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Motivation: From Concepts to Applications8 Motivation: From Concepts to Applications Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Topics we will cover Chapter 8 The job characteristics modelHow can jobs be re-dessigned? Examples of employee involvement program What to pay: establishing a pay structure How to pay: rewarding Variable pay, piece-rate pay, merit based, bonuses, sill-based, profit sharing plans, gain sharing, employee stock ownership plans Flexible benefits Intrinsic rewards: employee recognition programs Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
The Job Characteristics ModelFive Core Job Dimensions Skill Variety: degree to which the job incorporates a number of different skills and talents Task Identity: degree to which the job requires the completion of a whole and identifiable piece of work Task Significance: how the job impacts the lives of others Autonomy: identifies how much freedom and independence the worker has over the job Feedback: how much the job generates direct and clear information about the worker’s performance The job characteristics model looks at describing any job in terms of five core job dimensions. These job dimensions include skill variety, which is the degree to which the job incorporates a number of different skills and talents. Task identity is another dimension that looks at the degree to which the job requires the completion of whole and identifiable piece of work. Task significance is included and looks at how the job impacts the lives of others. Autonomy, the fourth dimension, identifies how much freedom and independence the worker has over their job. And finally, feedback is how much the job generates direct and clear information about the worker’s performance. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall (c) 2008 Prentice-Hall, All rights reserved.
The Job Characteristics ModelCore job dimensions Critical psychological states Personal and work outcomes Skill Variety Task identity Task significance Autonomy Feedback Experienced meaningfulness of the work Responsibility for outcomes Knowledge of actual results High work motivation High quality performance & satisfaction Low turnover © 2009 Prentice-Hall Inc. All rights reserved. EMPLOYEE GROWTH
How Can Jobs be Redesigned?Job Rotation The shifting of an employee from one task to another with similar skill requirements. Flexibility + avoids layoffs Job Enrichment The expansion of a job by increasing the degree to which the worker controls the planning, execution, and evaluation of the work. There are some helpful ways to redesign a job to increase the motivation of the employees. Two common practices are job rotation and job enrichment. In job rotation an organization will shift the employee to different tasks with similar skill requirements but all in the same organizational level. In job enrichment a manager will expand an employee’s job by increasing the level of control the worker has in planning their job, executing it or evaluating the work. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall (c) 2008 Prentice-Hall, All rights reserved.
Strengths of Job RotationReduces boredom Increases understanding of work contribution Increased skills Helps managers in scheduling There are many strengths of utilizing job rotation in the workplace. The first is that it helps to reduce boredom with workers as they are constantly expanding their skills. By seeing other jobs and what requirements they have to succeed, it helps the workers see how their work contributes to the overall process of getting a product out. One obvious benefit is that it increases the skills of the workers and, finally, since the worker has a stronger skill set, it helps the manager in scheduling as they have more options to fill the vacancy when someone is sick or on vacation. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall (c) 2008 Prentice-Hall, All rights reserved.
Job Enrichment – Possible ActionsCombine Tasks Form Natural Work Units Establish Client Relations Expand Jobs Vertically Open Feedback Channels Job enrichment is helpful in keeping the worker engaged in their work. There are many actions a manager can take to help the worker. These actions help to achieve core job dimensions. For example, if the manager combines tasks for the worker it can help the worker increase the amount of skills they are utilizing and help them to identify tasks that need to be completed. This action can help the worker to have a better understanding of their job and how it helps the organization complete its goals as well as help the worker enjoy their work more because they are using more of their skill set. E X H I B I T 8-2 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall (c) 2008 Prentice-Hall, All rights reserved.
Examples of Employee Involvement ProgramsDefinition: A participative process that uses employees’ input to increase their commitment to the organization’s success. Examples of Employee Involvement Programs Participative Management Joint decision making, helps with poor morale and low productivity, mixed results Representative Participation Goal is to re-distribute power, work councils or board representatives Employee involvement is defined as a participative process that uses employees’ input to increase their commitment to the overall success of the organization. Some examples of programs that help with employee involvement are participative management and representative participation. Participative management is when managers include employees in the decision-making process. Representative participation tries to redistribute power by putting labor on a more equal footing with the interest of managers and stockholders. They do this by letting the workers be represented by small groups of employees who participate in decisions. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall (c) 2008 Prentice-Hall, All rights reserved.
Using Rewards to Motivate EmployeesAlthough pay is not the primary factor driving job satisfaction, it is a motivator. 1. Establish a pay structure 2. Variable-pay programs As we saw in previous chapters, money is not the primary driver for job satisfaction. However, it does motivate individuals and companies often underestimate its impact in keeping top talent. It is critical to figure out what to pay and to establish a pay structure that makes sense for your industry and organization. Then it is imperative that an organization utilizes this pay system and applies it to the pay of individual employees. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall (c) 2008 Prentice-Hall, All rights reserved.
