1. Applied Performance Practices McShane-Olekalns-Travaglione OB Pacific Rim 3e © 2010 The McGraw-Hill Companies, Inc. All rights reserved 1

2. Factory Work in China Most factory workers in China’s Pearl River Delta are paid for the number of units they produce. The work is usually repetitive, cycling several thousand times each day. McShane-Olekalns-Travaglione OB Pacific Rim 3e © 2010 The McGraw-Hill Companies, Inc. All rights reserved 2

3. Financial Reward Practices  Financial rewards – fundamental part of employment relationship  Pay has multiple meanings Symbol of success Reinforcer and motivator Reflection of performance Can reduce anxiety  Men value money more than women  Cultural values influence the meaning and value of money © Corel Corp. With permission. McShane-Olekalns-Travaglione OB Pacific Rim 3e 3 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

4. Types of Rewards in the Workplace  Membership and seniority  Job status  Competencies  Performance-based © Corel Corp. With permission. McShane-Olekalns-Travaglione OB Pacific Rim 3e 4 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

5. Membership/Seniority Based Rewards  Fixed wages, seniority increases  Advantages Guaranteed wages may attract job applicants Seniority-based rewards reduce turnover  Disadvantages Doesn’t motivate job performance Discourages poor performers from leaving May act as golden handcuffs (tie people to the job) McShane-Olekalns-Travaglione OB Pacific Rim 3e 5 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

6. Job Status-Based Rewards  Includes job evaluation and status perks  Advantages: Job evaluation tries to maintain fairness (pay equity) Motivates competition for promotions  Disadvantages: Employees exaggerate duties, hoard resources Reinforces status Encourages hierarchy, might undermine cost- efficiency and responsiveness McShane-Olekalns-Travaglione OB Pacific Rim 3e 6 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

7. Competency-Based Rewards  Pay increases with competencies acquired and demonstrated  Skill-based pay Pay increases with skill modules learned  Advantages More flexible work force, better quality, consistent with employability  Disadvantages Potentially subjective, higher training costs McShane-Olekalns-Travaglione OB Pacific Rim 3e 7 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

8. Reward Practices at Nucor Nucor has survived and thrived in the turbulent steel industry by motivating employees with team- based and organisational-based rewards. Courtesy Nucor McShane-Olekalns-Travaglione OB Pacific Rim 3e 8 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

9. Organisationalrewards Profit sharingProfit sharing Share ownershipShare ownership Stock optionsStock options Balanced scorecardBalanced scorecard Team rewards BonusesBonuses GainsharingGainsharing Individualrewards BonusesBonuses CommissionsCommissions Piece ratePiece rate Performance-Based Rewards McShane-Olekalns-Travaglione OB Pacific Rim 3e 9 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

10. Evaluating Organisational Rewards  Positive effects Creates an ‘ownership culture’ Adjusts pay with firm's prosperity  Concerns with performance pay Weak connection between individual effort and rewards Reward amounts affected by external forces McShane-Olekalns-Travaglione OB Pacific Rim 3e 10 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

11. Improving Reward Effectiveness  Link rewards to performance  Ensure rewards are relevant  Team rewards for interdependent jobs  Ensure rewards are valued  Watch out for unintended consequences © Corel Corp. With permission. McShane-Olekalns-Travaglione OB Pacific Rim 3e 11 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

12. Job Design  Assigning tasks to a job, including the interdependency of those tasks with other jobs  Organisation's goal – to create jobs that can be performed efficiently, yet employees are motivated and engaged McShane-Olekalns-Travaglione OB Pacific Rim 3e 12 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

13. Job Specialisation  Dividing work into separate jobs that include a subset of the tasks required to complete the product or service  Scientific management Frederick Winslow Taylor Advocated job specialisation Taylor also emphasised person- job matching, training, goal setting, work incentives McShane-Olekalns-Travaglione OB Pacific Rim 3e 13 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

14. Evaluating Job Specialisation  Less time changing activities  Lower training costs  Job mastered quickly  Better person-job matching  Job boredom  Discontentment pay  Higher costs  Lower quality  Lower motivation McShane-Olekalns-Travaglione OB Pacific Rim 3e © 2010 The McGraw-Hill Companies, Inc. All rights reserved 14 AdvantagesDisadvantages

15. Job Characteristics Model WorkmotivationGrowthsatisfactionGeneralsatisfactionWorkeffectiveness Feedback from job Knowledge of results Skill variety Task identity Task significance Meaningfulness AutonomyResponsibility Individualdifferences Criticalpsychologicalstates Core job characteristicsOutcomes McShane-Olekalns-Travaglione OB Pacific Rim 3e 15 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

