Organizational approaches to design of pay and reward systems

And while employees can easily learn the tasks and procedures required to carry out their roles, organizations can benefit from providing motivational incentives for exceptional job performance. Motivational theory in an organization has to do with the way in which a company motivates its employees to perform as a group and within their individual job roles. Organizational Management The way an organization manages its employees plays a significant role in influencing productivity and morale levels.

Organizational approaches to design of pay and reward systems

Job analysis Job analysis encompasses a number of different methods. By contrast, a worker-oriented job analysis involves an examination of the knowledge, skills, abilities, and other characteristics KSAOs required to successfully perform the work.

Information obtained from job analyses are used for many purposes, including the creation of job-relevant selection procedures, performance appraisals and the criteria they require, and the development of training programs.

Personnel recruitment and selection[ edit ] Main article: Personnel recruitment processes include developing job announcements, placing ads, defining key qualifications for applicants, and screening out unqualified applicants.

Personnel selection is the systematic process of hiring and promoting personnel. Personnel selection systems employ evidence-based practices to determine the most qualified candidates.

Personnel selection involves both the newly hired and individuals who can be promoted from within the organization. Common selection tools include ability tests e. Personnel selection procedures are usually validated, i. A meta-analysis of selection methods found that general mental ability was the best overall predictor of job performance and attainment in training.

Performance management is the process of providing performance feedback relative to expectations, and information relevant to improvement e. Performance management may also include documenting and tracking performance information for organizational evaluation purposes.

Individual assessment and Psychometrics Individual assessment involves the measurement of individual differences.

With candidates for employment, individual assessment is often part of the personnel selection process. These assessments can include written tests, aptitude tests, physical tests, psycho-motor tests, personality testsintegrity and reliability tests, work samples, simulationsand assessment centres.

Introduction and Objectives

Early in the 20th century Arthur Kornhauser examined the impact on productivity of hiring mentally unstable workers.

Training and training evaluation[ edit ] Main article: Training Training involves the systematic teaching of skills, concepts, or attitudes that results in improved performance in another environment. Evidence indicates that training is often effective, and that it succeeds in terms of higher net sales and gross profitability per employee.

Training programs often include formative evaluations to assess the effect of the training as the training proceeds. Learning outcomes can be organized into three broad categories: Skill-based training aims to impart procedural knowledge e.

Affective training concerns teaching individuals to develop specific attitudes or beliefs that predispose trainees to behave a certain way e.

Organizational approaches to design of pay and reward systems

The analysis identifies the training needs of different departments or subunits. An organizational analysis also takes into account the climate of the organization and its subunits. For example, if a climate for safety is emphasized throughout the organization or in subunits of the organization e.

With organizations increasingly trying to identify "core competencies" that are required for all jobs, task analysis can also include an assessment of competencies.

Employee needs can be assessed using a variety of methods that identify weaknesses that training can address. Motivation in the workplace[ edit ] Main article:Performance management is the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals.

Industrial and Organizational Psychology. This document is an abridged version of the approved CRSPPP (Committee on the Recognition of Specialties and Proficiencies in Professional Psychology) petition for the recognition of Industrial and Organizational Psychology as a specialty in professional psychology..

Industrial and Organizational Psychology is represented by the Society for Industrial. Published: Mon, 5 Dec Yes, surely the reward system is a kind of major motivational factor adopted by any organization for its employees. Human Resource (HR) or employees of an organization are the key to unlock its potentials in the business environment.

The organizational behavior revolves around three main theoretical approaches: cognitive, behaviorist and social learning frameworks.

Chapter 34 - Psychosocial and Organizational Factors

In order to explore the internal and external factors that influence the design of pay and reward system, firstly, it is necessary to review the definition and types of reward and pay. In pay system, pay level, pay structure, and pay form are key elements.

Industrial relations - Organizational design: A central task of management is to reach the organization’s goals by motivating individual workers and coordinating their diverse efforts.

Although the concepts and methods used to structure work have changed considerably over the years, many firms see no need to change their methods of management.

Performance Management Cycle