Adeyl Khan, Faculty, BBA, NSU Chapter 5, 6, 7. Adeyl Khan, Faculty, BBA, NSU

Adeyl Khan, Faculty, BBA, NSU

Exam 22ndChapter 5, 6, 7


Chapter 7Motivation Application


What does employee want!Work

Whenever you want Wherever you like

Follow your favorite band around! Watch movies on a workday! Go home at times when there are less traffic

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Is this a way to run business?


A real-life exampleSet own scheduleNo meetings (Subject to PE)

Result Voluntary turnover decreased Productivity Increase

4

40% IBM Employee

W/O a formal office

SUN employees

work anywhere

33% AT&T ManagersW/O dedicated

workplace


Job Characteristics ModelIdentifies five job characteristics and their

relationship to personal and work outcomes.

Skill variety

Task identity

Task significance

AutonomyMotivating by Job Design


Skill VarietyThe degree to which a job requires a

variety of different activities (how may different skills are used in a given day, week, month?).

High variety The owner-operator of a garage who does

electrical repair, rebuilds engines, does body work, and interacts with customers

Low variety A body-shop worker who sprays paint eight

hours a day


Task IdentityThe degree to which the job requires

completion of a whole and identifiable piece of work (from beginning to end).

High•A cabinetmaker who designs a piece of furniture, selects the wood, builds the object, and finishes it to perfection

Low•A worker in a furniture factory who operates a lathe to make table legs


Task SignificanceThe degree to which the job has a

substantial impact on the lives or work of other people

High•Nursing the sick in a hospital intensive care unit

Low•Sweeping hospital floors


AutonomyThe degree to which the job provides

substantial freedom and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out.

High•A telephone installer who schedules his or her own work for the day, and decides on the best techniques for a particular installation

Low•A telephone operator who must handle calls as they come according to a routine, highly specified procedure


FeedbackThe degree to which carrying out the work

activities required by a job results in the individual obtaining direct and clear information about the effectiveness of his or her performance.

High•An electronics factory worker who assembles a radio and then tests it to determine if it operates properly

Low•An electronics factory worker who assembles a radio and then routes it to a quality control inspector who tests and adjusts it


Jobs with skill variety, task identity, task significance, autonomy, and for which feedback of results is given, directly affect three psychological states of employees: Meaningfulness of work Personal feelings of

responsibility for results

Knowledge of results

Job Characteristics ModelMotivation,

Performance

Job Satisfaction

Absence

Turnover

Controls …


The Job Characteristics Model

Source: J.R. Hackman and G.R. Oldham, Work Design (excerpted from pp. 78–80). © 1980 by Addison-Wesley Publishing Co., Inc. Reprinted by permission of Addison-Wesley Longman, Inc. Moderating Variable


Job dimensions operate through the psychological states in influencing personal and work outcome variables rather than influencing them directly.

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Moderating variables >> Individuals growth needs>> Desire of self esteem, self actualization

Adeyl Khan, Faculty, BBA, NSU14


MPS IndexThe five core job characteristics can be

combined to form a motivating potential score (MPS) for a job, which can be used as an index of how likely a job is to affect an employee's attitudes and behaviors

MPS= (Sv + Ti + Ts)/3 x Autonomy x Feedback

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Improving Jobs to reflect Corporate Goal

Motivation,

Performance

Job Satisfaction Absence

Turnover

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Job (Re)design and schedulingJob Rotation/cross training

The periodic shifting of a worker from one task to another (challenging task).

Skills, knowledge, scheduling, training cost, productivity, disruptions

Job Enlargement (horizontal expansion) Change job Housekeeping employees

Brain turning pudding!


Job (Re)design and schedulingJob Enrichment

The vertical expansion of jobs Increases Planning, execution, and

evaluation

Satisfaction

Absenteeism

Turn-over

Freedom/Independence +Responsibility + Feedback

= Performance


Guidelines for Enriching a Job

Bank One-Training, Productivity, Satisfaction, Bottom Line


Alternative Work Arrangements

FlextimeJob SharingTelecommuting

Redesign jobs

Involving in

Decision Making

Motivating Work

Environment


Flextime Schedule

Employees work during a common core time period each day but have discretion in forming their total workday from a flexible set of hours outside the core.Choton is a morning person


Job Sharing The practice of having two or more people

split a 40-hour-a-week job. Issues

Finding the right partner Promotion Bonuses

Advantages More Heads! Skilled labor (Moms) Humanitarian


Telecommuting

Advantages

• Larger labor pool• Higher productivity• Less turnover• Improved morale• Reduced office-space costs• Traffic, dress, interruptions ….

Disadvantages (Employer)

• Less direct supervision of employees• Difficult to coordinate teamwork• Difficult to evaluate non-quantitative performance


Telecommuting

Employees do their work at home on a computer that is linked to their office.

Categories of telecommuting jobs: Routine information handling

tasks Mobile activities Professional and other

knowledge-related tasks


Performance = f(A x M x O)Rohini Vs. Anwar Gifted Vs. Hardworking

Work Environment Vs. Capability


Employee InvolvementA participative process that uses the

input of employees and is intended to increase employee commitment to the organization’s success.