1. Establishing a Pay StructureInternal Pay Equity -Job evaluation External Pay Equity - External competitiveness Setting pay levels can be complex and requires a balance of internal and external pay equity. Internal equity looks at the worth of the job to the organization and compares it with what others are making within the organization. External equity looks at external competitiveness of an organization’s pay relative to pay elsewhere. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall (c) 2008 Prentice-Hall, All rights reserved.
Variable-Pay Programs2. How to Pay Variable-Pay Programs Piece-Rate Pay Merit-Based Pay Bonuses Skill-Based Pay Profit-Sharing Plans Gainsharing Employee Stock Ownership Plans There are many forms of Variable-Pay programs. They include piece-rate pay, merit-based pay, bonuses, skill-based pay, profit-sharing plans, gainsharing, and employee stock ownership plans. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall (c) 2008 Prentice-Hall, All rights reserved.
Types of Variable-Pay ProgramsPiece-Rate Pay Pays a fixed sum of money for each unit of production completed. For example: Ballpark workers selling peanuts and soda get $1 for each bag of peanuts and soda sold. Merit-Based Pay Pays for individual performance based on performance appraisal results. If appraisals are designed correctly, workers performing at a high level will get more pay. Bonuses Pay a lump sum at the end of a designated period of time based on individual and/or organizational performance. Some types of variable-pay programs include piece-rate, merit- based, and bonuses. Piece-rate pay plans pay a fixed amount of money for each unit of production. Merit-based pay plans are similar where they pay based on performance. However, it is not necessarily tied to production because in some jobs, output is not as easy to measure. Bonuses is another method that is becoming increasingly popular. Bonuses are a lump sum at the end of a set period of time. The amount of the bonus is typically dependent upon the performance of the individual or the organization or some combination of both. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall (c) 2008 Prentice-Hall, All rights reserved.
More Types of Variable-Pay ProgramsSkill-Based Pay Pays based on the number of skills employees have or the number of jobs they can do. Profit-Sharing Plans Pays out a portion of the organization’s profitability. It is an organization-wide program and is based on a predetermined formula. Gainsharing Pays for improvements in group productivity from one period to another. It is a group incentive plan. Employee Stock Ownership Plans (ESOP) Provides each employee with the opportunity to acquire stock as part of their benefit package. Additional methods of variable-pay programs include skill-based pay, profit-sharing plans, gainsharing, and employee stock ownership plans, otherwise known as ESOPs. Skill-based pay will add compensation to workers as they gain more skills and the ability to do additional jobs. It rewards the employees for continuous improvement. Profit-sharing plans are organizational-wide programs where some of the profits of the company are shared with all workers. Gainsharing is a group incentive where a department or unit will earn additional income if they improve group productivity from the previous period. ESOPs are a method used to motivate the employees toward the organizational goals. As part of their benefit package, they are able to earn or purchase company stock, often at below-market rates. This encourages them to work toward the overall profitability of the organization as they have ownership in it and will gain as the company gains. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall . (c) 2008 Prentice-Hall, All rights reserved.
Flexible Benefits A benefits plan that allows each employee to put together a benefits package individually tailored to his or her own needs and situation Its not a “one size fits all” Flexible: age, marital status, number/age of dependents, etc Flexible benefits allow employees choices between different benefits. This allows them to customize their options and create a plan that best meets their needs and situation. This increases their motivation because they realize the organization has their best interest in mind. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall . (c) 2008 Prentice-Hall, All rights reserved.
Employee Recognition ProgramsEmployee rewards need to be intrinsic and extrinsic. Employee recognition programs are a good method of intrinsic rewards. The rewards can range from a simple thank-you to more widely publicized formal programs. Financial incentives are more motivating: in the short term Advantages: they are inexpensive and effective. Some critics say: they can be politically motivated and if they are perceived to be applied unfairly A method of motivation that has been highly successful is employee recognition programs. This idea recognizes the importance of coupling extrinsic and intrinsic methods to help motivate employees. Recognition is an intrinsic motivation technique that can range from giving an employee the proverbial pat on the back to a more public recognition ceremony. Recognition programs are highly effective and cost very little to administer. There are critics of such programs, however, who say that they can be politically motivated and if the perception is that they are applied unfairly, they can cause more harm than good. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall . (c) 2008 Prentice-Hall, All rights reserved.
Chapter Learning Objectives
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