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Problem 5 (Gunderson (1) fixed hiring costs (factoring in cost of hiring…

- - - - more equal pay for everyone
- - - - how likely effort leads to high performance
    - - how performance results in desired outcomes
      - need for specific pay related to specific outcome
        
        tangible measures
    - - value of the potential outcomes
    - - extent to which compensation is useful in satisfying certain needs
      - how important achieving those needs is (to an individual)
  - - - 1) identification 2) measurement 3) analysis 4) intervention 5) test
  - - - 1) one should set a difficult-to-achieve goal 2) goals are specific in terms of results 3) regular feedback 4) goal needs to be accepted
    - - difficult goals = all-or-none bonuses
      - degree of pay proportional to degree of performance
      - for self-set goals, rewards may be given AFTER achieving said goal
  - - - perceived fairness of company procedures (be it with reward system or something else)
    - - quality and fairness of interpersonal communication regarding the organization
    - - perceived fairness of received awards
  - - - intrinsic motivation leads to performance
    - - outcome results in external source controlling person
      - less motivation
    - - negative feedback decreases motivation
  - - - motivational properties
      - relative position (feedback and socially comparative)
      - control
      - spending
  - - - pay dependent on observable behavior
    - - pay is (partly) based on performance
      - when behavior monitoring isn't possible
  - - - control over compensation
- - - - emotions displayed vs. actually felt
  - - - wages increase
    - - wages decrease