W3 D2

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MGT301PresentationPearson17eChapter8.pdf

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Motivation: From Concepts To Applications

Learning Objectives

Describe how the job characteristics model motivates by changing the work environment.

Compare the main ways jobs can be redesigned.

Explain how specific alternative work arrangements can motivate employees.

Describe how employee involvement measures can motivate employees.

Demonstrate how the different types of variable- pay programs can increase employee motivation.

Show how flexible benefits turn benefits into motivators.

Identify the motivational benefits of intrinsic rewards.

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The Job Characteristics Model

8-4

LO 1

The Job Characteristics Model

The core dimensions of the job characteristics model (JCM) can be combined into a single predictive index called the motivating potential score (MPS).

Evidence supports the JCM concept that the presence of a set of job characteristics does generate higher and more satisfying job performance.

A few studies have tested the JCM in different cultures, but the results aren’t very consistent.

8-5

LO 1

Compare the Main Ways

Jobs Can Be Redesigned Repetitive jobs provide little variety, autonomy, or

motivation.

Job Rotation

 Referred to as cross-training.

 Periodic shifting from one task to another.

 Strengths: reduces boredom, increases motivation, and helps employees better understand their work contributions.

 Weaknesses: creates disruptions, requires extra time for supervisors addressing questions and training time, and reduced efficiencies.

8-6

LO 2

Compare the Main Ways

Jobs Can Be Redesigned

Relational Job Design

 To make jobs more prosocially motivating:

Connect employees with the

beneficiaries of their work.

Meet beneficiaries firsthand.

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LO 2

How Specific Alternative Work

Arrangements Motivate Employees

8-8

LO 3

How Specific Alternative Work

Arrangements Motivate Employees

Job Sharing

 Two or more people split a 40-hour-a-week

job.

Declining in use.

Can be difficult to find compatible pairs of

employees who can successfully coordinate

the intricacies of one job.

Increases flexibility and can increase

motivation and satisfaction when a 40-hour-

a-week job is just not practical.

8-9

LO 3

How Specific Alternative Work

Arrangements Motivate Employees

Telecommuting

 Employees who do their work at home at

least two days a week on a computer that

is linked to their office.

Virtual office

Some well-known organizations actively

discourage telecommuting, but for most

organizations it remains popular.

8-10

LO 3

How Specific Alternative Work

Arrangements Motivate Employees

Telecommuting Advantages

 Larger labor pool

 Higher productivity

 Improved morale

 Reduced office-space costs

8-11

LO 3

How Specific Alternative Work

Arrangements Motivate Employees

Telecommuting Disadvantages

 Employer

Less direct supervision of employees.

Difficult to coordinate teamwork.

Difficult to evaluate non-quantitative

performance.

 Employee

May not be noticed for his or her efforts.

8-12

LO 3

How Specific Alternative Work

Arrangements Motivate Employees

8-13

LO 3

Employee Involvement

and Employee Motivation

Employee Involvement: a participative

process that uses employees’ input to increase

their commitment to the organization’s success.

Examples of Employee Involvement Programs

 Participative management

 Representative participation

8-14

LO 4

Employee Involvement

and Employee Motivation

Participative management

 Joint decision making.

 Acts as a panacea for poor morale and

low productivity.

 Trust and confidence in leaders is

essential.

 Studies of the participation-performance

have yielded mixed results.

8-15

LO 4

Employee Involvement

and Employee Motivation Representative participation

 Workers are represented by a small group

of employees who actually participate in

decision making.

Almost every country in Western Europe

requires representative participation.

The two most common forms:

Works councils

Board representatives

8-16

LO 4

Variable-Pay Programs

and Employee Motivation

What to Pay:

 Complex process that entails balancing

internal equity and external equity.

 Some organizations prefer to pay leaders by

paying above market.

 Paying more may net better-qualified and

more highly motivated employees who may

stay with the firm longer.

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LO 5

Variable-Pay Programs

and Employee Motivation

How to Pay:

 Variable pay programs:

Piece-rate plans

Merit-based pay

Bonuses

Profit sharing

Employee stock ownership plans

 Earnings therefore fluctuate up and down.

8-18

LO 5

Variable-Pay Programs

and Employee Motivation

Piece-Rate Pay

 A pure piece-rate plan provides no base

salary and pays the employee only for

what he or she produces.

 Limitation: not a feasible approach for

many jobs.

 The main concern for both individual and

team piece-rate workers is financial risk.

8-19

LO 5

Variable-Pay Programs

and Employee Motivation

Merit-Based Pay

 Allows employers to differentiate pay based

on performance.

 Creates perceptions of relationships between

performance and rewards.

 Limitations:

Based on annual performance appraisals.

Merit pool fluctuates.

Union resistance.

8-20

LO 5

Variable-Pay Programs

and Employee Motivation Bonuses

 An annual bonus is a significant component

of total compensation for many jobs.

 Increasingly include lower-ranking

employees.

Many companies now routinely reward

production employees with bonuses when

profits improve.

 Downside: employees’ pay is more

vulnerable to cuts. 8-21

LO 5

Variable-Pay Programs

and Employee Motivation

Profit-Sharing Plans

 Organization-wide programs that distribute

compensation based on some established

formula centered around a company’s

profitability.

 Appear to have positive effects on employee

attitudes at the organizational level.

Employees have a feeling of psychological

ownership.

8-22

LO 5

Variable-Pay Programs

and Employee Motivation

Employee Stock Ownership Plan (ESOP)

 A company-established benefit plan in which

employees acquire stock, often at below-

market prices, as part of their benefits.

 Increases employee satisfaction and

innovation.

Employees need to psychologically

experience ownership.

 Can reduce unethical behavior.

8-23

LO 5

Variable-Pay Programs

and Employee Motivation

Evaluation of Variable Pay

 Do variable-pay programs increase

motivation and productivity?

Generally, yes, but that doesn’t mean

everyone is equally motivated by them.

8-24

LO 5

Show How Flexible Benefits

Turn Benefits Into Motivators

Developing a Benefits Package

 Flexible benefits individualize rewards.

Allow each employee to choose the

compensation package that best satisfies

his or her current needs and situation.

Today, almost all major corporations in

the United States offer flexible benefits.

However, it may be surprising that their

usage is not yet global.

8-25

LO 6

Identify the Motivational

Benefits of Intrinsic Rewards

Employee Recognition Programs

 Organizations are increasingly recognizing

that important work rewards can be both

intrinsic and extrinsic.

 Rewards are intrinsic in the form of

employee recognition programs and

extrinsic in the form of compensation

systems.

8-26

LO 7

Implications for Managers

 Recognize individual differences.

 Spend the time necessary to understand

what’s important to each employee.

 Design jobs to align with individual needs

and maximize their motivation potential.

 Use goals and feedback.

 You should give employees firm, specific

goals, and they should get feedback on how

well they are faring in pursuit of those goals.

8-27

Implications for Managers

 Allow employees to participate in decisions

that affect them.

 Employees can contribute to setting work

goals, choosing their own benefits

packages, and solving productivity and

quality problems.

 Link rewards to performance.

 Rewards should be contingent on

performance, and employees must perceive

the link between the two.

8-28

Implications for Managers

 Check the system for equity.

 Employees should perceive that experience,

skills, abilities, effort, and other obvious

inputs explain differences in performance

and hence in pay, job assignments, and

other obvious rewards.

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