0. Motivation: From Concepts to Applications8
Motivation: From Concepts to Applications
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

1. Topics we will cover Chapter 8 The job characteristics model
How can jobs be re-dessigned?
Examples of employee involvement program
What to pay: establishing a pay structure
How to pay: rewarding
Variable pay, piece-rate pay, merit based, bonuses, sill-based, profit sharing plans, gain sharing, employee stock ownership plans
Flexible benefits
Intrinsic rewards: employee recognition programs
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

2. The Job Characteristics Model
Five Core Job Dimensions
Skill Variety: degree to which the job incorporates a number of different skills and talents
Task Identity: degree to which the job requires the completion of a whole and identifiable piece of work
Task Significance: how the job impacts the lives of others
Autonomy: identifies how much freedom and independence the worker has over the job
Feedback: how much the job generates direct and clear information about the worker’s performance
The job characteristics model looks at describing any job in terms of five core job dimensions. These job dimensions include skill variety, which is the degree to which the job incorporates a number of different skills and talents. Task identity is another dimension that looks at the degree to which the job requires the completion of whole and identifiable piece of work. Task significance is included and looks at how the job impacts the lives of others. Autonomy, the fourth dimension, identifies how much freedom and independence the worker has over their job. And finally, feedback is how much the job generates direct and clear information about the worker’s performance.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
(c) 2008 Prentice-Hall, All rights reserved.

3. The Job Characteristics Model
Core job dimensions
Critical psychological states
Personal and work outcomes
Skill Variety
Task identity
Task significance
Autonomy
Feedback
Experienced meaningfulness of the work
Responsibility for outcomes
Knowledge of actual results
High work motivation
High quality performance
& satisfaction
Low turnover
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EMPLOYEE GROWTH

4. How Can Jobs be Redesigned?
Job Rotation
The shifting of an employee from one task to another with similar skill requirements.
Flexibility + avoids layoffs
Job Enrichment
The expansion of a job by increasing the degree to which the worker controls the planning, execution, and evaluation of the work.
There are some helpful ways to redesign a job to increase the motivation of the employees. Two common practices are job rotation and job enrichment. In job rotation an organization will shift the employee to different tasks with similar skill requirements but all in the same organizational level. In job enrichment a manager will expand an employee’s job by increasing the level of control the worker has in planning their job, executing it or evaluating the work.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
(c) 2008 Prentice-Hall, All rights reserved.

5. Strengths of Job Rotation
Reduces boredom
Increases understanding of work contribution
Increased skills
Helps managers in scheduling
There are many strengths of utilizing job rotation in the workplace. The first is that it helps to reduce boredom with workers as they are constantly expanding their skills. By seeing other jobs and what requirements they have to succeed, it helps the workers see how their work contributes to the overall process of getting a product out. One obvious benefit is that it increases the skills of the workers and, finally, since the worker has a stronger skill set, it helps the manager in scheduling as they have more options to fill the vacancy when someone is sick or on vacation.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
(c) 2008 Prentice-Hall, All rights reserved.

6. Job Enrichment – Possible Actions
Combine Tasks
Form Natural Work Units
Establish Client Relations
Expand Jobs Vertically
Open Feedback Channels
Job enrichment is helpful in keeping the worker engaged in their work. There are many actions a manager can take to help the worker. These actions help to achieve core job dimensions. For example, if the manager combines tasks for the worker it can help the worker increase the amount of skills they are utilizing and help them to identify tasks that need to be completed. This action can help the worker to have a better understanding of their job and how it helps the organization complete its goals as well as help the worker enjoy their work more because they are using more of their skill set.
E X H I B I T 8-2
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
(c) 2008 Prentice-Hall, All rights reserved.

7. Examples of Employee Involvement Programs
Definition: A participative process that uses employees’ input to increase their commitment to the organization’s success.
Examples of Employee Involvement Programs
Participative Management
Joint decision making, helps with poor morale and low productivity, mixed results
Representative Participation
Goal is to re-distribute power, work councils or board representatives
Employee involvement is defined as a participative process that uses employees’ input to increase their commitment to the overall success of the organization. Some examples of programs that help with employee involvement are participative management and representative participation. Participative management is when managers include employees in the decision-making process. Representative participation tries to redistribute power by putting labor on a more equal footing with the interest of managers and stockholders. They do this by letting the workers be represented by small groups of employees who participate in decisions.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
(c) 2008 Prentice-Hall, All rights reserved.

8. Using Rewards to Motivate Employees
Although pay is not the primary factor driving job satisfaction, it is a motivator.
1. Establish a pay structure
2. Variable-pay programs
As we saw in previous chapters, money is not the primary driver for job satisfaction. However, it does motivate individuals and companies often underestimate its impact in keeping top talent.
It is critical to figure out what to pay and to establish a pay structure that makes sense for your industry and organization. Then it is imperative that an organization utilizes this pay system and applies it to the pay of individual employees.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
(c) 2008 Prentice-Hall, All rights reserved.

