Applied Performance Practices PDF
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International Islamic University Malaysia
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This document presents various performance practices and their effects on employees. It covers different aspects of compensation, motivation, job design, and various types of rewards.
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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 Meaning of Money at Work A form of exchange. in return for labor, skill, knowledge Relates to needs and self-concept, generates emotions. ▶ achievement & status symbol ▶ motivator Interpreted as toaacquire toolother or a drug. ▶ enhance and reduce anxiety monetary intelligence addictive ▶ make ethical/risky decision things of value Money ethic: money perceived as not evil, symbol of achievement, something of value to be budgeted. ▶ respect, power ▶ more important/valuable ▶ power/status/autonomy Meaning of money differs between men and women. ▶ exchange for other value ▶ generosity/caring Meaning of money▶ high varies across cultures. power distance --- money has higher respect/priority ▶ strong egalitarian--- discourage discuss/display wealth Money motivates more than previously believed. ▶ due to money's symbolic value ▶ higher paychecks enhance self evaluation ▶ symbolic value of money (distribution of financial reward) © McGraw Hill Financial Reward Practices Membership/Seniority Based Rewards ▶ largest part of most paychecks ▶ "pay for pulse" Fixed wages, seniority-based rewards. Advantages: May attract job applicants. ▶ guaranteed ages Less financial insecurity. ▶ min stress Less turnover with seniority. Disadvantages: No Not performance motivation. motivate job performance Discourages poor performers from leaving. May act as golden handcuffs. ▶ discourage employee from quitting ▶ weaken job performance © McGraw Hill Job Status-Based Rewards ▶ company car higher status/worth, higher pay ▶ club membership Includes job evaluation and status perks. Advantages: Job evaluation: more pay fairness, less pay discrimination. Job Evaluation: Motivates competition for promotions. ▶ rating worth of the jobs ▶ measure required skill, Disadvantages: effort, responsibility, and working cond. 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. ▶ skill-based are more objective Higher training costs. © McGraw Hill Performance-based Rewards Individual rewards: Bonuses, piece rates, commissions. hostel executives sales housekeeping Team rewards: effort-to-performance link Mostly bonuses, also gain-sharing plans. bonus from cost savings/ productivity gains Organizational rewards: right to purchase company stock Organizational bonuses,encourage ESOPs,employee stock options, profit-sharing. buy stock Evaluating organizational rewards: ESOPs and stock options create “ownership culture.” wealth Profit sharing adjusts pay with firm's prosperity. Problem: organizational rewards have weak P-to-O link. performance-to-outcome of "indv" & "rewards" WEAK © McGraw Hill Improving Reward Effectiveness ▶ better perf, high rewards Link rewards to performance. ▶ min biases/inconsistencies through more obj plan (ESOPS/gain-sharing) Ensure rewards are relevant. Team rewards for interdependent jobs. ▶ avoid assuming what employee wants Ensure rewards are valued. ▶ OR everyone value same reward Beware of unintended consequences. ▶ test incentives in pilot project © McGraw Hill Job Specialization and Scientific Management Improves work efficiency. less cognitive changeover Less time changing activities.inefficiency Jobs mastered more quickly. Better person-job matching. Scientific management. Frederick Winslow Taylor (photo). Promoted specialization, maximize work standardization. efficiency Promoted training, goal setting, rewards. Job specialization problems. Low motivation. tedious, trivial, isolating Absenteeism/turnover. Higher wages to offset tedium. Affects work quality. offset dissatisfying work ▶ high quality = easy master job ▶ low quality = low motivation, attentiveness © McGraw Hill Frederick Winslow Taylor (Public Domain) 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. took more time to become efficient 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 Characteristics Model = relates job motivational properties ▶ personal & orgz Job Design and Work Motivation ▶ complete identifiable worthwhile/important work job perceived ▶ work effect freedom, independence feel accoountable ▶ intrinsic motivation consequences of work effort = job satisfaction = high intrinsic motivation = work effectiveness ▶ inc growth, need, strength, job satisfaction Access the text alternate for slide image. © McGraw Hill Social and Information Processing Job Characteristics Social characteristics of the job. Task interdependence: ▶ must share materials, info, expertise to perform job Requires social interaction of coworkers. Feedback from others: From coworkers, clients, etc. Information processing demands. High task variability: ▶ task are varied and unpredictable everyday Job has nonroutine work patterns. High task analyzability: ▶ ready-made "cookbook" Use known procedures/rules. low task analyzability = require creativity and judgment © McGraw Hill Frequent Job Rotation Moving from one job to another, typically more than once per day. Benefits. Higher motivation potential.▶ wider skill variety Better knowledge of quality issues. ▶ develop clearer picture, improve product quality Lower health risks.▶ less risk repetitive strain Greater workforce flexibility. ▶ encourage multiple job learning ▶ flexible to fill vacant positions © McGraw Hill Job Enlargement Adding tasks to an existing job. ▶ increase skill variety Example: video journalist. one person needed to perform all task-at-once e.g.: cashier ▶ handling counter (+) monitor in-store promotion ▶ enhance skill variety ▶ less risk repetitive strain injuries ▶ high employee motivation, job Access satisfaction, work efficiency the text alternate for slide image. ▶ perform variety task + freedom to structure work = ✓ © McGraw Hill Job Enrichment Giving employees more responsibility for scheduling, coordinating, and planning work. 1. Natural grouping. dependent on e/o Stitching highly interdependent tasks into one job. For example, video journalist, assembling entire product. ▶ job satisfaction ▶ lower absenteeism and turnover ▶ high productivity ▶ task identity, task significance 2. Establishing client relationships. Directly responsible for specific clients. Communicate directly with those clients. © McGraw Hill Dimensions of Psychological Empowerment Definition = a perceptual and emotional state --- experience s-d,m,c,i, regarding their role in orgz 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: Cognitive and Behavioral Strategies Cognitive and behavioral strategies to achieve personal goals and standards through self-direction and self-motivation. without direct assistance Includes concepts practices from goal setting, social cognitive theory, and sports psychology. © McGraw Hill Alloy/Dreet Production/Getty Images Practice Self-Leadership: Goal Setting and Thought Patterns Elements of Self-Leadership 1) Personal Goal Setting: Set goals for your own work effort. Apply effective goal setting practices. Requires a high degree of self-awareness. 2) Constructive Thought Patterns. of our thoughts Self-talk increases self- efficacy. reduce anxiety Mental imagery. ▶ mentally practice task -- improve preparedness ▶ visualize successful task completion --- increase goal commitment/ motivation © McGraw Hill Alloy/Dreet Production/Getty Images Practice Self-Leadership 3) Designing Natural Rewards: Finding ways to make the job more motivating. slight changes to suit personal preferences 4) Self-Monitoring: Keeping track of one’s progress toward a self-set goal. Using naturally-occurring feedback. arrange monthly report Designing feedback systems. 5) Self-reinforcement: “Taking” a reinforcer only after completing a self-set goal. ▶ taking break after reaching pre- determined stage of work © 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