1. Organizational BEHAVIOR M C SHANEV ON GLINOW 1 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Applied Motivation Practices 4 C H A P T E R F O U R

2. Organizational BEHAVIOR M C SHANEV ON GLINOW 2 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Reinforcement Theory Behaviors are functions of consequences that they produce If a behavior is followed by a pleasant experience it will be repeated In order to change behaviors the consequences must be changed

3. Organizational BEHAVIOR M C SHANEV ON GLINOW 3 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Types of Reinforcement Positive Reinforcement-rewards Punishment-Application of a negative outcome Negative Reinforcement-removal of negative outcomes when behavior is performed Extinction-absence of reinforcement (removal of positive reinforcement) Drawbacks

4. Organizational BEHAVIOR M C SHANEV ON GLINOW 4 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Reinforcement Process Source: From L. W. Porter and E. E. Lawler III. Managerial Attitudes and Performance. Homewood, Ill.: Irwin, 1968, p. 165. Used with permission Adapted from Figure 14.6 Stimulus (situation) Response (behavior) Consequences (rewards and punishments) Future Behavior 14.9

5. Organizational BEHAVIOR M C SHANEV ON GLINOW 5 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Types of Rewards Membership and Seniority Job Status Performance Competency Types of Organizational Rewards

6. Organizational BEHAVIOR M C SHANEV ON GLINOW 6 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Membership/Seniority Based Rewards Fixed wages, seniority increases Advantages –guaranteed wages may attract job applicants –seniority-based rewards reduce turnover Disadvantages –doesn’t motivate job performance –discourages poor performers from leaving

7. Organizational BEHAVIOR M C SHANEV ON GLINOW 7 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Job Status-Based Rewards Job evaluation and executive perks –job evaluation tries to measure job's value Advantages: –job evaluation tries to maintain pay equity –motivates competition for promotions Disadvantages: –employees exaggerate duties, hoard resources –motivates focus on narrowly defined tasks –creates psychological distance across hierarchy

8. Organizational BEHAVIOR M C SHANEV ON GLINOW 8 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Competency-Based Rewards Underlying characteristics that lead to superior performance Skill-based pay –pay increases with skill modules learned Advantages –More flexible work force, better quality, consistent with employability Disadvantages –Potentially subjective, higher training costs

9. Organizational BEHAVIOR M C SHANEV ON GLINOW 9 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Levels of Rewards Individual Rewards –Piece Rate - wage per widget –Commissions - percentage of sales volume –Royalties - percentage of work ascribed to an individual –Merit pay - based on performance appraisal –Bonuses - for accomplishing specific goals Team & Organizational Rewards –Gainsharing - employees receive a percentage of cost savings, can also be done on an individual basis

10. Organizational BEHAVIOR M C SHANEV ON GLINOW 10 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Team Rewards (cont.) –ESOP’s Creates an atmosphere of ownership –employees will align their behavior with organizational success Over 10,000 companies use them What does it mean to be vested? Encourages long term employment –Profit Sharing Bonuses used in competitive industries Many other influences besides employee behavior upon profit levels hurts the expectancy of outcomes

11. Organizational BEHAVIOR M C SHANEV ON GLINOW 11 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Organizationalrewards Profit sharingProfit sharing Share ownershipShare ownership Teamrewards GainsharingGainsharing Special bonusesSpecial bonuses Individualrewards Piece ratePiece rate CommissionsCommissions Merit payMerit pay BonusesBonuses Types of Performance-Based Rewards

12. Organizational BEHAVIOR M C SHANEV ON GLINOW 12 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Agency Theory Principals (company owners) have different objectives than the agents (managers and employees) who work for the organization –Agents will act in self-interest –The principal must monitor the behavior of agents to ensure compliance –Gainshairing, profit sharing, and ESOP’s are a way to overcome the “Agency Problem” 1 Minute Paper –Explain the agency problem in your own words using an example from the real world.

