Podcast
Questions and Answers
What is the key takeaway regarding organizational rewards?
What is the key takeaway regarding organizational rewards?
- You get what you reward. (correct)
- You lose what you do not evaluate.
- You get what you ignore.
- You gain what you invest.
Why is human capital considered central to competitive advantage?
Why is human capital considered central to competitive advantage?
- It is easily replaceable.
- It is a significant investment for organizations. (correct)
- It increases organizational expenses without benefits.
- It represents a minor cost to organizations.
What emphasis is placed on reward systems in organizations?
What emphasis is placed on reward systems in organizations?
- Sustaining and leveraging human capital. (correct)
- Focusing solely on material rewards.
- Maximizing financial returns only.
- Eliminating all forms of compensation.
How has the attention to human capital shifted in organizational analysis?
How has the attention to human capital shifted in organizational analysis?
Which of the following statements reflects the significance of organizational rewards?
Which of the following statements reflects the significance of organizational rewards?
What is the primary objective organizations must define when establishing a reward system?
What is the primary objective organizations must define when establishing a reward system?
What must organizations be able to do in relation to the outcomes of their reward systems?
What must organizations be able to do in relation to the outcomes of their reward systems?
Which pay administration method is traditionally used to provide employees with compensation?
Which pay administration method is traditionally used to provide employees with compensation?
What business concept does Lawler emphasize as more important than pay differences among individual players?
What business concept does Lawler emphasize as more important than pay differences among individual players?
What defines 'base pay' in a typical organizational context?
What defines 'base pay' in a typical organizational context?
What trend is observed regarding corporate shareholders' views on CEO pay?
What trend is observed regarding corporate shareholders' views on CEO pay?
How is base pay for employees typically determined?
How is base pay for employees typically determined?
Which of the following is NOT a traditional method of administering pay?
Which of the following is NOT a traditional method of administering pay?
What percentage of the public believes that executives have profited at the expense of ordinary workers?
What percentage of the public believes that executives have profited at the expense of ordinary workers?
What issue do many organizations face regarding their goals for reward systems?
What issue do many organizations face regarding their goals for reward systems?
What have corporate shareholders increasingly demanded regarding the relationship between CEO compensation and worker wages?
What have corporate shareholders increasingly demanded regarding the relationship between CEO compensation and worker wages?
How is money perceived in the context of Maslow’s hierarchy of needs?
How is money perceived in the context of Maslow’s hierarchy of needs?
What example illustrates base pay for a part-time worker?
What example illustrates base pay for a part-time worker?
Which of the following statements reflects a common misconception about money in management theory?
Which of the following statements reflects a common misconception about money in management theory?
What has been emphasized in classical management theory concerning money?
What has been emphasized in classical management theory concerning money?
Why do some people believe there are disparities in CEO compensation?
Why do some people believe there are disparities in CEO compensation?
What is a consequence of treating managers as financially self-interested automatons?
What is a consequence of treating managers as financially self-interested automatons?
What was found about CEOs who hold stock options according to the research?
What was found about CEOs who hold stock options according to the research?
What is a limitation of reward systems like pay for performance?
What is a limitation of reward systems like pay for performance?
How can individual incentive rewards negatively impact sales behaviors?
How can individual incentive rewards negatively impact sales behaviors?
What can be an effect of stock options on corporate outcomes?
What can be an effect of stock options on corporate outcomes?
Which factor may limit the effectiveness of individual incentive rewards?
Which factor may limit the effectiveness of individual incentive rewards?
What is a critical outcome observed with option-loaded CEOs?
What is a critical outcome observed with option-loaded CEOs?
Which scenario reflects a potential issue with individual incentive plans?
Which scenario reflects a potential issue with individual incentive plans?
What is the primary objective of Dierbergs' recognition program?
What is the primary objective of Dierbergs' recognition program?
Which of the following actions exemplifies the type of customer service that Dierbergs rewards?
Which of the following actions exemplifies the type of customer service that Dierbergs rewards?
What type of rewards does Dierbergs provide to employees for their exceptional service?
What type of rewards does Dierbergs provide to employees for their exceptional service?
How does Dierbergs view the relationship between customer service and employee satisfaction?
How does Dierbergs view the relationship between customer service and employee satisfaction?
What has been a notable outcome of Dierbergs’ recognition program according to customer feedback?
What has been a notable outcome of Dierbergs’ recognition program according to customer feedback?
Why was Dierbergs awarded for its business practices?
Why was Dierbergs awarded for its business practices?
What can be inferred about the labor turnover rate at Dierbergs compared to the industry average?
What can be inferred about the labor turnover rate at Dierbergs compared to the industry average?
What effect has word-of-mouth advertising had on Dierbergs according to the recognition program's outcomes?
What effect has word-of-mouth advertising had on Dierbergs according to the recognition program's outcomes?
Study Notes
Importance of Organizational Rewards
- Organizations need to reward desired behavior to encourage employees to engage in it.
- The importance of human capital as a driver of competitive advantage highlights the significance of rewarding employees appropriately.
- The return on human capital needs to be carefully analyzed, similar to other investments.
Base Pay
- Base pay is determined by factors such as market conditions and the individual's experience and qualifications.
- Organizations may use hourly, weekly, monthly, or annual pay structures depending on the nature of the position.
Challenges of Pay for Performance
- Pay for performance systems work best when outcomes can be readily measured and tied to specific behaviors.
- In situations where performance is subjective or difficult to quantify, pay for performance may not be an effective strategy.
- Individual incentivization can lead to narrow behavior, such as salespeople focusing on sales numbers over customer needs.
- Stock option plans can incentivize CEOs to take high-risk actions, leading to potentially large gains and losses.
Employee Recognition Programs
- Organizations are increasingly adopting employee recognition programs to reward employees for going above and beyond to meet customer needs.
- Such programs aim to foster a positive work environment, enhance customer satisfaction, and boost employee morale and retention.
- Dierbergs, a company that implemented a successful employee recognition program, received an award for its best-in-class practices.
- The program utilizes various reward types, including gift certificates, movie passes, and even lunches with the CEO.
- Positive feedback, low turnover, and increased revenue all indicate the success of the program.
The Importance of Money as a Motivator
- While money may be overemphasized in some management theories, its importance as a motivator remains significant.
- It is crucial to remember that money is often seen as a basic need according to Maslow's hierarchy of needs.
- When implementing reward systems, organizations should consider potential outcomes, their measurability, and the connection between rewards and desired outcomes.
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Description
Explore the significance of rewards in organizations and how they foster desired employee behavior. Understand the complexities of base pay and the challenges associated with pay-for-performance systems. This quiz delves into key concepts related to human capital and compensation strategies.
