Chapter Seven Motivational Methods and Programs

Copyright © 2007 by Nelson, a division of Thomson Canada Limited2 Objectives After reading and studying this chapter, you should be able to: 1. Explain how to enhance motivation through job enrichment, the job characteristics model and job crafting. 2. Summarize the basics of a behaviour modification program in the workplace. 3. Identify rules and suggestions for motivating group members through behaviour modification.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited3 Objectives (cont.) 4. Describe why recognition is a good motivator, and the nature of reward and recognition programs in the workplace. 5. Describe how to effectively use financial incentives to motivate others, including the use of stock options and gainsharing. 6. Choose an appropriate motivational model for a given situation.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited4 Motivation through Job Design Job enrichment: Job enrichment: Means making a job more motivational & satisfying by adding variety, responsibility & decision making Means making a job more motivational & satisfying by adding variety, responsibility & decision making Gives workers a sense of ownership, responsibility, and accountability for their jobs. Gives workers a sense of ownership, responsibility, and accountability for their jobs.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited5 Exhibit 7-1: Characteristics & Consequences of an Enriched Job

Copyright © 2007 by Nelson, a division of Thomson Canada Limited6 Job Characteristics Model Using job design to create an enriched job Using job design to create an enriched job Based on both needs theory and expectancy theory Based on both needs theory and expectancy theory Emphasis on satisfying workers’ needs through the job Emphasis on satisfying workers’ needs through the job

Copyright © 2007 by Nelson, a division of Thomson Canada Limited7 Exhibit 7-2: Job Characteristics Model

Copyright © 2007 by Nelson, a division of Thomson Canada Limited8 Job Characteristics Model Five measurable core characteristics of jobs: Five measurable core characteristics of jobs: Skill variety — how many skills to perform the job. Skill variety — how many skills to perform the job. Task Identity — how complete is the job, from beginning to end, with a tangible outcome. Task Identity — how complete is the job, from beginning to end, with a tangible outcome. Task Significance — the impact that the job has on others in the work place or the external environment. Task Significance — the impact that the job has on others in the work place or the external environment. Autonomy — the worker’s freedom, independence, and discretion to do the job. Autonomy — the worker’s freedom, independence, and discretion to do the job. Feedback — how much direct information about performance is available. Feedback — how much direct information about performance is available.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited9 Job Characteristics Model (cont.) Core characteristics prompt greater motivation through critical psychological states Core characteristics prompt greater motivation through critical psychological states Measure characteristics with job holder’s answers to Job Diagnostic Survey Measure characteristics with job holder’s answers to Job Diagnostic Survey tabulate Motivating Potential Score of job tabulate Motivating Potential Score of job MPS = Skill Variety +Task Identity +Task Significance x Autonomy Autonomy xFeedback 3

Copyright © 2007 by Nelson, a division of Thomson Canada Limited10 Considerations when Implementing Job Enrichment Determine if employees need or want more responsibility, variety, and growth (need for growth is important moderating variable). Determine if employees need or want more responsibility, variety, and growth (need for growth is important moderating variable). Supervisors and workers may not agree on what constitutes an enriched job. Supervisors and workers may not agree on what constitutes an enriched job. Task significance often seen as higher by supervisors Task significance often seen as higher by supervisors Must ensure hygiene factors not creating problems that would offset enrichment. Must ensure hygiene factors not creating problems that would offset enrichment.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited11 Job Crafting Job crafting refers to the physical and mental changes workers make in the task or relationship aspects of their job. Job crafting refers to the physical and mental changes workers make in the task or relationship aspects of their job. Three common types of job crafting involve changing: Three common types of job crafting involve changing: the number, scope, and type of job tasks the number, scope, and type of job tasks the interaction with others on the job the interaction with others on the job one’s view of the job. one’s view of the job. Why? To fit personal preferences and capabilities, to make job more meaningful Why? To fit personal preferences and capabilities, to make job more meaningful