13. Organizational BEHAVIOR M C SHANEV ON GLINOW 13 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill The Trouble with Rewards Rewards punish Rewards rupture relationships Rewards ignore reasons (quick fix) Rewards discourage risk- taking Only rewarded behaviors will be performed Rewards weaken intrinsic motivation © Corel Corp. With permission

14. Organizational BEHAVIOR M C SHANEV ON GLINOW 14 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Minimizing Reward Problems Measure performance accurately Ensure rewards are relevant Team rewards for interdependent jobs Ensure rewards are valued Beware of unintended consequences © Corel Corp. With permission

15. Organizational BEHAVIOR M C SHANEV ON GLINOW 15 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Job Design Assigning tasks to a job, including the interdependency of those tasks with other jobs Technology doesn’t determine job scope Employees expected to perform a variety of work (employability) © Photodisc. With permission.

16. Organizational BEHAVIOR M C SHANEV ON GLINOW 16 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill How jobs are designed Job Analysis - breakdown of the tasks for a specific job and the personal characteristics necessary for their successful performance Job Description - outline of a position’s essential tasks and responsibilities Job Specification - list of personal characteristics, competencies, and experience a worker needs to carry out a job’s tasks and assume its responsibilities to identify the right person for the job

17. Organizational BEHAVIOR M C SHANEV ON GLINOW 17 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Scientific Management Fred Taylor Time and Motion studies Proposed “One most efficient way” for completing a task Assumed that employees were economically motivated Foremen to monitor behavior of employees

18. Organizational BEHAVIOR M C SHANEV ON GLINOW 18 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Gilbreths and Therbligs Frank and Lillian Broke tasks down by each motion called “therbligs” Used motion video Lillian later played an instrumental role in behavioral movement

19. Organizational BEHAVIOR M C SHANEV ON GLINOW 19 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill AdvantagesDisadvantages Evaluation of Job Specialization Less time changing tasks Lower training costs Job mastered quickly Better person-job matching Job boredom Discontentment pay Lower quality Lower motivation

20. Organizational BEHAVIOR M C SHANEV ON GLINOW 20 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Hackman and Oldham & the JCM Identified five core job characteristics that lead to 3 psychological states. Experiencing these psychological states will lead to higher levels of work motivation Psychological States –experienced meaningfulness - your job matters –experienced responsibility - given autonomy to do a job the way you see fit –knowledge of results - receipt of feedback

21. Organizational BEHAVIOR M C SHANEV ON GLINOW 21 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Moderators of the JCM Context Satisfaction - situations differ Knowledge and Skill - can increase stress if one feels incapable Growth Strength Need –Need level for personal challenges that determines the amount of influence job enrichment will have on motivation –The people have moved through the lower level needs and are in need of challenges and fulfillment from work

22. Organizational BEHAVIOR M C SHANEV ON GLINOW 22 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill WorkmotivationGrowthsatisfactionGeneralsatisfactionWorkeffectiveness Job Characteristics Model Feedback from job Knowledge of results Skill variety Task identity Task significance Meaningfulness AutonomyResponsibility Individualdifferences CriticalPsychologicalStates Core Job CharacteristicsOutcomes

23. Organizational BEHAVIOR M C SHANEV ON GLINOW 23 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Job Rotation Increases motivation through skill variety Fewer repetitive strain injuries Creates multi-skilled work force

24. Organizational BEHAVIOR M C SHANEV ON GLINOW 24 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Job Enlargement Job Rotation Job 1 Prepare letter Job 2 Negotiate payment Job 3 Process account Comparing Job Rotation and Enlargement Job 1 Prepare letter Negotiate payment Process account Job 2 Prepare letter Negotiate payment Process account Job 3 Prepare letter Negotiate payment Process account

25. Organizational BEHAVIOR M C SHANEV ON GLINOW 25 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Job Enrichment Strategies Empowering employees –giving employees more autonomy –feeling of control and self-efficacy Forming natural work units –completing an entire task –assigning employees to specific clients Establishing client relationships –employees put in direct contact with clients

26. Organizational BEHAVIOR M C SHANEV ON GLINOW 26 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Obstacles to Job Design Difficult to accurately measure job characteristics More team than individual job design Resistance to change Problem finding optimal level of enrichment and specialization

27. Organizational BEHAVIOR M C SHANEV ON GLINOW 27 © The McGraw-Hill Companies, Inc. 2000 Irwin/ McGraw-Hill Personal Goal Setting Elements of Self-Leadership Constructive Thought Patterns Designing Natural Rewards Self-Monitoring Self-Reinforcement