Person Outcomes Other Inputs Outcomes Inputs Person Other

공정성 이론 기본모형 Person Outcomes Other 비교 Inputs Outcomes Inputs Person > Other, inequitably overpaid Person = Other, equitably paid Person < Other, inequitably underpaid Outcomes : pay, working conditions, security, recognition, achievement etc. Input : skill, education, experience, seniority, effort, performance, job level etc.

• Lead - Maximize the ability to attract and retain quality employees. - Minimize employee dissatisfaction.

• Lag

기본급 • time - based system : 근속 도는 연령 • job - based system : 직무가치 • skill - based system : skill, knowledge, competency 임금인상 • time or life - based system : base-up, 효용 • performance - based system : merit, incentives, physical outputs • skill - based system : 능력 또는 skill 향상

Merit Pay와 Incentives의 특징비교 Merit is a reward that recognizes outstanding past performance, but incentives use pay as an inducement. Incentive systems are offered prior to the actual performance. Anticipated rewards are incentives. Insofar as employees begin to anticipate their merit pay, it acts as an incentive to induce performance. Merit pay usually adds into and permanently increases base pay where as incentives are one time payments and do not have a permanent effect on labor costs.

2) Rowan plan

3) Gantt plan

2. 3 집단성과급제 2. 3. 1. 이익분배제도 ▷ Rucker Plan ▷ Scanlon Plan ▷ Improshare

2. 3. 2. 이윤 분배제(profit-sharing plan)

Organizational Incentives 조직단위 보너스 계획의 특징 • A supplementary rather than a primary payment. • Make it possible to reward workers who provide essential services to line works yet who are paid only their regular base pay. • Encourage cooperation, not competition among workers.

Profit sharing • 목적 - To install a sense of partnership - To serve as a group incentive - To provide to give greater benefits to employees without incurring fixed commitment - A desire to attract better employees and reduce turnover - A desire to promote thrift - A desire for better employer - employee relations • 지불방법 - Cash - Payment Plan - Deferred - Payment Plan - combination - Payment Plan

Cell I : Straight piece work • Rate determination is based on units of production per time period and wages vary directly as a function of production level. • Easy to understand. • Difficulty in setting standards. Cell II : Standard hour plan • Setting incentive rate based on completion of a task in some expected time period. • 예 : 자동차 수리 ; brake 교체 - 표준작업시간 : 2시간 - 가격결정 • More practical than a straight plan for long-cycle operations and jobs that are nonrepetitive and require numerous skills for completions

Cell III : Taylor plan(Differential piece rate) • Two separate piecework rates : one for those who produce below of up to standard another for those who produce above standard. • To reward highly the efficient worker and penalize the inefficient worker. Cell IV : Production bonus plan • Pay an employee an hourly rate plus a bonus when the employee exceeds the standard. • Halsey so-so method derives its name from the shared split between worker and employer of any savings in direct cost.

Profit sharing • 목적 - To install a sense of partnership - To serve as a group incentive - To provide to give greater benefits to employees without incurring fixed commitment - A desire to attract better employees and reduce turnover - A desire to promote thrift - A desire for better employer - employee relations • 지불방법 - Cash - Payment Plan - Deferred - Payment Plan - combination - Payment Plan

Merit 시스템 목적 To use pay to motivate high levels of performance by increasing the instrumentality perceptions of employees. Merit Pay에 관한 관점 • merit pay는 지속적 관리가 필요하다. • Doing more with less • 임금과 성과 사이의 “인지된” 관계를 이해하는 것이 실질적 관계만큼 중요하다.

Merit 시스템에 대한 찬반의견 Pros : • Employ prefer that their pay be based upon their performance. • If an average wage is given to each employee, then high performers, the people that the organization wishes to retain, will be dissatisfied with their pay and may leave the organization. • If merit pay is not included as a component of the total compensation package, then performance is not being rewarded, and only membership is being rewarded. This provides an incentive for poor performers to remain with the organization. • Merit pay plans are based upon a number of well-established theories(expectancy theory and reinforcement theory). • There have been a number of empirical studies demonstrating the effectiveness of merit pay. • Merit pay will work when it is administered properly. • Motivation through pay is one way to increase productivity in the United States. • There are valid methods of performance appraisal that can be used. In addition, the measurement of performance is becoming easier, with the advent of management information system and the continuing decentralization and diversification of American companies. • Merit pay is increasingly important during periods of inflation. • There is more openness and employee participation in some pay plans. • Merit pay distinguishes between high-and low-performing employees. • Merit pay is an excellent source of performance feedback to the employee.

