applied performance
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Chapter 6 Applied Performance Practices
APPLIED PERFORMANCEPRACTICES
LEARNING OBJECTIVESAfter reading this chapter, students should be able to:
Explain how money and other financial rewards affect our needs, attitudes, and social identity.
Discuss the advantages and disadvantages of the four reward obectives.
!dentify two team and four organi"ational level performance#based rewards.
Describe five ways to improve reward effectiveness.
Discuss the advantages and disadvantages of ob speciali"ation.
Diagram the ob characteristics model of ob design.
!dentify three strategies to improve employee motivation through ob design.
Define empowerment and identify strategies to support empowerment.
Describe the five elements of self#leadership.
Explain how mental imagery improves employee motivation.
CHAPTER GLOSSARY
autonomy $he degree to which a ob gives employees
the freedom, independence, and discretion to scheduletheir wor% and determine the procedures used in
completing it.
balanced scorecard A reward system that pays
bonuses to executives for improved measurements on a
composite of financial, customer, internal process, and
employee factors.
employee stock ownership plans (ESOPs) A reward
system that encourages employees to buy shares of thecompany.
empowerment A psychological concept in which
people experience more self#determination, meaning,
competence, and impact regarding their role in the
organi"ation.
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Part & !ndividual 'ehaviour and Processes
gainsharing plan A reward system thatrewards team members for reducing costsand increasing labour eciency in theirwork process.
job characteristics model A ob design model that
relates the motivational properties of obs to specific
personal and organi"ational conse(uences of those
properties.
job design $he process of assigning tas%s to a ob,
including the interdependency of those tas%s with other
obs.
job enlargement !ncreasing the number of tas%s
employees perform within their ob.
job enrichment Employees are given more
responsibility for scheduling, coordinating, and
planning their own wor%.
job evaluation )ystematically evaluating the worth ofobs within an organi"ation by measuring their re(uired
s%ill, effort, responsibility, and wor%ing conditions. *ob
evaluation results create a hierarchy of ob worth.
job feedback $he degree to which employees can tell
how well they are doing based on direct sensory
information from the ob itself.
job rotation $he practice of moving employees from
one ob to another.
mental imagery +entally practicing a tas% and
visuali"ing its successful completion.
motivatorhygiene theory er"berg-s theory statingthat employees are primarily motivated bygrowth and esteem needs, not by lower-level needs.
O open-book management Involvessharing nancial information withemployees and encouraging them torecommend ideas that improve thosenancial results.
proft sharing A reward system that paysbonuses to employees based on theprevious years level of corporate prots.
scientifc management Involvessystematically partitioning work into itssmallest elements and standardiing tasks
to achieve ma!imum eciency.
sel-leadership"he process of in#uencingoneself to establish the self direction andself-motivation needed to perform a task.
sel-talk"alking to ourselves about ourown thoughts or actions for the purpose ofincreasing our self-ecacy and navigatingthrough decisions in a future event.
skill variety"he e!tent to whichemployees must use di$erent skills andtalents to perform tasks within their %ob.
skill-based pay &ay structures in whichemployees earn higher pay rates accordingto the number of skill modules they havemastered.
stock options A reward system that givesemployees the right to purchase companyshares at a future date at a predeterminedprice.
task identity"he degree to which a %obre'uires completion of a whole or anidentiable piece of work.
task signifcance"he degree to which the%ob has a substantial impact on theorganiation and(or larger society.
job specialiation $he result of division of labour in
which each ob includes a subset of the tas%s re(uired to
complete the product or service.
CHAPTER SYNOPSIS
+oney and other financial rewards are a fundamental
part of the employment relationship. $hey potentially
fulfil existence, relatedness, and growth needs. +oney
generates various emotions and attitudes, which vary
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Chapter 6 Applied Performance Practices
across cultures. People particularly men/ also tend to
identify themselves in terms of their wealth.
0rgani"ations reward employees for their
membership and seniority, ob status, competencies, and
performance. +embership#based rewards may attract
ob applicants and seniority#based rewards reduce
turnover, but these reward obectives tend todiscourage turnover among those with the lowest
performance. 1ewards based on ob status try to
maintain internal e(uity and motivate employees to
compete for promotions. owever, ob status#based
rewards are inconsistent with mar%et#responsiveness,
encourage employees to compete with each other, and
can lead to organi"ational politics. Competency#based
rewards are becoming increasingly popular because
they improve wor%force flexibility and are consistent
with the emerging idea of employability. 'ut
competency#based rewards tend to be subectively
measured and can result in higher costs as employees
spend more time learning new s%ills.Awards2bonuses, commissions, and other individual
performance#based rewards have existed for centuries
and are widely used. +any companies are shifting to
team#based rewards such as gainsharing plans, and to
organi"ational rewards such as employee stoc%
ownership plans E)0Ps/, stoc% options, profit sharing,
and balanced scorecards. E)0Ps and stoc% options
create a ownership culture, but employees often
perceive a wea% connection between individual
performance and the organi"ational reward.
