1 Applied Performance Practices Organizational Behavior Chapter 6 Presented by Vic Haytaian & Kathy McDonald

2 Topics Financial Reward Practices Job Design Practices Empowerment Practices Self-Leadership Practices

3 Financial Reward Practices Financial rewards are the most fundamental-applied performance practice in organizational settings. Employees provide labor, skill, and knowledge in return for money and benefits From this perspective, money and related rewards align employee goals with organizational goals.

4 Reward Objectives – A & D Membership and Seniority Based Rewards – AKA pay for pulse Fixed pay – PTO – Benefits A – may attract applicants & reduces turnover D – Doesn’t motivate performance Job Status Promotion-based pay increases and status based benefits A – motivates competition for promotions D – motivates job competition and exaggerated job worth

5 Reward Objectives – A & D Competencies Skill-based pay A – Improves workforce flexibility and is consistent with employability D – Subjective measurement of competencies and is expensive. Task performance Commissions – merit pay – profit sharing A – Motivates Task performance – creates an ownership culture D – May weaken job content motivation and tends to address symptoms rather than causes of behavior.

6 Job Design A job is a set of tasks performed by one person Job design is the process of assigning tasks to a job Job specialization occurs when work is divided into parts and a job is to complete only a specific part of the work – assembly line work is one example.

7 Job Design and Work Motivation The Job Characteristics Model A job design model that related the motivational properties of jobs to specific personal and organizational consequences of those properties. Example: Skill variety  Meaningfulness  Work motivation Autonomy  Responsibility  Growth satisfaction

8 Core Job Characteristics The job characteristics model identifies five core job characteristics. Under the right conditions, employees are more motivated and satisfied when jobs have higher levels of these characteristics Skill Variety Task Identity Task significance Autonomy Job feedback

9 Job Design Practices that Motivate Job Rotation – the practice of moving employees from one job to another Job Enlargement – increasing the number of tasks employees perform within their job Job Enrichment – Giving employees more responsibility for scheduling, coordinating, and planning their own work

10 Empowerment Practices Empowerment – A psychological concept in which people experience more self- determination, meaning, competence, and impact regarding their role in the organization.

11 4 Dimensions of Empowerment Self-determination – employees feel freedom and discretion over their work activities Meaning – Employees believe what they do is important Competence – employees feel confident about their ability to perform work well Impact. – employees feel their decisions and actions have an influence on the companies success.

12 Self-Leadership Practices The process of influencing oneself to establish the self-direction and self-motivation needed to perform a task. Personal Goal Setting  Constructive thought Patterns  Designing Natural Rewards  Self- Monitoring  Self- Reinforce ment

13 Summary Money and other financial rewards are a fundamental part of the employment relationship 4 types of reward objectives are :Membership/seniority, Job status, Competencies, & Task performance Job Design practices can motivate employees and increase work efficiency Empowerment practices improves manager-staff relationship leading to greater customer satisfaction Self-Leadership is the process of influencing oneself to establish the self-direction and self-motivation needed to perform a task.