Employee Motivation and Compensation Theories

Equity Theory

• Equity is achieved when the perceived input/output ratio of an employee equals that of referent others.

Expectancy Theory

• Motivation theory stating that employees increase effort if rewards are perceived as valuable.

• Key components:

  • Expectancy: Can the task be accomplished with effort?
  • Instrumentality: Will rewards be received for task completion?
  • Valence: Are the rewards valued?

Compensation

• Internal Factors: Organizational compensation strategy, job worth, employee worth, employer's ability to pay.

• External Factors: Labor market conditions, area wage rates, cost of living, collective bargaining, legal requirements.

Employee Benefits

• Required by Law: Canada and Quebec Pension Plans (CPP/QPP), Employment Insurance (EI), Workers' Compensation Insurance, Provincial Hospital and Medical Services.

• Flexible Benefits (Cafeteria Plans): Employees choose benefits based on their needs. Provides a core package (life/health, sick leave, vacation), and employees use credits to buy other benefits.

• Flexible Benefits Advantages: Employee-centered needs met, employer competitive advantage with recruitment and retention, workforce adaptability.

• Flexible Benefits Disadvantages: Potentially higher employer costs if employees choose expensive benefits excessively, extra costs of establishing and maintaining the flexibility.

Employer Duties

• Ensure a hazard-free workplace and comply with laws.
• Document and report work-related injuries/illnesses.
• Ensure supervisor awareness of work hazards.
• Provide safety training and discipline for non-compliance.
• Increasingly required to demonstrate due diligence.

Worker Duties

• Comply with all applicable acts and rules.
• Report hazardous conditions or defective equipment.
• Follow employer safety and health rules (including PPE).
• Right to safe work conditions and safety-related information.
• Right to refuse unsafe work without reprisal.

Supervisor Duties

• Defined as someone with workplace charge and authority over workers.
• Required to advise employees of hazards.
• Ensure safety equipment/device usage.
• Provide written instructions when applicable.
• Take reasonable precautions to ensure worker safety.

Joint Health and Safety Committees

• Most jurisdictions require committees with union and management participation.
• Goal is to foster a safe and healthy workplace.
• Often require certified management and worker representatives.

Reasons for Unionization

• Primarily economic (wages, benefits).
• Dissatisfaction with management, strongly believed to be the most significant motivator regarding promotion, transfer and shift assignment.
• Social and leadership concerns (recognition, affiliation).

Union Formation Steps

• Initial contact: Employees and union officials explore unionization.
• Initial meeting: Organizer schedules meeting to gather support.
• Organizing committee: Employees form a committee to lead the campaign.
• Authorization Cards: Employees sign cards expressing union representation desire.
• Application for Certification: Union files application with labour relations board.
• Certification: Labour Relations Board declares union certification.
• Bargaining Committee: Negotiate collective agreement.

Collective Bargaining Process

• Prepare: Gather data, form bargaining teams.
• Develop Strategies: Identify proposals and limitations, analyze opponent goals. Formulate strike plans.
• Conduct Negotiations: Bargain in good faith, analyze proposals, resolve disagreements.
• Formalize Agreement: Clarify contract language; ratify collective agreement.
• Strikes: Legal requirements vary, involve lockout, strike replacements and boycotts.

Explore the foundational theories of employee motivation, including Equity Theory and Expectancy Theory. This quiz also covers key factors influencing compensation and the various employee benefits required by law. Test your understanding of these important concepts in organizational behavior.