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Robbins & Judge
Organizational Behavior
13th Edition

          Motivation: From Concepts to
          Motivation: From Concepts to
                  Applications
                  Applications
                                                 Bob Stretch
                                                 Southwestern College

© 2009 Prentice-Hall Inc. All rights reserved.                          7-1
Chapter Learning Objectives
 Chapter Learning Objectives
 After studying this chapter, you should be able to:
       – Describe the Job Characteristics Model and evaluate the way
         it motivates by changing the work environment.
       – Compare and contrast the three main ways jobs can be
         redesigned.
       – Identify three alternative work arrangements and show how
         they might motive employees.
       – Give examples of employee involvement measures and show
         how they can motivate employees.
       – Demonstrate how the different types of variable-pay
         programs can increase employee motivation.
       – Show how flexible benefits turn benefits into motivators.
       – Identify the motivational benefits of intrinsic rewards.
© 2009 Prentice-Hall Inc. All rights reserved.                         7-2
Motivation by Job Design: The JCM
 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.


© 2009 Prentice-Hall Inc. All rights reserved.                    7-3
The Job Characteristics Model
 The Job Characteristics Model




              Employee growth-need strength moderates the relationships.
  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.

                                                                                                                                             E X H I B I T 7-1
                                                                                                                                               E X H I B I T 7-1

© 2009 Prentice-Hall Inc. All rights reserved.                                                                                                               7-4
Motivating Potential Score (MPS)
 Motivating Potential Score (MPS)
 Five dimensions combined into a single predictive
  index of motivation.
       – People who work on jobs with high core dimensions are
         generally more motivated, satisfied, and productive.
       – Job dimensions operate through the psychological states in
         influencing personal and work outcome variables rather than
         influencing them directly.




 While the JCM framework is supported by research, the
  MPS model isn’t practical and doesn’t work well.

© 2009 Prentice-Hall Inc. All rights reserved.                         7-5
How Can Jobs Be Redesigned?
 How Can Jobs Be Redesigned?
                                                  Job Rotation
                                                    – The periodic shifting of
                                                      a worker from one task
                                                      to another

                                                  Job Enlargement
                                                    – The horizontal
                                                      expansion of jobs

                                                  Job Enrichment
                                                    – The vertical expansion
                                                      of jobs

© 2009 Prentice-Hall Inc. All rights reserved.                                   7-6
Guidelines for Enriching a Job
 Guidelines for Enriching a Job




 Source: J.R. Hackman and J.L. Suttle, eds., Improving Life at Work (Glenview, IL: Scott Foresman, 1977), p. 138.

                                                                                                                    E X H I B I T 7-2
                                                                                                                      E X H I B I T 7-2

© 2009 Prentice-Hall Inc. All rights reserved.                                                                                      7-7
Alternative Work Arrangements
 Alternative Work Arrangements
 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

                                                               E X H I B I T 7-3
                                                                 E X H I B I T 7-3

© 2009 Prentice-Hall Inc. All rights reserved.                                 7-8
Another Alternative: Telecommuting
 Another Alternative: Telecommuting
 Telecommuting
       – Employees do their work at home at least two days a week
         on a computer that is linked to their office.
 The Virtual Office
       – Employees work out of their home on a relatively
         permanent basis.
 Typical Telecommuting Jobs
       – Professional and other knowledge-related tasks
       – Routine information-handling tasks
       – Mobile activities




© 2009 Prentice-Hall Inc. All rights reserved.                      7-9
Reasons for and against Telecommuting
Reasons for and against Telecommuting

            Advantages                                Disadvantages
   – Larger labor pool                            Employer
   – Higher productivity                           – Less direct supervision of
                                                     employees
   – Less turnover
                                                   – Difficult to coordinate
   – Improved morale                                 teamwork
   – Reduced office-space costs                    – Difficult to evaluate non-
                                                     quantitative performance
                                                  Employee
                                                   – May not be as noticed for his
                                                     or her efforts
© 2009 Prentice-Hall Inc. All rights reserved.
                                                                                  7-10
Motivation Is Not the Whole Story
 Motivation Is Not the Whole Story




                             P = f(A x M x O)
© 2009 Prentice-Hall Inc. All rights reserved.   7-11
Employee Involvement
 Employee Involvement

     A participative process that uses the input of employees to
     increase their commitment to the organization’s success.

