Robbns & |udgeOrganzatona Behavor13th EdtonChapter 7: Motivation: From Concepts to ApplicationsStudent Study Sdeshow 2009 Prentice-Hall Inc. All rights reserved. 7-1Bob StretchSouthwestern CoegeChapter Ob|ectvesAfter studyng ths chapter, you shoud be abe to: Descrbe the |ob Characterstcs Mode and evauate the way t motvates by changng the work envronment. Compare and contrast the three man ways |obs can be redesgned. Identfy three aternatve work arrangements and show how they mght motve empoyees. Gve exampes of empoyee nvovement measures and show how they can motvate empoyees. Demonstrate how the dherent types of varabe-pay programs can ncrease empoyee motvaton. Show how exbe benets turn benets nto motvators. Identfy the motvatona benets of ntrnsc rewards. 2009 Prentice-Hall Inc. All rights reserved. 7-2Motvaton by |ob Desgn: The |CM|ob Characterstcs Mode (|CM) Hackman and Odhams concept that any |ob can be descrbed through ve core |ob dmensons: Skill variety - Requrements for dherent tasks n the |ob. Task identity - Competon of a whoe pece of work. Task signifcance - The |obs mpact on others. Autonomy - Leve of dscreton n decson makng. Feedback - Amount of drect and cear nformaton on performance. The way eements n a |ob are organzed (job design) mpacts motvaton, satsfacton and performance. 2009 Prentice-Hall Inc. All rights reserved. 7-3The |ob Characterstcs ModeCore |ob dmensons ahect Crtca Psychoogca States, whch ahect Persona and Work OutcomesEmpoyee growth-need strength moderates the reatonshps.See Exhbt 7-1 2009 Prentice-Hall Inc. All rights reserved. 7-4Motvatng Potenta Score (MPS)Fve dmensons combned nto a snge predctve ndex of motvaton.Peope who work on |obs wth hgh core dmensons are generay more motvated, satsed, and productve. |ob dmensons operate through the psychoogca states n nuencng persona and work outcome varabes rather than nuencng them drecty.While the JCM framework is supported b research! the M"# model isn$t practical and doesn$t work well% 2009 Prentice-Hall Inc. All rights reserved. 7-5How Can |obs be Redesgned?|ob Rotaton The perodc shftng of a worker from one task to another|ob EnargementThe horzonta expanson of |obs|ob EnrchmentThe vertca expanson of |obsGudenes for enrchng a |ob: Exhbt 7-2 2009 Prentice-Hall Inc. All rights reserved. 7-6Aternatve Work ArrangementsFextmeEmpoyees work durng a common core tme perod each day but have dscreton n formng ther tota workday from a exbe set of hours outsde the core|ob SharngThe practce of havng two or more peope spt a 40-hour-a-week |ob 2009 Prentice-Hall Inc. All rights reserved. 7-7Another Aternatve: TeecommutngTeecommutngEmpoyees do ther work at home at east two days a week on a computer that s nked to ther omce.The Vrtua OmceEmpoyees work out of ther home on a reatvey permanent bass.Typca Teecommutng |obsProfessona and other knowedge-reated tasksRoutne nformaton-handng tasksMobe actvtes 2009 Prentice-Hall Inc. All rights reserved. 7-8AdvantagesLarger abor pooHgher productvtyLess turnoverImproved moraeReduced omce-space costsDisadvantagesEmpoyer Less drect supervson of empoyees Dmcut to coordnate teamwork Dmcut to evauate non-quanttatve performanceEmpoyee May not be as notced for hs or her ehorts 2009 Prentice-Hall Inc. All rights reserved. 7-9Reasons For and Aganst Teecommutng Motvaton s Not the Whoe StoryP = f(A x M x O)Performance s the resut of the nteracton of:Abty (A)Motvaton (M) andOpportunty to Perform (O) 2009 Prentice-Hall Inc. All rights reserved. 7-10Empoyee InvovementA participative process that uses the input of emploees to increase their commitment to the organi&ation$s successBy ncreasng worker autonomy and contro over work ves (nvovement), organzatons:Increase empoyee motvaton Gan greater organzatona commtmentExperence greater worker productvtyObserve hgher eves of |ob satsfacton 2009 Prentice-Hall Inc. All rights reserved. 7-11Types of Empoyee Invovement ProgramsPartcpatve ManagementSubordnates share a sgncant degree of decson-makng power wth ther mmedate superorsRepresentatve PartcpatonWorks CouncsGroups of nomnated or eected empoyees who must be consuted for any personne decsonsBoard RepresentatveAn empoyee sts on a companys board of drectors and represents the nterests of the rms empoyees.Ouaty CrceA work group of empoyees who meet reguary to dscuss ther quaty probems, nvestgate causes, recommend soutons, and take correctve actons 2009 Prentice-Hall Inc. All rights reserved. 