Kelli J. Schutte William Jewell College Robbins & Judge Organizational Behavior 14th Edition Motivation: From Concepts to Applications 8-0 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Chapter Learning Objectives  After studying this chapter, you should be able to: –Describe the job characteristics model and evaluate the way it motivates by changing the work environment. –Compare and contrast the main ways jobs can be redesigned. –Identify three alternative work arrangements and show how they might motivate employees. –Give examples of employee involvement measures and show how they 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. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-1

The Job Characteristics Model Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-2  Five Core Job Dimensions –Skill Variety: degree to which the job incorporates a number of different skills and talents –Task Identity: degree to which the job requires the completion of a whole and identifiable piece of work –Task Significance: how the job impacts the lives of others – Autonomy: identifies how much freedom and independence the worker has over the job – Feedback: how much the job generates direct and clear information about the worker’s performance

How Can Jobs be Redesigned? Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-3 Job Rotation The shifting of an employee from one task to another with similar skill requirements. Job Enrichment The expansion of a job by increasing the degree to which the worker controls the planning, execution, and evaluation of the work.

Strengths of Job Rotation Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-4 Reduces boredom Increases understanding of work contribution Increased skills Helps managers in scheduling

Job Enrichment – Possible Actions Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-5 E X H I B I T 8-2 Combine TasksForm Natural Work UnitsEstablish Client RelationsExpand Jobs VerticallyOpen Feedback Channels

Alternative Work Arrangements  Flextime –Flextime allows employees to choose the hours they work within a defined period of time.  Job Sharing –Job Sharing allows two or more individuals to split a traditional 40-hour-a-week job.  Telecommuting –Telecommuting allows workers to work from home at least 2 days a week on a computer linked to the employer’s office. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-6

Social and Physical Context of Work  Social Context –Some social characteristics that improve job performance include: Interdependence Social support Interactions with other people outside of work  Physical Context –The work context will also affect employee satisfaction Work that is hot, loud, and dangerous is less satisfying Work that is controlled, relatively quiet, and safe will be more satisfying. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-7

Employee Involvement  Definition: A participative process that uses employees’ input to increase their commitment to the organization’s success. 8-8 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Examples of Employee Involvement Programs Participative Management Representative Participation

Using Rewards to Motivate Employees Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-9  Although pay is not the primary factor driving job satisfaction, it is a motivator. –Establish a pay structure –Variable-pay programs

Establishing a Pay Structure Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-10 Internal Pay Equity External Pay Equity

How to Pay Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-11  Variable-Pay Programs –Piece-Rate Pay –Merit-Based Pay –Bonuses –Skill-Based Pay –Profit-Sharing Plans –Gainsharing –Employee Stock Ownership Plans

Types of Variable-Pay Programs  Piece-Rate Pay –Pays a fixed sum of money for each unit of production completed. For example: Ballpark workers selling peanuts and soda get $1 for each bag of peanuts and soda sold.  Merit-Based Pay –Pays for individual performance based on performance appraisal results. If appraisals are designed correctly, workers performing at a high level will get more pay.  Bonuses –Pay a lump sum at the end of a designated period of time based on individual and/or organizational performance. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-12

More Types of Variable-Pay Programs  Skill-Based Pay –Pays based on the number of skills employees have or the number of jobs they can do.  Profit-Sharing Plans –Pays out a portion of the organization’s profitability. It is an organization-wide program and is based on a predetermined formula.  Gainsharing –Pays for improvements in group productivity from one period to another. It is a group incentive plan.  Employee Stock Ownership Plans (ESOP) –Provides each employee with the opportunity to acquire stock as part of their benefit package. – Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall. 8-13

Flexible Benefits  Flexible benefits give individual rewards by allowing each employee to choose the compensation package that best satisfies his or her current needs and situations. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall. 8-14

Employee Recognition Programs  Employee rewards need to be intrinsic and extrinsic. Employee recognition programs are a good method of intrinsic rewards. –The rewards can range from a simple thank-you to more widely publicized formal programs. –Advantages of recognition programs are that they are inexpensive and effective. –Some critics say they can be politically motivated and if they are perceived to be applied unfairly, they can cause more harm than good. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall. 8-15

Global Implications  Job Characteristics and Job Enrichment –Studies do not yield consistent results about applicability to other cultures  Telecommuting –Most common in the United States  Variable Pay –Most believe variable pay systems work best in individualistic cultures such as the United States. –Fairness is an important factor  Flexible Benefits –Popular in all cultures  Employee Involvement –Differ among countries – 8-16 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Summary and Managerial Implications 8-17 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Recognize individual differences  Use goals and feedback  Allow employees to participate in decisions that affect them  Link rewards to performance  Check the system for equity

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall 8-18 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall