Perception/Motivation - Organizational Behavior Post and Responses

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Chapter 6: Motivation: Practices and Applications

Intrinsic Motivation

Intrinsic Motivation:

need for competence.

need for self-determination.

Neck, Organizational Behavior. © SAGE Publications, 2017.

There are two main mechanisms of intrinsic motivation: need for competence, and need for self-determination. In carrying out her duties as assistant manager, Katie is satisfying her need for competence, which is the satisfaction we gain by stretching and exercising our capabilities, and her need for self-determination, or the feeling of satisfaction and control we get from making efforts that do not rely on any external influences.

Types of Extrinsic Rewards

Extrinsic rewards are external awards to employees such as salary, bonuses, and paid vacations.

Neck, Organizational Behavior. © SAGE Publications, 2017.

Extrinsic rewards are external awards to employees such as salary, bonuses, and paid vacations. Extrinsic rewards can either increase intrinsic motivation, if the rewards are high, or decrease it if they are low. On the one hand, extrinsic rewards act as a source of competency information. That is, by directly and concretely showing the employee he or she is valued through financial rewards, for example, they increase feelings of competence and self-determination and therefore increase intrinsic motivation. On the other hand, when people feel they are being under-rewarded, their feelings of self-determination decrease, as does their intrinsic motivation.2

Types of Extrinsic Rewards

Seniority-based Pay

Seniority-based pay includes guaranteed wages and salary increases based on the amount of time the employee has spent with the organization.

Neck, Organizational Behavior. © SAGE Publications, 2017.

Guaranteed wages and salary increases based on the amount of time the employee has spent with the organization are called seniority-based pay. Fixed wages, which are paid at fixed intervals such as monthly or weekly, tend to attract more job applicants and encourage longevity and commitment, which reduces turnover. However, seniority-based pay can also be demotivating, since employees know they will get paid regardless of how they perform, which also encourages poor performers to stay in an organization much longer.

Types of Extrinsic Rewards

Job Content-Based Pay

Job content-based pay is based on an evaluation of a job’s worth to the organization and its relationship to other jobs within the organization.

Neck, Organizational Behavior. © SAGE Publications, 2017.

Job content-based pay is based on an evaluation of a job’s worth to the organization and its relationship to other jobs within the organization. Many organizations use this compensation structure because it is thought to be one of the best ways to maintain pay equity. Employees also tend to be more motivated to compete for promotions and a higher rate of pay. On the other hand, employees who are competing against each other may exaggerate their duties to their manager to try and impress, or they may hoard resources to get ahead. These activities can also create a psychological distance across teams and hierarchies.

Types Of Extrinsic Rewards

Skill-based Pay

Skill-based pay rewards employees for the acquisition of new skills that lead to enhanced work performance.

Neck, Organizational Behavior. © SAGE Publications, 2017.

Skill-based pay rewards employees for the acquisition of new skills that lead to enhanced work performance. Skill-based pay can be a useful way to motivate employees while providing them with an opportunity to showcase their new skills and competencies. As a result, workers are more flexible and productive. However, there may be some disadvantages. There is the high cost of additional bonuses and training to consider, as well as the possibility that employees may max out their skill levels, which means they cannot receive any additional pay increases unless they change jobs.

Types of Extrinsic Rewards

Performance-based Pay

Performance-based pay is a financial incentive awarded to employees for meeting certain goals or objectives.

Individual.

Team and Organization.

Neck, Organizational Behavior. © SAGE Publications, 2017.

Performance-based pay is a financial incentive awarded to employees for meeting certain goals or objectives. There are two levels of performance-based pay: individual level, and team and organization level.

Types of Extrinsic Rewards

Individual-Level Performance-Based Pay

Piece rate: Workers are paid a fixed sum for each unit of production completed.

Merit pay: links pay increases directly to performance.

Bonus: is a pay plan that rewards employees for good performance in addition to their base salary.

Neck, Organizational Behavior. © SAGE Publications, 2017.

Individual Level Performance-based Pay

There are three types of individual-level pay:

Piece rate is a pay plan in which workers are paid a fixed sum for each unit of production completed. In other words, people are rewarded for the quantity of goods they produce regardless of how long it has taken them.

Merit pay links pay increases directly to performance. In other words, it rewards performance by increasing the employee’s salary on a long-term basis.

Bonus is a pay plan that rewards employees for good performance in addition to their base salary.

Types of Extrinsic Rewards

Team- and Organization-Level Performance-Based Pay

Gainsharing.

Profit sharing.

Employee stock ownership plans (ESOPs).

Neck, Organizational Behavior. © SAGE Publications, 2017.

Team- and Organization-Level Performance-based Pay

There are three types of team and organization performance-based plans:

Gainsharing is a system whereby managers agree to share the benefits of cost savings with staff in return for their contribution to the company’s performance.7 Profit sharing is a pay system in which the organization shares its profits with employees.

Employee stock ownership plans (ESOPs) allow employees to purchase company stock, often at below-market price, as one of their benefits. Many small businesses use ESOPs because of their big tax benefits and because they allow the owner to keep control of the business until the time comes to hand over the reins to eligible employees.

Motivation through Job Design

Job design is a method of setting forth the duties and responsibilities of a job with the intention of improving productivity and performance.

Neck, Organizational Behavior. © SAGE Publications, 2017.

Job design is a method of setting forth the duties and responsibilities of a job with the intention of improving productivity and performance.

