Motivating Behavior With Work and Rewards - Chapter 6 (PDF)

CHAPTER 6 MOTIVATING BEHAVIOR WITH WORK AND REWARDS   Job design – how organizations define and structure jobs  Method to enhance employee performance JOB DESIGN  Job specialization – breaking jobs down...

CHAPTER 6 MOTIVATING BEHAVIOR WITH WORK AND REWARDS   Job design – how organizations define and structure jobs  Method to enhance employee performance JOB DESIGN  Job specialization – breaking jobs down into small component AND tasks and standardizing them across all workers doing those SPECIALIZATIO jobs N  Jobs designed for efficiency can become boring and monotonous, resulting in job dissatisfaction  Alternatives to specialization include job rotation and job enlargement   Job rotation – systematically moving workers from one job to another to JOB minimize monotony and boredom  Can be an effective training technique ROTATION,  Does not entirely address issues of monotony and boredom ENLARGEMEN  Job enlargement – involves giving workers more tasks to perform T, AND  Job enrichment – entails giving workers more tasks to perform and more control over how to perform them ENRICHMENT  Some companies found it to be cost ineffective and may not produce the expected results AREAS OF EMPLOYEE PARTICIPATION  Participation – giving employees a voice in making decisions about their own work  Personal job-related decisions  Administrative matters (e.g., work schedules)  Product quality decisions  Empowerment – enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility and authority  Empowerment through work teams (quality circles)  Decentralization of decision making and increased delegation VARIABLE WORK SCHEDULES  Compressed work schedule – employees work a full 40-hour week in fewer than the traditional five days  Job sharing – two or more part-time employees share one full-time job  Extended work schedule – work schedule that requires relatively long periods of work followed by relatively long periods of paid time off  Flexible work schedule (flextime) – gives employees more personal control over the hours they work each day GOAL-SETTING THEORY  Locke and Latham  Assumes that behavior is a result of conscious goals and intentions, therefore goals influence behavior (performance)  Goal difficulty – extent to which a goal is challenging and requires effort  Goal specificity – clarity and precision of a goal  Goal acceptance – extent to which a person accepts a goal as their own  Goal commitment – extent to which a person is personally interested in reaching a goal GOAL SETTING AND MOTIVATION 1) Goals direct attention 2) Goals regulate effort 3) Goals increase persistence 4) Goals encourage development of strategies and action plans   Collaborative goal-setting process through which organizational goals cascade down throughout the organization MANAGEMENT  Top managers establish overall goals for the organization BY OBJECTIVES  Managers and employees collaborate to set subsidiary goals (MBO)  Managers and employees ensure that the employees have the resources needed to reach the goals  Process flows downward as each subordinate manager repeats the steps with their own subordinates  Manager periodically meets with subordinates to check progress and make adjustments as needed PERFORMANCE APPRAISALS  Growth and development, rewards, termination  360 Degree Feedback  Fairness  Adequate notice  Fair hearing  Judgments based on evidence  Absolute v. relative ranking MEASURING PERFORMANCE MANAGEMENT  Measurement methods are meant to provide information for decisions to be made based on job-related criteria.  Instruments must be valid, reliable, and free of bias  Methods include graphic rating scales, checklists, essays/diaries, behaviorally anchored rating scales, forced-choice systems  Comparative methods include ranking, forced distribution, paired comparisons, multiple raters  Balanced scorecard (BSC) – a relatively structured performance management technique that identifies financial and nonfinancial performance measures and organizes them into a single model BIAS  Liking and leniency  Keeping records  Curve ratings  Stereotypes  Diversity: age, gender, race, attractiveness  Ranking ROLES, PURPOSES, AND MEANINGS OF REWARDS  Reward system – all organizational components, including people, processes, rules and procedures, and decision-making activities, involved in allocating compensation and benefits to employees in exchange for their contribution to the organization  Purpose: to attract, retain, and motivate qualified employees  Roles of compensation structures:  To be equitable and consistent  To be a fair reward for the individual’s contribution  To be competitive in the external labor market  Surface value – objective meaning or worth of a reward  Symbolic value – subjective and personal meaning or worth of a reward INCENTIVES  Pay for performance incentives  Piece rate incentive  Bonuses  Merit pay  Sales commissions  Awards  Gain sharing and profit sharing  Flexible Reward Systems  Flexible reward systems – allow employees to choose the combination of benefits that best suits their needs  Increases both employee satisfaction with benefits and administrative costs for the employer  Participative pay systems  Employees are involved in the design and/or administration of their compensation system  Pay transparency  With a policy of open salary information, exact salary amounts for employees are public knowledge  A secrecy policy means employers make no information available to employees regarding other employees’ compensation  Job Participation & Flexible Goal Performance Managerial Challenges Design Empowerment Work Setting Management Rewards Firm has low-cost business strategy but needs to motivate employees x x x x x An employee feels they cannot meet their performance goals x x x x An employee feels underpaid relative to their coworkers x x x x An employee engages in inappropriate behavior (bullying, etc.) x x x x A talented employee is not feeling challenged at work x x x x x Because work is repetitive, some employees find it boring and hard to x x x x stay motivated