Question: Direct compensation, satisfaction, and employee performance at Amazon Direct compensation involves monetary payments to employees for time worked or results obtained. In effect, high performances
Direct compensation, satisfaction, and employee performance at Amazon
Direct compensation involves monetary payments to employees for time worked or results obtained. In effect, high performances can indicate high satisfaction, and engagement, motivated by compensation. From the finding it can be established that employees earn a wage of $15 dollar per hour this was in fact twice the lowest pay permitted by the government. This shows there is a positive correlation between pay level and pay satisfaction. Lawlers (1971) discrepancy model can be utilized to explain this. His model states that pay satisfaction is only gained when the gap between the perceived value that a person should receive and what is received closes. Additionally, with this wage twice the size of minimum wage it shows that employees were satisfied with their job and its wages but were not increasingly motivated to go this extra mile. This was because employees were content with their salaries. To add to this there were no monetary benefits, there include merit pays and variable pays. Merit pays, which determine if this salary can be improved, are based on employees ability to effectively perform, revealed through appraisals. Given that some persons may value money to a higher extent than others, merit pay can be an integral motivating factor. Employees were turning out just for a fixed check. They will pass up on chances to bring in cash as time goes on as an award for staying with the organization. It can be determined that financial incentives can empower individuals to attain better results, therefore money has a huge influence on accessing the diligence and commitment of workers as a primary motivator for employees. The average stay for employees working in Amazon is nine to twelve months. This can cause a negative impact for the business where workers would not feel motivated as they were before when incentives were presented. By taking away the bonus this would cause workers to not work 31 as hard as before because they are not getting rewarded for their hard work and this can be further linked to employee performance. Employee performance will increase once workers know they will be rewarded for exceptional work. The findings stated that 61% of employees perceived themselves as having good or very good salaries, giving it a rating of 3.6 out of 5 stars. Employees were satisfied with their direct compensation but had intrinsic dissatisfaction. This shows the link between direct compensation and job satisfaction. However direct compensation can not be fully linked to employee motivation while some employees value monetary rewards others do not. The findings indicated with this type of working conditions one must feel job dissatisfaction in the job place then they feel like they are Amazon robots and need to work at a fast and quick pace.
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