7-12Motvatona Theory Lnks to EI ProgramsTheory YEmpoyees want to be nvovedManagera vewpontTwo-Factor TheoryIntrnsc MotvatonGrowthResponsbtyInvovementERG TheoryStmuate nAchGrowthRecogntonSef-esteem 2009 Prentice-Hall Inc. All rights reserved. 7-13Four Ma|or Strategc Reward Decsons 1. What to pay? (pay structure)2. How to pay ndvduas? (varabe pay pans and sk-based pay pans)3. What benets to oher? Do we oher choce of benets? (exbe benets)4. How to bud recognton programs? 2009 Prentice-Hall Inc. All rights reserved. 7-141. What to Pay - Pay StructureInterna equty The worth of the |ob to the organzaton Determned by |ob evauatonsExterna equty The compettveness of the companys pay reatve to pay esewhere n the ndustry Determned through pay surveysChoose organzatona poston: Pay eaders Greater empoyee oyaty Attracts better quaty empoyees Pay aggards - accept hgh turnover for ow houry costs 2009 Prentice-Hall Inc. All rights reserved. 7-152. How to Pay- Varabe Pay ProgramsTypes of Varabe Pay ProgramsA portion of an emploee$s pa is based on some individual and'or organi&ation measure of performancePece Rate:Workers are pad a xed sum for each unt of producton competedWeakness: not feasbe for many |obsMert-Based: Based on performance apprasa ratngsGap between average and top-performers ncreasngWeaknesses: vadty of system based on annua apprasas, pay poo can be sma, unons strongy resstBonuses:Reward recent performanceWeakness: empoyees consder ths a pay 2009 Prentice-Hall Inc. All rights reserved. 7-162. How to Pay- Sk-Based Pay ProgramsTypes of Sk-Based Programs:Also known as competenc( or knowledge(based pa( sets pa based on skills or number of jobs an emploee can performProt Sharng:Organzaton-wde programs that dstrbute compensaton based on some estabshed formua desgned around a companys protabtyGan Sharng:An ncentve pan n whch mprovements n group productvty determne the tota amount of money that s aocatedEmpoyee Stock Ownershp Pans (ESOPs)Company-estabshed benet pans n whch empoyees acqure stock as part of ther benets 2009 Prentice-Hall Inc. All rights reserved. 7-17Evauaton of Varabeand Sk-based Pay )o some e*tent! variable pa does increase motivation and productivitBenets of Sk-based Pay PansProvde stamng exbtyFactate communcaton across the organzatonLessen "protecton of terrtory" behavorsMeet the needs of empoyees for advancementLead to performance mprovementsDrawbacks:Lack of addtona earnng opportuntesContnung to pay empoyees forobsoete sksPayng for sks of no mmedate use to the organzatonPayng for a sk, not for performance of the sk 2009 Prentice-Hall Inc. All rights reserved. 7-183. What Benets to Oher - Fexbe Benets+mploees tailor their bene,t program to meet their personal need b picking and choosing from a menu of bene,t options%Moduar Pans Predesgned benets packages for specc groups of empoyeesCore-Pus PansA core of essenta benets and a menu-ke seecton of other benet optonsFexbe Spendng Pans Aow empoyees to use ther tax-free benet doars to purchase benets and pay servce premums 2009 Prentice-Hall Inc. All rights reserved. 7-194. How to Bud Recognton ProgramsIntrnsc Rewards: Stmuate Intrnsc Motvaton Persona attenton gven to empoyeeApprova and apprecaton for a |ob we doneGrowng n popuarty and usageBenets of ProgramsFu empoyees desre for recogntonInexpensve to mpement Encourage repetton of desred behavorsDrawbacks of ProgramsSusceptbe to manpuaton by management Exhbt 7-4 2009 Prentice-Hall Inc. All rights reserved. 7-20Goba Impcatons|ob Characterstcs and |ob Enrchment Inconsstent resuts across cuturesTeecommutng U.S. does ths more, but EU workers are nterested n tVarabe Pay Not much research avaabe, but some possbe hypotheses on reatonshpsFexbe Benets Ths concept s becomng more prevaent gobayEmpoyee BenetsPractces must be moded to match cuture 2009 Prentice-Hall Inc. All rights reserved. 7-21Summary and Managera ImpcatonsTo Motvate Empoyees:Recognze ndvdua dherencesUse goas and feedbackAow empoyees to partcpate n decsons thatahect themLnk rewards to performanceCheck the reward system for equty 2009 Prentice-Hall Inc. All rights reserved. 7-22A rghts reserved. No part of ths pubcaton may be reproduced, stored n a retreva system, or transmtted, n any form or by any means, eectronc, mechanca, photocopyng, recordng, or otherwse, wthout the pror wrtten permsson of the pubsher. Prnted n the Unted States of Amerca.Copyrght 2009 Pearson Educaton, Inc. Pubshng as Prentce Ha