Chapter 7 Motivation II: Applied Concepts Essentials of Organizational Behavior, 11/e Global Edition Stephen P. Robbins & Timothy A. Judge Chapter 7 Motivation II: Applied Concepts

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 three main ways jobs can be redesigned. 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.

Motivating by Changing the Work Environment: JCM The Job Characteristics Model - jobs are described in terms of five core dimensions: Skill variety Task identity Task significance Autonomy Feedback The job characteristics model looks at describing any job in terms of five core job dimensions. These job dimensions include -Skill variety which is the degree to which the job incorporates a number of different skills and talents. Task identity is another dimension that looks at the degree to which the job requires a completion of whole and identifiable piece of work. Task significance is included and looks at how the job impacts the lives of others. Autonomy, the fourth dimension, identifies how much freedom and independence the worker has over their job. And finally, feedback is how much the job generates direct and clear information about the worker’s performance.

The Job Characteristics Model Much evidence supports the JCM concept that the presence of a set of job characteristics—variety, identity, significance, autonomy, and feedback—does generate higher and more satisfying job performance

JCM: Designing Motivational Jobs JCM-designed jobs give internal rewards Individual’s growth needs are moderating factors Motivating jobs must be: Autonomous Provide feedback, and Have at least one of the three meaningfulness factors JCM creates motivational jobs as they are designed to give internal rewards. Positive outcomes are moderated by individual growth needs as each individual will respond differently. In order for the jobs to increase motivation there should be a high degree of autonomy, feedback and a least one meaningfulness factor such as significance, identity or variety.

How Can Jobs be Redesigned? 7-6 Job redesign refers to designing a better fit between workers and their jobs any set of activities that involves the alteration of specific jobs or interdependent systems of jobs with the intent of improving the quality of employee job experience and their on the job productivity. any work changes that increase work quality or productivity. Alters basic relationship between worker and job. changing the tasks or the way work is performed in an existing job. to changes in the design of individual jobs. There are some helpful ways to redesign a job to increase the motivation of the employees. Two common practices are job rotation and job enrichment. In job rotation an organization will shift the employee to different tasks with similar skill requirements but all in the same organizational level. In job enrichment a manager will expand an employees job by increasing the level of control the worker has in planning their job, executing it or evaluating the work. 6

How Can Jobs be Redesigned? Job Redesign Techniques Job Rotation The periodic shifting of an employee from one task to another Job enlargement – Horizontal Increasing the number and variety of tasks that an individual performed Job Enrichment – Vertical Increasing the degree to which the worker controls the planning, execution and evaluation of the work Adding one or more motivating factors to job activities (such as increasing responsibility or recognition) There are some helpful ways to redesign a job to increase the motivation of the employees. Three common practices are job rotation, job enlargement and job enrichment. In job rotation an organization will shift the employee to different tasks with similar skill requirements but all in the same organizational level. Job enlargement is the horizontal expansion of a job. It increases the number and variety of tasks that an individual performs results in a job with more diversity. In job enrichment a manager will expand an employees job by increasing the level of control the worker has in planning their job, executing it or evaluating the work.

Guidelines for Enriching a Job Using JCM Job enrichment is helpful in keeping the worker engaged in their work. There are many actions a manager can take to help the worker. These actions help to achieve core job dimensions. For example if the manager combines tasks for the worker it can help the worker increase the amount of skills they are utilizing and help them to identify tasks that need to be completed. This action can help the worker to have a better understanding of their job and how it helps the organization complete its goals as well as help the worker enjoy their work more because they are using more of their skill set. Enrichment reduces turnover and absenteeism while increasing satisfaction.

Alternate Work Arrangements Flextime -Some discretion over when worker starts and leaves -Allow people to choose their work hours by adjusting a standard work schedule Job Sharing Allows two or more individuals to split a traditional 40-hour-a-week job Telecommuting -Work remotely at least two days per week -Employees who do their work at home at least two days a week on a computer that is linked to their office There are some alternative work arrangements that have been successful in helping increase the motivation of workers. These arrangements give the worker more control over their work and thereby can increase their level of motivation. An example of this is Flextime. Flextime is short for flexible work hours and allows the workers to choose what hours they work within a set time period. So for example, if the worker needs to work 8 hours a day the manager may say you can choose 8 hours between 6am and 8pm. That may allow a mom to be home when her kids are coming home from school. Another example is job sharing where two workers split a job and each work part-time. Telecommuting is another alternative work arrangement that has been utilized. This is when workers work from home at least 2 days a week.

