1. HND – 5. Motivation Applications
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2. Job Design Theory Job Characteristics Model Characteristics
Identifies five job characteristics and their relationship to personal and work outcomes
Characteristics
Skill variety
Task identity
Task significance
Autonomy
Feedback

3. Motivation by Job Design: The JCM
Job Characteristics Model (JCM)
Hackman and Oldham’s concept that any job can be described through five core job dimensions:
Skill variety – Requirements for different tasks in the job.
Task identity – Completion of a whole piece of work.
Task significance – The job’s impact on others.
Autonomy – Level of discretion in decision making.
Feedback – Amount of direct and clear information on performance.
The way elements in a job are organized (job design) impacts motivation, satisfaction and performance.

4. The Job Characteristics Model
Source: J.R. Hackman and G.R. Oldham, Work Design (excerpted from pp. 78–80). © 1980 by Addison-Wesley Publishing Co., Inc. Reprinted by permission of Addison-Wesley Longman, Inc.

5. Employee involvement program
A participative process that uses the entire capacity of employees and is designed to encourage increased commitment to the organization’s success

6. Forms of Employee Involvement
Participative Management
Representative Participation
Quality Circles
Employee Stock Ownership Plans

7. Participative Management
A process in which subordinates share a significant degree of decision-making power with their immediate superiors.

8. Representative Participation
Workers participate in organizational decision making through a small group of representative employees.
Work Councils – groups of nominated or elected employees who must ne consulted when management makes decisions involving personnel
Board Representatives – a form of representative participation; employees sit on a company’s board of directors and represent the interests of the firm’s employees

9. Quality Circles
A work group of employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions and take corrective actions.

10. Employee Stock Ownership Plans
Company-established benefit plans in which employees acquire stock as part of their benefits

11. Job redesign
Job Rotation
Job Enlargement
Job Enrichment

12. Job Rotation - The periodic shifting of an employee from one task to another
Job Enlargement - Increasing the number and variety of tasks that an individual performs results in jobs with more diversity
Job Enrichment - The vertical expansion of jobs, increasing the degree to which the worker controls the planning, execution, and evaluation of his or her work.

13. Strengths of Job Rotation
Reduces boredom
Increases understanding of work contribution
Increased skills
Helps managers in scheduling
There are many strengths of utilizing job rotation in the workplace. The first is that it helps to reduce boredom with workers as they are constantly expanding their skills. By seeing other jobs and what requirements they have to succeed, it helps the workers see how their work contributes to the overall process of getting a product out. One obvious benefit is that it increases the skills of the workers and, finally, since the worker has a stronger skill set, it helps the manager in scheduling as they have more options to fill the vacancy when someone is sick or on vacation.
(c) 2008 Prentice-Hall, All rights reserved.

14. Job Enrichment – Possible Actions
Combine Tasks
Form Natural Work Units
Establish Client Relations
Expand Jobs Vertically
Open Feedback Channels
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 them to identify tasks that need to be completed. This action can help the worker to have a better understanding of their job and how it helps the organization complete its goals as well as help the worker enjoy their work more because they are using more of their skill set.
(c) 2008 Prentice-Hall, All rights reserved.

15. Job Scheduling
Flextime
Job Sharing
Telecommuting

16. Alternative Work Arrangements
Flextime
Flextime allows employees to choose the hours they work within a defined period of time.
Job Sharing
Job Sharing allows two or more individuals to split a traditional 40-hour-a-week job.
Telecommuting
Telecommuting allows workers to work from home at least 2 days a week on a computer linked to the employer’s office.
There are some alternative work arrangements that have been successful in helping increase the motivation of workers. These arrangements give the worker 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 the 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 you can choose 8 hours between 6am and 8pm. That may allow a mom to be home when her kids are coming home from school. Another example is job sharing where two workers split a job and each works part-time. Telecommuting is another alternative work arrangement that has been utilized. This is when workers work from home at least 2 days a week.
(c) 2008 Prentice-Hall, All rights reserved.

17. Using Rewards to Motivate Employees
Although pay is not the primary factor driving job satisfaction, it is a motivator.
Establish a pay structure
Variable-pay 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 an organization utilizes this pay system and applies it to the pay of individual employees.
(c) 2008 Prentice-Hall, All rights reserved.

18. Types of Variable-Pay Programs
Piece-Rate Pay
Pays a fixed sum of money for each unit of production completed.
Merit-Based Pay
Pays for individual performance based on performance appraisal results. If appraisals are designed correctly, workers performing at a high level will get more pay.
Bonuses
Pay a lump sum at the end of a designated period of time based on individual and/or organizational performance.
Some types of variable-pay programs include piece-rate, merit- based, and bonuses. 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 is 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.
(c) 2008 Prentice-Hall, All rights reserved.

19. More Types of Variable-Pay Programs
Skill-Based Pay
Pays based on the number of skills employees have or the number of jobs they can do.
Profit-Sharing Plans
Pays out a portion of the organization’s profitability. It is an organization-wide program and is based on a predetermined formula.
Gainsharing
Pays for improvements in group productivity from one period to another. It is a group incentive plan.
Additional methods of variable-pay programs include skill-based pay, profit-sharing plans, gainsharing, and employee stock ownership plans, otherwise known as ESOPs.
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. Profit-sharing plans are organizational-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 they improve group productivity from the previous period. ESOPs are a method used to motivate the employees toward the organizational goals. As part of their benefit 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.
(c) 2008 Prentice-Hall, All rights reserved.

20. Skill-based Pay Plans
Pay levels are based on how many skills employees have or how many jobs they can do.
Benefits of Skill-based Pay Plans:
Provides staffing flexibility
Facilitates communication across the organization
Lessens “protection of territory” behaviors
Meets the needs of employees for advancement (without promotion)
Leads to performance improvements

21. Skill-based Pay Plans (cont’d)
Drawbacks of Skill-based Pay Plans:
Lack of additional learning opportunities that will increase employee pay
Continuing to pay employees for skills that have become obsolete
Paying for skills that are of no immediate use to the organization
Paying for a skill, not for the level of employee performance for the particular skill

22. Flexible Benefits
Flexible benefits give individual rewards by allowing each employee to choose the compensation package that best satisfies his or her current needs and situations.
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.
(c) 2008 Prentice-Hall, All rights reserved.

23. Flexible Benefits
Employees tailor their benefit program to meet their personal need by picking and choosing from a menu of benefit options.
Core-Plus Plans A core of essential benefits and a menu-like selection of other benefit options
Flexible Spending Plans Allow employees to use their tax-free benefit dollars to purchase benefits and pay service premiums
Modular Plans Predesigned benefits packages for specific groups of employees

24. Presentation Q 1. Discuss job characteristics model.
2. What is employee involvement program? Describe how can a manager use them to effectively motivate others.
3. Explain how to enhance motivation through job enrichment, job enlargement and job rotation.
4. What are the advantages and disadvantages of implementing skill-based pay plans?