Leadership Behavior

Rather, Equity, and the sense of fairness which commonly underpins motivation, is dependent on the comparison a person makes between his or her reward/investment ratio with the ratio enjoyed (or suffered) by others considered to be in a similar situation”(Balancing Employee Inputs and Outputs).

Correct :Pay compression is related to and affected by inflation. It is the narrowing of the ratios of pay between jobs or pay grades in a firm's pay structure.

Hence, person focused pay systems typically have higher average hourly wages than traditional pay systems. Since skill-based pay systems give everyone the opportunity to learn multiple skills, a large investment is made in training and, of course, training is costly in terms of paying trainers and losing production time. Furthermore, the more serious problem is that when individuals are constantly learning new jobs, production losses and problems result because inexperienced people are performing the work. Because employees are always trying to leam new skills under this kind of pay system,

Our solution to this ongoing problem that Engstrom Auto Mirror Plant is facing is firstly, clearly outlining their calculations for each individual’s yearly bonuses — ones that should specifically be a result of employees reaching a certain quota of production. This aids in eliminating distrust within the company to ensure employees that the company is fairly and regularly awarding bonuses for their individual work, which in turn will improve their productivity, according to the equity theory. Also, since they know that their efforts will certainly lead to a reward, they will be more motivated to work, according to the expectancy theory. In addition to this, employees who exceed the certain quotas of production or show significant improvements

This theory recognizes that individuals are concerned not only with the absolute amount of rewards they will receive; but is based on one’s inputs, efforts, experience, education, and competence. Employees can compare equity ratios to ensure fair treatment; and when treated fairly employees are motivated to work harder (Ramall, 2004). The theory motives employees to be proactive, satisfied employees and demonstrates a company’s willingness to ensure fairness and equality (Ramall, 2004). Engstrom Auto Mirror Plant by changing the team structure will gain the benefit of group decision making, shorten production time and improve communication and teamwork efforts.

When team members work hard for the organization discover they are receiving compensation basically the same as less goal driven team members, then the output of highly productive team members will decrease in the workplace.

Both underpayment inequity and over payment inequity are dysfunctional for organisations, managers and workers, because motivation is highest when equity exists and outcomes are distributed to workers on the basis of their inputs to the organisation. Workers who contribute a high level of inputs and receive in turn a high level of outcomes are motivated to continue to contribute a high level of inputs. Workers who contribute a low level of inputs and receive a low level of outcomes know that if they want to increase their outcomes, they must increase their inputs. (George, 2002)

out of employees because employees should exceed the expectations of the job to earn pay while

According to Sowmya, all staff should be rewarded equally without any discrimination. The writer argues that rewarding one staff and leaving the others unrewarded may demotivate the others. I do not agree with him. If all staff is rewarded equally, then it would lead to demotivation of the hardworking staff. A high reward for the hard working staff, then each would always go the extra mile to get the reward DeVries & Kets, 2004).

Reading passage describes that A.O.Smith Corporation produces car frames and they sell it to car manufacturing companies.So, they intended to increase their productivity to increase their productivity a new wage system is introduced called piecework wage system.In this system workers are paid according to their capability of number of pieces produced.If they produce more no of pieces they get more pay,if not they get less pay.Their intention is to increase in the productivity and expected workers morale and these outcomes are satisfied initially.

An employee may feel under-rewarded if they perceive that the ratio of his or her inputs is not the same of others. Whereas, if they feel those ratios are about equal, then they are likely to be satisfied with exchange relationship. Therefore, by building relationships, employees will feel and become satisfied when the input to output ratios based on similar input and outputs of other employees.

It can be said that performance related pay has been motivating employees who works in companies/organisations from small to big, hence the distribution of bonuses definitely need to be taken into account. A bonus is an extra compensation given to an employee above his/her normal wage. A bonus also could be used as a reward for accomplishing specific goals set by the company, or for devotion to the company. However Performance related pay methods has broaden up into different topics, Individual-performance pay and group-performance pay being the most common methods. This essay will therefore discuss not only just identifying both distribution methods, but its relationship between one and another. Also, preferred ideals which

Since the industrial revolution the United States economy has moved from manufacturing to servicing to capitalizing and is still in a constant change for the better. This change in also evident in the mindset and priorities of the workforce as there is a constant shift in their goals and achievements. In the past, money was usually the top priority and most important factor for the workforce, however personal satisfaction plays a larger role for younger entrants into the workforce (Rose 28). This is because employees want to feel a greater sense of accomplishment in their daily work life and to be recognized for their contributions. Monetary rewards do not play as big as a role as they used to in the past. To address this

From this theory we will see that Outcome / Input Ratio is under rewarded. From Conversation between Researcher and Alby Siegel. We know that Alby get some idea that can input couple of hundred thousand dollar profit across the country, but the company only Outcome or will give Alby for $500. and he feels that the amount of money is an insult. Equity evaluation what company get and what the employee get is really not balanced which the employee feels under rewarded.

The organizational justice (OB, p. 256) is taken to extremes. Implementing the same reward through the company notwithstanding local market and standard of living, notwithstanding individual performance creates the feeling of inequity and does not encourage doing better than the average. Attempts to minimize sabotage appear to focus on treating employees fairly and honestly, by