Organizational Behavior Chapter 6 PDF
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Steven L. McShane, Mary Ann Von Glinow
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This document is chapter 6 of a textbook on Organizational Behavior. It covers various topics regarding employee performance and motivation. The chapter includes learning objectives, examples from Softcom, various reward systems.
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Because learning changes everything.® CHAPTER SIX Applied Performance Practices Shutterstock/photobeps and Global Connections Icon: Shutterstock/Merfin © 2021 McGraw Hill. All rights reserved. Autho...
Because learning changes everything.® CHAPTER SIX Applied Performance Practices Shutterstock/photobeps and Global Connections Icon: Shutterstock/Merfin © 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill. Learning Objectives 1. Discuss the meaning of money and identify several individual-, team-, and organizational-level performance-based rewards. 2. Describe five ways to improve reward effectiveness. 3. List the advantages and disadvantages of job specialization. 4. Diagram the job characteristics model and describe three ways to improve employee motivation through job design. 5. Define psychological empowerment and identify strategies that support empowerment. 6. Describe the five elements of self-leadership and identify specific personal and work environment influences on self- leadership. © McGraw Hill Applied Performance Practices at Softcom Softcom Ltd. in Lagos, Nigeria, has a highly motivated workforce, driven by meaningful jobs, rewards aligned with the company’s purpose and values, and an emphasis on self-leadership. © McGraw Hill Mavo/Shutterstock Meaning of Money at Work A form of exchange. Relates to needs and self-concept, generates emotions. Interpreted as a tool or a drug. Money ethic: money perceived as not evil, symbol of achievement, something of value to be budgeted. Meaning of money differs between men and women. Meaning of money varies across cultures. Money motivates more than previously believed. © McGraw Hill Membership/Seniority Based Rewards Fixed wages, seniority-based rewards. Advantages: May attract job applicants. Less financial insecurity. Less turnover with seniority. Disadvantages: No performance motivation. Discourages poor performers from leaving. May act as golden handcuffs. © McGraw Hill Job Status-Based Rewards Includes job evaluation and status perks. Advantages: Job evaluation: more pay fairness, less pay discrimination. Motivates competition for promotions. Disadvantages: Encourages bureaucratic hierarchy. Reinforces status versus egalitarian culture. Employees exaggerate duties, hoard resources. © McGraw Hill Competency-Based Rewards Competency-based pay and skill-based pay. Advantages: Motivates learning new skills. Multiskilled, flexible, adaptive employees. Higher product/service quality. Disadvantages: Overdesigned (complex). Potentially subjective. Higher training costs. © McGraw Hill Performance-based Rewards Individual rewards: Bonuses, piece rates, commissions. Team rewards: Mostly bonuses, also gain-sharing plans. Organizational rewards: Organizational bonuses, ESOPs, stock options, profit-sharing. Evaluating organizational rewards: ESOPs and stock options create “ownership culture.” Profit sharing adjusts pay with firm's prosperity. Problem: organizational rewards have weak P-to-O link. © McGraw Hill Improving Reward Effectiveness Link rewards to performance. Ensure rewards are relevant. Team rewards for interdependent jobs. Ensure rewards are valued. Beware of unintended consequences. © McGraw Hill Job Design Effective job design: balancing potentially competing effects of efficiency and motivation. Jobs with few tasks: High efficiency, low motivation. Jobs with many tasks: Low efficiency, high motivation. Work efficiency through job specialization. Division of labor: Work subdivided into separate jobs. Short cycle time: The time required to complete the task. © McGraw Hill Job Specialization and Scientific Management Improves work efficiency. Less time changing activities. Jobs mastered more quickly. Better person-job matching. Scientific management. Frederick Winslow Taylor (photo). Promoted specialization, standardization. Promoted training, goal setting, rewards. Job specialization problems. Low motivation. Absenteeism/turnover. Higher wages to offset tedium. Affects work quality. © McGraw Hill Frederick Winslow Taylor (Public Domain) Job Design and Work Motivation Access the text alternate for slide image. © McGraw Hill Social and Information Processing Job Characteristics Social characteristics of the job. Task interdependence: Requires social interaction of coworkers. Feedback from others: From coworkers, clients, etc. Information processing demands. High task variability: Job has nonroutine work patterns. High task analyzability: Use known procedures/rules. © McGraw Hill Frequent Job Rotation Moving from one job to another, typically more than once per day. Benefits. Higher motivation potential. Better knowledge of quality issues. Lower health risks. Greater workforce flexibility. © McGraw Hill Job Enlargement Adding tasks to an existing job. Example: video journalist. Access the text alternate for slide image. © McGraw Hill Job Enrichment Giving employees more responsibility for scheduling, coordinating, and planning work. 1. Natural grouping. Stitching highly interdependent tasks into one job. For example, video journalist, assembling entire product. 2. Establishing client relationships. Directly responsible for specific clients. Communicate directly with those clients. © McGraw Hill Dimensions of Psychological Empowerment ELEMENT DESCRIPTION Self-determination. Employees believe they have freedom, independence, and discretion over their work activities. Meaning. Employees care about their work and believe that what they do is important. Competence. Employees are confident about their ability to perform the work well and have a capacity to grow with new challenges (self-efficacy). Impact. Employees view themselves as active participants in the organization — their decisions and actions influence the company’s success. © McGraw Hill Supporting Empowerment Individual factors: Possess required competencies, can perform the work, can handle decision making demands. Job design factors: Autonomy, task identity, task significance, job feedback. Organizational factors: Resources, learning orientation, trust. © McGraw Hill Practice Self-Leadership in Surgery: Focusing on the Positive Orthopedic surgeon Sarah Coll practices self- leadership by focusing on positive rather than negative self-talk and by engaging in constructive mental imagery. © McGraw Hill Alloy/Dreet Production/Getty Images Practice Self-Leadership in Surgery: Cognitive and Behavioral Strategies Cognitive and behavioral strategies to achieve personal goals and standards through self-direction and self-motivation. Includes concepts practices from goal setting, social cognitive theory, and sports psychology. © McGraw Hill Alloy/Dreet Production/Getty Images Practice Self-Leadership in Surgery: Goal Setting and Thought Patterns Personal Goal Setting: Set goals for your own work effort. Apply effective goal setting practices. Requires a high degree of self-awareness. Constructive Thought Patterns. Self-talk increases self- efficacy. Mental imagery. © McGraw Hill Alloy/Dreet Production/Getty Images Practice Self-Leadership in Surgery Designing Natural Rewards: Finding ways to make the job more motivating. Self-Monitoring: Keeping track of one’s progress toward a self-set goal. Using naturally-occurring feedback. Designing feedback systems. Self-reinforcement: “Taking” a reinforcer only after completing a self-set goal. © McGraw Hill Alloy/Dreet Production/Getty Images Predictors of Self-Leadership Individual factors: Higher levels of conscientiousness and extroversion. Positive self-evaluation (self-esteem, self-efficacy, internal locus). Organizational factors: Job autonomy. Participative and trustworthy leadership. Measurement-oriented culture. © McGraw Hill