Chapter 08 16th.pptx

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Chapter 8: Motivation: From Concepts to Applications

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Learning ObjectivesAfter studying this chapter, you should be able to:Describe the job characteristics model and the way it

motivates by changing the work environment.Compare the main ways jobs can be redesigned.Explain how specific alternative work arrangements can

motivate employees.Describe how employee involvement measures can motivate

employees.Demonstrate how the different types of variable-pay

programs can increase employee motivation.Show how flexible benefits turn benefits into motivators.Identify the motivational benefits of intrinsic rewards.

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Copyright © 2015 Pearson Education, Inc. Copyright © 2015 Pearson Education, Inc.

Job Characteristics Model

Characteristics:

1. Skill variety

2. Task identity

3. Task significance

4. Autonomy

5. Feedback

Characteristics:

1. Skill variety

2. Task identity

3. Task significance

4. Autonomy

5. Feedback


Identifies five job characteristics and their relationship to personal and work outcomes.

Copyright © 2015 Pearson Education, Inc. Copyright © 2015 Pearson Education, Inc. .

Skill Variety

The degree to which a job requires a variety of different activities (how may different skills are used in a given day, week, month?).

Task Identity

The degree to which the job requires completion of a whole and identifiable piece of work (from beginning to end) that results in a visible outcome.

Task Significance

The degree to which the job has a substantial impact on the lives or work of other people.


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Job Characteristics Model (cont’d)Autonomy

The 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.

Feedback

The 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.


Job Characteristics ExamplesSkill Variety- i.e. the job of an owner-operator of a garage

who does electrical repairs, rebuilds engines and interacts with customers

Task Identity - i.e. the job of a cabinet maker who designs a piece of furniture, selects the wood, builds the object and finishes it to perfection

Task Significance - i.e. the job of a nurse handling the diverse needs of patients in an intensive care unit of a hospital


Job Characteristics ExamplesAutonomy - i.e. a salesperson scheduling his or her

own work each day.Feedback - the job of a factory worker who assembles

iPods and tests them to see if they operate properly



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

Knowledge of results

Meaningfulness of work

Personal feelings of responsibility for results


LO 1

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Describe the Job Characteristics Model and the Way It Motivates by

Changing the Work Environment


Describe the job characteristics model and evaluate the way it motivates by changing

the work environment

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LO 1

Much evidence supports the JCM concept that the presence of a set of job characteristics—variety, identity, significance, autonomy, and feedback—does generate higher and more satisfying job performance.

A few studies have tested the job characteristics model in different cultures, but the results aren’t very consistent.


Compare the Main Ways Jobs Can Be Redesigned

Repetitive jobs provide little variety, autonomy, or motivation.

Job Rotation Referred to as cross-training. Periodic shifting from one task to another. Strengths: reduces boredom, increases motivation,

and helps employees better understand their work contributions.

Weaknesses: creates disruptions, requires extra time for supervisors addressing questions and training time, and reduced efficiencies.

LO 2

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Job EnrichmentJob Enrichment - The vertical expansion of jobs. This

is done by increasing the depth of a job by adding the responsibility for planning, organizing, controlling and evaluating the job.

Expanding jobs vertically gives employees responsibilities and control formerly reserved for management.


LO 2

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Compare and contrast the main ways jobs can be redesigned

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LO 2

Some newer versions of job enrichment concentrate specifically on improving the meaningfulness of work. One method is to relate employee experiences

to customer outcomes. Another method for improving the

meaningfulness of work is providing employees with mutual assistance programs.


Compare and contrast the main ways jobs can be redesignedLO 2

The evidence on job enrichment shows it reduces absenteeism and turnover costs and increases satisfaction, but not all programs are equally effective.

Some recent evidence suggests job enrichment works best when it compensates for poor feedback and reward systems.

Work design may also not affect everyone in the same way.


Relational Job Design To make jobs more prosocially motivating:

Connect employees with the beneficiaries of their work.Relate stories from customers who have found the company’s

products or services to be helpful.Meet beneficiaries firsthand.

