Management Course: Discussion Topic 3
jandreg
chap006.pptApplied Performance Practices
McGraw-Hill/Irwin
McShane/Von Glinow OB 5e
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
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SvenskaHandelsbanken
SvenskaHandelsbanken relies on prudent reward systems, offers employee jobs with high motivation potential, expects staff to manage themselves, and delegates power to branches, resulting in high levels of employee empowerment and performance.
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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.
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Types of Rewards in the Workplace
- Membership and seniority
- Job status
- Competencies
- Performance-based
© Corel Corp. With permission.
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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)
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Job Status-Based Rewards
- Includes job evaluation and status perks
- Advantages:
- Job evaluation tries to maintain pay equity
- Motivates competition for promotions
- Disadvantages:
- Employees exaggerate duties, hoard resources
- Reinforces status, hierarchy
- Inconsistent with workplace flexibility
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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
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Reward Practices at Nucor
Nucor has survived and thrived in the turbulent steel industry by motivating employees with team-based and organizational-based rewards.
Courtesy Nucor
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Organizational
rewards
- Profit sharing
- Share ownership
- Stock options
- Balanced scorecard
Performance-Based Rewards
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Team
rewards
- Bonuses
- Gainsharing
Individual
rewards
- Bonuses
- Commissions
- Piece rate
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Evaluating Organizational Rewards
- Positive effects
- Creates an “ownership culture”
- Adjusts pay with firm's prosperity
- Scorecards align rewards with several specific organizational outcomes
- Concerns with performance pay
- Weak connection between individual effort and rewards
- Reward amounts affected by external forces
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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.
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Job Design
- Assigning tasks to a job, including the interdependency of those tasks with other jobs
- Organization's goal -- to create jobs that can be performed efficiently yet employees are motivated and engaged
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Job Specialization
- 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 specialization
- Taylor also emphasized person-job matching, training, goal setting, work incentives
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Advantages
Disadvantages
Evaluating Job Specialization
- Less time changing activities
- Lower training costs
- Job mastered quickly
- Better person-job matching
- Job boredom
- Discontentment pay
- Higher costs
- Lower quality
- Lower motivation
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Job Characteristics Model
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Work
motivation
Growth
satisfaction
General
satisfaction
Work
effectiveness
Feedback
from job
Knowledge
of results
Skill variety
Task identity
Task significance
Meaningfulness
Autonomy
Responsibility
Individual
differences
Critical
Psychological
States
Core Job
Characteristics
Outcomes
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Improving Task Significance Through the Voice of the Customer
Rolls Royce Engine Services in California introduced “Voice of the Customer,” an initiative in which customers talk to production staff about how the quality of these engines are important to them. “It gives employees with relatively repetitive jobs the sense that they're not just working on a part but rather are key in keeping people safe,”explains a Rolls Royce executive.
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Job Rotation
- Moving from one job to another
- Benefits
- Minimizes repetitive strain injury
- Multiskills the workforce
- Potentially reduces job boredom
Job ‘A’
Job ‘B’
Job ‘C’
Job ‘D’
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Job Enlargement
- Adding tasks to an existing job
- Example: video journalist
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Employee 1
Operates camera
Employee 2
Operates sound
Employee 3
Reports story
Traditional news team
Video journalist
• Operates camera
• Operates sound
• Reports story
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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
- e.g., video journalist, assembling entire product
2. Establishing client relationships
- Directly responsible for specific clients
- Communicate directly with those clients
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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
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Supporting Empowerment
- Individual factors
- Possess required competencies, able to perform the work
- Job design factors
- Autonomy, task identity, task significance, job feedback
- Organizational factors
- Resources, learning orientation, trust
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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
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Elements of Self-Leadership
Personal
Goal Setting
- Personal goal setting
- Employees set their own goals
- Apply effective goal setting practices
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Constructive
Thought
Patterns
Designing
Natural
Rewards
Self-
Monitoring
Self-
Reinforce-
ment
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Personal
Goal Setting
Designing
Natural
Rewards
Self-
Monitoring
Self-
Reinforce-
ment
Constructive
Thought
Patterns
Elements of Self-Leadership
- Positive self-talk
- Talking to ourselves about thoughts/actions
- Potentially increases self-efficacy
- Mental imagery
- Mentally practicing a task
- Visualizing successful task completion
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Designing
Natural
Rewards
Constructive
Thought
Patterns
Self-
Monitoring
Self-
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
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Constructive
Thought
Patterns
Designing
Natural
Rewards
Self-
Reinforce-
ment
Personal
Goal Setting
Self-
Monitoring
Elements of Self-Leadership
- Keeping track of your progress toward the self-set goal
- Looking for naturally-occurring feedback
- Designing artificial feedback
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Self-
Reinforce-
ment
Constructive
Thought
Patterns
Designing
Natural
Rewards
Self-
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
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Self-Leadership Contingencies
- Individual factors
- Higher levels of conscientiousness and extroversion
- Positive self-evaluation (self-esteem, self-efficacy, internal locus)
- Organizational factors
- Job autonomy
- Participative leadership
- Measurement-oriented culture
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Applied Performance Practices
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McGraw-Hill/Irwin
McShane/Von Glinow OB 5e
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
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