Compensation Pian tiements This activity is important because as a manager, you should know how compensation methods are related to motivation theories. Compensation may be offered at the individual, group, and organizational level, depending on what type of performance is to be rewarded. Compensation plan elements use principles of equity theory, expectancy theory, and goal-setting theory in order to encourage direction, intensity, and persistence of effort toward organizational and individual goals. The goal of this activity is to demonstrate your knowledge of motivation theories by associating them with elements used in compensation systems. Match each motivation theory to the corresponding type of compensation plan. Goal-Setting Theory: Individual- Focused 2 Extrinsic Motivation Match each of the options above to the items below. 3 Expectancy Theory: Instrumentality Equity Theory lan is certain that he will be paid $25 for every claim he processes, so he is motivated to work faster. (Piece-Rate Systems) 5 Kyle knows that each person in his job level receives the same increase in pay for a high performance appraisal rating. (Merit Pay) Goal-Setting Theory: Unit- Focused Kacee's boss set a standard that each employee must secure $200,000 in new contracts in the next 60 days. Everyone that does so will receive a 5 percent bonus. (Lump-Sum Bonuses) Megan's shift supervisor issued the challenge that each employee can earn a bonus if material waste is decreased by 10 percent in the next 30 days. (Gainsharing) In the call center where Meredith works, the managers award gift cards or other small prizes at unpredictable times to employees who are overheard giving exceptional customer service. (Recognition Awards) ▼
Compensation Pian tiements This activity is important because as a manager, you should know how compensation methods are related to motivation theories. Compensation may be offered at the individual, group, and organizational level, depending on what type of performance is to be rewarded. Compensation plan elements use principles of equity theory, expectancy theory, and goal-setting theory in order to encourage direction, intensity, and persistence of effort toward organizational and individual goals. The goal of this activity is to demonstrate your knowledge of motivation theories by associating them with elements used in compensation systems. Match each motivation theory to the corresponding type of compensation plan. Goal-Setting Theory: Individual- Focused 2 Extrinsic Motivation Match each of the options above to the items below. 3 Expectancy Theory: Instrumentality Equity Theory lan is certain that he will be paid $25 for every claim he processes, so he is motivated to work faster. (Piece-Rate Systems) 5 Kyle knows that each person in his job level receives the same increase in pay for a high performance appraisal rating. (Merit Pay) Goal-Setting Theory: Unit- Focused Kacee's boss set a standard that each employee must secure $200,000 in new contracts in the next 60 days. Everyone that does so will receive a 5 percent bonus. (Lump-Sum Bonuses) Megan's shift supervisor issued the challenge that each employee can earn a bonus if material waste is decreased by 10 percent in the next 30 days. (Gainsharing) In the call center where Meredith works, the managers award gift cards or other small prizes at unpredictable times to employees who are overheard giving exceptional customer service. (Recognition Awards) ▼
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:Compensation Pian tlements
This activity is important because as a manager, you should know how compensation methods are related to motivation theories. Compensation may be offered at the individual, group, and organizational level,
depending on what type of performance is to be rewarded. Compensation plan elements use principles of equity theory, expectancy theory, and goal-setting theory in order to encourage direction, intensity, and
persistence of effort toward organizational and individual goals.
The goal of this activity is to demonstrate your knowledge of motivation theories by associating them with elements used in compensation systems.
Match each motivation theory to the corresponding type of compensation plan.
1
Goal-Setting
Theory: Individual-
Focused
2 Extrinsic Motivation
Match each of the options above to the items below.
3
Expectancy Theory: 4 Equity Theory
Instrumentality
lan is certain that he will be paid $25 for every claim he processes, so he is motivated to work faster. (Piece-Rate Systems)
5
Kyle knows that each person in his job level receives the same increase in pay for a high performance appraisal rating. (Merit Pay)
Goal-Setting
Theory: Unit-
Focused
Kacee's boss set a standard that each employee must secure $200,000 in new contracts in the next 60 days. Everyone that does so will receive a 5 percent bonus. (Lump-Sum Bonuses)
Megan's shift supervisor issued the challenge that each employee can earn a bonus if material waste is decreased by 10 percent in the next 30 days. (Gainsharing)
In the call center where Meredith works, the managers award gift cards or other small prizes at unpredictable times to employees who are overheard giving exceptional customer service.
(Recognition Awards)
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