     By increasing worker autonomy and control over work
     lives (involvement), organizations:
       –    Increase employee motivation
       –    Gain greater organizational commitment
       –    Experience greater worker productivity
       –    Observe higher levels of job satisfaction



© 2009 Prentice-Hall Inc. All rights reserved.                 7-12
Types of Employee Involvement Programs
 Types of Employee Involvement Programs
 Participative Management
       – Subordinates share a significant degree of decision-making
         power with their immediate superiors
 Representative Participation
       – Works councils
              • Groups of nominated or elected employees who must be
                consulted for any personnel decisions
       – Board representative
              • An employee sits on a company’s board of directors and
                represents the interests of the firm’s employees
 Quality Circle
       – A work group of employees who meet regularly to discuss
         their quality problems, investigate causes, recommend
         solutions, and take corrective actions

© 2009 Prentice-Hall Inc. All rights reserved.                           7-13
Motivational Theory Links to EI Programs
 Motivational Theory Links to EI Programs




© 2009 Prentice-Hall Inc. All rights reserved.   7-14
Four Major Strategic Reward Decisions
 Four Major Strategic Reward Decisions

       1. What to pay? (pay
          structure)
       2. How to pay individuals?
          (variable pay plans and
          skill-based pay plans)
       3. What benefits to offer? Do
          we offer choice of
          benefits? (flexible benefits)
       4. How to build recognition
          programs?



© 2009 Prentice-Hall Inc. All rights reserved.   7-15
1. What to Pay – Pay Structure
 1. What to Pay – Pay Structure
 Internal equity
       – The worth of the job to the organization
       – Determined by job evaluations
 External equity
       – The competitiveness of the company’s pay relative to pay
         elsewhere in the industry
       – Determined through pay surveys
 Choose organizational position
       – Pay leaders
              • Greater employee loyalty
              • Attracts better-quality employees
       – Pay laggards – accept high turnover for low hourly costs

© 2009 Prentice-Hall Inc. All rights reserved.                      7-16
2. How to Pay -- Variable Pay Programs
 2. How to Pay Variable Pay Programs
 Types of Variable Pay Programs
            A portion of an employee’s pay is based on some individual
            and/or organizational measure of performance
            –Piece Rate:
              • Workers are paid a fixed sum for each unit of production
                completed
              • Weakness: not feasible for many jobs
            –Merit-Based:
              • Based on performance appraisal ratings
              • Gap increasing between average and top-performers
              • Weaknesses: validity of system based on annual appraisals,
                pay pool can be small, unions strongly resist
            –Bonuses:
              • Rewards recent performance
              • Weakness: employees consider this a pay
© 2009 Prentice-Hall Inc. All rights reserved.                               7-17
2. How to Pay -- Skill-Based Pay Programs
 2. How to Pay Skill-Based Pay Programs
 Types of Skill-Based Programs:
            Also known as competency- or knowledge-based pay - sets
            pay based on skills or number of jobs an employee can
            perform
            –Profit Sharing:
              • Organization-wide programs that distribute compensation
                based on some established formula designed around a
                company’s profitability
            –Gain Sharing:
              • An incentive plan in which improvements in group
                productivity determine the total amount of money that is
                allocated
            –Employee Stock Ownership Plans (ESOPs)
              • Company-established benefit plans in which employees
                acquire stock as part of their benefits

© 2009 Prentice-Hall Inc. All rights reserved.                             7-18
Evaluation of Variable and Skill-based Pay
 Evaluation of Variable and Skill-based Pay
     To some extent, variable pay does increase
     motivation and productivity

