ch11 HR Edited
ch11 HR Edited
ch11 HR Edited
Resource Management
Eighth Edition
DeCenzo and Robbins
Chapter 11
Establishing Rewards and Pay Plans
Introduction
• People do what they do to satisfy some
need and they look for a payoff or reward.
• The most obvious reward is pay, but there
are many others, including:
– promotions
– desirable work assignments
– peer recognition
– work freedom
Types of Reward Plans
Intrinsic versus Extrinsic Rewards
• Intrinsic rewards (personal satisfactions)
come from the job itself, such as:
– pride in one’s work
– feelings of accomplishment
– being part of a work team
Types of Reward Plans
Intrinsic versus Extrinsic Rewards
• Extrinsic rewards come from a source
outside the job
– include rewards offered mainly by management
– Money
– Promotions
– Benefits
Types of Reward Plans
Financial versus Non-financial Rewards
• Financial rewards include:
– wages
– bonuses
– profit sharing
– pension plans
– paid leaves
– purchase discounts
• Non-financial rewards emphasize making life on
the job more attractive; employees vary greatly on
what types they find desirable.
Types of Reward Plans
Performance-based versus Membership-Based
Rewards
• Performance-based rewards are tied to specific
job performance criteria.
– commissions
– piecework pay plans
– incentive systems
– group bonuses
– merit pay
• Membership-based rewards such as cost-of-
living increases, benefits, and salary increases
are offered to all employees.
Introduction
Job Evaluation and the Pay Structure