1. Copyright © 2012 by Cengage Learning. All rights reserved.14- 1 Chapter 14 Managing & Enhancing Performance: The BIG PICTURE Prepared by Joseph Mosca Monmouth University

2. Copyright © 2012 by Cengage Learning. All rights reserved.14- 2 Learning Objectives 1.Describe the relationships among performance measured at different levels within an organization and discuss how training, development, and job design 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 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 ProMES system. 5.Discuss how organizations evaluate performance- enhancement programs.

3. Copyright © 2012 by Cengage Learning. All rights reserved.14- 3 Training and Development Training is a planned attempt by an organization to facilitate employee learning of job-related knowledge, skills, and behaviors. Development refers to teaching managers and professionals the skills needed for both present and future jobs.

4. Copyright © 2012 by Cengage Learning. All rights reserved.14- 4 Job Redesign Job rotation involves systematically moving employees from one job to another. Job enlargement was developed to increase the total number of tasks workers perform based on the assumption that doing the same basic task over and over is the primary cause of worker dissatisfaction. Job enrichment attempts to increase both the number of tasks a worker does and the control the worker has over the job.

5. Copyright © 2012 by Cengage Learning. All rights reserved.14- 5 The Job Characteristics Approach The Job Characteristics Approach is an alternative to job specialization that takes into account the work system and employee preferences. It suggests that jobs should be diagnosed/improved along 5 core dimensions: 1.Skill variety 2.Task variety 3.Task significance 4.Autonomy 5.Feedback

6. Copyright © 2012 by Cengage Learning. All rights reserved.14- 6 Alternative Work Arrangements Flexible work hours programs involve employees working forty hours per week and five days a week, but with the potential for flexible starting and ending times. Compressed workweeks are arrangements where the employee works the required number of hours (typically forty) but does so in less than five days.

7. Copyright © 2012 by Cengage Learning. All rights reserved.14- 7 Alternative Work Sites Home work programs or cottage industries exist for manufacturing of small and non- complex items. Telecommuting, use of electronic equipment to perform work traditionally done at the work place.

8. Copyright © 2012 by Cengage Learning. All rights reserved.14- 8 Beyond the Book: Keys for Successful Telecommuting Identify jobs best suited for telecommuting. Select responsible employees. Establish procedures. Establish a training program. Keep telecommuters informed. Recognize when telecommuting does not work.

9. Copyright © 2012 by Cengage Learning. All rights reserved.14- 9 Incentives and Performance Based Rewards Merit pay is pay awarded to employees on the basis of the relative value of their contributions to the organization. Merit pay plans are compensation plans that formally base at least some meaningful portion of compensation on merit.

10. Copyright © 2012 by Cengage Learning. All rights reserved.14- 10 Team and Group Incentive Plans Gain-sharing is a team and group incentive system designed to share with employees the cost savings from productivity improvements. Scanlon plans are gain- sharing plans where teams and groups of employees are encouraged to suggest strategies for reducing costs and gains.

11. Copyright © 2012 by Cengage Learning. All rights reserved.14- 11 Team and Group Incentive Plans (cont’d) Profit sharing is an incentive system in which, at the end of the year, some portion of profits are paid into a profit sharing pool. Stock option plans give senior managers an opportunity to purchase company stock. In Employee stock ownership plans (ESOPs) employees are gradually given a major stake in the ownership of a corporation.

12. Copyright © 2012 by Cengage Learning. All rights reserved.14- 12 Performance Management and Feedback Productivity Measurement and Evaluation System (ProMES) is a program developed to improve group- or firm-level productivity. This approach incorporates ideas from goal setting, with incentives for improvement, and is based on a model of motivation similar to expectancy theory.