Chapter 6 Motivation and Performance It’s about person-job fit

Chapter 6 Study Questions What is the link between motivation, performance, and rewards? What are the essentials of performance management? How do job designs influence motivation and performance? What are the motivational opportunities of alternative work arrangements? Copyright © 2010 John Wiley & Sons, Inc.

Figure 6.1 Integrated Model of Individual Motivation to Work. Copyright © 2010 John Wiley & Sons, Inc.

What is the link between motivation, performance, and rewards? The Integrated Model combines four key theories of organizational behavior: Reinforcement – immediately rewarding positive behaviors with valued outcomes. Equity – assuring fairness in type and distribution of rewards. Content – acknowledging individual differences in motivational value Expectancy – creating a linkage among ‘effort>performance>reward’. Copyright © 2010 John Wiley & Sons, Inc.

What is the link between motivation, performance, and rewards? Intrinsic rewards Positively valued work outcomes that the individual receives directly as a result of task performance. Extrinsic rewards Positively valued work outcomes that are given to an individual or group by some other person or source in the work setting. Copyright © 2010 John Wiley & Sons, Inc.

What is the link between motivation, performance, and rewards? Pay for performance – the concept that monetary rewards are in whole, or in part, linked to accomplishments (individual or team). Programs that provide incentives for employees to increase their outputs. In the 2008-09 economic recession, HRGURU finds that employers are finding that ‘cash is still king’ when it comes to incentives. Copyright © 2010 John Wiley & Sons, Inc.

What is the link between motivation, performance, and rewards? Merit pay Compensation system that directly ties an individual’s salary or wage increase to measures of performance accomplishments during a specific time period. Seeks to create a belief among employees that the way to achieve high pay is to perform at high levels. Bonus – additional monetary award that meets specified benchmarks. Copyright © 2010 John Wiley & Sons, Inc.

What is the link between motivation, performance, and rewards? Gain sharing Gives workers the opportunity to earn more by receiving shares of any productivity gains that they help to create. Copyright © 2010 John Wiley & Sons, Inc.

What is the link between motivation, performance, and rewards? Profit-sharing plans Reward employees based on overall organizational profit. Criticism: organizational profits are not always a direct result of employees’ efforts, Copyright © 2010 John Wiley & Sons, Inc.

What is the link between motivation, performance, and rewards? Skill-based pay Rewards people for acquiring and developing job relevant skills. Copyright © 2010 John Wiley & Sons, Inc.

What is the link between motivation, performance, and rewards? Stock Options Provide employees with an opportunity to buy shares of stock at a future date at a fixed price. Copyright © 2010 John Wiley & Sons, Inc.

What is the link between motivation, performance, and rewards? Employee stock ownership plans (ESOPs) May give stock to employees, or allow stock to be purchased at a price below market value. Copyright © 2010 John Wiley & Sons, Inc.

What are the essentials of performance management? Fair and accurate measurement and application of rewards, and the various human resource management decisions and actions based on such measurement. Copyright © 2010 John Wiley & Sons, Inc.

Figure 6.2 Performance management cycle Copyright © 2010 John Wiley & Sons, Inc.

What are the essentials of performance management? Performance management is: Evaluative - lets people know where they stand relative to objectives and standards; Developmental – provides insights into individual strengths and weaknesses that are useful for personal development. Copyright © 2010 John Wiley & Sons, Inc.

What are the essentials of performance management? Performance Measurement Output measures assess actual work results Activity measures assess work efforts or inputs Copyright © 2010 John Wiley & Sons, Inc.

What are the essentials of performance management? Performance appraisal Formal procedure for measuring and documenting a person’s work performance. Copyright © 2010 John Wiley & Sons, Inc.

What are the essentials of performance appraisal? Comparative Methods of Performance Appraisal Raters rank order individuals from best to worst on overall performance. Ranking Raters compare each person with every other person. Paired Comparisons Raters place a specific proportion of employees into each performance Forced Distribution Copyright © 2010 John Wiley & Sons, Inc.

What are the essentials of performance appraisal ? Rating scales Graphic - Raters assign scores on a list of dimensions related to high performance outcomes in a given job. Behavioral - Raters identify observable job behaviors, and specifically describe superior or inferior performance. Critical incident diaries Rater records incidents of unusual success or failure in a given performance aspect. Copyright © 2010 John Wiley & Sons, Inc.

Figure 6.3. Graphic rating scale. Copyright © 2010 John Wiley & Sons, Inc.

Figure 6.4 Behavioral Scale Copyright © 2010 John Wiley & Sons, Inc.

What are the essentials of performance appraisal ? 360° Evaluation Includes not only the evaluations of bosses, peers, and subordinates, but also self-ratings, customer ratings, and ratings by others with whom the employee deals with outside the immediate work unit. Copyright © 2010 John Wiley & Sons, Inc.

Your experience… Think of a performance management discussion you have had with a manager? Did you look forward to the meeting? Put yourself in the manager’s place. What would you change about the procedure? Which evaluation tool will be most beneficial? Copyright © 2010 John Wiley & Sons, Inc.

What are the essentials of performance management? To be meaningful, an appraisal system must be: Reliable - provide consistent results across time. Valid - actually measure people on relevant job content. Copyright © 2010 John Wiley & Sons, Inc.

