©2003 Prentice Hall Chapter 5 Robbins 1 Chapter 5 Motivation: From Concepts to Applications Stephen P. Robbins

©2003 Prentice HallChapter 5 Robbins 2 ObjectivesObjectives MBO programsIdentify the four ingredients common to MBO programs five-step problem-solving modelOutline the five-step problem-solving model in OB Modification employee involvement programsExplain why managers might want to use employee involvement programs participative managementContrast participative management with employee involvement ESOPsExplain how ESOPs can increase employee motivation skill-based pay plansDescribe the link between skill-based pay plans and motivation theories

©2003 Prentice HallChapter 5 Robbins 3 Emphasizes converting overall organizational objectives into specific objectives for individual units and members that are tangible, verifiable, and measurable Management by Objectives (MBO)

©2003 Prentice HallChapter 5 Robbins 4 Overall organizational objectives Overall organizational objectives Divisional objectives Divisional objectives Departmental objectives Departmental objectives Individual objectives Individual objectives Cascading of Objectives

©2003 Prentice HallChapter 5 Robbins 5 Management by Objectives Four ingredients common to MBO programs: 1. Goal specificity 2. Participative decision making 3. Explicit time period 4. Performance feedback

©2003 Prentice HallChapter 5 Robbins 6 Management by Objectives (MBO) Organizational objectives translated to specific objectives for each level (division, department, individual) Lower-level managers participate in setting their own goals Results in hierarchy of objectives that links one level to the next If all individuals achieve goals, organizational objectives will be attained

©2003 Prentice HallChapter 5 Robbins 7 The application of reinforcement theory to individuals in the work setting using a problem-solving model, feedback, and positive reinforcements Behavior Modification (OB Mod)

©2003 Prentice HallChapter 5 Robbins 8 1 Identify performance- related behavioral events 1 Identify performance- related behavioral events 2 Measure: Baseline the frequency of response 2 Measure: Baseline the frequency of response 3 Identify existing behavioral contingencies through functional analysis 3 Identify existing behavioral contingencies through functional analysis 4a Develop intervention strategy 4a Develop intervention strategy 4b Apply appropriate strategy 4b Apply appropriate strategy 4c Measure: Chart the frequency of response after intervention 4c Measure: Chart the frequency of response after intervention Steps in OB Mod 4d Maintain desirable behavior 4d Maintain desirable behavior 5 Evaluate for performance improvement 5 Evaluate for performance improvement Yes No Adapted by permission of the publisher from Personnel, July-August © Fred Luthans, American Management Association, New York. All rights reserved. Problem solved?

©2003 Prentice HallChapter 5 Robbins 9 Using multiple sources to reward behavior and recognize publicly both individual and group accomplishments Employee Recognition Programs

©2003 Prentice HallChapter 5 Robbins 10 Employee Recognition Programs repetitionRewarding behavior with recognition immediately leads to its repetition publicly communicateTo maximize motivation potential, publicly communicate who and why is being recognized costs littleRecognizing employee’s superior performance often costs little Suggestion systemsSuggestion systems are widely used recognition devices

©2003 Prentice HallChapter 5 Robbins 11 A participative process that uses the entire capacity of employees related to decisions that affect them is designed to encourage increased commitment to the organization's success Employee Involvement

©2003 Prentice HallChapter 5 Robbins 12 Employee Involvement decisionsInvolve workers in decisions that will affect them autonomyIncrease their autonomy and control over their work lives techniquesInclude techniques with a common core Employee participation Participative management Workplace democracy Empowerment Employee ownership

©2003 Prentice HallChapter 5 Robbins 13 Forms of compensation where a portion of an employee’s pay is based on the measure of performance either of the individual, the organization, or both Variable-Pay Programs

©2003 Prentice HallChapter 5 Robbins 14 Variable-Pay Programs Four widely used variable-pay programs Piece-rate wages Piece-rate wages - fixed sum for each unit completed Bonuses Bonuses - a percent of annual pay based on company earnings Profit sharing Profit sharing - based on a formula designed around company’s profitability Gainsharing Gainsharing - formula-based group incentive plan for improvements in productivity

©2003 Prentice HallChapter 5 Robbins 15 Pay levels based on how many skills employees have or how many jobs they can do Skill-Based Pay (Competency-Based Pay)

©2003 Prentice HallChapter 5 Robbins 16 Skill-Based Pay Advantages: Attractive due to flexibility for management Encourages employees to acquire a range of skills Facilitates communication and understanding of others’ jobs Meets needs of ambitious employees without a promotion in job titleDisadvantages: Topping out - learning all the skills Skills might become obsolete Do not address level of performance

©2003 Prentice HallChapter 5 Robbins 17 Implications for Managers are groundedbasic motivation theoriesPrograms designed to increase employee motivation, productivity, and satisfaction are grounded on basic motivation theories not applicableSix motivation programs described are not applicable to every organization or every manager’s needs designing internal systemsUnderstanding will help with designing internal systems to increase employee productivity and satisfaction

©2003 Prentice HallChapter 5 Robbins 18 SummarySummary MBO programsIdentified the four ingredients common to MBO programs five-step problem-solving modelOutlined the five-step problem-solving model in OB Modification employee involvement programsExplained why managers might want to use employee involvement programs participative managementContrasted participative management with employee involvement ESOPsExplained how ESOPs can increase employee motivation skill-based pay plansDescribed the link between skill-based pay plans and motivation theories