1. Exhibit 7.7: Supply Side Theories 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
See Exhibit 9.2, pages 284 – 286 in the text

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
See Exhibit 10.4, page 313

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 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