Motivation: From Concepts to Application

After this session, you should be able to: Explain motivating by changing the nature of the work environment. Explain how jobs can be redesigned Explain why managers might want to use employee involvement programs. Explain how to reward employees Describe the implication for managers L E A R N I N G O B J E C T I V E S

Hackman & Oldham’s Job Characteristics Model Core Job Dimensions Critical Psychological States Personal and work outcomes Skill Variety Task Identity Task Significance Meaningfulness of Work High intrinsic motivation High job per- ormance High job satis- faction Low absentee ism & turnover Responsibility for outcomes Autonomy Knowledge of Results Feedback Employee’s growth need

How can jobs be redesigned Job rotation Job enlargement Job enrichment

Guidelines for Enriching a Job

Work Arrangement Options Flextime Employees work during a common core time period each day but have discretion in forming their total workday from a flexible set of hours outside the core. Job Sharing The practice of having two or more people split a 40-hour-a-week job.

Example of a Flextime Schedule

Work Arrangement Options Telecommuting Employees do their work at home on a computer that is linked to their office. Categories of telecommuting jobs: Routine information handling tasks Mobile activities Professional and other knowledge-related tasks

Employee Involvement programs Participative Management Representative participation Work councils Board representatives Quality circles

Rewarding employees What to pay? (Pay structure) How to construct employee recognition programs? How to pay individual employees? (variable and skill based plan) Strategic reward decisions What benefits to offer?

What to pay: Establishing pay structure Internal Equity: worth of job to the organisation External equity: competitiveness of an organisation’s pay relative to pay elsewhere in the industry

Variable-Pay Programs How to pay: Rewarding individual employees through variable pay programs Variable-Pay Programs 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 Four widely used variable-pay programs Piece-rate wages - fixed sum for each unit completed Merit based pay – pay for individual performance Bonuses - a percent of annual pay based on company earnings Profit sharing - based on a formula designed around company’s profitability Gainsharing - formula-based group incentive plan for improvements in productivity ESOPs – Employee stock options

(Competency-Based Pay) Skill-Based Pay (Competency-Based Pay) Pay levels based on how many skills employees have or how many jobs they can do

Skill base pay in practice Flexible benefits Intrinsic rewards

Implications for Managers Motivating Employees in Organizations Recognize individual differences. Use goals and feedback. Allow employees to participate in decisions that affect them. Link rewards to performance. Check the system for equity.