Chapter Six: Applied Performance Practices PDF

Chapter Six: Applied Performance...

Chapter Six: Applied Performance Practices ©McGraw-Hill Education. 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 Education.  Applied Performance Practices at PCL PCL Construction has a highly motivated workforce, driven by enriched jobs and rewards aligned with the company’s success. ©McGraw-Hill Education. © PCL Construction  Meaning of Money at Work Multiple perceptions/emotions of money Money ethic Money as a tool or drug Gender differences –valued more by men Men -- money is a symbol of power/status Women -- money is instrumental (exchanged) Cultural differences High power distance— money has higher respect/priority Nurturing cultures — less discussion/display of wealth Cultural differences in value of saving vs. spending money ©McGraw-Hill Education.  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 Education. © Franck Fernandes/Newscom  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 vs egalitarian culture Employees exaggerate duties, hoard resources ©McGraw-Hill Education.  Competency-Based Rewards Two types of competency rewards Competency-based pay bands– acquiring/demonstrating competencies assigned to that pay group Skill-based -- number of specific skill modules learned Advantages Motivates learning new skills Multi-skilled, flexible, adaptive employees Higher product/service quality Disadvantages of competency-based pay Over-designed (complex) Potentially subjective Higher training costs ©McGraw-Hill Education.  Performance-based Rewards Individual rewards Bonuses, piece rates, commissions Team rewards Mostly bonuses, also gain-sharing plans Organizational rewards Organizational bonuses, ESOPs, share options, profit-sharing Evaluating organizational rewards ESOPs and share options create “ownership culture” Profit sharing adjusts pay with firm's prosperity Problem: organizational rewards have weak P-to-O link ©McGraw-Hill Education.  Profit Sharing at Lee Valley Tools Ottawa-based Lee Valley Tools distributes 25 percent of its annual profits equally to its 850 employees. The profit-sharing plan is valued for aligning employee behaviour with the company’s success. ©McGraw-Hill Education. © Fernando Morales/The Globe and Mail/CP  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 Education. © Fernando Morales/The Globe and Mail/CP  Job Design Assigning tasks to a job, including the interdependency of those tasks with other jobs Organization's goal – design jobs that can be performed efficiently yet employees are motivated and engaged ©McGraw-Hill Education. Frederick Winslow Taylor (Public Domain)  Job Specialization and Scientific Management Improves work efficiency Less time changing activities Jobs mastered quickly (fewer tasks to master, more frequent practice) Better person-job matching Scientific management Frederick Winslow Taylor championed specialization and standardization Also popularized training, goal setting, incentives Job specialization problems Low motivation Absenteeism/turnover Higher wages to offset tedium Affects work quality ©McGraw-Hill Education. Frederick Winslow Taylor (Public Domain)  Job Characteristics Model Jump to Appendix 1 long image description ©McGraw-Hill Education.  Increasing Task Significance at KPMG To increase task significance awareness among staff, KPMG produced a video documenting the professional services firm’s historic contributions to society. It also displayed posters in which employees explained how their jobs as auditors have had a positive impact on others. ©McGraw-Hill Education. © BRIAN ANTHONY / Alamy Stock Photo  Other Job Characteristics Social characteristics of the job Task interdependence -- social interaction with coworkers Feedback from others -- from coworkers, clients, etc. Information processing demands High task variability -- job has nonroutine work patterns High task analyzability -- ©McGraw-Hill Education. © BRIAN ANTHONY / Alamy Stock Photo  Job Rotation Moving from one job to another Benefits 1.More skill variety, may increase motivation and satisfaction 2.Minimizes repetitive strain injury 3.Workforce becomes multi-skilled ©McGraw-Hill Education.  Job Enlargement Adding tasks to an existing job Example: video journalist Jump to Appendix 2 long image description ©McGraw-Hill Education.  Job Enrichment Giving employees more responsibility for scheduling, coordinating, and planning work 1. Natural grouping Stitching highly interdependent tasks into one job e.g., video journalist, assembling entire product 2. Establishing client relationships Directly responsible for specific clients Communicate directly with those clients ©McGraw-Hill Education.  Dimensions of Empowerment Self-determination Meaning Employees believe they Employees believe their have freedom and work is important discretion Competence Impact Employees have feelings Employees believe their of self-efficacy actions influence success ©McGraw-Hill Education.  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 Education.  Self-Leadership The process of influencing oneself to establish the self-direction and self- motivation needed to perform a task Includes concepts/practices from goal setting, social cognitive theory, and sports psychology ©McGraw-Hill Education.  Elements of Self-leadership (1 of 2) 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 Self-talk – increases self-efficacy Mental imagery a) mentally practicing a task and anticipating obstacles b) visualizing successful task completion ©McGraw-Hill Education.  Elements of Self-leadership (2 of 2) 3.Designing Natural Rewards Finding ways to make the job more motivating 4.Self-Monitoring Keeping track of one’s progress toward a self- set goal Using naturally-occurring feedback Designing feedback systems 5.Self-reinforcement “Taking” a reinforcer only after completing a self-set goal ©McGraw-Hill Education.  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 Education.