3inancial rewards have a number of limitations, but
there are several ways to improve reward effectiveness.
0rgani"ational leaders should ensure that rewards are
lin%ed to wor% performance, rewards are aligned with
performance within the employee-s control, team
rewards are used where obs are interdependent,
rewards are valued by employees, and rewards do not
have unintended conse(uences.
*ob design refers to the process of assigning tas%s to
a ob, including the interdependency of those tas%s with
other obs. *ob speciali"ation subdivides wor% into
separate obs for different people. $his increases wor%
efficiency because employees master the tas%s (uic%ly,
spend less time changing tas%s, re(uire less training,
and can be matched more closely with the obs best
suited to their s%ills. owever, ob speciali"ation may
reduce wor% motivation, create mental health problems,
lower product or service (uality, and increase coststhrough discontentment pay, absenteeism, and turnover.
Contemporary ob design strategies reverse ob
speciali"ation through ob rotation, ob enlargement,
and ob enrichment. $he ob characteristics model is a
template for ob redesign that specifies core ob
dimensions, psychological states, and individual
differences. 0rgani"ations introduce ob rotation to
reduce ob boredom, develop a more flexible
wor%force, and reduce the incidence of repetitive strain
inuries. $wo ways to enrich obs are clustering tas%s
into natural groups and establishing client relationships.
Empowerment is a psychological concept
represented by four dimensions4 self#determination,meaning, competence, and impact regarding the
individual-s role in the organi"ation. !ndividual
characteristics seem to have a minor influence on
empowerment. *ob design is a maor influence,
particularly autonomy, tas% identity, tas% significance,
and ob feedbac%. Empowerment is also supported at
the organi"ational level through a learning orientation
culture, sufficient information and resources, and
corporate leaders who trust employees.
)elf#leadership is the process of influencing oneself
to establish the self#direction and self#motivation
needed to perform a tas%. $his includes personal goal
setting, constructive thought patterns, designing natural
rewards, self#monitoring, and self#reinforcement.
Constructive thought patterns include self#tal% and
mental imagery. )elf#tal% refers to any situation in
which a person tal%s to him# or herself about his or her
own thoughts or actions. +ental imagery involves
mentally practicing a tas% and imagining successfully
performing it beforehand.
POWERPOINTSLIDES
Canadian Organizational Behaviourincludes a complete set of +icrosoft PowerPoint5files for each chapter. Please
contact your +craw#ill 1yerson representative to find out how instructors can receive these files./ !n the lecture
outline that follows, a thumbnail illustration of each PowerPoint slide for this chapter is placed beside the corresponding
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Part & !ndividual 'ehaviour and Processes
lecture material. $he slide number helps you to see your location in the slide show se(uence and to s%ip slides that you
don-t want to show to the class. $o ump ahead or bac% to a particular slide, ust type the slide number and hit the Enter
or 1eturn %ey./ $he transparency masters for this chapter are very similar to the PowerPoint files.
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Chapter 6 Applied Performance Practices
LECTURE OUTLINE (wit P!w"#P!i$t%&i'"%
A))&i"' P"#*!#+,$-"P#,-ti-"%
S&i'" 1
W"%tJ"t .!ti/,t"%E+)&!0""%
S&i'"
T" .",$i$2 !* .!$"0
S&i'" 3
!PP"#E$ PE%&O%'!E P%!*#ES
OPE#+ ,#+E**E- .ES*/E*0S S1ESS
.est/et employees are highly motivated through profit sharing and
stock options2 empowerment2 job design2 and self3leadership7 1ewards4 )hare corporate rewards
7 Empowerment4 ave autonomy to serve guests
7 *ob Design4 Perform a variety of tas%s
7 )elf#leadership4 +anage their own performance
*4E 'E!#+ O& 'OE5
&inancial rewards are a fundamental part of the employment
relationship
7 Concept of economic exchange can be found acrosscultures
'oney and Employee eeds
7 +oney affects our existence, growth needs as well as our
innate drive to ac(uire
7 $hose with a need for achievement ## value money as a
source of feedbac% and indicator of goal achievement
7 +oney identified as one of the top three factors that attract
individuals to wor% for an organi"ation
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Part & !ndividual 'ehaviour and Processes
'oney !ttitudes and ,alues
7 +oney brings out strong emotions 8mainly negative e.g.
anxiety, depression, anger and helplessness
7 Cultural values influence attitudes toward money e.g.Australia-s egalitarian values discourage people from
tal%ing about money and displaying wealth
7 +oney ethic ## the extent to which people believe4
## money is not evil
## money is a representation of success
## money should be budgeted carefully
'oney and Social3#dentity
7 People identify themselves in terms of how much money
they have ac(uired and dispersed
+oney tends to be a higher priority for men than women
T0)"% !* R"w,#'% i$ t"W!#)&,-"
S&i'" 4
."+"#%i)S"$i!#it0R"w,#'%
S&i'" 5
*5PES O& %E.!%$S # *4E .O%6P"!E7 3our types ## membership2seniority, ob status,
competencies, and performance
7 0rgani"ations use a variety of rewards to attract, motivate
and retain employees.
