Portfolio for Organizational Behavior

Buchanan, A. H. (2001). Organizational Behaviour:An Introductory Text (4 ed.). (F. T. Hall, Ed.) Pearson Education.

Serious issues with incentives also include employees telling their superiors that everything is under control when it isn?t, just to save their bonus. Kohn then states that ?There are very few things that threaten an organisation as much as a hoard of incentive driven individuals trying to curry favour with the incentive dispenser? (1993, p.56).

Pay-for-performance plans are formal compensation systems that are directly related to organizational or individual performance. The United States Department of Labor defined pay-for-performance as a raise in pay based on a set of criteria put in place by employers, and notes that the Fair Labor Standards Act,

The first implication is determining what to reward. Management must first align overall strategy with projected business outcomes, and decide what type of performance will be measured, analyzed and considered in a pay for performance program. Key factors such as support from the management, establishing a valid and fair measuring system, along with a credible evaluation system and projecting effectiveness of the program in the long term are all needed in order for the plan to function

Good performance is rewarded through timely job promotions, special recognition and in some cases monetary rewards and incentives.

Although the "pay" in "pay for performance" can refer to any of the more traditional components of reward programs, the organization should look beyond its current forms of compensation and consider whether additional approaches might work best in the long term.

A Performance-Based Pay system is an increasingly popular compensation method used by organizations to increase productivity. A goal for all companies is to try and remain competitive and control costs, this is a reason for performance-based pay systems becoming more popular. This type of system attempts to link compensation to performance. (Gena Richter, 2002) These systems are directly tied to organization or individual performance and are most effective when based on objective measures of quantity or quality of performance. If we wish to have a direct impact on work motivation, it must be linked directly to the performance of desired behaviors. In order for to put this type of system into place, performance evaluations must be conducted regularly , as well as training and development for those with performance that isn't quite up to par. These additional resources will be necessary for our organization if we implement a performance based pay system. (William B. Bernathy, Ph. D., 2004)

Knights, D. & Willmott, H. 2007. Introducing organisational behaviour and management. Australia : Thomson, 2007, pp. 344-372.

The company’s compensation programs are result oriented market focused and flexible. Pay for Performance is one of the key compensation program, which includes various pay, benefits and special programs offered by the company.

Incentive pay, also known as "pay for performance" is generally given for specific performance results rather than simply for time worked. While incentives are not the answer to all personnel challenges, they can do much to increase worker performance. (Billikopf) Performance pay has various names: merit pay, pay for performance, knowledge-and-skill- based pay, or individual or group incentive pay. (Delisio)

Many Problems in Organizations are created because of Faulty Incentives and Flawed reward systems that are setup to accomplish one thing but actually does the opposite.

Although research generally confirms that pay-for-performance plans can influence greater outcomes, it is unclear how effective different pay plans are relative to each other (Park, 2012). Like most things in business, compensation is something that requires evaluation, study, assessment, strategy, modeling and integration.  Achieving a pay for performance culture does not happen without paying attention to the behaviors, activities, rewards and motivations that have to be linked and reinforced through a well engineered and successfully executed process.  Actually if that process does not tie rewards to shareholder financial objectives, employ the proper mix of compensation elements, result in meaningful dollars, embrace performance that employees can impact and are effectively communicated and reinforced, then the results it produces will likely fall short (Vision Link Advisory Group, 2013).

Organisational Behaviour (OB) is the study of human behaviour in an organisation. It is a multidisciplinary field devoted to the understanding individual and group behaviour, interpersonal processes and organisational dynamics. OB is important to all management functions, roles and skills. Since organisations are built up levels - individual, group and an organizational system as a whole, it is important for managers to understand human behaviour in order to meet the organizations overall goals. I found several key learning areas that are meaningful, interesting and relevant to my work over the course of studying this unit. These key learning areas have not only expanded and improved my view of organisational behaviour but they also have

Pay for performance is to link employees’ salary or salary increase to his or her performance. It seems to be a reasonable or attractive idea but it often does not work well in organizations. Please use at least 4 motivation theories or models to explain why pay for performance may not work as expected—particularly in government and nonprofit organizations.

Organizational behavior is the behavior of individuals, either one or a group. It is not the behavior of an organization, but rather the behavior of the people in an organization. This can be anywhere from a family at home to a church to a work group within a company. Some of the challenges that make behaviors challenging in today’s workplace are high performance, ethical behavior, productivity improvement, technology utilization, quality, diversity, work-life balance, and the global economy, (Schermerhorn, 2003, P. 1).