Flextime Benefits include: reduced absenteeism increased productivity reduced overtime expenses lessening in hostility toward management reduced traffic congestion around work sites, elimination of tardiness increased autonomy and responsibility for employees that may increase employee job satisfaction

Modified Work Schedules and Alternative Workplaces Advantages More satisfied, committed employees Reduced stress Improved productivity Less congestion Disadvantages Challenging to coordinate and manage Poor fit for some workers Lack of network and coworker contact Lack of management belief

The Social and Physical Context Social characteristics that improve job performance: Interdependence Social support Interactions with people outside the workplace Work context also affects performance. Some things to consider are: Temperature Noise level Safety There is both a social and a physical context to work. The social context can help to improve job performance by creating a sense of interdependence, social support and interactions with people outside of work. The physical context can also impact job satisfaction by creating a pleasant and safe environment.

Employee Involvement -A participative process that uses the input of employees to increase their commitment to the organization’s success -Involving workers in decisions that will affect them and increasing their autonomy and control over their work lives Two types: Participative Management Representative Participation Employee involvement is defined as a participative process that uses employees’ input to increase their commitment to the overall success of the organization. Some examples of programs that help with employee involvement are participative management and representative participation.

Participative Management Subordinates share a significant degree of decision-making power with superiors Not appropriate for every organization or every work unit Required conditions: Issues must be relevant Employees must be competent and knowledgeable All parties must act in good faith Organization’s culture must support employee involvement Only a modest influence on productivity, motivation, and job satisfaction Participative management is when managers include employees in the decision-making process. In order for participative management to be successful there must be issues that are relevant, employees who are knowledgeable and competent and all parties must be acting in good faith. This type of employee involvement program has shown to have limited impact on productivity, motivation and job satisfaction.

Representative Participation Workers are represented by a small group of employees who participate in decisions affecting personnel Works Councils Board membership Desires to redistribute power within an organization Does not appear to be very motivational Representative participation tries to redistribute power by putting labor on a more equal footing with the interest of managers and stockholders. They do this by letting the workers be represented by small groups of employees who participate in decisions. -Works councils link employees with management. They are groups of nominated or elected employees who must be consulted when management makes decisions about employees. -Board representatives are employees who sit on a company’s board of directors and represent the interests of the firm’s employees. In some countries, large companies may be legally required to make sure that employee representatives have the same number of board seats as stockholder representatives.

Major strategic rewards decisions: Rewarding Employees Major strategic rewards decisions: What to pay employees How to pay individual employees What benefits to offer How to construct employee recognition programs As we saw in previous chapters money is not the primary driver for job satisfaction. However, it does motivate individuals and companies often underestimate its impact in keeping top talent. It is critical to figure out what to pay and to establish a pay structure that makes sense for your industry and organization. Then it is imperative that an organization utilizes this pay system and applies it to the pay of individual employees.

1. What to Pay Need to establish a pay structure Balance between: Internal equity – the worth of the job to the organization External equity – the external competitiveness of an organization’s pay relative to pay elsewhere in its industry A strategic decision with trade-offs Setting pay levels can be complex and requires a balance of internal and external pay equity. Internal equity looks at the worth of the job to the organization and compares it with what others are making within the organization. External equity looks at external competitiveness of an organization’s pay relative to pay elsewhere.

2. How to Pay: Variable-Pay Programs Bases a portion of the pay on a given measure of performance Piece-Rate Pay – workers are paid a fixed sum for each unit of production completed Merit-Based Pay – pay is based on individual performance appraisal ratings Bonuses – rewards employees for recent performance Skill-Based Pay – pay is based on skills acquired instead of job title or rank – doesn’t address the level of performance Some types of variable-pay programs include piece-rate, merit- based, bonuses and skill-based pay. -Piece-rate pay plans pay a fixed amount of money for each unit of production. -Merit-based pay plans are similar where they pay based on performance. However, it is not necessarily tied to production because in some jobs output is not as easy to measure. -----Bonuses is another method that is becoming increasingly popular. Bonuses are a lump sum at the end of a set period of time. The amount of the bonus is typically dependent upon the performance of the individual or the organization or some combination of both. -Skill-based pay will add compensation to workers as they gain more skills and the ability to do additional jobs. It rewards the employees for continuous improvement.

