(1) What are some potential risks or limitations ofperformance- based pay systems? (2) How doesequity theory (see Chapter 10 ) explain the angersome employees feel about the compensationpackages their company CEOs receive?

(1) What are some potential risks or limitations ofperformance- based pay systems? (2) How doesequity theory (see Chapter 10 ) explain the angersome employees feel about the compensationpackages their company CEOs receive?

Principles of Management

OER 2019th Edition

ISBN:9780998625768

Author:OpenStax

Publisher:OpenStax

Chapter14: Work Motivation For Performance

Section: Chapter Questions

Problem 7CRQ: How can equity theory explain why a person who receives a high salary might be dissatisfied with...

See similar textbooks

Related questions

Q: What could be the best cash compensation plan that would be fair to both management and employees,…

A: Monetary compensation is cash paid to a worker in return for the representative's work. Regular…

Q: Compare and contrast the advantages and disadvantages of pay-for-performance and competency-based…

A: 'Second part of the question is subjective hence authored only the first part' It is the duty of the…

Q: What are some ways that technology can help companies and leaders to manage compensation, benefits…

A: The research recognized an put out disconnect between members' explained requirement for better…

Q: Are employees more likely to favor defined contribution plans over defined benefit plans? How about…

A: Employee benefits can be defined as benefits and services which is offered by an employer to the…

Q: Briefly explain the importance of organizations having good compensation and benefits plans for…

A: Compensation and benefits are nothing but the benefits or everything that a company offers to its…

Q: ay-for-performance compensation models improve employee engagement and retention by clearly tying…

A: Compensation and rewards are paid to employees in exchange for the services delivered for the…

Q: What are the types of pay systems that have low-motivation potential but provide equal increases to…

A: Compensation refers to the monetary amount which is given to an employee for his services that he…

Q: Your company has recently implemented a pay-for-performance model for compensation. This worries you…

A: Pay for performance model is the performance-based pay program where an employee gets paid…

Q: In modern times it is possible that an employee could have a number of different jobs in a short…

A: Employee selection is like building together a winning puzzle inside an organization piece by piece.…

Q: enumerate... Under what conditions, employee participation in pay -related decisions can contribute…

A: When programmes or activities encourage employees to collaborate in order to produce the best…

Q: Why have many organizations begun to supplement their traditional pay systems with…

A: Traditional pay systems is a plan where the companies use to pay the fixed amount of compensation to…

Q: Is it true that Person-focused pay plans are least preferable compared with individual incentive pay…

A: with the rising competition and increasing uncertain circumstances of business environment,…

Q: Do you believe family-friendly benefits, flexible schedules, and child care services creates…

A: Employees that have no children are treated less generously and are not able to meet the eligibility…

Q: Internal equity is an important factor for compensation system success. Explain what is meant by…

A: Note: Since you have posted multiple questions, we will provide the solution only to the first…

Q: Wegman's approach

A: This approach focuses on the importance of employees in an organization and implies how employees…

Q: Many compensation professionals are faced with making choices about which discretionary benefits to…

A: Compensation and rewards are paid to employees in exchange for the services delivered for the…

Q: Which reward/pay systems are more acceptable to employees: stock, bonuses, or salaries? Why do you…

A: The compensation and benefits process in HRM includes processing payrolls, stocks, bonuses based on…

Q: Many businesses are moving away from the base salary concept and trying to adopt the new systems…

A: In order to retain the employees, the organization should have proper compensation plans to boost…

Q: Evaluate the argument that “High-powered incentives is superior to low-powered incentives in CEO…

A: Compensation is said to payment to employees in exchange of their services or expertise thry provide…

Q: One reason employers might offer a particular employee benefit is to aid in recruiting certain types…

A: The workers who are corrupted in personality, who give somewhat to the association, whose facilities…

Q: What are some ways that pay-for-performance schemes could backfire if acompany doesn’t set them up…

A: Pay for performance is a compensation model in which employees are paid according to their…

Q: Which component of compensation is most essential to motivate executives to lead companies toward…

A: The motivating factor for the employees will differ from an employee to employee. Some employees…

Q: How would you go about deciding whether to use a job-based, skills-based, or pay-for-performance…

A: Compensation plan states about the employees' wages, incentives, bonus and perks, which an…

Q: Answer the following questions on different pay systems 1. Discuss the Merit pay system. How does…

A: Pay systems are an important component of any company's human resource management strategy. They are…

Q: Explain why organizations pursuing a high-involvement management strategy may find the notion of…

A: Compensation and rewards are paid to employees in exchange for the services delivered for the…

Question

(1) What are some potential risks or limitations of
performance- based pay systems? (2) How does
equity theory (see Chapter 10 ) explain the anger
some employees feel about the compensation
packages their company CEOs receive?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

How can equity theory explain why a person who receives a high salary might be dissatisfied with their pay?
Evaluate the argument that “High-powered incentives is superior to low-poweredincentives in CEO compensation design”.
Which component of compensation is most essential to motivate executives to lead companies toward competitive advantage? Discuss your rationale. Discuss your position on executive compensation. Is executive compensation excessive or appropriate?
Are employees more likely to favor defined contribution plans over defined benefit plans? How about employers?
Is it true that Person-focused pay plans are least preferable compared with individual incentive pay programs?
Answer the following questions on different pay systems 1. Discuss the Merit pay system. How does the merit pay system differ from the incentive pay system? 2. Describe the seniority pay system and explain its advantages and disadvantages.
In modern times it is possible that an employee could have a number of different jobs in a short amount of time. Do you think this frequent job changing could skew results for this type of “ideal” employee selection? Do you think potential candidates can use these screening mechanisms to their advantage by making themselves seem like perfect candidates when in fact they are not? What personality traits may not seem like a good fit based on an initial screening but in fact would make a good employee? Do you feel that work and dedication could overcome a person-job mismatch?
Pay-for-performance compensation models improve employee engagement and retention by clearly tying employee or company achievement of performance goals to tangible financial rewards. 1. What are the advantages and disadvantages if pay-for-performance compensation model will be adopted by the government? 2. Which government agency will benefit from this compensation model?
How would you go about deciding whether to use a job-based, skills-based, or pay-for-performance compensation plan for employees in a textile manufacturing plant? For waitstaff in a restaurant? For salespeople in an insurance company?
Your company has recently implemented a pay-for-performance model for compensation. This worries you because you know that your employees will be even more upset with their performance ratings if they know that they are tied to compensation. What actions can you take to start to prepare for this change? How do you think your boss at the company where you work now, or where you have worked would handle the situation? If there are differences, why
Explain why organizations pursuing a high-involvement management strategy may find the notion of offering indirect pay to employees somewhat problematic and at odds with the principles of high involvement?
1. You will be asked to evaluate whether a company’s pay structure is fair to women and minorities. How would you go about answering this question?2. You have been asked to evaluate whether your organization’s current pay structure makes sense in view of what competing organizations are paying. How would you determine what organizations to compare your organization with? Why might your organization’s pay structure differ from those in competing organizations?3. Why do employers offer benefits? Is it because the law requires it, because it makes good business sense, or because it is the right thing to do? How much responsibility should employers have for the health and well-being of their employees? Take the perspective of both a shareholder and an employee in answering this kind of question.4. If you were advising a new company on how to design its health care plan, what would you recommend?