17–1 C H A P T E R 17 Managing Productivity: Contemporary Approaches Jon L. Pierce & Donald G. Gardner with Randall B. Dunham Management Organizational Behavior PowerPoint Presentation by Charlie Cook An Integrated Perspective Copyright © 2002 by South-Western

17–2 Learning Objectives 1.Describe the different approaches to work scheduling: compressed workweek, discretionary-time systems, and shift-work scheduling. 2.Identify the conditions under which different work schedules are most effective. 3.Summarize employee reaction to the compressed workweek, discretionary-time systems, and shift-work scheduling. 4.Discuss the meaning of and approaches to employee ownership. 5.Explain how employee ownership produces its intended effects.

Copyright © 2002 by South-Western 17–3 Learning Objectives (cont’d) 6.Discuss employee attitudinal, motivational, and behavioral reactions to employee ownership. 7.Describe the nature and purpose of the quality control (QC) circle. 8.Summarize the employee effects associated with Total Quality Management and QC circles. 9.Summarize the essence of the high-involvement organization and its overall effects.

Copyright © 2002 by South-Western 17–4 Alternative Work Schedules Scheduling workScheduling work  Compressed workweeks  Fewer days per week, total hours remain constant –4/40 week—4 days, 10 hours per day  Fewer hours per week, total days remain constant –5/35—5 days, 7 hours per day  Fewer days and fewer hours per week –4/36—4 days, 9 hours per day

Copyright © 2002 by South-Western 17–5 Alternative Work Schedules (cont’d) Scheduling work (cont’d)Scheduling work (cont’d)  Discretionary work (time) schedules  Staggered start system—provides employees with flexibility in scheduling when their work day will begin.  Flexible working hours—enables employees to vary (within “band width” limits) the starting and ending times of their work days outside of the core hours designated by the firm as when the employees must be at work.

Copyright © 2002 by South-Western 17–6 Flexible Working Hour Arrangement Flex hours (1 hour lunch break) Core hours Flex hours 7:00 a.m.9:00 a.m.11:00 a.m.1:00 p.m.3:00 p.m.5:00 p.m. Core hours Flex hours 7:00 a.m.9:00 a.m.3:00 p.m.5:00 p.m. FIGURE 17–1

Copyright © 2002 by South-Western 17–7 The Effects of Flextime Discretion Used Employee: Attitude Motivation Behavior Perceived Discretions Flexible Working Hours Source: Adapted from Pierce and Newstrom FIGURE 17–2

Copyright © 2002 by South-Western 17–8 Alternative Work Schedules (cont’d) Scheduling work (cont’d)Scheduling work (cont’d)  Variable hour arrangement—employees “contract” for a specified amount of time to be worked on a daily, weekly, or monthly basis.  Shift work schedules—employees work different blocks of time on a regular basis to maintain the continuous operations of organizations and firms.  Three shift arrangement—three groups of employees each work 8-hour periods each day –Employees may be permanently on one shift or may rotate across shifts on a weekly or monthly basis.

Copyright © 2002 by South-Western 17–9 Alternative Work Schedules (cont’d) Employee responses to alternative work schedulesEmployee responses to alternative work schedules  Compressed work weeks—viewed positively by employees; studies of organizational benefits (i.e., increased performance) are mixed.  Discretionary time systems—readily accepted by employees; create difficulties in coordinating activities during core times.  Shift work—creates problems with employees’ circadian rhythms and in meeting the obligations of their social and family life.

Copyright © 2002 by South-Western 17–10 Employee Ownership Social ownershipSocial ownership  People in a society or community, including employees, have an ownership stake in an organization. Worker (producer) cooperativesWorker (producer) cooperatives  Employees are the exclusive owners of the enterprise. Employee stock ownership plans (ESOPS)Employee stock ownership plans (ESOPS)  Employees hold an equity stake in the organization as the result of an employee ownership trust. Direct ownershipDirect ownership  Employees purchase and hold stock in the organization that employs them.

Copyright © 2002 by South-Western 17–11 How Employee Ownership Affects Psychological Ownership Integration of Employee Owner into the Ownership Experience (e.g., organizational identification, commitment) Psychological Ownership Individual Outcomes (motivation, satisfaction, performance) Group Outcomes (cooperative behavior, work group norms, peer pressure) Ownership Form: Equity Information, Influence (e.g., ESOP, cooperative) FIGURE 17–3 Source: Adapted from Pierce, Rubenfeld, and Morgan

Copyright © 2002 by South-Western 17–12 The Ownership-Performance Relationship Organization-based self-esteem Ownership MotivationPerformance Equity Information Influence FIGURE 17–4

Copyright © 2002 by South-Western 17–13 Quality Control Circles Total Quality Management (TQM)Total Quality Management (TQM)  An approach to management that has as its primary focus the achievement of quality through continuous improvement of the processes employed to manufacture a product or deliver a service.  The four pillars of TQM:  Customer focus  Measurement and evaluation  Employee involvement  Continuous improvement

Copyright © 2002 by South-Western 17–14 Quality Control Circles (cont’d) The quality control circleThe quality control circle  An employee involvement tool that generally consists of a small group (5-15) of individuals who meet on a regular basis (usually once a week) to discuss issues pertaining to quality and related problems.

Copyright © 2002 by South-Western 17–15 Quality Control Circles (cont’d) Employees responses to TQM and QC circlesEmployees responses to TQM and QC circles  Employees view TQM and QC circles positively.  Organizations fail to empower QC circles to make things happen.  QC circles, given the limited amount of time employees are involved, do little to motivate employees.  TQM and QC circles appear to have a significant effect on increased organizational performance and profitability.

Copyright © 2002 by South-Western 17–16 The High Involvement Organization and Management High involvement organizationsHigh involvement organizations  Characterized by employees who are self-starters, motivated by intrinsic rewards, and who have feelings of competence and self-efficacy. Involvement strategiesInvolvement strategies  Work design, job enrichment, work teams Effects of high involvementEffects of high involvement  Productivity increases  Employee satisfaction