'E'7E%S4#P !$ SE#O%#*537!SE$%E.!%$S
'ost common reward 33 fi8ed wages2 seniority increases
!dvantages
7 uaranteed wages may attract ob applicants
7 )eniority#based rewards reduce turnover
$isadvantages
7 Do not directly motivate ob performance
7 Discourage poor performers from leaving voluntarily +ay act as golden handcuffs
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Chapter 6 Applied Performance Practices
J! St,t8% R"w,#'%
S&i'" 6
/O7 S*!*1S37!SE$ %E.!%$S7 *ob evaluation 8 estimates ob worth by measuring the
ob9s re(uired s%ill, effort, responsibility, and wor%ing
conditions to7 )ome ob status per(uisites ## exec. dining room, larger
office, company#paid car
!dvantages-
7 *ob evaluation tries to maintain pay e(uity
7 +otivates employees to compete for promotions
$isadvantages-
7 Employees exaggerate duties, hoard resources
7 Creates psychological distance from executives
!nconsistent with mar%et#responsive organi"ations with
few layers of hierarchy that encourage initiative from all
employees
C!+)"t"$-09,%"'R"w,#'%
S&i'"
O'PE*E537!SE$ %E.!%$S
Pay increases with competencies ac9uired and demonstrated
7 0rgani"ations are shifting from ob status to rewarding
employees for their s%ills, %nowledge and other
competencies that lead to superior performanceSkill3based pay 33 pay increases with number of skill modules
learned2 even though only one skill area performed at a time
!dvantages
7 +ore flexible, multis%illed wor% force
7 'etter product2service (uality
7 Consistent with employability
$isadvantages
7 Competencies may become subective personality
assessments ## s%ill#based plans are more obective
7 !ncreases training costs
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Part & !ndividual 'ehaviour and Processes
P"#*!#+,$-"9B,%"'R"w,#'%
S&i'" 7
PE%&O%'!E37!SE$ %E.!%$S
#ndividual %ewards
7 Awards and bonuses ## achieving a performance goal or for
individual tas% accomplishment
7 Commissions ## earnings based on sales volume
7 Piece rate pay ## pay per number of units produced
*eam %ewards
7 'onuses ## team paid lump sum for reaching targets
7 ainsharing plans 8 paid to the team based on cost
reductions and increased labour efficiency
0pen#boo% management 8 encourages employees to thin%
of financial performance as a game they can play and win
Organiational %ewards
7 Employee share ownership plans ## employees own
company stoc% ## some employees own company
7 Profit sharing ## employees receive share of profits
7 )toc% options ## right to purchase company stoc% at a
future date at a predetermined price
: 'alanced scorecard8 rewards for improving composite
results financial, customer, internal processes, employee/
E**"-ti/"$"%% !*P"#*!#+,$-" R"w,#'%
S&i'" :
Effectiveness of Performance3based %ewards
7 E)0Ps, share options and balanced scorecard create an
:ownership culture; 8 employees feel aligned to the
organi"ation-s success
7 Profit sharing ## automatically adusts pay with the firm9s
prosperity
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Chapter 6 Applied Performance Practices
Problems .ith Performance37ased %ewards
. 1ewards discourage ris% ta%ing
## people do only what is needed to attain reward
I+)#!/i$2 R"w,#'E**"-ti/"$"%%
S&i'" 1;
#mproving %eward Effectiveness
< ?in% rewards to performance better performers should be
rewarded more than those with poorer performance/
## increases P#to#0 expectancy
## problems with organi"ational politics and difficulty
measuring performance
& Ensure rewards are relevant
## reward outcomes within employee-s control
## adust for situational factors ## e.g. effect of economy
on sales
=. @se team rewards for interdependent obs
## easier to measure team output than individual
## increases cooperation and reduces competitiveness
## increases employee preferences for team#based wor%
>. Ensure rewards are valued
## people have different needs and wants
. Batch out for unintended conse(uences
## difficult to anticipate effect of rewards on behaviour
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Part & !ndividual 'ehaviour and Processes
J! D"%i2$
S&i'" 11
E/,&8,ti$2 J!S)"-i,&i hours per wee% and doubled
salaries of employees
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Chapter 6 Applied Performance Practices
Problems with job specialiation doesn0t always improve job
performance due to-
. Bor% (uality ## small part of total ob performed, so can-t
identify with customer needs
. Bor% motivation ## overloo%s ob content as motivator
/O7 $ES#+ !$ .O%6 'O*#,!*#O
&rederick 4erberg
7 Proposed the idea that ob content motivates, whereas
extrinsic conditions hygienes/ prevent dissatisfaction
J! C,#,-t"#i%ti-% .!'"&
S&i'" 13
/ob haracteristics 'odel (4ackman and Oldham)
#dentifies five core job characteristics2 three psychological states2 and
individual moderators
ore job characteristics
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Part & !ndividual 'ehaviour and Processes
>. Autonomy ## freedom, independence, and discretion
# e.g. employees not boss/ ma%e decisions
. *ob feedbac% ## degree that employees receive ob