     Benefits of Skill-based Pay Plans
       –    Provide staffing flexibility
       –    Facilitate communication across the organization
       –    Lessen “protection of territory” behaviors
       –    Meet the needs of employees for advancement
       –    Lead to performance improvements
     Drawbacks:
       – Lack of additional learning opportunities
       – Continuing to pay employees for obsolete skills
       – Paying for skills of no immediate use to the
         organization
       – Paying for a skill, not for performance of the skill


© 2009 Prentice-Hall Inc. All rights reserved.                  7-19
3. What Benefits to Offer -- Flexible Benefits
 3. What Benefits to Offer Flexible Benefits
     Employees tailor their benefit program to meet their
     personal need by picking and choosing from a menu of
     benefit options.
     Modular Plans
       – Predesigned benefits packages for specific groups of
         employees
     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

© 2009 Prentice-Hall Inc. All rights reserved.                       7-20
4. How to Build Recognition Programs
 4. How to Build Recognition Programs
 Intrinsic Rewards: Stimulate Intrinsic Motivation
       – Personal attention given to employee
       – Approval and appreciation for a job well done
       – Growing in popularity and usage
 Benefits of Programs
       – Fulfill employees’ desire for recognition
       – Inexpensive to implement
       – Encourage repetition of desired behaviors
 Drawbacks of Programs
       – Susceptible to manipulation by management
                                                         See E X H I B I T 7-4
                                                          See E X H I B I T 7-4

© 2009 Prentice-Hall Inc. All rights reserved.                            7-21
Global Implications
                Global Implications
 Job Characteristics and Job Enrichment
       – Inconsistent results across cultures
 Telecommuting
       – U.S. does this more, but EU workers are interested in it
 Variable Pay
       – Not much research available, but some possible hypotheses
         on relationships
 Flexible Benefits
       – This concept is becoming more prevalent globally
 Employee Benefits
       – Practices must be modified to match culture



© 2009 Prentice-Hall Inc. All rights reserved.                       7-22
Summary and Managerial Implications
 Summary and Managerial Implications
 To Motivate Employees
       – Recognize individual differences
       – Use goals and feedback
       – Allow employees to participate in decisions that affect them
       – Link rewards to performance
       – Check the reward system for equity




© 2009 Prentice-Hall Inc. All rights reserved.                          7-23
All rights reserved. No part of this publication may be reproduced,
 stored in a retrieval system, or transmitted, in any form or by any
means, electronic, mechanical, photocopying, recording, or otherwise,
without the prior written permission of the publisher. Printed in the
                       United States of America.

   Copyright ©2009 Pearson Education, Inc.
          Publishing as Prentice Hall

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Copy of robbins ob13 ins_ppt07