How do job designs influence motivation and performance? Process through which managers plan and specify job tasks and the work arrangements that allow them to be accomplished. Copyright © 2010 John Wiley & Sons, Inc.

How do job designs influence motivation and performance? Scientific management Sought to improve work efficiency by creating small, repetitive tasks and training workers to do these tasks well. Copyright © 2010 John Wiley & Sons, Inc.

Figure 6.5 Job Design Strategies Copyright © 2010 John Wiley & Sons, Inc.

How do job designs influence motivation and performance? Job simplification A scientific management approach that standardizes work procedures and employs people in clearly defined and highly specialized tasks. Intent is to increase efficiency, but it may be decreased due to the motivational impact of unappealing jobs. Copyright © 2010 John Wiley & Sons, Inc.

How do job designs influence motivation and performance? Job enlargement Increases task variety by combining into one job two or more tasks that were previously assigned to separate workers. Job rotation Increases task variety by periodically shifting workers among jobs involving different tasks. Copyright © 2010 John Wiley & Sons, Inc.

How do job designs influence motivation and performance? Job enrichment The practice of enhancing job content by building motivating factors such as responsibility, achievement, recognition, and personal growth into the job. Copyright © 2010 John Wiley & Sons, Inc.

How do job designs influence motivation and performance? Concerns about job enrichment Job enrichment can be very costly. Controversy concerning whether pay must be increased when jobs are enriched. Copyright © 2010 John Wiley & Sons, Inc.

Figure 6.6 Job Characteristic Model Copyright © 2010 John Wiley & Sons, Inc.

How do job designs influence motivation and performance? Job characteristics model Provides a data-based approach to creating job designs with good person-job fit that maximize the potential for motivation and performance. Copyright © 2010 John Wiley & Sons, Inc.

How do job designs influence motivation and performance? Motivating potential score MPS indicates the degree to which the job is capable of motivating people. A job’s MPS can be raised by enriching the core characteristics. Copyright © 2010 John Wiley & Sons, Inc.

What are the keys to designing motivating jobs? When the core characteristics are highly enriched, three critical psychological states are positively influenced: Experienced meaningfulness of work Experienced responsibility for work outcomes Knowledge of actual results of work activities Copyright © 2010 John Wiley & Sons, Inc.

How do job designs influence motivation and performance? Moderators that influence the degree of positive outcomes of enriched jobs: Employee growth-need strength is high. The employee has the required knowledge and skills. Employee is satisfied with the work context (salary, supervision, relationships). Copyright © 2010 John Wiley & Sons, Inc.

How do job designs influence motivation and performance? Managerial and global implications of enriching jobs Not everyone’s job should be enriched. Job enrichment can apply to groups. Culture has a substantial impact on job enrichment. Copyright © 2010 John Wiley & Sons, Inc.

Alternative work arrangements What are the motivational opportunities of alternative work assignments? Alternative work arrangements A key feature of contemporary organizations. Designed to provide work-life balance and increase employee motivation, performance and job satisfaction. Copyright © 2010 John Wiley & Sons, Inc.

What are the motivational opportunities of alternative work assignments? Compressed work weeks – any scheduling of work that allows a full time job to be completed in fewer than the standard five days. Advantages For workers: added time off. For organizations: lower absenteeism and improved recruiting of new employees. Disadvantages For workers: increased fatigue and family adjustment problems. For organizations: work scheduling problems, customer complaints, possible union opposition. Copyright © 2010 John Wiley & Sons, Inc.

What are the motivational opportunities of alternative work assignments? Flexible working hours Gives individuals a daily choice in the timing of their work commitments. Advantages: For workers: shorter commuting time, more leisure time, more job satisfaction, and greater sense of responsibility. For organizations: less absenteeism, tardiness, and turnover; more commitment, and higher performance. Copyright © 2010 John Wiley & Sons, Inc.

What are the motivational opportunities of alternative work assignments? Job sharing One full-time job is assigned to two or more persons who divide the work according to agreed-upon hours. Advantages: For workers: less burnout and higher energy level. For organizations: attracting talented people who would otherwise be unable to work. Copyright © 2010 John Wiley & Sons, Inc.

What are the motivational opportunities of alternative work assignments? Work sharing Workers agree to cut back on the number of hours they work in order to protect against layoffs. Some employers may mandate a cutback due to economic necessity. Copyright © 2010 John Wiley & Sons, Inc.

What are the motivational opportunities of alternative work assignments? Telecommuting - Work done at home or in a remote location utilizing technology to communicate with a central office or other employment location. Advantages For workers: flexibility, comforts of home, and choice of work locations consistent with one’s lifestyle. For organizations: costs savings, efficiency, and improved employee satisfaction. Disadvantages For workers: isolation from co-workers, decreased identification with work team, family distractions. Copyright © 2010 John Wiley & Sons, Inc.

What are the motivational opportunities of alternative work assignments? Advantages of part-time work For workers: appeals to people who want to supplement other jobs or do not want full-time work. For organizations: lower labor costs, ability to better accommodate peaks and valleys of business cycle, and better management of retention. Disadvantages For workers: added stress and potentially diminished performance if holding two jobs, failure to qualify for benefits, and lower pay rates than full-time counterparts. For organizations: when a person holds multiple part-time jobs, the work burdens can be stressful; performance may suffer on the job. Copyright © 2010 John Wiley & Sons, Inc.