ch.8
Alderfers ERG Theory
divides an individual's basic needs into three categories, extence, relatedness, growth needs
equity theory
relates to whether employees feel like they are being treated fairly or unfairly compared to others
indirect compensation
not directly related to an employee's productive work. includes insurance programs, pay for time not worked, saving plans.. etc.
Merit Pay
Pay based on an employee's performance over a predetermined period of time
wage compression
pay inequities based on level of demand that result in higher pay for new employees than for current employees.
classification method
job evaluation method based on grading jobs
exempt employees
employees exempt from overtime pay:
executives, admin, prof's, outside sales people
internal equity
equity that exists with other employees in the organization
non-exempt employees
all employees who are due overtime pay when they work more than 40 hours a week
wage expansion
a condition that occurs when employers try to raise the pay rates of current employees to keep salaries in line with the higher wages of new hires caused by wage compression
consumer price index
a measurement of changes in the retail prices of goods and services
expectancy theory
motivation theory that explains motivation as a process involving individuals perception of three variables: expectany, instrumental, valence
job evaltuation
figuring out how much a job is worth
reinforcement theory
a theory by BF skinner, which states that people are conditioned to respond to stimuli and that behavior can be guided through the use of various types of reinforcement
bonus plan
individual incentive system based on a combination of base and incentive pay
direct compensation
an employer payment of money to an employee, either in the present or at some future date in exchange for employees productive work.
extrinsic rewards
in Herzbergs two factor theory, those factors that are expected by employees and therefore do not lead to satisfaction
maslows hierarchy of needs theory
a motivation theory contending that individuals have five basic needs: physiological, safety and security, social, esteem and self actualization
two tier wage system
pay system usually in union environment. usually for seniority and new employees
COBRA
consolidated omnibus budget reconciliation act passed in 1985. employers offer health insurance up to 18 months after temrination and to employees who quit/retire 36 months.
economic man theory
a theory that states that money is the main reason employees perform an assigned job
herzbergs two factor theory
theory that contends that some work factors influence satisfaction while others are expected by employees
like hygiene factors
the things that lead to satisfaction are intrinsic rewards
motivators can lead to saatisfaction
McClellands N-achievement theory
a motivation theory contending that people have three needs: power, affiliation and achievement. also companies can predict employee performance by determining the concentration of each need in individual employees
people with high needs of achievement do well as managers
valence
expectancy theory, the strength on an individual's preference for a particular outcome
commission
payment made to an employee that is based on some measurable unit (like sales volume)