Copyright © 2007 by Nelson, a division of Thomson Canada Limited12 Self-Managed Work Team A formally recognized group of employees responsible for an entire work process or segment that delivers a product or service to an internal or external customer. A formally recognized group of employees responsible for an entire work process or segment that delivers a product or service to an internal or external customer. Originated as outgrowth of job enrichment Originated as outgrowth of job enrichment Strong autonomy – team members have broad responsibility Strong autonomy – team members have broad responsibility

Copyright © 2007 by Nelson, a division of Thomson Canada Limited13 Organizational Behaviour Modification (OB Mod) Application of reinforcement theory for motivation, primarily through use of positive reinforcement Application of reinforcement theory for motivation, primarily through use of positive reinforcement

Copyright © 2007 by Nelson, a division of Thomson Canada Limited14 Steps in OB Mod Program 1. Identify behaviour that needs changing 2. Measure baseline performance 3. Analyze antecedents and consequences What situational factors trigger the desired behavior? What situational factors trigger the desired behavior? What are the rewards for the desired behavior? What are the rewards for the desired behavior? 4. Decide on appropriate intervention strategy 5. Apply strategy 6. Measure performance again; alter strategy if needed

Copyright © 2007 by Nelson, a division of Thomson Canada Limited15 Reinforcement Schedules Use reinforcement to maintain desired behaviour Use reinforcement to maintain desired behaviour Can reward based on: Can reward based on: Ratio Ratio Interval Interval Can reward: Can reward: Continuously Continuously Intermittently Intermittently

Copyright © 2007 by Nelson, a division of Thomson Canada Limited16 Rules for Applying OB Mod 1. Choose an appropriate reward or punishment. 2. Reinforce the behaviours you really want to encourage. 3. Supply ample feedback. 4. Rewards should fit with the good deed. 5. Schedule rewards intermittently. 6. Reward and punishments should follow the observed behaviour closely in time. 7. Make rewards visible to the recipient and to others. 8. Change the reward periodically.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited17 Motivation Through Recognition Praise and recognition are positive reinforcement but special case to consider Praise and recognition are positive reinforcement but special case to consider Strong motivator because most workers feel they don’t receive enough recognition Strong motivator because most workers feel they don’t receive enough recognition Low cost Low cost Apply through identifying desirable behaviour and recognizing it with oral, written or material reward Apply through identifying desirable behaviour and recognizing it with oral, written or material reward

Copyright © 2007 by Nelson, a division of Thomson Canada Limited18 Motivating through Recognition 1. Feedback is essential – better if specific. 2. Praise is powerful – must be genuine; may need to alter form of praise to fit person 3. Rewards and recognition programs should be linked to organizational goals. 4. Employee input into what type of rewards and recognition are valued is useful. 5. It is important to evaluate the effectiveness of the reward and recognition program.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited19 Potential Problems with Recognition May create envy, hostility, reduced productivity & satisfaction if appears unfair May create envy, hostility, reduced productivity & satisfaction if appears unfair Ineffective if fails to identify specific behaviours and standards Ineffective if fails to identify specific behaviours and standards Counter to purpose if kept private Counter to purpose if kept private Need clear standards, public process, wide array of behaviours recognized Need clear standards, public process, wide array of behaviours recognized

Copyright © 2007 by Nelson, a division of Thomson Canada Limited20 Motivation through Financial Incentives Pay-for-performance Pay-for-performance Stock options Stock options Gainsharing Gainsharing

Copyright © 2007 by Nelson, a division of Thomson Canada Limited21 Linking Pay to Performance Pay acts as reinforcer Pay acts as reinforcer Recommended pay be linked to specific performance criteria and business results Recommended pay be linked to specific performance criteria and business results Research shows relationship to quantity of work but little to quality Research shows relationship to quantity of work but little to quality Problems: Problems: if criteria are subjective if criteria are subjective if difficult to measure individual contribution if difficult to measure individual contribution