Scientific Management

Scientific management is the analysis of workflow through systematic observation of the tasks to be performed.

Neck, Organizational Behavior. © SAGE Publications, 2017.

Motivation Through Job Design

The concept of job design can be traced back to the theory of scientific management, introduced in the early 20th century by Frederick Taylor and his colleagues, who analyzed workflow through systematic observation of the tasks to be performed. Taylor designed experiments to calculate the motions and time required to complete workplace tasks in order to improve efficiencies. For example, he tested the various motions required for laying bricks to understand how workers could complete the task more quickly.

Job Enlargement

Job enlargement is a method of job design that increases the range of tasks and duties associated with a job in order to make it more challenging and varied.

Neck, Organizational Behavior. © SAGE Publications, 2017.

Motivation Through Job Design

Job enlargement is a method of job design that increases the range of tasks and duties associated with a job in order to make it more challenging and varied.

Job Rotation

Job rotation is a process of periodically moving employees from one job to another.

Neck, Organizational Behavior. © SAGE Publications, 2017.

Motivation Through Job Design

Job rotation is a process of periodically moving employees from one job to another.

Job Enrichment

Job enrichment involves increasing the scope of a job to make it more complex, stimulating, and satisfying for employees.

Neck, Organizational Behavior. © SAGE Publications, 2017.

Motivation Through Job Design

Job enrichment involves increasing the scope of a job to make it more complex, stimulating, and satisfying for employees. By doing so, the employees gain experience with additional responsibilities and authority. They also become empowered to make decisions and resolve problems.

Job Characteristics Model

Neck, Organizational Behavior. © SAGE Publications, 2017.

Figure 6.3: Job Characteristics Model

Motivation Through Job Design

Hackman and Oldham job characteristics model identifies five core dimensions of jobs: skill variety, task identity, task significance, autonomy, and feedback.

Dimensions of the Job Characteristics Model

Skill variety.

Task identity.

Task significance.

Autonomy.

Feedback.

Motivation Through Job Design

Skill variety is the extent to which workers utilize a variety of skills. For example, everyone on the restaurant staff will now have the opportunity to learn and use a variety of skills.

Task identity is the extent to which an employee completes an entire piece of work from start to end. For example, employees will be able to carry out their different roles from beginning to end without any outside interference.

Task significance is the extent to which employees see meaning in the impact of their roles on the organization.

Autonomy is the extent to which employees are given the freedom and independence to schedule and perform tasks.

Feedback is the extent to which employees are provided with timely information regarding their job performance. Katie has already agreed to provide feedback to the servers after every shift to discuss bubble tea sales targets.

Hackman and Oldham created a scoring system based on these five characteristics. The higher the score for each of the characteristics, the more positive are the employees’ psychological states and outcomes.

Psychological Empowerment

Psychological empowerment is the extent to which employees feel a sense of personal fulfillment and intent when carrying out tasks, along with a belief that their work contributes to some larger purpose.

Another facet of the job characteristics model is the concept of psychological empowerment, the extent to which employees feel a sense of personal fulfillment and intent when carrying out tasks, along with a belief that their work contributes to some larger purpose. There are four main beliefs associated with psychological empowerment: meaningfulness, self-determination, competence, and impact.

Psychological Empowerment Beliefs

Meaningfulness.

Self-determination.

Competence.

Impact.

Psychological Empowerment

Meaningfulness refers to the value of work tasks in line with a person’s own self-concepts and ideals. Self-determination is the understanding of skills, knowledge, and strengths that enable a person to make choices and initiate work tasks. Competence is a person’s belief in his or her ability to perform work tasks successfully. Impact refers to how one feels about his or her actions.

Nontraditional Work Schedules

Free agents.

Part-time workers.

Flexible work schedules are becoming more popular with today’s workers and their employers. Rather than putting in the traditional 40-hour week, many employees are permitted to work from home, choose their own working hours, and even work remotely from different countries. Free agents and part-time workers are two types of workers who adhere to nontraditional work schedules. Free agents are independent workers who supply organizations with short-term talent for projects that need to be completed within a certain amount of time.21 A freelancer is a type of free agent who can work for multiple employers, giving a limited amount of time to each. Similarly, part-time workers are independent workers who supply organizations with part-time talent for projects that need to be completed within a certain amount of time. Part-time workers work fewer hours than full-time workers but may supplement these hours by working for other employers.

Nontraditional Work Schedules

Figure 6.4: Examples of Nontraditional Work Schedules

These are the four main nontraditional work schedules commonly adopted by employers in today’s workplace:

Flextime means flexible working hours whereby an employee can customize his or her own work hours within limits established by management. For example, an employee might work a 7:00 am to 3:00 pm shift rather than the more traditional 9:00 am to 5:00 pm workday.

Compressed workweeks gives employees the benefit of an extra day off by allowing them to work their usual number of hours in fewer days per pay period. For example, the employee might work four 10-hour days each week and then enjoy a three-day weekend, or work 80 hours in nine days with an extra day off every other week.

Job sharing divides one full-time job among two or more people who work pre-determined hours. Job sharers can hand over their work to the next person when their part of the shift ends and the next begins.

Telecommuting means working from home or from a remote location on a computer or other advanced telecommunications system linked to the main office. This gives workers greater flexibility in terms of working hours and location. Yahoo CEO Marissa Mayer sparked much debate in 2013 for reversing the company’s policy and banning telecommuting, going against the trend seen often in the tech industry.28