Employees see that their actions affect a real person, and that their jobs have tangible consequences.

Connections make customers or clients more accessible in memory and more emotionally vivid.

Leads employees to consider the effects of their actions more. Fosters higher levels of commitment.

LO 2

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Alternative Work ArrangementsFlextime

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.


Explain How Specific Alternative Work Arrangements Can Motivate Employees

LO 3

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Job Sharing Two or more people split a 40-hour-a-week job.

Declining in use.Can be difficult to find compatible pairs of employees

who can successfully coordinate the intricacies of one job.

Increases flexibility and can increase motivation and satisfaction when a 40-hour-a-week job is just not practical.

LO 3

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Telecommuting Employees who do their work at home at least two

days a week on a computer that is linked to their office. Virtual officeWell-known organizations that actively

encourage telecommuting include AT&T, IBM, American Express, Sun Microsystems

LO 3

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Telecommuting Advantages Larger labor pool Higher productivity Less turnover Improved morale Reduced office-space costs

LO 3

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Telecommuting Disadvantages Employer

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

performance. Employee

May not be noticed for his or her efforts.

LO 3

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The Social and Physical Context Of Work The job characteristics model shows most

employees are more motivated and satisfied when their intrinsic work tasks are engaging.

Research demonstrates that social aspects and work context are as important as other job design features.

LO 3

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Employee Involvement Programs

Participative Management

A process in which subordinates share a significant degree of decision-making power with their immediate superiors.


Describe How Employee Involvement Measures Can Motivate Employees

Participative management Acts as a panacea for poor morale and low

productivity. Trust and confidence in leaders is essential. Studies of the participation-performance have

yielded mixed results.

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Give examples of employee involvement measures and show how they can

motivate employeesLO 4

Common to all participative management programs is joint decision making,

But for it to work, employees must: a.) be engaged in issues relevant to their interests so they’ll be motivated; b.) they must have the competence and knowledge to make a useful contribution, and c.) trust and confidence must exist among all parties.


Examples of Employee Involvement Programs (cont’d)

Representative Participation

Workers participate in organizational decision making through a small group of representative employees.

Works CouncilsGroups of nominated or elected employees who must be consulted when management makes decisions involving personnel.

Board RepresentativeA form of representative participation; employees sit on a company’s board of directors and represent the interests of the firm’s employees.


Describe How Employee Involvement Measures Can Motivate Employees

Linking Employee Involvement Programs and Motivation Theories Theory Y is consistent with participative management. Theory X aligns with autocratic style. Two-factor theory aligns with employee involvement

programs in providing intrinsic motivation. Extensive employee involvement programs clearly have

the potential to increase employee intrinsic motivation in work tasks.

LO 4

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Demonstrate How the Different Types of Variable-Pay Programs Can Increase

Employee MotivationWhat to Pay: Establishing a Pay Structure

Complex process that entails balancing internal equity and external equity.

Some organizations prefer to pay leaders by paying above market.

Paying more may net better-qualified and more highly motivated employees who may stay with the firm longer.

LO 5

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How to Pay: Rewarding Individual Employees Through Variable-Pay Programs Many organizations are moving away from paying solely on

credentials or length of service. Piece-rate plansMerit-based payBonusesProfit sharingGain sharingEmployee stock ownership plans

Earnings therefore fluctuate up and down.

LO 5

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Demonstrate How the Different Types of Variable-Pay Programs Can

Increase Employee Motivation


Piece-Rate Pay Workers are paid a fixed sum for each unit of production

completed. A pure piece-rate plan provides no base salary and pays the

employee only for what he or she produces. Limitation: not a feasible approach for many jobs.

Although incentives are motivating and relevant for some jobs, it is unrealistic to think they can constitute the only piece of employees’ pay.

