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Applied Performance Practices
© 2009 The McGraw-Hill Companies, Inc. All rights reserved Canadian OB 7e: McShane/Steen
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Applied Performance Practices at Nucor
Courtesy Nucor Nucor has survived and thrived in the turbulent steel industry through the benefits of performance-based rewards, job design, and empowerment.
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Financial Reward Practices
Financial rewards -- fundamental part of employment relationship Pay has multiple meanings symbol of success reinforcer and motivator reflection of performance can reduce anxiety Men value money more than women Cultural values influence the meaning and value of money © Corel Corp. With permission.
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Types of Rewards in the Workplace
Membership and seniority Job status Competencies Performance-based © Corel Corp. With permission.
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Membership/Seniority Based Rewards
Fixed wages, seniority increases Advantages Guaranteed wages may attract job applicants Seniority-based rewards reduce turnover Disadvantages Doesn’t motivate job performance Discourages poor performers from leaving May act as golden handcuffs (tie people to the job)
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Job Status-Based Rewards
Includes job evaluation and status perks Advantages: Job evaluation tries to maintain pay equity Motivates competition for promotions Disadvantages: Employees exaggerate duties, hoard resources Reinforces status, hierarchy Inconsistent with workplace flexibility
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Competency-Based Rewards
Pay increases with competencies acquired and demonstrated Skill-based pay Pay increases with skill modules learned Advantages More flexible work force, better quality, consistent with employability Disadvantages Potentially subjective, higher training costs
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Performance Pay at Spruceland Millworks
Spruceland Millworks, an Alberta-based remanufacturer of mouldings, decking, and other niche lumber products, is a high-performance workplace that rewards individual, team, organization-level performance.“
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Performance-Based Rewards
Profit sharing Share ownership Share options Balanced scorecard Organizational rewards Team rewards Bonuses Gainsharing Individual rewards Bonuses Commissions Piece rate
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Evaluating Organizational Rewards
Positive effects Creates an “ownership culture” Adjusts pay with firm's prosperity Scorecards align rewards with several specific organizational outcomes Concerns with performance pay Weak connection between individual effort and rewards Reward amounts affected by external forces
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Improving Reward Effectiveness
Link rewards to performance Ensure rewards are relevant Team rewards for interdependent jobs Ensure rewards are valued Watch out for unintended consequences © Corel Corp. With permission.
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Job Design Assigning tasks to a job, including the interdependency of those tasks with other jobs Organization's goal -- to create jobs that allow work to be performed efficiently yet employees are motivated and engaged
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Job Specialization Dividing work into separate jobs that include a subset of the tasks required to complete the product or service Scientific management Frederick Winslow Taylor advocates job specialization Taylor also emphasized person-job matching, training, goal setting, work incentives
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Evaluating Job Specialization
Advantages Disadvantages Less time changing activities Lower training costs Job mastered quickly Better person-job matching Job boredom Discontentment pay Higher costs Lower quality Lower motivation
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Job Characteristics Model
Core Job Characteristics Critical Psychological States Outcomes Skill variety Task identity Task significance Meaningfulness Work motivation Growth satisfaction General effectiveness Autonomy Responsibility Feedback from job Knowledge of results Individual differences
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Job Rotation Moving from one job to another Benefits
Minimizes repetitive strain injury Multiskills the workforce Potentially reduces job boredom Job ‘A’ Job ‘B’ Job ‘D’ Job ‘C’
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Job Enlargement Adding tasks to an existing job
Example: video journalist Video journalist • Operates camera • Operates sound • Reports story Employee 1 Operates camera Employee 2 Operates sound Employee 3 Reports story Traditional news team
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Job Enrichment Given more responsibility for scheduling, coordinating, and planning one’s own work 1. Clustering tasks into natural groups 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
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Kambuku Empowerment Pretoria Portland Cement introduced “Kambuku”, a companywide initiative that made the South African company more performance-oriented through employee empowerment. Courtesy Pretoria Portland Cement
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Dimensions of Empowerment
Self-determination Employees feel they have freedom and discretion Meaning Employees believe their work is important Competence Employees have feelings of self-efficacy Impact Employees feel their actions influence success
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Supporting Empowerment
Individual factors Possess required competencies, able to perform the work Job design factors Autonomy, task identity, task significance, job feedback Organizational factors Resources, learning orientation, trust Courtesy Pretoria Portland Cement
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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 learning theory Sports psychology
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Elements of Self-Leadership
Personal Goal Setting Constructive Thought Patterns Designing Natural Rewards Self- Monitoring Self- Reinforce- ment Personal goal setting Employees set their own goals Apply effective goal setting practices
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Elements of Self-Leadership
Personal Goal Setting Constructive Thought Patterns Designing Natural Rewards Self- Monitoring Self- Reinforce- ment Positive self-talk Talking to ourselves about thoughts/actions Potentially increases self-efficacy Mental imagery Mentally practicing a task Visualizing successful task completion
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Elements of Self-Leadership
Personal Goal Setting Constructive Thought Patterns Designing Natural Rewards Self- Monitoring Self- Reinforce- ment Finding ways to make the job itself more motivating eg. altering the way the task is accomplished
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Elements of Self-Leadership
Personal Goal Setting Constructive Thought Patterns Designing Natural Rewards Self- Monitoring Self- Reinforce- ment Keeping track of your progress toward the self-set goal Looking for naturally-occurring feedback Designing artificial feedback
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Elements of Self-Leadership
Personal Goal Setting Constructive Thought Patterns Designing Natural Rewards Self- Monitoring Self- Reinforce- ment “Taking” a reinforcer only after completing a self-set goal eg. Watching a movie after writing two more sections of a report eg. Starting a fun task after completing a task that you don’t like
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Applied Performance Practices
© 2009 The McGraw-Hill Companies, Inc. All rights reserved Canadian OB 7e: McShane/Steen
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