Cons : • It is difficult to make accurate performance ratings. • Merit pay plans are costly and difficult to administer. • Merit pay has little meaning during periods of high Inflation. • Differences in merit pay between high and low performers are very small. • There are problems with theories used to support merit pay(expectancy theory and reinforcement theory) • Merit pay has not worked for the federal government, and it may not work for executives. • Merit pay threatens the self-esteem of employees because they overestimate their own performance and as a result, feel underrewarded. A decrease in self-esteem may decrease performance. • Too much emphasis is placed on money as a motivator at the exclusion of other motivators coming from the job itself. • Labor unions prefer basing pay on seniority rather than on merit. • Emphasis is placed on satisfaction with pay rather than on job performance ; an attempt made to keep all employees satisfied, including low meaning performers. • Relative to the size of base pay, merit pay is very small and therefore has little meaning to employee. • Conflicts are created when a competitive reward system like merit pay is used. • Emphasis is placed upon individual performance to the exclusion of group performance.

Calculation of an Improshare Payout Assume: 1. 60 production workers. 3. 40 -hour worker week for all employees. 2. 50 nonproduction workers 4. Company produces three products, A, B, and C. Step 1: Calculate Employee Hour Standards for Each Product for Production Workers Only. • Product A (25 workers needed, each working 40 hours) and total production = 200 25 × 40 / 200 = 5 hours • Product B (20 workers, 40 hours, turning out 400 units of B) 20 × 40 / 400 = 2 hours • Product C (15 workers, 40 hours, turning out 600 units of C) 15 × 40 / 600 = 1 hours Step 2 : Incorporate the Time of Nonproduction Workers, That Is, Those Do not Directly Contribute to Production of Goods. Base productivity factor(BPF) = Total production and nonproduction hours/ total standard value hours Calculation of the numerator yields : 60 workers + 50 Workers × 40 hours = 4, 400 Calculation of the denominator( standard value hours) : • Product A - 5 hours/ unit × 200 = 1, 000 standard value (SV) hours • Product B - 2 hours/ unit × 400 = 800 standard value (SV) hours • Product C - 1 hours/ unit × 600 = 600 standard value (SV) hours Total standard value hours = 2, 400

Assume that production during some future time period of Production A = 400, B = 300, C = 400 Step 3: Calculate The Number of Hours It Should have Taken to Complete This Level of Production. • Product A - 5 hours × 400 units × 1. 833 = 3, 667 • Product B - 2 hours × 300 units × 1. 833 = 1, 100 • Product C - 1 hours × 600 units × 1. 833 = 733 Total number of hours that Improshare says production should take = 5, 500 Step 4 : Calculate Bonus. Actual hours taken (from company records) = 4, 400 Earned hours = 1, 100 Bonus hours (Earned hours × Some negotiated % )= 1, 000 standard × 0. 5 = 550 Bonus percentage = Bonus hours/ Actual hours = 12. 5 %(applied to worker wages)

예제 1. Good organizational reward systems have all of the following qualities except ① they ate individualized to reflected differences in what employees consider important to them. ② they are perceived as equitable ③ they are visible and flexible ④ they are based on seniority ⑤ they are allocated at a relatively low cost 2. Rachel works for a textile manufacturer as a seamstress. She is paid $0. 05 for each sleeve she sews an hour, up to 100 sleeves. She is paid $0. 09% for each sleeve she produces over the first 100. What kind of compensation system is used ? ① piecework ③ commission ② time-saving bonus ④ Scanlon Plan ⑤ IMPROSHARE 3. Last year, an aerospace engineer made $110, 000. His annual base pay was $100, 000. The remainder was calculated based on his ability to work faster than the standard hour's work. what kind of compensation system was used ? ① piecework ③ commission ② time-saving bonus ④ Scanlon Plan ⑤ IMPROSHARE

4. Competency-based compensation systems can best be described as a. paying employees according to their knowledge skills, and demonstrated behaviors. ① paying employees according to their knowledge, skills, and demonstrated behavirors ② paying employees according to how educated they are and the number of advanced degrees they possess ③ pay systems that promote team-based incentives ④ incentive systems whereby strategic goals of the organization are replaced by the value-added nature of employee skills ⑤ paying employees according to a piecework system whereby a sophisticated formula is used to determine the dollar value of the employee's bonus 5. Team-based compensation programs reward employees for achieving unit and organizational goals. Under which situation would a team-based compensation most likely function well ? ① A situation in which a team of workers perform mutually exclusive, independent tasks ② A situation in which a team of workers have mutual distrust for one another ③ A situation where work tasks are woven together such that the work of any one individual is difficult to assess ④ A situation in which competition among employees is encouraged and fostered ⑤ A situation in which group values conform to limiting production

6. Bill, a U. S. computer programmer, reluctantly moved his family to Saudi Arabia for a three-year assignment with his firm. A hardship premium, equal to his annual U. S. salary, was deposited is a U. S. account for each six month of his assignment. What kind of pay factor was used ? ① base pay ③ bonuses ② differentials ④ incentives ⑤ assistance programs 7. Pay adjustments designed to maintain the standard of living for an expatriate that she would enjoy at home are called ① base pay ③ bonuses ② differentials ④ incentives ⑤ assistance programs