performance information from the ob itself# e.g. airline pilots %now good landings
ritical Psychological States
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Chapter 6 Applied Performance Practices
J! R!t,ti!$ /%>E$&,#2"+"$t
S&i'" 16
B; /ob enlargement
7 Combines several tas%s into one ob
7 !mproves wor% efficiency and flexibility
7 !mproves ob satisfaction and performance when combinedwith more autonomy and ob %nowledge
C; /ob enrichment
7 !ncreasing employee meaningfulness and responsibility
: Establishing client relationships 8 putting employees in direct
contact with their clients
$ends to improve (uality, ob satisfaction, wor% motivation
and reduce absenteeism and turnover
Di+"$%i!$% !*E+)!w"#+"$t
S&i'" 1
E'PO.E%'E* P%!*#ESEmpowerment is a psychological concept with four dimensions-
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Part & !ndividual 'ehaviour and Processes
S"&*9L",'"#%i)
S&i'" 17
SE"&3"E!$E%S4#P
*he process of influencing oneself to establish the self3direction and
self3motivation needed to perform a task
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Chapter 6 Applied Performance Practices
TRANSPARENCY .ASTERS
$ransparency 6#
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Part & !ndividual 'ehaviour and Processes
employee factors i.e. a balanced, systemic
approach vs. over#emphasi"ing only one or two of
the above factors.
1esponses will vary, however, following are some
sample measurements4
&inancial;# !ncreasing enrolment
# !ncreasing revenue
ustomer;
# !mproving student satisfaction
# !ncreasing student retention
#nternal Processes;
# !mproving timeliness of information availability
e.g. Access to student records
Employee;
# !mproving staff2instructor satisfaction
# !ncreasing staff retention2reducing turnover
=. !nuvi% $ire Corp. has redesigned its production
facilities around a team#based system. owever,
the company president believes that employees will
not be motivated unless they receive incentives
based on their individual performance. ive three
explanations why !nuvi% $ire should introduce
team#based rather than individual rewards in this
setting.
!nuvi% $ire should definitely use team rather than
only individual rewards in this situation. 0ne
reason is that the company probably won-t be able
to identify or measure individual contributions very
well in the redesigned production facility.
Even if !nuvi% $ire could distinguish individual
performance, it should use team incentives because
they tend to ma%e employees more cooperative and
less competitive. People see that that their bonuses
or other incentives depend on how well they wor%
with cowor%ers, and they act accordingly.
$he third reason for having team rewards in team
settings is that they influence employee preferences
for team#based wor% arrangements. !f !nuvi% $ire
wants employees to accept and support the team#
based structure, a team#based reward system would
help to increase that acceptance.
>. Bhat can organi"ations do to increase the
effectiveness of financial rewardsI
"ink rewards to performance; @se obective
performance criteriaF ensure rewards are timely and
significant enough to create positive emotions.
Ensure rewards are relevant; 1eward people for
performance within their control2influence and be
ready to adust performance measures due to
factors beyond employees- control.
Ensure rewards are valued; now your
employee and what you need and want.
.atch out for unintended conse9uences; @se
pilot proects to test the impact the reward will
have on employees and ma%e changes before
implementing throughout the organi"ation.
. +ost of us have watched pi""as being made while
we are waiting to pic% up a pi""a from a pi""a
shop. Bhat level of ob speciali"ation do you
usually notice in these operationsI Bhy does this
high or low level of speciali"ation existI !f some
pi""a shops have different levels of speciali"ation
than others, identify the contingencies that might
explain these differences.$he answer to this (uestion partly depends on how
pi""as are made in your area. 0ur nonsystematic
observations of pi""a#ma%ing is that, in busy pi""a
places, several people are assigned to specific
tas%s. 0ne person prepares the doughF one or more
people fill the orders puts ingredients on the pi""a
and places it in the conveyor or fixed oven/F
someone else unloads, cuts, and boxes the coo%ed
pi""as. $he person operating the cash register
usually has the pi""a unloading tas%. 0ther people
perform the pi""a delivery tas%.
$his relatively high level of speciali"ation occursbecause it increases efficiency. $ime is saved
because employees don-t change tas%s. $hey
develop their s%ills (uic%ly in their assigned tas%
an important issue where pi""a shops rely on
students and other temporary part#time staff/. $his
speciali"ation also allows the store to assign people
to tas%s for which they demonstrate the best s%ill..
3or example, some people have better coordination
at tossing the pi""a dough so it spreads out evenly.
0thers have good physical strength to cut pi""as.
