Applied Performance Practices Study Guide

APPLIED PERFORMANCE PRACTICES * monetary REWARD PRACTICES Financial Rewards- the most fundamental applied mathematical operation practice in organizational settings. compensation has multiple meanings * figure of success * Reinforcer and motivator * Reflection of surgical process * Can reduce anxiety Meaning of money varies * higher(prenominal) value to men than women * Cultural values deviate the meaning and value of money TYPES OF REWARDS IN THE employment * Membership and Seniority * Job Status * Competencies * mathematical operation 1. Membership- and Seniority- Based Rewards * immovable wages, seniority increases. * (Sometimes called stand for neural impulse) represent the largest part of most have a bun in the ovenchecks. Sample Rewards * Fixed gene ordain * Most employee benefits * Paid time discharge Advantages * whitethorn attract appli quarterts * Minimizes stress of insecurity * Reduces turnover rate Disadvantages * Doesnt directly motivate exertion * May d iscourages poor performers from leaving * Golden handcuffs whitethorn undermine performance 2. ) Job Status-Based Rewards * Includes job valuation and consideration perks. Job evaluation formatically evaluating the worthy of jobs deep down an organization by measuring their need skill, effort, responsibility, and working conditions. * Maintain feelings of equity (people in higher-valued jobs should stomach higher net) and motivate employees to compete for promotion. Sample rewards * Promotion- base pay increase * Status-based benefits Advantages * Tries to maintain pay equity * Minimizes pay discrimination * Motivates employees to compete for promotion Disadvantages Encourages hierarchy which whitethorn increase costs and reduce responsiveness * Reinforces status differences * Motivates job competition and exaggerated job worth. 3. ) Competencies-Based Rewards * Pay increases with competencies acquired and demonstrated * Employees now receive pay increases within each pay b and partly based on how well they have acquired new noesis and skills. * Skill-based pay-is a variation of competency-based rewards in which employees are rewarded for the minute of skill modules mastered and consequently the number of jobs they can perform.Sample Rewards * Pay income based on competency * Skill-based pay Advantages * Improve workforce flexibility * Tends to improve whole step * Consistent with employability Disadvantages * Subjective measurement of competency * Skill-based pay plans are expensive 4. ) Performance-Based Rewards Here are somewhat of the most popular individual, squad and organizational performance-based rewards * several(prenominal) Rewards * Bonuses- many employees receive individual bonuses for accomplishing a specific task or exceeding annual performance goals. Commissions- real estate agents and other salespeople typically advance commissions in which their pay increases with sales volume. * Piece rate systems reward employees based on th e number of units produced. * squad Rewards * Bonuses- employees earn a bonus based on how well their store meets or exceeds specific fiscal goals. * Gainsharing Plans- a reward system in which team members earn bonuses for reducing costs and increasing jab efficiency in their work process. * Organizational Rewards Employee hold Ownership Plans (ESOPs) a reward system that encourages employees to acquire hackneyed in the company. * Stock Options- a reward system that gives employees the right to purchase company stock at a future date at a predetermined price. * Profit-sharing Plans- a reward system that pays bonuses to employees based on the previous years level of corporate profits. * Balanced Scorecard (BSC) a reward system that pays bonuses for improved results on a composite of financial, customer, internal process and employee factors.