Employee Motivation and Compensation Theories

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Questions and Answers

What is equity according to equity theory?

Equity is achieved when an individual's perceived input/output ratio equals the input/output ratio of referent others.

What are the key questions in Expectancy Theory?

The key questions are: Is the task worth doing? Will I receive the rewards? Can I accomplish the task?

Name two internal factors that influence compensation strategy in an organization.

Compensation strategy is influenced by the worth of the job and the employee's relative worth.

What are some external factors affecting employee compensation?

External factors include conditions of the labor market and area wage rates. Signup and view all the answers

List three employee benefits required by law in Canada.

Required benefits include Canada Pension Plan, Employment Insurance, and Workers' Compensation Insurance. Signup and view all the answers

What are flexible benefits plans?

Flexible benefits plans, or cafeteria plans, allow employees to choose benefits that suit their individual needs. Signup and view all the answers

What is one advantage of flexible benefits plans?

One advantage is that employees can select benefits that match their individual needs. Signup and view all the answers

What is one key duty of employers regarding workplace safety?

Employers must inform employees about safety and health requirements. Signup and view all the answers

What rights do employees have when it comes to unsafe work conditions?

Employees have the right to refuse unsafe work without fear of reprisal. Signup and view all the answers

What is one responsibility of supervisors in a workplace?

Supervisors must advise employees of potential workplace hazards. Signup and view all the answers

Why are joint health and safety committees important?

They establish a non-adversarial climate for creating a safe and healthy workplace. Signup and view all the answers

What is a primary reason employees unionize?

Dissatisfaction with management is often the strongest reason. Signup and view all the answers

What is the first step in forming a union?

The first step is when employees and union officials make contact to explore possibilities of unionization. Signup and view all the answers

What is the aim of gathering authorization cards during union organization?

To demonstrate employee willingness to be represented by a union. Signup and view all the answers

What should be clarified during the formalization of a collective agreement?

Contract language must be clarified. Signup and view all the answers

What must bargaining teams do before negotiations?

They must gather data to prepare for negotiations. Signup and view all the answers

What is an important consideration for a striking union?

They must ensure they are bargaining in good faith. Signup and view all the answers

Study Notes

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.

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Description

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.