16. Job Rotation  Moving from one job to another  Benefits 1. Minimises repetitive strain injury 2. Multiskills the workforce 3. Potentially reduces job boredom Job ‘A’ Job ‘B’ Job ‘C’ Job ‘D’ McShane-Olekalns-Travaglione OB Pacific Rim 3e 16 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

17. Job Enlargement  Adding tasks to an existing job  Example: video journalist Employee 1 Operates camera Employee 2 Operates sound Employee 3 Reports story Traditional news team Video journalist Operates camera Operates sound Reports story © 2010 The McGraw-Hill Companies, Inc. All rights reserved McShane-Olekalns-Travaglione OB Pacific Rim 3e 17

18. Job Enrichment Given more responsibility for scheduling, coordinating, and planning one’s own work. 1. Clustering tasks into natural groups Stitching highly interdependent tasks into one job eg. video journalist, assembling entire product 2. Establishing client relationships Directly responsible for specific clients Communicate directly with those clients McShane-Olekalns-Travaglione OB Pacific Rim 3e 18 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

19. Empowerment at Svenska Handelsbanken Svenska Handelsbanken gives each branch considerable autonomy without centralised controls, resulting in high levels of employee empowerment. “Being empowered and having this trust leads to better decisions and higher satisfaction,” explains a manager at the Swedish financial institution. McShane-Olekalns-Travaglione OB Pacific Rim 3e © 2010 The McGraw-Hill Companies, Inc. All rights reserved 19

20. Dimensions of Empowerment Meaning Competence Employees believe their work is important Employees have feelings of self- efficacy Impact Employees feel their actions influence success Self- determination Employees feel they have freedom and discretion McShane-Olekalns-Travaglione OB Pacific Rim 3e 20 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

21. Supporting Empowerment  Individual factors Possess required competencies, able to perform the work  Job design factors Autonomy, task identity, task significance, job feedback  Organisational factors Resources, learning orientation, trust McShane-Olekalns-Travaglione OB Pacific Rim 3e © 2010 The McGraw-Hill Companies, Inc. All rights reserved 21

22. Self-Leadership  The process of influencing oneself to establish the self-direction and self- motivation needed to perform a task  Includes concepts/practices from: Goal setting Social learning theory Sports psychology McShane-Olekalns-Travaglione OB Pacific Rim 3e 22 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

23. Elements of Self-Leadership Personal goal setting ConstructivethoughtpatternsDesigningnaturalrewardsSelf-monitoringSelf-reinforce-ment  Personal goal setting Employees set their own goals Apply effective goal setting practices McShane-Olekalns-Travaglione OB Pacific Rim 3e 23 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

24. Personal goal settingDesigningnaturalrewardsSelf-monitoringSelf-reinforce-mentConstructivethoughtpatterns Elements of Self-Leadership  Positive self-talk Talking to ourselves about thoughts/actions Potentially increases self-efficacy  Mental imagery Mentally practising a task Visualising successful task completion McShane-Olekalns-Travaglione OB Pacific Rim 3e 24 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

25. DesigningnaturalrewardsConstructivethoughtpatternsSelf-monitoringSelf-reinforce-ment Personal goal setting Elements of Self-Leadership  Finding ways to make the job itself more motivating eg. altering the way the task is accomplished McShane-Olekalns-Travaglione OB Pacific Rim 3e 25 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

26. ConstructivethoughtpatternsDesigningnaturalrewardsSelf-reinforce-ment Personal goal settingSelf-monitoring Elements of Self-Leadership  Keeping track of your progress toward the self- set goal Looking for naturally-occurring feedback Designing artificial feedback McShane-Olekalns-Travaglione OB Pacific Rim 3e 26 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

27. Self-reinforce-mentConstructivethoughtpatternsDesigningnaturalrewardsSelf-monitoring Personal goal setting Elements of Self-Leadership  ‘Taking’ a reinforcer only after completing a self- set goal eg. watching a movie after writing two more sections of a report eg. starting a fun task after completing a task that you don’t like McShane-Olekalns-Travaglione OB Pacific Rim 3e 27 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

28. Self-Leadership Contingencies  Individual factors Higher levels of conscientiousness and extroversion Positive self-evaluation (self-esteem, self-efficacy, internal locus)  Organisational factors Job autonomy Participative leadership Measurement-oriented culture McShane-Olekalns-Travaglione OB Pacific Rim 3e 28 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

29. Applied Performance Practices McShane-Olekalns-Travaglione OB Pacific Rim 3e © 2010 The McGraw-Hill Companies, Inc. All rights reserved 29