)tudents will probably identify different degrees of
speciali"ation than we have noted here. )mallerpi""a shops may be operated by two people who
share most tas%s except delivery/. $hey might
both prepare the pi""as as well as load and unload
them from the oven.
$echnology may also play a role in the division of
labour. Conveyor#type ovens uncoo%ed pi""a is
placed on one end and coo%ed pi""a comes out the
other end/ would allow two people to load and
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Chapter 6 Applied Performance Practices
unload the pi""as, respectively. A fixed oven
where the pi""a is loaded in and pulled out/ might
wor% better with one person because he2she %eeps
trac% of the coo%ing time.
?astly, some students might note that obs are
generally speciali"ed but there is ob rotation
throughout the shift. $his might occur to minimi"e
boredom and avoid repetitive strain inuries.
6. Can a manager or supervisor :empower; an
employee. Discuss fully.
Empowerment refers to a feeling of control and
self#efficacy that emerges when people are given
power in a previously powerless situation.
Empowered people are given autonomy ## the
freedom, independence, and discretion over their
wor% activities. $hey are assigned tas%s that have
high levels of tas% significance ## importance to
themselves and others. !n summary, empowermentis a psychological concept. A supervisor or
manager cannot directly empower an employee,
however, they can create a wor% environment
where employees are more li%ely to experience
empowerment. )ome of these initiatives include4
# Ensuring employees have the necessary
competencies to be effective
# 1educing bureaucratic control
# Designing obs that provide tas% significance
and tas% identify
# Ensuring employees have the information andresources they need
# Appreciating learning and recogni"ing mista%es
are part of the learning employees
# $rusting employees
G. Describe a time when your practised self#
leadership to successfully perform a tas%. Bith
reference to each step in the self#leadership
process, describe what you did to achieve this
success.
$his (uestion provides the opportunity for students
to reflect on their own application and experience
with self#leadership. !ncreasingly, corporate
leaders desire to hire employees with the ability to
demonstrate self#leadership. 1eflecting on a time
when you demonstrated self#leadership and
describing your behaviours will prepare you torespond to an interview (uestion designed to assess
this valued competency.
1esponses will vary. 3ollowing are some
considerations that an organi"ational recruiter may
loo% for4
Personal goal setting; Establishing goals that
were specific, results#oriented and challenging.
onstructive thought patterns; Engaging in
positive self tal% and2or using mental imagery to
visuali"e successful completion of a tas%.
$esigning natural rewards; Considering yourown needs and preferences to ma%e your ob more
motivating and satisfying.
Self3monitoring; eeping trac% of your progress
and2or ensuring you received feedbac% needed to
enhance your performance.
Self3reinforcement. @sing self#induced forms of
positive reinforcement to reward yourself for
completing a tas% or achieving a goal.
H. Can self#leadership replace formal leadership in an
organi"ational settingI
)elf#leadership is an applied performance practice
that enhances and supports formal leadership in an
organi"ation.
)elf#leadership is a process where people regulate
their own actions and manage themselves most of
the time. Effective formal leadership practices will
still be needed in certain situations to ensure
alignment of individual and team results with
organi"ational goals.
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PHOTO CAPTION CRITICAL THIN@ING
?UESTIONS
I@EA R"w,#'%
K4 @nder what conditions would money notmotivate
employeesI
A4 $his is an interesting (uestion for class discussion
because it brings out the complex meaning of money
compared with nonfinancial rewards. $he answer partly
depends on what needs are related to money. )tudents
should identify that money fulfills physiological and
safety needs. )ome will also point out that money can
relate to status, so fulfills some aspects of relatedness
needs. !t is more difficult to see how money fulfills
growth needs, so people with high growth needs would
be less motivated by money. !ndeed, research on peoplewith high need for achievement supports this view ##
high need achievers might value money as an indicator
of their success, but money is a wea% motivator for
them.
.i" J8%t Wi$"+,"#K4 'ased on the ob characteristics model, why is +i%e
*ust highly motivated by his wor%I
A4 +i%e *ust is motivated because his ob is enriched
rather than ust enlarged. $he tas%s have more than ust
s%ill variety. $hey also cluster together as a natural
wor% unit. *ust is involved in the entire process of winema%ing, from planting grapes to selling the wine to
customers. e has strong tas% identity and apparently
tas% significance from this wor%.
R,$' ."#-,$t B,$
K4 !n what way does 1and-s :'oo% of 1ules;
symboli"e and support empowermentI
A4 $he blan% :'oo% of 1ules; symboli"es the notion
that rand merchant 'an% gives employees the autonomy
to ma%e their own rules when serving clients. $he tas%
characteristics of autonomy is one of the most
important influences on employee feelings of
empowerment.
