Understanding Money and Employee Rewards

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary goal of job enlargement?

To provide performance feedback

To enhance employee-client relationships

To add tasks to an existing job (correct)

To increase employees' decision-making autonomy

Which dimension of empowerment relates to employees feeling their work is important?

Impact

Self-determination

Competence

Meaning (correct)

Which of the following is NOT a factor supporting empowerment?

Task Identity

Job Feedback

Autonomy

Job Saturation (correct)

What is a characteristic of job enrichment?

Giving employees more responsibility Signup and view all the answers

Self-leadership is primarily focused on which of the following aspects?

Establishing self-direction and self-motivation Signup and view all the answers

What is one primary benefit of job specialization according to Frederick Winslow Taylor?

Improved work efficiency Signup and view all the answers

Which of the following is NOT a problem associated with job specialization?

Increased teamwork Signup and view all the answers

How did KPMG aim to increase task significance among its staff?

By producing a video on their societal contributions Signup and view all the answers

What does job rotation primarily aim to minimize?

Job-related injuries Signup and view all the answers

What aspect of the Job Characteristics Model involves social interaction with coworkers?

Task interdependence Signup and view all the answers

What is one major consequence of job specialization that can affect work quality?

Increased tedium Signup and view all the answers

Frederick Winslow Taylor is best known for advocating which of the following concepts?

Goal setting and scientific management Signup and view all the answers

Which of the following contributes to increasing workforce skill variety?

Job rotation Signup and view all the answers

Which element of self-leadership primarily focuses on the ability to monitor one's own progress towards goals?

Self-Monitoring Signup and view all the answers

What is required for effective personal goal setting in self-leadership?

High degree of self-awareness Signup and view all the answers

Which practice involves visualizing successful task completion and anticipating obstacles?

Constructive Thought Patterns Signup and view all the answers

Which factor is not an individual predictor of self-leadership?

Job autonomy Signup and view all the answers

What is the purpose of designing natural rewards in the context of self-leadership?

To make the job more motivating Signup and view all the answers

What is one of the advantages of membership/seniority-based rewards?

Less financial insecurity Signup and view all the answers

How do men and women generally perceive money differently?

Men see money as a symbol of power/status Signup and view all the answers

What is one of the advantages of competency-based rewards?

Motivates learning new skills Signup and view all the answers

Which of the following is a disadvantage of job status-based rewards?

Encourages bureaucratic hierarchy Signup and view all the answers

What is a disadvantage of competency-based pay?

Higher training costs Signup and view all the answers

What culturally influenced attitude towards money is seen in nurturing cultures?

Less discussion about money Signup and view all the answers

What do ESOPs and share options promote within an organization?

Ownership culture Signup and view all the answers

How does Lee Valley Tools distribute its profit-sharing among employees?

Equally among all employees Signup and view all the answers

Which characteristic can lead to less turnover with seniority-based rewards?

Financial stability is provided Signup and view all the answers

What effect does job evaluation have within a rewards system?

It leads to more payment fairness Signup and view all the answers

What is a key consideration when designing jobs in an organization?

Balancing efficiency and employee motivation Signup and view all the answers

Which of the following perceptions of money is often stronger in cultures with high power distance?

Money has high respect and priority Signup and view all the answers

What should organizations beware of when implementing rewards?

Unintended consequences Signup and view all the answers

What can be a potential negative consequence of seniority-based rewards?

Reinforcement of non-performance-based retention Signup and view all the answers

Which of the following is an example of performance-based rewards?

Organizational bonuses Signup and view all the answers

What can be a potential problem with organizational rewards?

Weak performance-to-outcome link Signup and view all the answers

Study Notes

Meaning of Money at Work

Money has various meanings and implications for individuals and society.
Cultural differences influence how money is perceived and valued.
High power distance cultures prioritize money, while nurturing cultures may be less open about discussing wealth.

Membership/Seniority Based Rewards

Fixed wages and seniority-based rewards offer stability and predictability but can also lack performance motivation.
Advantages include attracting applicants and reducing turnover.
Disadvantages include deterring poor performers from leaving, potentially leading to "golden handcuffs" and a lack of performance-based incentives.

