Exhibit 7.7: Supply Side Theories and Implications

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

Exhibit 9.4: Motivation Theories See Exhibit 9.2, pages 284 – 286 in the text

Does Compensation Motivate Behavior? General Comments Organizations with “high-performance work practices” had annual sales that averaged $27,000 more per employee.

Exhibit 10.5: Individual Incentive Plans See Exhibit 10.4, page 313

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

EEO and Performance Evaluation Key Issues: Establishing a Performance Appraisal System 1 Provide specific written instructions on how to complete appraisal 2 Incorporate clear criteria for evaluating performance - Performance dimensions should be written, objective, and clear 3 Provide a rational foundation for personnel decisions via adequately developed job descriptions 4 Require supervisors to provide feedback about appraisal results to employees 5 Incorporate a review of performance ratings by higher level supervisors 6 Consistent treatment across raters, regardless of race, color, religion, sex, and national origin should be evident