Organizational Behavior Stephen P. Robbins & Timothy A. Judge Essentials of Organizational Behavior 13e Stephen P. Robbins & Timothy A. Judge Chapter 5 Personality and Values

Chapter 8 Motivation: From Concepts to Applications

After studying this chapter you should be able to: Describe the job characteristics model and the way it 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 such as employee recognition programs.

Motivating by Job Design: The Job Characteristics Model 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 the completion of a 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 workers have over their jobs. 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.

Designing Motivational Jobs JCM-designed jobs give internal rewards Individual’s growth needs are moderating factors Motivating jobs must: Be autonomous Provide feedback Be meaningful 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. Note that because the JCM is relatively individualistic, job enrichment strategies might not have the same effect in collectivistic cultures as they do in individualistic cultures like the United States.

How Can Jobs Be Redesigned? Job Rotation The periodic shifting of an employee from one task to another Job Enrichment Increasing the degree to which the worker controls the planning, execution, and evaluation of the work Enrichment reduces turnover and absenteeism while increasing satisfaction 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 at the same organizational level. In job enrichment a manager will expand an employee’s job by increasing the level of control the worker has in planning the job, executing it, or evaluating the work.

Guidelines for Enriching a Job 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 the worker to identify tasks that need to be completed. This action can help the worker have a better understanding of the job and how it helps the organization complete its goals as well as help the worker enjoy his work more because he is using more of his skill set.

How Can Jobs Be Redesigned? Relational Job Design Designing work so employees are motivated to promote the well-being of the organization’s beneficiaries Relate stories from customers who have benefited from the company’s products or services Connect employees directly with beneficiaries Contemporary research is focusing on how to make jobs more prosocially motivating to people. In other words, how can managers design work so employees are motivated to promote the well-being of the organization’s beneficiaries – their customers, clients, patients, or employees?

How Can Jobs Be Redesigned? Alternative Work Arrangements Flextime Some discretion over when worker starts and leaves Job Sharing Two or more individuals split a traditional job Telecommuting Work remotely at least two days per week There are some alternative work arrangements that have been successful in helping increase the motivation of workers. These arrangements give workers 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 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 he or she can choose 8 hours between 6am and 8pm. That flexibility may allow a mom to be home when her kids are coming home from school. Flextime has become popular both within and outside the United States. Another alternative work arrangement is job sharing where two workers split a job and each works part time. This is becoming more popular in Japan where it allows employers to avoid layoffs due to overstaffing. Telecommuting is another alternative work arrangement that has been utilized. This allows employees to work from home at least 2 days a week.

Employee Involvement Employee involvement: A participative process that uses the input of employees to increase their commitment to the organization’s success 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. Depending on the country involved, it may be necessary to modify employee involvement programs to reflect the local culture. Some examples of programs that help with employee involvement are participative management and representative participation.

Participative Management Participative management: Subordinates share a significant degree of decision-making power with superiors To be effective: Followers must have confidence and trust in leaders Leaders should avoid coercion and stress organizational consequences of decisions Only a modest influence on productivity, motivation, and job satisfaction Participative management occurs when managers include employees in the decision-making process. Participative management has, at times, been considered a panacea for poor morale and low productivity. In reality, for participative management to be effective, followers must have trust and confidence in their leaders. Leaders should refrain from coercive techniques and instead stress the organizational consequences of decisions to their followers. This type of employee involvement program has shown to have limited impact on productivity, motivation, and job satisfaction.

Representative Participation Representative participation: Workers are represented by a small group of employees who participate in decisions affecting personnel Works councils Board membership 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 interests of managers and stockholders. This is achieved by letting workers be represented by small groups of employees who participate in decisions. Nearly every country in Western Europe requires companies to practice representative participation.

Employee Involvement Programs and Motivation Theories Theory Y: consistent with participative management Theory X: consistent with the more autocratic style of managing Two-factor theory: employee involvement programs could provide intrinsic motivation by increasing opportunities for growth, responsibility, and involvement in the work itself Employee involvement draws on a number of motivation theories.

Using Pay to Motivate 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 the organization utilizes this pay system and applies it to the pay of individual employees.

What to Pay Establishing 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.

How to Pay Variable-Pay Programs Base a portion of the pay on a given measure of performance Seven types: Piece-rate pay plan Merit-based pay Bonuses Skill-based pay Profit-sharing plans Gainsharing Employee-stock ownership plan (ESOP) Some types of variable-pay programs include piece-rate, merit-based, bonuses, skill-based pay, profit-sharing, gainsharing, and employee-stock ownership plans.

Variable-Pay Programs 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 are 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.

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 While it appears that pay does increase productivity, it seems that not everyone responds positively to variable-pay plans Other types of variable pay programs include: profit-sharing plans, gainsharing, and employee stock ownership plans. Profit-sharing plans are organization-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 it improves group productivity from the previous period. ESOPs are a method used to motivate the employees toward the organizational goals. As part of their benefits package they are able to earn or purchase company stock, often at below-market rates. This encourages them to work toward 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.

Using Benefits to Motivate Benefits are both an employee provision and an employee motivator Individual employees value the components of benefits packages differently A flexible benefits program turns the benefits package into a motivational tool 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.

Using Intrinsic Rewards to Motivate Employee recognition programs 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 – but fairness is important 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. 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.

Implications for Managers Recognize individual differences Use 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 and 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 the way it motivates by changing the work environment. Compared the main ways jobs can be redesigned. Explained how specific alternative work arrangements can motivate employees. Described how employee involvement measures can motivate employees. Demonstrated how the different types of variable-pay programs can increase employee motivation. Showed how flexible benefits turn benefits into motivators. Identified the motivational benefits of intrinsic rewards such as employee recognition programs.