Please enable JavaScript.
Coggle requires JavaScript to display documents.
CHAPTER 6: COMPENSATION & INCENTIVES, LUU PHUONG DUNG - Coggle Diagram
CHAPTER 6:
COMPENSATION & INCENTIVES
EMPLOYEE MOTIVATION
Definitions
The degree to which an employee is prepared to exert effort towards the attainment of organizational goals with little or no supervision.
Motivation is the process that initiates, guides, maintains goal-oriented behavior
Theories
Aldefer’s Existence, Relatedness and Growth need theory
Herzberg’s two – factor theory
Maslow's need hierachy theory
Adam’s Equity theory
Drive – reinforcement theories
Expectancy theory
Goal-setting theory
Approaches
Managerial approach
Job and organizational approach
Individual differences approach
COMPENSATION
Definitions
Wendell French: Compensation is a comprehensive term which includes wages, salaries and all other allowance and benefits
Objectives
To employees
Eliminates inequalities.
The chances of favouritism are minimised.
Jobs sequence and lines of promotion are established wherever they are applicable.
Employee’s moral and motivation are increased because of the sound compensation structure.
To employers
They can systematically plan for and control the turnover in the organization
A sound compensation structure reduces the likelihood of friction and grievance over remunerations
It enhances an employees’ morale and motivation because adequate and fairly administrative incentives are basis to his wants and need.
It attracts qualified employees by ensuring and adequate payment for all the jobs.
In dealing with a trade union, they can explain the basis of their wages programme because it is based upon a systematic analysis of jobs and wages facts
Factors
Ability to Pay
Management’s Philosophy
Supply and Demand of Labour
Legislation
Modes
Wages and Salary
Incentives
Fringe Benefits
Non-Monetary Benefits
INCENTIVES
Definitions
A plan or programme to motivate individual or group on performance. An incentive programme is most frequently built on monitory rewards (incentive pay or monetary bonus), but may also include a variety of non monetary rewards or prizes”
Kinds
Financial and Non-financial Incentives
Positive and Negative Incentives
Individual and Organizational Incentives
Fringe benefits
Definitions
Fringe benefits are any wage cost not directly connected with the employees productive effort, performance, service or sacrifice
Kinds
Old Age and Retirement Benefits
Workman’s Compensation
Employee Security
Payment for Time Not Worked
Safety and Health
Health Benefits
LUU PHUONG DUNG