Job Status-Based Rewards

Job evaluation and status-based perks may encourage competition for promotions and reduce pay discrimination.
This system can reinforce a hierarchical structure and encourage employees to exaggerate their duties and hoard resources.

Competency-Based Rewards

Two types: competency-based pay bands, defined by skills and knowledge demonstrated by employees, and skill-based rewards, based on the number of specific skill modules mastered.
Motivates learning new skills but can be complex to implement.
Potentially subjective assessments and higher training costs are potential disadvantages.

Performance-Based Rewards

Include individual rewards like bonuses, piece rates, and commissions.
Team rewards often include bonuses and gain-sharing plans.
Organizational rewards include organizational bonuses, ESOPs, share options, and profit-sharing.
ESOPs and share options can create an "ownership culture."
Profit-sharing aligns employee compensation with the company's financial performance.
Organizational rewards may have a weak P-to-O link (performance to outcome), meaning the connection between individual effort and reward may be less direct.

Improving Reward Effectiveness

Linking rewards to performance is crucial.
Rewards should be relevant to employees' needs and aspirations.
Team rewards are effective when jobs are interdependent.
Ensuring rewards are valued by employees is vital.
Unintended consequences of reward systems should be considered.

Job Design

The process of assigning tasks to a job and defining the interdependency of those tasks with other jobs.
Organizations aim to design jobs that are efficient and motivate employees.

Job Specialization and Scientific Management

Focuses on breaking down work into specialized tasks to improve efficiency, reduce training time, and facilitate better person-job matching.
Introduced by Frederick Winslow Taylor, known as "scientific management."
Problems arise from reduced motivation, higher turnover, and potential for decreased work quality.

Job Characteristics Model

A framework that identifies five core job characteristics influencing employee motivation.
These characteristics are skill variety, task identity, task significance, autonomy, and feedback.

Increasing Task Significance at KPMG

KPMG implemented initiatives to increase task significance awareness by showcasing the firm's contributions to society through videos and posters.
This helps employees understand the broader impact of their work.

Other Job Characteristics

Social characteristics like task interdependence and feedback from others influence employee motivation and job satisfaction.
Information processing demands, such as high task variability and analyzability, also contribute to job design.

Job Rotation

Regularly moving employees from one job to another.
Offers benefits such as increased skill variety, reduced repetitive strain injury, and a multi-skilled workforce.

Job Enlargement

Expanding an existing job by adding more tasks.
An example is a video journalist who performs a variety of tasks related to video production.

Job Enrichment

Giving employees more responsibility for scheduling, coordinating, and planning their work.
Natural grouping involves combining interdependent tasks into one job (e.g., assembling an entire product).
Establishing client relationships involves giving employees direct contact and responsibility for specific clients.

Dimensions of Empowerment

Four key dimensions:
- Self-determination: Employees believe they have freedom and discretion in their work.
- Meaning: Employees perceive their work as important and valuable.
- Competence: Employees possess confidence in their abilities and self-efficacy.
- Impact: Employees feel their contributions influence success.

Supporting Empowerment

Individual factors include possessing the required competencies, being able to perform the work, and being able to handle decision-making demands.
Job design factors include autonomy, task identity, task significance, and job feedback.
Organizational factors include resources, learning orientation, and trust.

Self-Leadership

The process of influencing oneself to establish self-direction and self-motivation needed to perform a task.
Draws on concepts from goal setting, social cognitive theory, and sports psychology.

Elements of Self-Leadership

Personal goal setting: Establishing goals for one's own work effort.
Constructive thought patterns: Using positive self-talk and mental imagery to enhance self-efficacy.
Designing natural rewards: Making the job more motivating by finding intrinsic rewards.
Self-monitoring: Keeping track of progress toward self-set goals and utilizing feedback.
Self-reinforcement: Providing personal rewards for achieving self-set goals.

Predictors of Self-Leadership

Individual factors: Higher levels of conscientiousness, extroversion, self-esteem, self-efficacy, and internal locus of control.
Organizational factors: Job autonomy, participative and trustworthy leadership, and measurement-oriented culture.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore the complexities of money's meaning and its cultural implications in the workplace. This quiz also covers various reward systems, including membership, job status, and competency-based rewards, highlighting their advantages and disadvantages. Test your knowledge on how these concepts influence employee motivation and organizational behavior.