆principals as owners ◆ agents as managers ©2004 by UIBE Liu yuxin 9-8
© 2004 by UIBE Liu yuxin 9-8 1.2 How Does Pay Influence Individuals? Equity Theory Reinforcement Theory Expectancy Theory Agency Theory principals as owners agents as managers Equity Theory Reinforcement Theory Expectancy Theory Agency Theory principals as owners agents as managers
Factors in the Choice of a Compensation Package Risk Aversion Outcome Uncertainty ·Job Programmability Measurable Job Outcome Ability to Pay Tradition ©2004 by UIBE Liu yuxin 9-9
© 2004 by UIBE Liu yuxin 9-9 Factors in the Choice of a Compensation Package Risk Aversion Outcome Uncertainty Job Programmability Measurable Job Outcome Ability to Pay Tradition Risk Aversion Outcome Uncertainty Job Programmability Measurable Job Outcome Ability to Pay Tradition
1.3 Overview of Incentive Plans © ©2004 by UIBE Liu yuxin
© 2004 by UIBE Liu yuxin 1.3 Overview of 1.3 Overview of Incentive Plans Incentive Plans