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Human Resources 9

Week 9: Remuneration and Benefits

Main objectives of a rewards system Attract, Retain, Develop and Motivate.
Intrinsic and Extrinsic Intrinsic rewards are intangible rewards such as satisfaction and feeling of achievement. Extrinsic rewards are tangible rewards such as bonuses and benefits.
Vroom's Expectancy Theory In order for a person to be motivated, effort, performance and motivation must be linked. People act in a way that will lead them to their expected result. He proposes 3 variables; Valence, Expectancy and Instrumentality.
The reward mix Base pay, Benefits and Performance-Related Pay
Criticism of performance-based pay Advantages: motivates behaviour and distributive justice. Disadvantages: can rupture cooperative work and discourage risk-taking.
Critical issues with performance-based pay The behaviour/performance link must be clear, pay must follow immediately for it to be apparent and determining the payment amount must be valid and reliable.
Vroom's Theory: Valence Different individual values on a different level.
Vroom's Theory: Instrumentality The theory that people can be ‘conditioned’ to act in certain ways if they are rewarded for behaving as required.
Created by: Kaye_7
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