CH 6 Applied Performance Practices

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Chapter 6

Applied PerformancePractices

Canadian OB 7e: McShane/Steen 1 © 2009 The McGraw-Hill Companies, Inc. All rights reserved

http://highered.mcgraw-hill.com/sites/0070979898/student_view0/chapter6/key_terms.html



Applied Performance Practices atNucor

Nucor has survived and thrived in the turbulent steel

industry through the benefits of performance-based

rewards, job design, and empowerment.

Courtesy Nucor









Financial rewards -- fundamental partof employment relationship

Pay has multiple meanings

• symbol of success

• reinforcer and motivator

• reflection of performance

• can reduce anxiety

Men value money more than women

Cultural values influence the meaningand value of money

Financial Reward Practices

© Corel Corp. With permission.



Types of Rewards in theWorkplace

Membership and seniority

Job status

Competencies

Performance-based




Membership/Seniority BasedRewards

Fixed wages, seniority increases

Advantages

• Guaranteed wages may attract job applicants

• Seniority-based rewards reduce turnover

Disadvantages

• Doesn‟t motivate job performance

• Discourages poor performers from leaving• May act as golden handcuffs (tie people to the job)



Job Status-Based Rewards

Includes job evaluation and status perks

Advantages:

• Job evaluation tries to maintain pay equity

• Motivates competition for promotions

Disadvantages:

• Employees exaggerate duties, hoard resources

• Reinforces status, hierarchy• Inconsistent with workplace flexibility



Competency-Based Rewards

Pay increases with competencies acquiredand demonstrated

Skill-based pay

• Pay increases with skill modules learned

Advantages

• More flexible work force, better quality,consistent with employability

Disadvantages• Potentially subjective, higher training costs



Performance Pay at

Spruceland MillworksSpruceland Millworks, an

Alberta-based

remanufacturer of

mouldings, decking, andother niche lumber

products, is a high-

performance workplace

that rewards individual,team, organization-level

performance.“



Organizationalrewards

• Profit sharing• Share ownership• Share options• Balanced scorecard

Teamrewards

• Bonuses• Gainsharing

Individualrewards

• Bonuses• Commissions• Piece rate

Performance-Based Rewards



Evaluating OrganizationalRewards

Positive effects• Creates an “ownership culture”

• Adjusts pay with firm's prosperity

• Scorecards align rewards with several specific organizational

outcomes

Concerns with performance pay• Weak connection between individual effort and rewards

• Reward amounts affected by external forces



Improving RewardEffectiveness

Link rewards to performance

Ensure rewards are relevant

Team rewards for interdependent jobs

Ensure rewards are valued

Watch out for unintendedconsequences




Job Design

Assigning tasks to a job, including the

interdependency of those tasks with other

jobs

Organization's goal -- to create jobs that

allow work to be performed efficiently yet

employees are motivated and engaged



Job Specialization

Dividing work into separate jobs that includea subset of the tasks required to complete theproduct or service

Scientific management

• Frederick Winslow Taylor

• advocates job specialization

• Taylor also emphasized person-job matching,training, goal setting, work incentives



Advantages Disadvantages

Evaluating Job Specialization

Less time changingactivities

Lower training costs

Job mastered quickly

Better person-jobmatching

Job boredom

Discontentment pay

Higher costs

Lower quality

Lower motivation



Work

motivationGrowth

satisfaction

Generalsatisfaction

Workeffectiveness

Job Characteristics Model

Feedbackfrom job

Knowledgeof results

Skill variety

Task identityTask significance

Meaningfulness

Autonomy Responsibility

Individualdifferences

CriticalPsychological

States

Core JobCharacteristics Outcomes



Job Rotation

Moving from one job toanother

Benefits

• Minimizes repetitive straininjury

• Multiskills the workforce

• Potentially reduces jobboredom

Job „A‟

Job „B‟

Job „C‟

Job „D‟



Job Enlargement

Adding tasks to an existing job

Example: video journalist

Employee 1Operates camera

Employee 2

Operates sound

Employee 3Reports story

Traditional news team

Video journalist

• Operates camera • Operates sound • Reports story



Job Enrichment

Given more responsibility for scheduling,coordinating, and planning one‟s own work

1. Clustering tasks into natural groups• Stitching highly interdependent tasks into one job

• e.g., video journalist, assembling entire product

2. Establishing client relationships• Directly responsible for specific clients

• Communicate directly with those clients



Kambuku Empowerment

Pretoria Portland Cementintroduced “Kambuku”, a

companywide initiative that

made the South Africancompany moreperformance-orientedthrough employeeempowerment.

Courtesy Pretoria Portland Cement



Dimensions of Empowerment

Meaning

Competence

Employees believe their work isimportant

Employees have feelings of self-efficacy

ImpactEmployees feel their actionsinfluence success

Self-determination

Employees feel they havefreedom and discretion



Supporting Empowerment

Individual factors

• Possess requiredcompetencies, able toperform the work

Job design factors

• Autonomy, task identity,task significance, jobfeedback

Organizational factors

• Resources, learningorientation, trust

Courtesy Pretoria Portland Cement



Self-Leadership

The process of influencing oneself toestablish the self-direction and self-motivation needed to perform a task

Includes concepts/practices from:

• Goal setting

• Social learning theory

• Sports psychology



Elements of Self-Leadership

PersonalGoal Setting

ConstructiveThoughtPatterns

DesigningNatural

Rewards

Self-Monitoring

Self-Reinforce-

ment

Personal goal setting• Employees set their own goals

• Apply effective goal setting practices




DesigningNatural

Rewards

Self-Monitoring

Self-Reinforce-

ment



Positive self-talk• Talking to ourselves about thoughts/actions

• Potentially increases self-efficacy

Mental imagery

• Mentally practicing a task• Visualizing successful task completion



DesigningNatural

Rewards


Self-Monitoring

Self-Reinforce-

ment



Finding ways to make the job itself moremotivating

• eg. altering the way the task is accomplished




DesigningNaturalRewards

Self-Reinforce-ment


Self-Monitoring


Keeping track of your progress toward the self-set goal

• Looking for naturally-occurring feedback

• Designing artificial feedback



Self-Reinforce-ment


DesigningNaturalRewards

Self-Monitoring



“Taking” a reinforcer only after completing a

self-set goal

• eg. Watching a movie after writing two more sectionsof a report

• eg. Starting a fun task after completing a task thatyou don‟t like



Chapter 6

Applied PerformancePractices

31 © 2009 Th M G Hill C i I All i ht d

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CH 6 Applied Performance Practices