  • 1. Robbins & Judge Organizational Behavior 13th Edition Motivation: From Concepts to Motivation: From Concepts to Applications Applications Bob Stretch Southwestern College © 2009 Prentice-Hall Inc. All rights reserved. 7-1
  • 2. Chapter Learning Objectives Chapter Learning Objectives  After studying this chapter, you should be able to: – Describe the Job Characteristics Model and evaluate the way it motivates by changing the work environment. – Compare and contrast the three main ways jobs can be redesigned. – Identify three alternative work arrangements and show how they might motive employees. – Give examples of employee involvement measures and show how they can motivate employees. – Demonstrate how the different types of variable-pay programs can increase employee motivation. – Show how flexible benefits turn benefits into motivators. – Identify the motivational benefits of intrinsic rewards. © 2009 Prentice-Hall Inc. All rights reserved. 7-2
  • 3. Motivation by Job Design: The JCM 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. © 2009 Prentice-Hall Inc. All rights reserved. 7-3
  • 4. The Job Characteristics Model The Job Characteristics Model Employee growth-need strength moderates the relationships. 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. E X H I B I T 7-1 E X H I B I T 7-1 © 2009 Prentice-Hall Inc. All rights reserved. 7-4
  • 5. Motivating Potential Score (MPS) Motivating Potential Score (MPS)  Five dimensions combined into a single predictive index of motivation. – People who work on jobs with high core dimensions are generally more motivated, satisfied, and productive. – Job dimensions operate through the psychological states in influencing personal and work outcome variables rather than influencing them directly.  While the JCM framework is supported by research, the MPS model isn’t practical and doesn’t work well. © 2009 Prentice-Hall Inc. All rights reserved. 7-5
  • 6. How Can Jobs Be Redesigned? How Can Jobs Be Redesigned?  Job Rotation – The periodic shifting of a worker from one task to another  Job Enlargement – The horizontal expansion of jobs  Job Enrichment – The vertical expansion of jobs © 2009 Prentice-Hall Inc. All rights reserved. 7-6
  • 7. Guidelines for Enriching a Job Guidelines for Enriching a Job Source: J.R. Hackman and J.L. Suttle, eds., Improving Life at Work (Glenview, IL: Scott Foresman, 1977), p. 138. E X H I B I T 7-2 E X H I B I T 7-2 © 2009 Prentice-Hall Inc. All rights reserved. 7-7
  • 8. Alternative Work Arrangements Alternative Work Arrangements  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 E X H I B I T 7-3 E X H I B I T 7-3 © 2009 Prentice-Hall Inc. All rights reserved. 7-8
  • 9. Another Alternative: Telecommuting Another Alternative: Telecommuting  Telecommuting – Employees do their work at home at least two days a week on a computer that is linked to their office.  The Virtual Office – Employees work out of their home on a relatively permanent basis.  Typical Telecommuting Jobs – Professional and other knowledge-related tasks – Routine information-handling tasks – Mobile activities © 2009 Prentice-Hall Inc. All rights reserved. 7-9
  • 10. Reasons for and against Telecommuting Reasons for and against Telecommuting Advantages Disadvantages – Larger labor pool  Employer – Higher productivity – Less direct supervision of employees – Less turnover – Difficult to coordinate – Improved morale teamwork – Reduced office-space costs – Difficult to evaluate non- quantitative performance  Employee – May not be as noticed for his or her efforts © 2009 Prentice-Hall Inc. All rights reserved. 7-10
  • 11. Motivation Is Not the Whole Story Motivation Is Not the Whole Story P = f(A x M x O) © 2009 Prentice-Hall Inc. All rights reserved. 7-11
  • 12. Employee Involvement Employee Involvement A participative process that uses the input of employees to increase their commitment to the organization’s success. By increasing worker autonomy and control over work lives (involvement), organizations: – Increase employee motivation – Gain greater organizational commitment – Experience greater worker productivity – Observe higher levels of job satisfaction © 2009 Prentice-Hall Inc. All rights reserved. 7-12
  • 13. Types of Employee Involvement Programs Types of Employee Involvement Programs  Participative Management – Subordinates share a significant degree of decision-making power with their immediate superiors  Representative Participation – Works councils • Groups of nominated or elected employees who must be consulted for any personnel decisions – Board representative • An employee sits on a company’s board of directors and represents the interests of the firm’s employees  Quality Circle – A work group of employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions, and take corrective actions © 2009 Prentice-Hall Inc. All rights reserved. 7-13
