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▪ Coercive - Remunerative - Normative ▪ Alienated - Instrumental - Moral involvement
The person-as-economist expects
▪ ROI - time, effort, commitment ▪ "What's in it for me?" calculation
Monetary-equivalent Car, phone, holidays, loans, accommodation, fees, vouchers
Deferred (promotion, pension) Non-monetary / intrinsic benefits - safety, status, recognition,
Design Features of Reward Systems
Monetary Time-based (not directly related to performance) Performance-linked Output, %, PRP, merit pay, commission, skill-based collective-output schemes Corporate performance-related bonuses + profit sharing
Motivation - a nagging concern
▪ What is the problem? ▪ Effort, performance, retention, loyalty, membership, commitment, trust, empowerment, participation, work design ▪ Extrinsic and intrinsic rewards ▪ Expectancy and Equity ▪ Rhetoric versus reality ▪ How I construe my/your motivation, needs & drives
determinism ▪ "Rate for the job"
▪ Occupational norms, expectations and choices ▪ Expediency - "suitable for my life package at the
moment" ▪ Etzioni & organisational membership
“Door knob syndrome” Job grading/evaluation - evaluate the job not the person doing it Control mechanisms & tools – clocks, supervision, time sheets? Performance assumptions
▪ Conscious subconscious (self image and comparisons) ▪ Fairness (equitable social (economic) exchange)
▪ interpret rewards/pay-offs of others ▪ judge what is fair/unfair ▪ satisfaction if each party achieves a balance (relative equality) ▪ Psychological extension to neutral, economic model ▪ Construing the value & importance of input-output ▪ Social, psychological - individual & group ▪ Validation of personal perceptions and comparisons ▪ Clear/distorted ▪ internal/external
plaques, contribution and empowerment
Negatives pressure, penalties, harassment, side-lining, dismissal
Pay by time schemes - Components
simple to administer Defined time – F/T, P/T, mixed-time, casual No attendance, no pay? Hourly, weekly, monthly Premiums – 1.5T, 2T, nights Flexskill-based schemes
Trust, competence, diligence, fidelity, care, good-will, cooperation Work for Er in Er time ……versus ……...in your time? Supervision and monitoring - “When the cats away”? Is actual presence necessary? Off-site working. Life increments - pay & career progression, security?
▪ How to "motivate people to give their all"
Would I really work for you without reward?
▪ Fundamental to employee contract ▪ Traditional economic exchange model. Pay-effort