Participative Management

Vs. Job Design


E.I. Programs

Participative Management•A process in which subordinates share a significant amount of decision making power with immediate superior.•Relevant Issues, trust/confidence•Competence, knowledge

Representative Participation

•Workers participate in organizational decision making through a small group of representative employees.•Management, Stockholders …•Motivation: Individual Vs. Group

Quality Circle

•A work group of employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions, and take corrective actions.•8-10 people•Employee satisfaction ?•Productivity ?


EI Programs and Motivation Theories

Employee Involvement Programs

Employee Involvement Programs

Theory Y(Believing

employees want to be involved)

Theory Y(Believing

employees want to be involved)

Two-Factor Theory(Intrinsic

Motivation)

Two-Factor Theory(Intrinsic

Motivation)

Hierarchy of needs (Employee

Needs)

Hierarchy of needs (Employee

Needs)

ERG (Employee

Needs)

ERG (Employee

Needs)

Physiological

Safety

Social

Esteem

Self-actualization


Rewarding EmployeesFour Aspects What to Pay How to PayWhat Benefits to OfferHow to Recognize Employees

Xers 1985+

Nexters 2000+


What to Pay Internal equity

Worth of job to organizationExternal equity

Worth in the industry (Competitiveness) Do a job survey

Pay leaders above the market rate Fortune 500 CEOs

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Rewarding employees


Variable Pay ProgramsA portion of an employee’s pay is based on

some individual and/or organization measure of performance. Piece rate pay plans Profit sharing plans Gain sharing plans

Rewarding employees

Elementary school-teacherSeniority Vs.

Performance


Variable Pay Programs …Piece-rate Pay Plans (Output)

Workers are paid a fixed sum for each unit of production completed. Example: Sweater Industry- No base rate!

How to pay a cricket teamMerit based pay (Performance)

Based on Performance Appraisals rating Pay α Performance Pay increase based on PA, Ambiguity Economic condition (Pay raise pool) ! Unions resist


BonusesRewards employees on recent

performance compared to historical performance

Fortune 100 CEOs, Bonus Mean of $1 MilBonuses Vs. Small Merit pay increase

Combinations!

Rewarding employees


Skill-Based Pay PlansPay levels are based on how many skills

employees have or how many jobs they can do.

Benefits of Skill-based Pay Plans: Provides staffing flexibility. Facilitates communication across the

organization. Lessens “protection of territory” behaviors. Meets the needs of employees for

advancement (without promotion). Leads to performance improvements.


Skill-Based Pay Plans (cont’d)Drawbacks

Lack of additional learning opportunities that will increase employee pay.

Continuing to pay employees for skills that have become obsolete.

Paying for skills which are of no immediate use to the organization.

Paying for a skill, not for the level of employee performance for the particular skill.


Linking Skill-based Plans and Motivation Theories

Skill Based Pay Plans

Skill Based Pay Plans

Reinforcement Theory

Reinforcement Theory

Equity

Theory (Comparison)

Equity

Theory (Comparison)

ERG Theory (Growth)

ERG Theory (Growth)

McClelland’s Need for

Achievement


Achievement

Hierarchy of needs (Self Actualization)



Physiological

Safety

Social

Esteem

Self-actualization

Achieveme

nt

Affiliation

Power




Achievement


Achievement


Variable Pay Programs (cont’d)Profit-Sharing Plans

Organization wide programs that distributecompensation based on some established formula designed around a company’s profitability.

Gain Sharing (Productivity Gain Vs. Profit) An incentive plan in which improvements in

group productivity determine the total amount of money that is allocated.

Employee Stock Ownership Plan (ESOPs) Below market rate- increase employee

satisfaction Job satisfaction and work motivation

depends on “Psychologically experience ownership”


Flexible BenefitsEmployees tailor their benefit program to

meet their personal need by picking and choosing from a menu of benefit options.

Core-Plus Plans: a core of essential benefits and a menu-like selection of other benefit options.

Modular Plans: predesigned benefits packages for specific groups of employees.

Flexible Spending Plans: allow employees to use their tax-free benefit dollars to purchase benefits and pay service premiums.

Linking reward to individuals goals Change in demographic


Expectancy Theory


At Super Club, a large warehouse store, the employees strive to obtain the "Employee of the Month" award with the benefits of having their picture featured on the wall of fame in the staff lounge. …


Employee Recognition ProgramsIntrinsic rewards: stimulate intrinsic

motivation Personal attention given to employee Approval & appreciation for a job

well done Growing in popularity and usage

Benefits of programs Fulfill employees’ desire for

recognition Inexpensive to implement Encourages repetition of desired behaviors

Drawbacks of programs Susceptible to manipulation by management

Long Term Motivation


Gift certificates & cash reward



Implications for Managers

In Order to Motivate Employees Recognize individual differences. Use goals and feedback. Allow employees to participate in decisions

that affect them. Link rewards to performance. Check the system for equity.

Documents

Adeyl Khan, Faculty, BBA, NSU Chapter 5, 6, 7. Adeyl Khan, Faculty, BBA, NSU