Chapter 7: Applications of Motivation Management By Objectives (MBO) is a program that encompasses: specific goals (goal setting theory) participatively set (this is emphasized in MBO systems) for an explicit time period with feedback on goal progress For the individual employee, MBO provides specific personal performance objectives.

MBO MBO operationalizes the concept of objectives by devising a process by which objectives cascade down through the organization. The result is a hierarchy of objectives that links objectives at one level to those at the next level.

Cascading of Objectives

What Are Employee Recognition Programs? Programs that use multiple sources and recognizes both individual and group accomplishments. Rewarding a behavior with recognition immediately following that behavior is likely to encourage its repetition (Reinforcement Theory) In contrast to most other motivators, recognizing an employee’s superior performance often costs little or no money, making them highly attractive to industry.

What are Employee Involvement Programs? A participative process that uses the entire capacity of employees and is designed to encourage increased commitment to the organization’s success.

Employee Involvement Examples of Employee Involvement Participative Management Representative Participation Work Councils Board Representatives Quality Circles Employee Stock Ownership Plans (ESOPs) *Note: these strategies use concepts found in Theory X and Y, the two-factor theory, and needs (i.e. N achievement) and ERG. These approaches are popular around the world.

Variable Pay Programs piece-rate pay plans profit-sharing plans Programs where a portion of an employee’s pay is based on some individual and/or organizational measure of performance. piece-rate pay plans profit-sharing plans gainsharing plans (note – “profit” is not necessary)

Linking Variable-Pay Plans and Expectancy Theory Evidence supports the importance of this linkage, especially for operative employees working under piece-rate systems. Group and organization wide incentives reinforce and encourage employees to sublimate personal goals for the best interests of their department or organization. Many of these plans are used in organizations around the world. Again, be careful – some involve risk (and not all employees nor employers are risk takers!)

Flexible Benefits