Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-1 Copyright © 2007 Pearson Education Canada Chapter 5 Motivation in Action

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-2 Copyright © 2007 Pearson Education Canada From Theory to Practice: The Role of Money Money is the most commonly used reward in organizations. –Money certainly helps some needs get met. But, money is not all employees’ top priority. –Many emphasize relationships in the workplace.

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-3 Copyright © 2007 Pearson Education Canada Creating Effective Reward Systems – Employee Recognition Employee recognition programs use multiple sources and recognizes both individual and group accomplishments. In contrast to most other motivators, recognizing an employee’s superior performance often costs little or no money.

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-4 Copyright © 2007 Pearson Education Canada Variable-Pay Programs (aka Pay-for-Performance) A portion of an employee’s pay is based on some individual and/or organizational measure of performance. –Individual-based Piece-rate wages, bonuses –Group-based Gainsharing –Organizational-based Profit sharing Employee stock ownership plans (ESOPs)

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-5 Copyright © 2007 Pearson Education Canada Challenges to Pay-for-Performance Programs What constitutes performance and how is it measured? Other barriers: –Rate of inflation raises –Salary scales keyed to competitors –Traditional compensation systems –Appraisal practices that inflate evaluations and expectations The challenges for pay-for-performance programs can be affected by how and where they are implemented. –Teamwork –Unions –Public Sector Employees Ethical Considerations

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-6 Copyright © 2007 Pearson Education Canada Research Findings Linking variable-pay programs and expectancy theory: –Variable-pay programs seem to be consistent with expectancy theory predictions. –Employees are motivated when there is a perceived strong relationship between performance and rewards.

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-7 Copyright © 2007 Pearson Education Canada Motivating Beyond Productivity Commissions beyond sales –Customer satisfaction and/or sales team outcomes, such as meeting revenue or profit targets. Leadership effectiveness –Employee satisfaction, or how the manager handles his or her employees. New goals –All employees who contribute to specific organizational goals, such as customer satisfaction, cycle time, or quality measures.

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-8 Copyright © 2007 Pearson Education Canada Rewards for Other Types of Performance Knowledge workers in teams –Performance of knowledge workers and/or professional employees who work on teams. Competency and/or skills –Abstract knowledge or competencies—for example, knowledge of technology, the international business context, customer service, or social skills. Skill-based –Pay is based on how many skills an employee has, or how many jobs he or she can do.

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-9 Copyright © 2007 Pearson Education Canada Comparing Various Pay Programs

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-10 Copyright © 2007 Pearson Education Canada Caveat Emptor: Apply Motivation Theories Wisely Motivation Theories Are Culture-Bound –Canada and US rely on extrinsic rewards more than other countries. –Japan and Germany rarely use individual incentives. Japan emphasizes group rewards. –China is more likely to give bonuses to everyone.

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-11 Copyright © 2007 Pearson Education Canada Reward Preferences in Different Countries GLOBE/Hofstede Cultural DimensionReward PreferenceExamples High uncertainty avoidanceCertainty in compensation systems:Greece, Portugal, Japan Seniority-based pay Skill-based pay IndividualismCompensation based on individual performanceAustralia, United Kingdom, Pay for performanceUnited States Individual incentives Stock options Humane orientationSocial benefits and programs:Sweden, Norway, the Netherlands (Hofstede's quality-of-life Flexible benefits dimension)Workplace child-care programs Career-break programs Maternity leave programs

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-12 Copyright © 2007 Pearson Education Canada Beware the Signals That Are Sent By Rewards Often reward systems do not reflect organizational goals: –Individuals are stuck in old patterns of rewards and recognition. Stick to rewarding things that can be easily measured. –Organizations don’t look at the big picture. Subunits compete with each other. –Management and shareholders focus on short-term results.

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-13 Copyright © 2007 Pearson Education Canada We hope for: Teamwork and collaboration Innovative thinking and risk taking Development of people skills] Employee involvement and empowerment High achievement Long-term growth Commitment to total quality see Candor But we reward: The best individual team members Proven methods and no mistakes Technical achievements and accomplishments Tight control over operations, resources Another year’s efforts Quarterly earnings Shipment on schedule, even with defects Reporting good news Management Reward Follies

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-14 Copyright © 2007 Pearson Education Canada Can We Just Eliminate Rewards? Alfie Kohn suggests that organizations should focus less on rewards, more on creating motivating environments: –Abolish Incentives. –Re-evaluate Evaluation. –Create Conditions for Authentic Motivation. –Encourage Collaboration. –Enhance Content. –Provide Choice.

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-15 Copyright © 2007 Pearson Education Canada Job Redesign Job Rotation –The periodic shifting of a worker from one task to another. –Reduces boredom and increases motivation through diversifying the employee’s activities. Job Enlargement –The horizontal expansion of jobs. –Attacks the lack of diversity in overspecialized jobs; does little to instill challenge or meaningfulness to a worker’s activities. Job Enrichment –The vertical expansion of jobs. Employee does a complete activity. –Expands the employee’s freedom and independence, increases responsibility, and provides feedback.

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-16 Copyright © 2007 Pearson Education Canada Job Characteristic Model - JCM JCM is a model that identifies five core job dimensions and their relationship to personal and work outcomes. Core Job Dimensions –Skill variety –Task identity –Task significance –Autonomy –Feedback Critical Psychological States –Experienced meaningfulness –Experienced responsibility for outcomes –Knowledge of the actual results

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-17 Copyright © 2007 Pearson Education Canada Examples of High and Low Job Characteristics Skill Variety High variety – The owner-operator of a garage who does electrical repair, rebuilds engines, does body work, and interacts with customers Low variety – A body shop worker who sprays paint eight hours a day Task Identity High identity – A cabinet maker who designs a piece of furniture, selects the wood, builds the object, and finishes it to perfection Low identity – A worker in a furniture factory who operates a lathe solely to make table legs Task Significance High significance – Nursing the sick in a hospital intensive care unit Low significance – Sweeping hospital floors Autonomy High autonomy – A telephone installer who schedules his or her own work for the day, makes visits without supervision, and decides on the most effective techniques for a particular installation Low autonomy – A telephone operator who must handle calls as they come according to a routine, highly specified procedure Feedback High feedback – An electronics factory worker who assembles a radio and then tests it to determine if it operates properly Low feedback – An electronics factory worker who assembles a radio and then routes it to a quality control inspector who tests it for proper operation and makes needed adjustments

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-18 Copyright © 2007 Pearson Education Canada Exhibit 5-7 The Job Characteristics Model Core job dimensions Personal and work outcomes Skill variety Task identity Task significance Experienced meaningfulness of the work High internal work motivation Autonomy Experienced responsibility for outcomes of the work High-quality work performance Feedback Knowledge of the actual results of the work activities High satisfaction with the work Low absenteeism and turnover Employee growth- need strength Critical psychological states

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-19 Copyright © 2007 Pearson Education Canada Creating More Flexible Workplaces Compressed Workweek Flextime Job Sharing Telecommuting

Chapter 4, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 4-20 Copyright © 2007 Pearson Education Canada From Concepts to Skills: Designing Enriched Jobs Combine tasks. This increases skill variety and task identity. Create natural work units. This increases employee “ownership” of the work and improves the likelihood that employees will view their work as meaningful and important. Establish client relationships. This increases skill variety, autonomy, and feedback for the employee. Expand jobs vertically. This seeks to partially close the gap between the “doing” and the “controlling” aspects of the job. Open feedback channels.