Copyright © 2007 by Nelson, a division of Thomson Canada Limited22 Stock Options Stock options give employee right to purchase a number of company shares in the future at a specified price. Stock options give employee right to purchase a number of company shares in the future at a specified price. Makes employees part owners, creates a culture of ownership Makes employees part owners, creates a culture of ownership Problem as motivational tool if value of stock plunges Problem as motivational tool if value of stock plunges

Copyright © 2007 by Nelson, a division of Thomson Canada Limited23 Gainsharing Formal program allowing employees to participate financially in productivity gains they achieved Formal program allowing employees to participate financially in productivity gains they achieved Productivity gains from reductions in production (or labour) costs are entered into a formula that calculates the bonus pool Productivity gains from reductions in production (or labour) costs are entered into a formula that calculates the bonus pool Employee involvement is mechanism through which operational improvements are identified, communicated and implemented. Employee involvement is mechanism through which operational improvements are identified, communicated and implemented. Leads to productivity gains as it’s in employees’ self-interest to maximize output Leads to productivity gains as it’s in employees’ self-interest to maximize output Even short-lived program shown to create lasting performance gains and improved peer communication Even short-lived program shown to create lasting performance gains and improved peer communication

Copyright © 2007 by Nelson, a division of Thomson Canada Limited24 Problems with Financial Incentives Workers and managers may not agree on value of contributions Workers and managers may not agree on value of contributions Can create unhealthy competition Can create unhealthy competition Can focus on short-term gains at expense of long-term ideas and initiatives Can focus on short-term gains at expense of long-term ideas and initiatives Intrinsic motivation sacrificed? Intrinsic motivation sacrificed? Creates only temporary compliance Creates only temporary compliance Seen as bribery, manipulation by some Seen as bribery, manipulation by some

Copyright © 2007 by Nelson, a division of Thomson Canada Limited25 Choosing an Appropriate Motivation Model 1. Carefully diagnose the situation. 2. Choose a motivational approach that best fits the situation’s deficiencies or neglected opportunity. 3. Observe the people to be motivated to discern their interests and concerns. 4. Apply the motivational technique. 5. Monitor for the expected change in performance

Copyright © 2007 by Nelson, a division of Thomson Canada Limited26 Motivating Unionized Workers Involve union in attempts to implement rewards Involve union in attempts to implement rewards Ensure program is administered fairly and does not violate collective agreement Ensure program is administered fairly and does not violate collective agreement Construct evaluation process that is fair and is seen to be fair Construct evaluation process that is fair and is seen to be fair

Copyright © 2007 by Nelson, a division of Thomson Canada Limited27 Motivating Professionals Intrinsic factors as important or more so than extrinsic Intrinsic factors as important or more so than extrinsic Professionals enjoy: Professionals enjoy: challenging projects, opportunities to learn, autonomy, participation in decision making, having impact on profession, associating with other professionals challenging projects, opportunities to learn, autonomy, participation in decision making, having impact on profession, associating with other professionals

Copyright © 2007 by Nelson, a division of Thomson Canada Limited28 Motivating Minimum Wage Workers Difficult to hire motivate and retain, especially in strong economy Difficult to hire motivate and retain, especially in strong economy Respond well to pay for performance programs Respond well to pay for performance programs Extrinsic rewards other than pay can also motivate, e.g., daycare services, ESL programs Extrinsic rewards other than pay can also motivate, e.g., daycare services, ESL programs

Copyright © 2007 by Nelson, a division of Thomson Canada Limited29 Motivating Contingent Workers Mixed: some prefer contingent work, others waiting to get permanent positions; will need to address these differences in motivational programs (e.g., offering exciting work or benefits) Mixed: some prefer contingent work, others waiting to get permanent positions; will need to address these differences in motivational programs (e.g., offering exciting work or benefits)