Compensation strategy for nurses

1. Define the required behaviour

To understand the relative importance of the three types of behaviour, you need to understand the organizations context, the most important aspect of which is the managerial strategy.

To analyse tasks required for successful task behaviour, think about task complexity, skills required, material (i.e., things or people), and consequences of errors.

Please use secondary resources to find information about required behaviours for nurses.

2. Analyse the role of compensation

In defining the role that compensation will serve in our reward strategy, you need to consider to what extent intrinsic versus extrinsic rewards can be used to motivate behaviour.

Nursing staff receive many intrinsic rewards from the role they play in their organization, because of the work they do and the congruence between their goals and those of the organization. However, there are few extrinsic rewards and many undesirable features, such as shift work. Along with intrinsic rewards, compensation is used to elicit membership behaviour, but it is not used to direct task behaviour or to foster citizenship behaviour; intrinsic rewards serve this purpose. This approach fits best with a high-involvement strategy.

3. Suggest compensation strategy and level for nurses.

Please read CH 6 and analyse tabl 6.1 & 6.2 to answer the following questions for the case provided above:

1. Define expected types of behaviours (membership, task or OC) 2. Define the role of compensation in facilitating these forms of behaviour 3. Based on your answers for Q1&2, suggest a compensation mix: assign percentage for

base pay, P4P and benefits. Provide your arguments to support this. 4. Based on the information from the case on external conditions and current

competitiveness of the organization in the market, suggest a compensation level (below, at average or above average).