New Zealand faces challenges in attracting skilled immigrants including an aging population, falling birth rates, and brain drain. It also struggles to attract and retain international students due to issues with how welcoming immigration policies are and how the country is perceived. There is no simple answer to what people want from work today as it depends on various factors like age, circumstances, values, and culture. Organizations offer various intrinsic and extrinsic rewards to motivate employees including pay, benefits, recognition, and opportunities for growth.

1. A skills crisis: what skills?
 1. We have a high level of unemployment
 We have an ageing population
 We have a falling birth rate
 We have a ‘brain-drain’
 Our competitors e.g. Australia seem to be doing
much better.
 Why would skilled immigrants want to come here?
 Do we need them?
© 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 1

2. Attracting skilled migrants
 How as a nation are we seen?
 What do we offer have to offer?
 What could they bring (do we need them anyway?)
 Do we make them welcome?
 What do we do in terms of immigration policies to
attract skilled immigrants?
© 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 2

3. The value of an international student
 Comes from Asia for 3-4 years
 Flies here and back on Air New Zealand ($$$)
 Comes down to Hamilton by shuttle ($$$)
 Moves into a ‘home-stay’ – soon leaves to go into a flat in Silverdale
with other Asian students ($$$)
 Pays 3X fees of Kiwi student($$)
 Buys a car($$$)
 Buys petrol ($$$$$$$$$$$$$$$)
 Eats out at mostly Asian restaurant ($)
 Uses electricity, gas, phone, etc, etc, etc, ($$$$)
 The ‘multiplier’ effect
 How much does this student INVEST in Aotearoa New Zealand?
 Many want to stay after graduation. What do they then face?
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4. The $64,000 question: what do people want from
work today?
 No simple answer e.g. money
 ‘Contingent’ upon:
 Age e.g. ‘older worker’
 Circumstances e.g. current needs
 Values e.g. to do ‘good’
 Social needs e.g. acceptance
 Cultural influences e.g. ‘golden generation’
© 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 4

5. What types of rewards do
organisations offer?
 Intrinsic or extrinsic rewards?
 Recognition vs $$$$
 Membership and seniority
 Status
 Opportunity to acquire skills
Growth and development
© Corel Corp
© 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 5

6. Performance-based rewards
• Share ownership
Organisational • Share options
rewards • Profit sharing
Team • Gainsharing
rewards • Bonuses
• Piece rate
Individual • Commissions
rewards • Royalties
• Merit pay
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7. Skill-based rewards
 Pay increases with skill or competencies acquired
or demonstrated
 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
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8. So we want individuals to reach
‘high’ levels of performance?
 What does performance depend on? How do we
define and measure performance?
 Performance is a function of Motivation x Ability x
Opportunity
 P = (f) M X A X O
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9. Improving performance?
 Performance is a {f} of Motivation x Ability x
Opportunity
 What do we mean by the performance of waiter or
waitress?
 What do we mean by a high performing retail sales
assistant?
 How can a geriatric nurse improve her or his
performance?
 Do organisations really want ‘high performance’ or
‘adequate performance’?
 Do many jobs have within them the scope to
‘improve ‘ performance?
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10. Expectancy-theory; effort, performance
and reward must be seen to be connected
 Makes sense but . . we have to:
 1. Identify and agree on what we mean by
performance e.g. for a child-minder
 2. Agree how we will assess individual
performance
 3. Agree on how we are going to reward individual
performance
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11. Focus on rewards
 Effort, performance and reward must be
perceived to be linked
 Ensure rewards must be relevant to the
employee
 Rewards must be valued by the individual
 Rewards must be of sufficient magnitude to
motivate
 Use team rewards for interdependent jobs
 Beware of unintended consequences e.g.
Hovey & Beard case
© Corel Corp
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12. But …contradictions…we reward
individuals while talking teams
 Performance assessment invariably
individually-based
 On which individuals are rewarded
 But organisations stress team work!
 So why not more team-based rewards?
 Difficult to assess e.g. equity
 Difficult to administer
 Cost
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13. Types of team and organisational
rewards
 Gainsharing plans
 based on cost reductions and increased labour
efficiency
 Employee Share Ownership Programme e.g.
The Warehouse
 employees own company shares
 Share options e.g. senior management
 right to purchase company shares at a future date at
a predetermined price
 Profit sharing e.g. Mainfreight
 employees receive share of profits
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14. Job re-design: can we ‘enrich’ make jobs
to make them more interesting?
 Assigning tasks to a job, including the
interdependency of those tasks with other jobs
 Technology has a great influence on the design of
jobs (technological determinism)
 Taylorist/Fordist design
 Employability affects job design
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15. Job specialisation
Advantages Disadvantages
 Basically greater efficiency  Job boredom
 Less time changing tasks  Discontentment pay
 Lower training costs  Lower quality?
 Job mastered quickly  Lower motivation
 Better person-job matching
 Lower costs
 Greater control over quality
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16. The Job characteristics model (Hackman &
Lawler)
Core job Critical
characteristics psychological Outcomes
states
Skill variety Work
motivation
Task identity Meaningfulness
Task significance Growth
satisfaction
Autonomy Responsibility General
satisfaction
Feedback Knowledge Work
from job of results effectiveness
Individual
differences
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17. Job rotation vs job enlargement
Job rotation
Job 1 Job 2 Job 3
Operate camera Operate sound Report story
Job enlargement
Job 1 Job 2 Job 3
Operate camera Operate camera Operate camera
Operate sound Operate sound Operate sound
Report story Report story Report story
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18. Job enrichment strategies – based on
Lawler & Hackman and Herzberg
 Empowering employees
 gives employees more autonomy
 feeling of control and self-efficacy
 actual control?
 over what?
 Forming natural work units
(autonomous work groups)
 completing an entire task
 assigning employees to specific clients
 Establishing client relationships
 employees put in direct contact with
clients © Marlborough Express (NZ)
 limited by the nature of the business
e.g. production workers
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19. Major obstacles to job design
 Difficult to accurately measure job characteristics
 Cost effectiveness
 Resistance to change
 skilled workers
 union
 supervisors
 Problem finding optimal level of enrichment and
specialisation
 Maintaining ‘enrichment’
 Concerns about the validity of the theoretical base
 Over-taken by speed of technological change
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20. Conclusion
 Has proved difficult to apply motivational theories in
practice
 Lots of failures e.g. Volvos JE programmes
 Selective use of profit sharing, P-f-P, skill-based
reward systems
 The question of size and resources
 How do NZ SME go about motivating and rewarding
their employees?
 ‘Family-feel’
 ‘culture’
 Informal
© 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 20