Exhibit 7.7: Supply Side Theories and Implications

1
Exhibit 7.7 Supply SideTheories and
Implications
2
From Policy to Practice Grades and Ranges

• Why bother with grades and ranges?
• Offer flexibility to deal with pressures from
  external markets and differences among firms
• A pay range exists whenever two or more rates are
  paid to employees in the same job
• Recognize individual performance differences with
  pay
• Meet employees' expectations that their pay will
  increase over time, even in the same job
• Encourage employees to remain with the
  organization

3
Exhibit 9.4 Motivation Theories
4
Does Compensation Motivate Behavior? General
Comments

• Organizations with high-performance work
  practices had annual sales that averaged 27,000
  more per employee.

5
Exhibit 10.5 Individual Incentive Plans
6
Types of Gain-Sharing Plans

• Implementation of Scanlon/Rucker Plans
• Two major components are vital to implementation
  and success
• Productivity norm
• Effective worker committees

7
EEO and Performance Evaluation
Key Issues Establishing a Performance Appraisal
System