Asked by Filippa Hansebo on Jun 19, 2024

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Explain why organizations pursuing a high-involvement management strategy may find the notion of offering indirect pay to employees somewhat problematic and at odds with the principles of high involvement?

High-Involvement Management

An approach to management that emphasizes employee participation in decision-making and operational processes.

Indirect Pay

Compensation that employees receive indirectly, including various types of insurance, retirement benefits, educational assistance, and other non-wage perks.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief, behavior, or reasoning.

  • Comprehend the theory and usage of indirect compensation.
  • Analyze the effectiveness of various pay systems in the context of organizational strategies.
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Ahmad AbboudJun 25, 2024
Final Answer :
This question should begin with a detailed explanation of high-involvement management strategy,particularly focusing on the notion that extrinsic rewards should be geared towards driving strong performance,and not towards controlling poor performance/output.Then,students need to link or identify that by its very nature,indirect pay does not perfectly fit a high-involvement management strategy; indirect pay is not necessarily linked to corporate or enterprise performance,while at the same time,high-involvement organizations value their employees and do not want valuable employees to leave the organization as a result of a poor indirect pay packages.Notions of motivation theory may also be part of this answer,i.e.,organizations need to be able to satisfy lower order needs (safety),etc.,before higher order needs can be satisfied.