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Bauer, Human Resource Management
SAGE Publishing, 2020
Answers to In-Text Questions
Chapter 12: Rewarding Performance
Improving Patient Care with Financial Rewards: Geisinger Health System
Case discussion questions:
1. In addition to patient care quality, what other physician-related outcomes could
Geisinger improve by using pay-for-performance programs? What might result from
focusing on these additional outcomes?
Physicians could also be rewarded based on data collected in patient files, ease of
2. List some of the reasons why you think some physicians decided to leave Geisinger
after the company implemented the new pay-for-performance programs.
Some physicians might have been concerned about the ability to provide quality
service, or not being able to spend time with patients who have additional needs.
Bauer, Human Resource Management
SAGE Publishing, 2020
3. Geisinger distributed approximately 20% of physicians’ compensation as pay for
performance. This was tied to achieving strategic goals associated with patient care
and productivity. In the future, do you think Geisinger should increase or decrease
this percentage? Why?
Responses will vary by students. A case can be made for increasing the percentage as
4. What unanticipated patient and physician outcomes might result from taking a pay-
for-performance approach?
Students might identify a variety of issues and many will likely be tied to the
Bauer, Human Resource Management
SAGE Publishing, 2020
5. In your opinion, should all health care systems develop and implement pay-for-
performance programs for physicians? What about for nurses and other direct-care
providers?
Opinions will vary by students but this is certainly a possibility. In fact, many health
Spotlight on Ethics: Merit Pay for Teachers
Questions:
1. Given the risk that low-performing teachers may do a poor job of preparing their students
for eventual career success, do you think it is ethical to determine teacher pay without
taking teacher performance into account?
Responses will vary by students. Students will have experienced many teachers by this
2. Do you think it is ethical to base teacher pay on performance indicators that may be, to
some extent, beyond teacher control? Why or why not? Give some examples to support
your opinion.
Bauer, Human Resource Management
SAGE Publishing, 2020
Responses will vary by students. Much of the discussion is similar to those ideas
Mini-Case Analysis Exercise: Pay-for-Performance and Goal Setting
Questions:
1. Based on goal-setting theory, what types of goals tend to lead to greater motivation and
greater performance? Why?
Goals should be specific and measurable and provide a degree of challenge in order to
2. Using goal-setting theory as a framework, if you were to interview current manufacturing
employees about the motivating potential (or lack thereof) of the goals pertaining to
waste reduction and units produced, what questions might you ask?
Bauer, Human Resource Management
SAGE Publishing, 2020
Responses will vary by student. One comment that should be addressed is the comment by
HR Decision Analysis Exercise: Aligning Individual and Team Rewards
Please provide the rationale for your answer to each of the questions below.
Is the compensation package legal, ethical, and fair?
The compensation package might be legal and ethical, but may not be fair. If the majority of the
Is it evidence based/evidence informed?
This might be evidence informed because exit interviews are indicating a need to reward high-
Bauer, Human Resource Management
SAGE Publishing, 2020
Does it foster healthy employee–employer relationships?
Student opinions will vary. This could be a strong program for high achievers because they are
Is it time- and cost-effective?
While student responses will vary, it seems to be time- and cost-effective. High performers are
Does it take a systematic stakeholder perspective?
This appears to stake a systematic stakeholder perspective, even though it may not completely
Bauer, Human Resource Management
SAGE Publishing, 2020
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Considering your analysis, overall, do you think this would be an effective decision? Why or why
not?
This could be a very effective decision. An average base salary is available to all. Incentives for
What, if anything, do you think should be done differently or considered to help make this
decision more effective?
Responses will vary but should consider aspects of the job that support the sales effort. Often,
high achievers are responsible for training new hirers, but this takes time away from the sales
Bauer, Human Resource Management
SAGE Publishing, 2020
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HR Decision-Making Exercise: Applying Expectancy Theory to Understand Pay for
Performance
1. With your group, identify and discuss the core components and propositions of
expectancy theory.
Discussion will vary by group but should include an understanding of motivation,
2. Based on the information provided, do you think that low perceived expectancy among
sales associates explains the lack of motivation to sell old items with SPIFs attached?
Why?
Expectancy theory attached to a pay-for-performance program helps us understand how
Bauer, Human Resource Management
SAGE Publishing, 2020
3. Discuss whether sales associates’ perceptions of instrumentality explain the lack of
motivation to sell items with SPIFs.
Instrumentality refers to the perceived connection between performance and rewards.
4. Discuss whether sales associates’ perceptions of valence explain the lack of motivation
to sell items with SPIFs.
Valence is the extent to which individuals perceive a reward as being attractive or
