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MGT503 Assignment#1 Solution

1:   What type of non-financial rewards could be offered by the WAPDA administrators to reinforce high employee performance? (5) Non-financial rewards

  • Types of non-financial reward
  • Work/life balance
  • Developing the individual
  • creating a good work environment
  • No financial incentives/rewards also include employee benefits such as vacation, health care, etc,

2:   What role does Equity theory play in the new system? (5)

An individual will consider that he is treated fairly if he perceives the ratio of his inputs to his outcomes to be equivalent to those around him. Thus, all else being equal, it would be acceptable for a more senior colleague to receive higher compensation, since the value of his experience (an input) is higher. The way people base their experience with satisfaction for their job is to make comparisons with themselves to the people they work with. If an employee notices that another person is getting more recognition and rewards for their contributions, even when both have done the same amount and quality of work, it would persuade the employee to be dissatisfied. This dissatisfaction would result in the employee feeling underappreciated and perhaps worthless. This is in direct contrast with the idea of equity theory, the idea is to have the rewards (outcomes) be directly related with the quality and quantity of the employees contributions (inputs). If both employees were perhaps rewarded the same, it would help the workforce realize that the organization is fair, observant, and appreciative.

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