Si#i8% C!$%8&ti$2 G#!8)
K4 Along with self#set goals, what other self#leadershippractices would improve the ob performance of
account managersI
A4 $o answer this (uestion, students need to thin% about
all elements of the self#leadership model in the context
of account managers. 'asically, every element applies
to some degree. Account managers can benefit from
constructive thought patterns by building their self#
efficacy through positive self#tal% and clarifying the
tas% through mental imagery. $hey can try to re#arrange
their obs to maximi"e rewards, and can engage in self#
reinforcement by :ta%ing; rewards after completing
tas%s. )elf#monitoring can also occur, although this isless clear.
.
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ACTIVITY 6>1 CASE ANALYSIS
THE REGENCY GRAND HOTEL
C,%" S0$!)%i%
$he 1egency rand otel was one of 'ang%o%-s most
prestigious hotels when it was recently sold to a large
American hotel chain. *ohn 'ec%er, an American with
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empowered ob. ?ow self#efficacy results in a
lower E#to#P expectancy.
P#to#0 expectancy also had an adverse effect on
employee motivation. Employees who tried
empowerment experienced negative outcomes
from their supervisors, and possibly from
customers. Bhile 'ec%er initially supported
employee empowerment, he later retreated to his
office, thereby providing less favorable outcomes
to employees to too% initiative. 0verall, employees
stopped ta%ing initiative because both their E#to#P
and P#to#0 expectancies decreased.
E%+Feeds 4ierarchy theories. )ome students
might apply content motivation theories to explain
part of this case. )pecifically, they might suggest
that most regency employees have low growth
needs because they were comfortable with the
previous leadership, which did not offer much ob
challenge. $his point may be true for someemployees, but several regency staff members D!D
try to apply empowerment, suggesting that they
had some degree of growth need strength.
+oreover, content theories generally explain what
needs people possess, not what behaviours they
engage in.
7ehaviour modification. $his case can also be
discussed in terms of behaviour modification
covered earlier in this boo%/. $he supervisors
either punished or provided extinction
reinforcement to employees who engaged in
empowerment practices.
Stress management. )ome employees (uit or
increased their absenteeism because they
experienced higher levels of stress. )everal
stressors explain the causes of this stress4
#ole$related stressors## ambiguous expectations
and practices about how to engage in
empowerment
%nterpersonal stressors8 Employees experiencedincreasing conflict with management.
Organizational stressors8 !t is possible that the
purchase of the regency as well as subse(uent
changes probably added to stress, but this issue
isn-t certain.
=; 1ecommend solutions that overcome or minimi"e
the problems and symptoms in this case.
)tudents might identify a variety of
recommendations for this content#rich case. )ome
might suggest that 'ec%er or his successor, as
some students doubt that 'ec%er has any credibilitynow/ re(uires sessions in cultural sensitivity.
0thers suggest that empowerment will wor% at the
regency if employees are given clearer instruction
and training, and employees see role model
examples of empowerment. !t might also be useful
to introduce the process slowly so employees have
time to adust with less stress.
$he empowerment intervention is a maor form of
organi"ational change, so students who have read
that chapter would recommend a number of change
management initiatives, including coercion to
supervisors who do not :get on board; the change
effort.
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ACTIVITY 6> TEA. EERCISE
IS STUDENT WOR@ ENRICHED
P8#)!%"$his exercise is designed to help students learn how to
measure the motivational potential of obs and to
evaluate the extent that obs should be further enriched.
I$%t#8-ti!$%
'eing a student is li%e a ob in several ways. )tudents
have tas%s to perform and someone such as your
instructor/ oversees their wor%. Although few peoplewant to be students most of their lives the pay rate is
too lowM/, it may be interesting to determine how
enriched is a student-s ob.
Step A- )tudents are placed into teams preferably > or
people/.
Step B- Bor%ing alone, each student completes both
sets of measures in this exercise. $hen, using the
guidelines provided, they individually calculate the
score for the five core ob characteristics as well as the
overall motivating potential score for the ob.
Step C- +embers of each team compare theirindividual results. $he group should identify differences
of opinion for each core ob characteristic. $hey should
also note which core obs characteristics have the
lowest scores and recommend how these scores could
be increased.
Step D- $he entire class will now meet to discuss the
results of the exercise. $he instructor may as% some
teams to present their comparisons and
recommendations for a particular core ob
characteristic.
C!++"$t% t! I$%t#8-t!#%
$his exercise is self#explanatory. $he answer %ey is
provided in the textboo% for students to score their ownresults.
)tudents tend to enoy this exercise because it forces
them to evaluate something that is central to them
particularly full#time students/. 'e prepared for some
searching (uestions about why some instructors don-t
ma%e student wor% more enrichedM ere are some
discussion activities for this exercise.
4>6 5>4 4>:
MPS 156 1;6 146 17
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ACTIVITY 6>3 SEL9ASSESS.ENT
WHAT IS YOUR ATTITUDE TOWARD .ONEY
P8#)!%"$his exercise is designed to help students to understand
the types of attitudes toward money and to assess their
attitude toward money.
