Studies in Personnel and Industrial Psychology

By Edwin A. Fleishman | Go to book overview

profit sharing. Bonuses and commissions need not be related to profits, but they are related to some activity, and are, obviously, appropriate to the intent to make more money by producing more. In general, the reward is sure to follow the results, and it comes soon after. These forms of compensation meet, or can easily be made to meet, the four requirements of an effective incentive.

9. Individual and group incentive plans. Incentive plans score on all four criteria: the incentive is directly related to performance and to the intent to earn more by producing more; the rewards are certain, and they come quickly.

To make group incentives wholly satisfactory on the first two criteria, the size of the group may need adjusting. As was noted earlier, small groups are usually more productive than large groups. In small groups the individual's contribution is more apparent, and there is more room for his intent to produce to come into play. Industrial engineers usually equate the group with an operational unit, which may actually be quite large. To achieve the optimum operation of an incentive plan they might do well to make the group as small as timekeeping and other control activities will permit.


27. Need Satisfactions and Employee Turnover*

Ian C. Ross and Alvin F. Zander

THIS STUDY WAS undertaken in order to determine whether the satisfaction of certain psychological needs by an employment situation has a demonstrable relationship to labor turnover. We were primarily interested in needs which could be satisfied by the social dimensions of the work situation. Of course, all organizations satisfy some of the needs of their members otherwise the membership could not exist because persons would not belong to it. Even the few organizations with involuntary memberships, such as prisons, meet some needs, if only the physical requirements of inmate members. We found it helpful to distinguish between two kinds of need satisfactions that organizations give their members. One kind of need satisfaction is provided by means of money payments. These payments permit the member to obtain need satisfaction by purchasing goods and services that will meet at least some of his

____________________
*
From Personnel Psychology, Vol. 10, 1957, pp. 327-38.

-259-

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