  • 14. Motivational Theory Links to EI Programs Motivational Theory Links to EI Programs © 2009 Prentice-Hall Inc. All rights reserved. 7-14
  • 15. Four Major Strategic Reward Decisions Four Major Strategic Reward Decisions 1. What to pay? (pay structure) 2. How to pay individuals? (variable pay plans and skill-based pay plans) 3. What benefits to offer? Do we offer choice of benefits? (flexible benefits) 4. How to build recognition programs? © 2009 Prentice-Hall Inc. All rights reserved. 7-15
  • 16. 1. What to Pay – Pay Structure 1. What to Pay – Pay Structure  Internal equity – The worth of the job to the organization – Determined by job evaluations  External equity – The competitiveness of the company’s pay relative to pay elsewhere in the industry – Determined through pay surveys  Choose organizational position – Pay leaders • Greater employee loyalty • Attracts better-quality employees – Pay laggards – accept high turnover for low hourly costs © 2009 Prentice-Hall Inc. All rights reserved. 7-16
  • 17. 2. How to Pay -- Variable Pay Programs 2. How to Pay Variable Pay Programs  Types of Variable Pay Programs A portion of an employee’s pay is based on some individual and/or organizational measure of performance –Piece Rate: • Workers are paid a fixed sum for each unit of production completed • Weakness: not feasible for many jobs –Merit-Based: • Based on performance appraisal ratings • Gap increasing between average and top-performers • Weaknesses: validity of system based on annual appraisals, pay pool can be small, unions strongly resist –Bonuses: • Rewards recent performance • Weakness: employees consider this a pay © 2009 Prentice-Hall Inc. All rights reserved. 7-17
  • 18. 2. How to Pay -- Skill-Based Pay Programs 2. How to Pay Skill-Based Pay Programs  Types of Skill-Based Programs: Also known as competency- or knowledge-based pay - sets pay based on skills or number of jobs an employee can perform –Profit Sharing: • Organization-wide programs that distribute compensation based on some established formula designed around a company’s profitability –Gain Sharing: • An incentive plan in which improvements in group productivity determine the total amount of money that is allocated –Employee Stock Ownership Plans (ESOPs) • Company-established benefit plans in which employees acquire stock as part of their benefits © 2009 Prentice-Hall Inc. All rights reserved. 7-18
  • 19. Evaluation of Variable and Skill-based Pay Evaluation of Variable and Skill-based Pay To some extent, variable pay does increase motivation and productivity Benefits of Skill-based Pay Plans – Provide staffing flexibility – Facilitate communication across the organization – Lessen “protection of territory” behaviors – Meet the needs of employees for advancement – Lead to performance improvements Drawbacks: – Lack of additional learning opportunities – Continuing to pay employees for obsolete skills – Paying for skills of no immediate use to the organization – Paying for a skill, not for performance of the skill © 2009 Prentice-Hall Inc. All rights reserved. 7-19
  • 20. 3. What Benefits to Offer -- Flexible Benefits 3. What Benefits to Offer Flexible Benefits Employees tailor their benefit program to meet their personal need by picking and choosing from a menu of benefit options. Modular Plans – Predesigned benefits packages for specific groups of employees 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 © 2009 Prentice-Hall Inc. All rights reserved. 7-20
  • 21. 4. How to Build Recognition Programs 4. How to Build Recognition Programs  Intrinsic Rewards: Stimulate Intrinsic Motivation – Personal attention given to employee – Approval and appreciation for a job well done – Growing in popularity and usage  Benefits of Programs – Fulfill employees’ desire for recognition – Inexpensive to implement – Encourage repetition of desired behaviors  Drawbacks of Programs – Susceptible to manipulation by management See E X H I B I T 7-4 See E X H I B I T 7-4 © 2009 Prentice-Hall Inc. All rights reserved. 7-21
  • 22. Global Implications Global Implications  Job Characteristics and Job Enrichment – Inconsistent results across cultures  Telecommuting – U.S. does this more, but EU workers are interested in it  Variable Pay – Not much research available, but some possible hypotheses on relationships  Flexible Benefits – This concept is becoming more prevalent globally  Employee Benefits – Practices must be modified to match culture © 2009 Prentice-Hall Inc. All rights reserved. 7-22
  • 23. Summary and Managerial Implications Summary and Managerial Implications  To Motivate Employees – Recognize individual differences – Use goals and feedback – Allow employees to participate in decisions that affect them – Link rewards to performance – Check the reward system for equity © 2009 Prentice-Hall Inc. All rights reserved. 7-23
  • 24. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall