Copyright © 2002 by Harcourt, Inc. All rights reserved. Topic 18 : HR Management: Non-financial Rewards By Zhu Wenzhong

Copyright © 2002 by Harcourt, Inc. All rights reserved. State the definition of non-financial rewards and the importance of developing such rewards State the definition of non-financial rewards and the importance of developing such rewards State 5 possible non-financial rewards that may be an incentive for individuals State 5 possible non-financial rewards that may be an incentive for individuals State 6 methods of job design and redesign in order to motivate workers State 6 methods of job design and redesign in order to motivate workers State the advantages and disadvantages of team-working and empowerment State the advantages and disadvantages of team-working and empowerment LEARNING GOALS

Copyright © 2002 by Harcourt, Inc. All rights reserved. What is ‘non-financial rewards’? The non-monetary factors to motivate workers and to improve productivity The non-monetary factors to motivate workers and to improve productivity © PhotoDisc

Copyright © 2002 by Harcourt, Inc. All rights reserved. Employees’ needs from the work environment Chances of promotion Chances of promotion Holidays Holidays Prestige and recognition of achievement Prestige and recognition of achievement A fair wages for work A fair wages for work A healthy work environment A healthy work environment Remaining enthusiastic about work Remaining enthusiastic about work Security Security Independence Independence Working with friendly colleagues Working with friendly colleagues Chances to take responsibility Chances to take responsibility © PhotoDisc

Copyright © 2002 by Harcourt, Inc. All rights reserved. Major types of non-financial rewards Creating a healthy and secure work environment for workers Creating a healthy and secure work environment for workers Giving chances of promotion Giving chances of promotion Giving more holidays Giving more holidays Giving a fair wage for work Giving a fair wage for work Giving more responsibility for workers Giving more responsibility for workers Encouraging employees’ participation in decision making Encouraging employees’ participation in decision making …

Copyright © 2002 by Harcourt, Inc. All rights reserved. Methods of job design and redesign Job enlargement Job enlargement Job enrichment Job enrichment Job rotation Job rotation Team-working Team-working Empowerment Empowerment Quality control cycles Quality control cycles © PhotoDisc

Copyright © 2002 by Harcourt, Inc. All rights reserved. Main factors for increasing job satisfaction and motivation Variety of jobs Variety of jobs Completeness of jobs Completeness of jobs Authority of jobs Responsibility of jobs Responsibility of jobs © PhotoDisc

Copyright © 2002 by Harcourt, Inc. All rights reserved. Motivating Employees Job Design and Motivation Job enlargement — job design that expands an employee ’ s responsibilities by increasing the number and variety of tasks they entail. Job enrichment — change in job duties to increase employee ’ s authority in planning their work, deciding how it should be done, and learning new skills.

Copyright © 2002 by Harcourt, Inc. All rights reserved. Methods of job design and redesign Giving employees more work to do of the same nature so that they can remain more enthusiastic about work. Giving employees more work to do of the same nature so that they can remain more enthusiastic about work. Advantages: Preventing or reducing job dissatisfaction Advantages: Preventing or reducing job dissatisfaction Disadvantages: Simply giving a worker more of the same (horizontal loading) may not reduce boredom. Disadvantages: Simply giving a worker more of the same (horizontal loading) may not reduce boredom. Job enlargement

Copyright © 2002 by Harcourt, Inc. All rights reserved. Question for critical thinking Job enlargement is simply a method of horizontal loading or expansion. Could you explain this statement? Job enlargement is simply a method of horizontal loading or expansion. Could you explain this statement? © PhotoDisc

Copyright © 2002 by Harcourt, Inc. All rights reserved. Methods of job design and redesign Giving employees greater responsibility by vertical extending their role in the production process Giving employees greater responsibility by vertical extending their role in the production process Advantages: giving employees a challenge for developing unused skills, encouraging them to be more productive, etc. Advantages: giving employees a challenge for developing unused skills, encouraging them to be more productive, etc. Disadvantages: those who are unable to do extra tasks may feel forced to do or unhappy Disadvantages: those who are unable to do extra tasks may feel forced to do or unhappy Job enlargement Job enrichment

Copyright © 2002 by Harcourt, Inc. All rights reserved. Changes of jobs or tasks from time to time Advantages: reducing boredom, developing various skills, and gaining more experience Disadvantages: Those who dislike the certainty of job changes may not be happy. Lack of experience and skills may affect productivity. Job enlargement Job enrichment Job rotation © PhotoDisc Methods of job design and redesign

Copyright © 2002 by Harcourt, Inc. All rights reserved. Highly-skilled people working in small groups with a common aim. Advantages: Pooled talents, brainstorming new ideas, improved productivity, problem- solving Disadvantages: too much emphasis on harmony, arguments and conflicts, too many meetings and time-wasting Job enlargement Job enrichment Job rotation Team-working © PhotoDisc Methods of job design and redesign

Copyright © 2002 by Harcourt, Inc. All rights reserved. Methods of job design and redesign Giving official power to employees to make decisions and to control their own activities Advantages: feeling trusted, self-confident and interested in work, improving decision- making skills of employees Disadvantages: Manages may feel insecure or unsatisfied, more costs of training for employees required Job enlargement © PhotoDisc Job enrichment Job rotation Team-working Empowerment

Copyright © 2002 by Harcourt, Inc. All rights reserved. Methods of job design and redesign Small groups of workers in the same area of production meeting regularly to study and solve production problems Advantages: shop-floor workers are involved in decisions and thus motivated Disadvantages: Requiring strong support from both management and employees. Job enlargement © PhotoDisc Job enrichment Job rotation Team-working Quality control cycles Empowerment

Copyright © 2002 by Harcourt, Inc. All rights reserved. Question for critical thinking Could you please tell which needs of employees each of the six methods of job design are trying to meet? Could you please tell which needs of employees each of the six methods of job design are trying to meet? © PhotoDisc