9. 1. Establishing a Pay Structure
Internal Pay Equity
-Job evaluation
External Pay Equity
- External competitiveness
Setting pay levels can be complex and requires a balance of internal and external pay equity. Internal equity looks at the worth of the job to the organization and compares it with what others are making within the organization. External equity looks at external competitiveness of an organization’s pay relative to pay elsewhere.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
(c) 2008 Prentice-Hall, All rights reserved.

10. Variable-Pay Programs
2. How to Pay
Variable-Pay Programs
Piece-Rate Pay
Merit-Based Pay
Bonuses
Skill-Based Pay
Profit-Sharing Plans
Gainsharing
Employee Stock Ownership Plans
There are many forms of Variable-Pay programs. They include piece-rate pay, merit-based pay, bonuses, skill-based pay, profit-sharing plans, gainsharing, and employee stock ownership plans.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
(c) 2008 Prentice-Hall, All rights reserved.

11. Types of Variable-Pay Programs
Piece-Rate Pay
Pays a fixed sum of money for each unit of production completed. For example: Ballpark workers selling peanuts and soda get $1 for each bag of peanuts and soda sold.
Merit-Based Pay
Pays for individual performance based on performance appraisal results. If appraisals are designed correctly, workers performing at a high level will get more pay.
Bonuses
Pay a lump sum at the end of a designated period of time based on individual and/or organizational performance.
Some types of variable-pay programs include piece-rate, merit- based, and bonuses. Piece-rate pay plans pay a fixed amount of money for each unit of production. Merit-based pay plans are similar where they pay based on performance. However, it is not necessarily tied to production because in some jobs, output is not as easy to measure. Bonuses is another method that is becoming increasingly popular. Bonuses are a lump sum at the end of a set period of time. The amount of the bonus is typically dependent upon the performance of the individual or the organization or some combination of both.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
(c) 2008 Prentice-Hall, All rights reserved.

12. More Types of Variable-Pay Programs
Skill-Based Pay
Pays based on the number of skills employees have or the number of jobs they can do.
Profit-Sharing Plans
Pays out a portion of the organization’s profitability. It is an organization-wide program and is based on a predetermined formula.
Gainsharing
Pays for improvements in group productivity from one period to another. It is a group incentive plan.
Employee Stock Ownership Plans (ESOP)
Provides each employee with the opportunity to acquire stock as part of their benefit package.
Additional methods of variable-pay programs include skill-based pay, profit-sharing plans, gainsharing, and employee stock ownership plans, otherwise known as ESOPs.
Skill-based pay will add compensation to workers as they gain more skills and the ability to do additional jobs. It rewards the employees for continuous improvement. Profit-sharing plans are organizational-wide programs where some of the profits of the company are shared with all workers. Gainsharing is a group incentive where a department or unit will earn additional income if they improve group productivity from the previous period. ESOPs are a method used to motivate the employees toward the organizational goals. As part of their benefit package, they are able to earn or purchase company stock, often at below-market rates. This encourages them to work toward the overall profitability of the organization as they have ownership in it and will gain as the company gains.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall .
(c) 2008 Prentice-Hall, All rights reserved.

13. Flexible Benefits
A benefits plan that allows each employee to put together a benefits package individually tailored to his or her own needs and situation
Its not a “one size fits all”
Flexible: age, marital status, number/age of dependents, etc
Flexible benefits allow employees choices between different benefits. This allows them to customize their options and create a plan that best meets their needs and situation. This increases their motivation because they realize the organization has their best interest in mind.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall .
(c) 2008 Prentice-Hall, All rights reserved.

14. Employee Recognition Programs
Employee rewards need to be intrinsic and extrinsic. Employee recognition programs are a good method of intrinsic rewards.
The rewards can range from a simple thank-you to more widely publicized formal programs.
Financial incentives are more motivating: in the short term
Advantages: they are inexpensive and effective.
Some critics say:
they can be politically motivated and if they are perceived to be applied unfairly
A method of motivation that has been highly successful is employee recognition programs. This idea recognizes the importance of coupling extrinsic and intrinsic methods to help motivate employees. Recognition is an intrinsic motivation technique that can range from giving an employee the proverbial pat on the back to a more public recognition ceremony. Recognition programs are highly effective and cost very little to administer. There are critics of such programs, however, who say that they can be politically motivated and if the perception is that they are applied unfairly, they can cause more harm than good.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall .
(c) 2008 Prentice-Hall, All rights reserved.