O/"#/i"w+oney is a fundamental part of the employment
relationship, but it is more than ust an economic
medium of exchange. +oney affects our needs, our
emotions, and our self#perception. People hold a variety
of attitudes towards money. 0ne set of attitudes,
%nown as the :money ethic;, is measured in this self#
assessment.
I$%t#8-ti!$%)tudents are as%ed to read each of the statements in the
survey instrument and circle the response that they
believe best reflects their position regarding each
statement. )tudent then use the scoring %ey in Appendix
' to calculate their results., or they can have the results
self#scored by using the student CD.
Feed#ack fr t$e Mney Attitude ScaleNL0$E4 $he following information is also provided in Appendix ' and2or the )tudent CD.O $his self#assessment
generates considerable interest among my students, not surprising given the interest that most people have about money.
$his money attitude scale estimates the person-s overall :money ethic; as well as scores on its three dimensions4
money as power2prestige, retention time, and money anxiety. Each subscale has a potential score ranging from > to &
pointsF the overall money attitude scale has a range from to &. $he average score among a sample of
+'A students was
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.!$"0 A$Fi"t0People with higher scores on this dimension tend to
view money as a source of anxiety. )cores on this
subscale range from > to &. $he average score among
a sample of +'A students was
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S-!#" I$t"#)#"t,ti!$
41 t! 6; Hi2 +!$"0 "ti- %-!#"
35 t! 4; .!'"#,t" +!$"0 "ti- %-!#"
16 t! 34 L!w +!$"0 "ti- %-!#"
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ACTIVITY 6>4 SEL9ASSESS.ENTASSESSING YOUR SEL9LEADERSHIP
P8#)!%"$his exercise is designed to help students understand
self#leadership concepts and to assess their self#leadership tendencies.
O/"#/i"w ,$' I$%t#8-ti!$%)elf#leadership is the process of influencing yourself to
establish the self#direction and self#motivation needed
to perform a tas%. !t recogni"es that individuals mostly
regulate their own actions through various behavioural
and cognitive thought/ activities.
)tudents are as%ed to individually read each of the
statements in the instrument and select the response that
they believe best reflects their position regarding each
statement.
Feed#ack fr t$e Self%Leaders$i& ScaleNL0$E4 $he following information is also provided in the )tudent CD.O $he six components of self#leadership measured
in this scale are personal goal setting, mental practice, designing natural rewards, self#monitoring, self#reinforcement,
and cueing strategies. !t is very useful for students to complete this self#assessment before any lecture or discussion of
the topic because students pay much more attention to the details after estimating their own score.
$he following table applies to all self#leadership
subscales.
S-!#" I$t"#)#"t,ti!$
13 t! 15 Hi2 %-!#"
7 t! 1 A/"#,2" %-!#"
3 t! L!w %-!#"
P"#%!$,& G!,& S"tti$2)elf#leadership includes the practice of setting your
own performance#oriented goals and, more specifically,
establishing specific, challenging, and relevant goals.)cores on this subscale range from = to
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."$t,& P#,-ti-"+ental practice called mental imagery in the textboo%/
involves mentally rehearsing future events. +ental
practice includes thin%ing through the activities
re(uired to perform the tas%, anticipating obstacles to
goal accomplishment, and wor%ing out solutions tothose obstacles before they occur. +entally wal%ing
through the activities re(uired to accomplish the tas%
helps us to see problems that may occur. )cores on this
subscale range from = to
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ACTIVITY 6>5 SEL9ASSESS.ENT
STUDENT E.POWER.ENT SCALE
P8#)!%"$his exercise is designed to help students understandempowerment and to assess their own empowerment as
a student.
O/"#/i"w ,$' I$%t#8-ti!$%Empowerment is a psychological concept represented
by feelings of self#determination, meaning,
competence, and impact. $he empowerment concept
applies to people a variety of situations not ust thewor%place. $his self#assessment is specifically adapted
to the position of student at this college or university.
)tudents are as%ed to read each statement in this
instrument and select the response that best indicates
the degree to which they personally agree or disagree
with that statement. )tudents need to complete each
item honestly to get the best estimate of their level of
empowerment. $his instrument has
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SUPPLE.ENTAL LECTURE THE TROUBLE
WITH REWARDS
Performance#based reward systems have become
tremendously popular, but a few scholars claim that
these incentives might do more harm than good for
organi"ations. 0ne strong critic of wor%place rewards is
Alfie ohn, an educational researcher and writer.
Although ohn identifies many concerns, he mainly
lin%s reward systems to the behaviour modification
problems that we discussed earlier in this boo%. e
even suggests that praise is unhealthy when applied as
reinforcer. ohn-s five main arguments against the use
of performance#based rewards are as follows4
& #ewards punish## ohn suggests that there are
punitive features built into every reward. 3irst,
when rewarding people, we are also demonstrating
our control over them. $his can eventually assume
a punitive (uality by ma%ing the reward recipient
feel subservient. )econd, after being rewarded,
employees come to expect that reward in the
future. !f their expectation is not met, they feel
punished.
