Job Design and Motivation: JCM Insights

A pay plan based on performance appraisal ratings.

Gives all employees the same raises, regardless of performance.

An annual reward for recent performance.

Distributes compensation based on company profitability.

Splitting rewards into categories can increase motivation.

Employees may view bonuses as part of expected income, which can reduce motivation.

Bonuses that are not cash, such as vouchers or recognition.

Organizations with profit-sharing plans tend to have higher profitability.

A model that describes how job design affects employee motivation, performance, and satisfaction.

The degree to which a job requires a variety of different skills and talents.

The degree to which a job requires completing a whole and identifiable piece of work.

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

The degree to which a job provides employees with freedom, independence, and discretion over their work.

Information about job performance.

Improving jobs to increase employee motivation and satisfaction.

The rate at which employees leave an organization.

A flexible work arrangement where employees can adjust their work hours within certain limits.

The common time period during which all employees must be present.

Flextime can lead to a decrease in employee absences or days missed.

Flextime can result in improved employee productivity.

Flextime often results in higher employee job satisfaction.

Someone who is more alert and energetic in the mornings.

Employees are more motivated when they see how their work makes a positive impact on others.

Examples include helping customers, saving lives, or making a positive difference in the world.

The ability to manage oneself effectively in a remote work environment, including setting goals, managing performance, and collaborating effectively.

Programs that actively seek employee input and participation to improve organizational success.

Decision-making style where employees share power with their superiors.

Can lead to increased motivation, job satisfaction, and performance, as well as lower turnover and higher stock returns.

Critical for effective participative management, as employees need to believe in and trust their leaders.

A system where employee interests are represented in decision-making by elected or appointed representatives.

Groups of employees, elected or nominated, who must be consulted when management makes decisions affecting employees.

Employees who sit on a company's board of directors, representing employee interests.

Compensation systems that link pay to employee performance, rather than seniority or credentials. Examples include piece-rate, merit-based pay, and bonuses.

A type of variable pay system where employees are rewarded for achieving specific performance goals or exceeding expectations.

A crucial factor in the success of pay-for-performance plans; employees are more likely to be motivated and perform well if they trust their managers.

Personal relationships and connections between employees; these networks can influence HR practices and impact the effectiveness of pay-for-performance programs.

Effective leadership, especially contingent reward leadership, positively influences the outcomes of pay-for-performance plans.

Variable pay systems allow companies to adjust their labor costs based on performance. When performance declines, labor costs can be reduced more quickly.

Making general pay categories public can help employees understand how variable pay is tied to their performance, increasing motivation.

A pay system where workers are paid a fixed amount for each unit of production they complete. It's often used for production workers but can be applied in any setting where output is quantifiable.

A piece-rate plan where the worker receives no base salary and is paid solely based on the number of units produced.

Piece-rate plans can lead to financial risk for both individuals and teams. Workers fear others slacking off in a team setting, while individuals worry about uncontrollable factors affecting their output.

A pay system where individuals are compensated based on their performance appraisal ratings. It aims to reward high performers with larger raises.

Merit-based plans can create a strong perception of a direct link between performance and rewards. Individuals feel like their hard work is being acknowledged and rewarded financially.

Piece-rate plans are not suitable for all jobs, particularly those where the work involves complex skills or unpredictable factors beyond the worker's control. For instance, it wouldn't work well for doctors who deal with variable patient needs.

Piece-rate plans are generally seen as motivating for workers since they can earn more by producing more. However, low performers often avoid them because their limited output results in low pay.

Organizations find piece-rate plans attractive because they can lead to higher productivity and wages. This results in increased output for the company and potentially higher earnings for workers.