LO 5

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Merit-Based Pay Based on performance appraisal ratings. Allows employers to differentiate pay based on

performance. Creates perceptions of relationships between performance

and rewards. Limitations:

Based on annual performance appraisal; merit pool fluctuations based on economic conditions; unions typically resist merit-based pay plans.

LO 5

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Bonuses An annual bonus is a significant component of total

compensation for many jobs. Increasingly include lower-ranking employees.

Many companies now routinely reward production employees with bonuses when profits improve.

Downside: employees’ pay is more vulnerable to cuts.

LO 5

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Skill-Based Pay Bases pay levels on how many skills employees have or how many jobs

they can do. Increases the flexibility of the workforce. Facilitates communication across the organization because people gain

a better understanding of each other’s jobs. Limitations:

People can “top-out” and learn all the skills.Don’t address performance.

LO 5

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Profit-Sharing Plans Organization-wide programs that distribute compensation

based on some established formula centered around a company’s profitability.

Appear to have positive effects on employee attitudes at the organizational level.Employees have a feeling of psychological ownership.

LO 5

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Gainsharing Uses improvements in group productivity from one period to the next

to determine the total amount of money allocated. Common among large manufacturing companies and in some

healthcare organizations. Ties rewards to productivity gains rather than profits.

Employees can receive incentive awards even when the organization isn’t profitable.

Because the benefits accrue to groups of workers, high performers pressure weaker ones to work harder, improving performance for the group as a whole.

LO 5

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Employee Stock Ownership Plan (ESOP) A company-established benefit plan in which employees

acquire stock, often at below-market prices, as part of their benefits.

Increases employee satisfaction and innovation. Employees need to psychologically experience ownership.

Can reduce unethical behavior.

LO 5

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Evaluation of Variable Pay Do variable-pay programs increase motivation and

productivity? The answer is a qualified yes.Studies generally support the idea that organizations with

profit-sharing plans have higher levels of profitability than those without them.

Are there cultural differences?Maybe, but more research is needed.

LO 5

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Show How Flexible Benefits Turn Benefits Into Motivators

Flexible Benefits: Developing a Benefits Package Flexible benefits individualize rewards.

Allow each employee to choose the compensation package that best satisfies his or her current needs and situation. Replaces the “one-benefit-plan-fits-all” programs

designed for a male with a wife and two children at home that dominated organizations for more than 50 years.

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There are three basic types of programs: 1. Modular plans: pre-designed with each module put

together to meet the needs of a specific group of employees.

2. Core-plus plans: a core of essential benefits and a menu-like selection of other benefit options.

3. Flexible spending plans: employees set aside pretax dollars up to the amount offered in the plan to pay for particular benefits, such as healthcare and dental premiums.

LO 6

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Show How Flexible Benefits Turn Benefits Into Motivators


Identify the Motivational Benefits of Intrinsic Rewards

Intrinsic Rewards: Employee Recognition Programs Organizations are increasingly recognizing that important

work rewards can be both intrinsic and extrinsic. Rewards are intrinsic in the form of employee recognition

programs and extrinsic in the form of compensation systems. Financial incentives might be more motivating in the

short-term, but nonfinancial rewards are more important in the long-term.

LO 7

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Identify the Motivational Benefits of Intrinsic Rewards

LO 7

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Implications for Managers

Recognize individual differences. Spend the time necessary to understand what’s

important to each employee. Design jobs to align with individual needs and

maximize their motivation potential. Use goals and feedback.

You should give employees firm, specific goals, and they should get feedback on how well they are faring in pursuit of those goals.

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Implications for Managers Allow employees to participate in decisions that affect

them. Employees can contribute to setting work goals, choosing

their own benefits packages, and solving productivity and quality problems.

Link rewards to performance. Rewards should be contingent on performance, and

employees must perceive the link between the two. Check the system for equity.

Employees should perceive that experience, skills, abilities, effort, and other obvious inputs explain differences in performance and hence in pay, job assignments, and other obvious rewards.

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Chapter 08 16th.pptx