More Variable Pay Programs Profit-Sharing Plans – organization-wide programs that distribute compensation based on an established formula designed around profitability Gainsharing – compensation based on sharing of gains from improved productivity Employee Stock Ownership Plans (ESOPs) – plans in which employees acquire stock, often at below-market prices Other types of variable pay programs include: profit-sharing plans, gainsharing and employee stock ownership plans. -Profit-sharing plans are organizational wide programs where some of the profits of the company are shared with all workers. -Gainsharing is a group incentive where a department or unit will earn additional income if they improve group productivity from the previous period. -ESOPs are a method used to motivate the employees towards the organizational goals. As part of their benefit package they are able to earn or purchase company’s stock, often at below-market rates. This encourages them to work towards the overall profitability of the organization as they have ownership in it and will gain as the company gains. It is important to remember that while it is often thought that pay does increase productivity it is not true that everyone responds positively to variable-pay plans. While it appears that pay does increase productivity, it seems that not everyone responds positively to variable-pay plans.

3. What Benefit to Offer: Flexible Benefits Each employee creates a benefit package tailored to their own needs and situation Modular plans – predesigned packages to meet the needs of a specific group Core-plus plans – core of essential benefits and menu of options to choose from Flexible spending plans – full choice from menu of options Flexible benefits allow employees choices between different benefits. This allows them to customize their options and create a plan that best meets their needs and situation. This increases their motivation because they realize the organization has their best interest in mind. Some types included modular plans, packaged plans that meet the needs of the group, core-plus plans, a set of core benefits that most need and then some additional options to choose from and flexible spending plans where there is a menu of options to choose from. benefits required by law (e.g. Social Security, unemployment compensation, workers's compensation) Modular plans usually package several different bundles of benefits that offer increasingly extensive arrays of benefits. The basic module might include only the legally-required benefits, basic health insurance, and life insurance. Core-plus plans provide a set of mandatory benefits that are usually designed to meet the basic needs of all employees. In addition to legally-required benefits, medical insurance, long-term disability insurance, and retirement benefits are often included in the core.

4. How to Recognize Them: Employee Recognition Programs Programs where specific types of behavior are encouraged and the procedures for attaining recognition are clearly identified In addition to pay there are intrinsic rewards Can be as simple as a spontaneous comment Can be formalized in a program Recognition is the most powerful workplace motivator – and the least expensive! Thank you! A method of motivation that has been highly successful is employee recognition programs. This idea recognizes the importance of coupling extrinsic and intrinsic methods to help motivate employees. Recognition is an intrinsic motivation technique that can range from giving an employee the proverbial pat on the back to a more public recognition ceremony. Recognition programs are highly effective and cost very little to administer.

Employee Recognition Programs Rewarding behavior with recognition immediately leads to its repetition. To maximize motivation potential, publicly communicate who and why is being recognized. Critics argue that employee recognition programs are highly susceptible to political manipulation by management There are critics of such programs, however, who say that they can be politically motivated and if the perception is that they are applied unfairly they can cause more harm than good.

Global Implications Do motivational approaches vary by culture? Job Characteristics/Enrichment: may not be the same in collectivist cultures Telecommuting, variable pay, flexible benefits: while all of these seem to be on the increase, not enough research has been done to make any conclusions Employee Involvement: important to modify practices to reflect national culture There is some application of these various theories to other cultures. However, there has not been a lot of research to support common assumptions and understandings. It would make sense that these ideas apply across the globe, but more research needs to be done.

Implications for Managers Recognize and allow for individual differences Use specific goals and feedback Allow employees to participate in decisions that affect them Link rewards to performance Check the reward system for equity The motivational theories presented in this chapter and the last chapter set forth the following overarching ideas. It is important to recognize individual differences when designing and applying motivational programs. Managers will get better results if they use goals, feedback and allow employees to participate in the decisions that impact them. Finally, by linking rewards to performance and making sure the system is equitable better results will follow.

Keep in Mind… Most people respond to the intrinsic job characteristics of the JCM It is not clear that employee involvement programs work – use caution! Variable-pay plans can enhance motivation It is important to keep in mind that intrinsic rewards work and this is supportive of the JCM. However, employee involvement programs are less clear on their benefits so organizations should use caution when implementing these programs. Variable-pay programs fall in the middle and can enhance motivation, but not in all cases.

Summary Described the job characteristics model and evaluated the way it motivates by changing their work environment. Compared and contrasted the three main ways jobs could be redesigned. Gave examples of employee involvement measures and how they could motivate employees. Demonstrated how the different types of variable-pay programs could increase employee motivation. Showed how flexible benefits can turn benefits into motivators. Identified the motivational factors of intrinsic rewards.

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