& #ewards rupture relationships## ohn complains
that individual rewards create ealousies and
competition. $eam rewards aren-t any better,
because they encourage peer pressure. !n other
words, rewards usually lead to feelings in ine(uity
see Chapter =/ because people invariably compare
their rewards to others. 1ewards also create a
psychological distance between the person giving
and receiving the reward. $a%en together, rewards
disrupt the collaboration needed for organi"ational
learning.
& #ewards ignore reasons## Employers need to
spend time discovering the cause of behaviour
problems. !nstead, according to ohn, they use
incentives as (uic% fixes. Be can see this in
situations where companies use incentives for the
most trivial reasons. 3or example, an Ari"onacompany hands out cash to employees who arrive
early at company meetings and fines those who
arrive late. $he company would be better off
identifying the causes of lateness and changing the
conditions, rather than use money to force a
solution to the problem.
& #ewards discourage risk$taking## ohn cites
evidence that rewards motivate people to do
exactly what is necessary to get the reward and
nothing more. !ncentives dampen creativity
because employees no longer explore new
opportunities outside the realm of rewarded
behaviour or results. !n other words, rewardsmotivate employees to get rewards, not to discover
better ways to help the organi"ation.
& #ewards under'ine intrinsic 'otivation## ohn-s
greatest concern with reward systems is that they
%ill a person-s motivation found in the wor% itself.
$his intrinsic motivation relates to fulfilling growth
needs, which are the most powerful and sustaining
sources of motivation see Chapter =/. ohn
reports studies indicating that employees are less
intrinsically motivated to perform a tas% after they
have received an extrinsic reward for performing
the tas%. Critics point out that these studies werenot conducted in real wor% situations. owever,
until more precise research indicates otherwise, we
should be concerned about the ris% of losing
intrinsic motivation when extrinsic rewards are
introduced.
)ources4 A. ohn, :Challenging 'ehaviorist Dogma4
+yths About +oney and +otivation,; Co'pensation
and Benefits #eview, = +arch
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SUPPLE.ENTAL LECTURE TAS@ VERSUS
@NOWLEDGE ENLARGE.ENT
*ob enlargement involves increasing the number of
tas%s employees perform within a ob. $his is a well
%nown concept in organi"ational behaviour, yet few
scholars have considered that there are at least two
ways to enlarge a ob, and that these different strategies
can have dramatically different effects on employee
motivation and performance.
+ichael Campion and Carol +cClelland have
introduced the distinction between knowledge
enlarge'entand task enlarge'ent. $hey define tas%
enlargement as :adding re(uirements for doing other
tas%s on the same product.; $his is the type of
enlargement we typically thin% about when discussing
the concept of ob enlargement. 0ur textboo% example
## an assembly line wor%er performs seven or eight
tas%s rather than ust two ## refers to tas% enlargement
because the employee engages in new behaviours
around the same product.
nowledge enlargement is a different ## and
appropriately contemporary ## way of thin%ing about
ob enlargement. nowledge enlargement is defined as
:adding re(uirements to the ob for understanding
procedures or rules relating to different products sold
by the organi"ation;. !n other words, %nowledge
enlargement involves giving employees moreinformation to thin% about in their obs. A customer
service representative, for example, might have a
:%nowledge enlarged; ob if he2she is given more
product groups to sell or describe to clients.
Lotice that %nowledge enlargement does not
specifically involve performing additional behaviours.
1ather, the employee must thin% about additional
information when performing the ob. $he customer
service representative still calls clients, fills out order
forms, etc., but now must thin% about features of the
product groups added to his2her list
Effects on 'otivation and Performance
Be %now from previous research that ob enlargement
tends to increase the motivating potential of obs by
increasing s%ill variety. 'ut do %nowledge and tas%
enlargement have different effectsI
According to Campion and +cClelland-s research,
there are important differences. !n a study of clerical
employees in a large financial services company, they
reported that tas% enlargement had mainly adverse
effects whereas %nowledge enlargement had mainly
positive effects on employee motivation and
performance. $as% enlargement reduced employee
satisfaction, efficiency, and customer service. !t
increased mental overload and the number of errors.
nowledge enlargement had the opposite effects.
ere are four possible reasons why %nowledge
enlargement has positive effects on employee
motivation and performance.
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Part & !ndividual 'ehaviour and Processes
VIDEO SUGGESTIONS
Along with the video cases for this part of the textboo%, the following videos and films generally relate to one or more
topics in this chapter. $hese programs may be available at your college2university or rented from the distributor. Please
contact your film librarian to determine the availability of these programs at your institution. $his list was compiled
from library holdings of several universities. Due to the variety of video material, this is not a comprehensive list. Lor
can we say that all of the programs below are suitable for your class.
.hatGs ew in Empowerment- Peter Huarry
interviews $ennis /affe;
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NOTES