PowerPoint Presentation Design by Charlie Cook The University of West Alabama Prepared by Joseph B. Mosca, Monmouth University and Marla M. Kameny, Baton Rouge Community College © 2012 South-Western, Cengage Learning, Inc. All rights reserved.

14–2 Learning Objectives After studying this chapter, you should be able to: 1.Describe the relationships among performance measured at different levels within an organization and discuss how training, development, and job redesign can help improve performance 2.Discuss the role of alternate work arrangements in motivating and enhancing performance 3.Describe the role of incentive pay and identify different programs for individual-based and team-based incentive plans 4.Discuss the best ways to deliver performance feedback and the issues involved with feedback and describe the basic operation of the ProMES system 5.Discuss how organizations evaluate performance-enhancement programs 1.Describe the relationships among performance measured at different levels within an organization and discuss how training, development, and job redesign can help improve performance 2.Discuss the role of alternate work arrangements in motivating and enhancing performance 3.Describe the role of incentive pay and identify different programs for individual-based and team-based incentive plans 4.Discuss the best ways to deliver performance feedback and the issues involved with feedback and describe the basic operation of the ProMES system 5.Discuss how organizations evaluate performance-enhancement programs

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.14–3 Enhancing Performance Firm-Level Performance  Is an indication of the likelihood of long-term survival of the firm.  Generates profits for potential profit sharing and determines the firm’s stock price. Firm-Level Performance  Is an indication of the likelihood of long-term survival of the firm.  Generates profits for potential profit sharing and determines the firm’s stock price.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.14–4 Enhancing Performance Training  Is a planned attempt by an organization to facilitate employee learning of job-related knowledge, skills, and behaviors Development  Involves teaching managers and professionals the skills needed for both present and future jobs. Training  Is a planned attempt by an organization to facilitate employee learning of job-related knowledge, skills, and behaviors Development  Involves teaching managers and professionals the skills needed for both present and future jobs.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.14–5 Assessing Training and Development Needs

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.14–6 Enhancing Job Performance Job rotation Job enlargement Job enrichment Motivating Performance

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.14–7 Enhancing Performance The Job Characteristics Approach  Takes into account the work system and employee preferences  Suggests that jobs can be diagnosed and improved along five core dimensions:  Skill variety  Task variety  Task significance  Autonomy  Feedback The Job Characteristics Approach  Takes into account the work system and employee preferences  Suggests that jobs can be diagnosed and improved along five core dimensions:  Skill variety  Task variety  Task significance  Autonomy  Feedback

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.14–8 The Job Characteristics Model of Job Design

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.14–9 Alternative Work Arrangements At Work  Work teams  Flexible work hours  Compressed workweeks Away from Work  Home work programs  Telecommuting At Work  Work teams  Flexible work hours  Compressed workweeks Away from Work  Home work programs  Telecommuting

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.14–10 Flexible Work Schedules

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.14–11 Employed Workers with Alternative Work Arrangements by Occupation and Industry (Percentage Distribution for 2009)

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.14–12  Identify jobs best suited for telecommuting  Select responsible employees  Establish procedures  Establish a training program  Keep telecommuters informed  Recognize when telecommuting does not work Beyond the Book: Successful Telecommuting

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.14–13 Incentives and Performance-Based Rewards Merit Pay  Is awarded individuals on the basis of the relative value of their individual contributions to the organization. Merit Pay Plans  Base a portion of compensation on individual merit. Merit Pay  Is awarded individuals on the basis of the relative value of their individual contributions to the organization. Merit Pay Plans  Base a portion of compensation on individual merit.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.14–14 Individual Incentive Plans Base Salary Sales commission Nonmonetary Awards Incentive Plans

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.14–15 Gainsharing Plans (Scanlon) Profit sharing plans Stock options plans Employee stock ownership (ESOPS) Team and Group Incentive Plans

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.14–16 Performance Management and Feedback Productivity Measurement and Evaluation System (ProMES)  Is used to improve group- or firm-level productivity Evaluating Performance Enhancement Programs  Determining whether or not strategic goals were met  Using multiple performance indicators (e.g. human and financial goals) Productivity Measurement and Evaluation System (ProMES)  Is used to improve group- or firm-level productivity Evaluating Performance Enhancement Programs  Determining whether or not strategic goals were met  Using multiple performance indicators (e.g. human and financial goals)

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.14–17 A Sample ProMES Curve