1. Motivation: From Concepts to Application

2. After this session, you should be able to:
Explain motivating by changing the nature of the work environment.
Explain how jobs can be redesigned
Explain why managers might want to use employee involvement programs.
Explain how to reward employees
Describe the implication for managers
L E A R N I N G O B J E C T I V E S

3. Hackman & Oldham’s Job Characteristics Model
Core Job Dimensions
Critical Psychological States
Personal and work outcomes
Skill Variety
Task Identity
Task Significance
Meaningfulness
of Work
High intrinsic
motivation
High job per-
ormance
High job satis-
faction
Low absentee
ism & turnover
Responsibility
for outcomes
Autonomy
Knowledge of
Results
Feedback
Employee’s growth need

4. How can jobs be redesigned
Job rotation
Job enlargement
Job enrichment

5. Guidelines for Enriching a Job

6. Work Arrangement Options
Flextime
Employees work during a common core time period each day but have discretion in forming their total workday from a flexible set of hours outside the core.
Job Sharing
The practice of having two or more people split a 40-hour-a-week job.

7. Example of a Flextime Schedule

8. Work Arrangement Options
Telecommuting
Employees do their work at home on a computer that is linked to their office.
Categories of telecommuting jobs:
Routine information handling tasks
Mobile activities
Professional and other knowledge-related tasks

9. Employee Involvement programs
Participative Management
Representative participation
Work councils
Board representatives
Quality circles

10. Rewarding employees What to pay? (Pay structure)
How to construct employee recognition programs?
How to pay individual employees?
(variable and skill based plan)
Strategic reward decisions
What benefits to offer?

11. What to pay: Establishing pay structure
Internal Equity: worth of job to the organisation
External equity: competitiveness of an organisation’s pay relative to pay elsewhere in the industry

12. Variable-Pay Programs
How to pay: Rewarding individual employees through variable pay programs
Variable-Pay Programs
Forms of compensation where a portion of an employee’s pay is based on the measure of performance either of the individual, the organization, or both

13. Variable-Pay Programs
Four widely used variable-pay programs
Piece-rate wages - fixed sum for each unit completed
Merit based pay – pay for individual performance
Bonuses - a percent of annual pay based on company earnings
Profit sharing - based on a formula designed around company’s profitability
Gainsharing - formula-based group incentive plan for improvements in productivity
ESOPs – Employee stock options

14. (Competency-Based Pay)
Skill-Based Pay
(Competency-Based Pay)
Pay levels based on how many skills employees have or how many jobs they can do

15. Skill base pay in practice
Flexible benefits
Intrinsic rewards

16. Implications for Managers
Motivating Employees in Organizations
Recognize individual differences.
Use goals and feedback.
Allow employees to participate in decisions that affect them.
Link rewards to performance.
Check the system for equity.