Chapter

6/

Slide

12.

Explainhowtotiepaytoperformanceonwhite-collarjobsandthedifficultiesof

meritpay

plans.3.

Understandhowtousepaytomotivateteamwork.Chapter

6/

Slide

2Learning

Objectives

(continued)5.

Discussthemotivationalpropertiesof

jobenrichment.6.

DiscussrecentdevelopmentsinjobdesignChapter

6/

Slide

3Learning

Objectives

(continued)Chapter

6/

Slide

4?

Howimportantispayforyou??

Howeffectiveispayasamotivator?Chapter

6/

Slide

5?

Paycansatisfylower-levelneedsaswellassocial,self-esteem,andself-actualizationneedssoitshouldbeagoodpotentialmotivator.?

Ifpaycansatisfyavarietyofneeds,itshouldbehighlyvalentanditshouldbeagoodmotivatortotheextentthat

it

is

clearly

tiedto

performance.Chapter

6/

Slide

6?

Financialincentivesandpay-for-performanceplanshavebeenfoundtoincrease?

Theabilitytoearnmoneyforoutstandingperformanceisacompetitiveadvantageforattracting,motivating,andretainingemployees.Chapter

6/

Slide

7?

Theprototypeofallschemestolinkpaytoperformanceonproductionjobsispiece-rate.?

Piece-rate

referstoapaysysteminwhichindividualworkersarepaidacertainsumofmoneyforeachunitofproductiontheycomplete.Chapter

6/

Slide

8?

Variousschemestolinkpaytoperformanceonproductionjobsarecalled

wage

incentiveplans.?

Theintroductionofwageincentivesusuallyleadstosubstantialincreasesinproductivity.?

OneofthebestexamplesofthesuccessfuluseofawageincentiveplanistheLincolnElectricCompany.Chapter

6/

Slide

9?

Lowered

Quality:Wageincentivescanincreaseproductivityattheexpenseofquality.?

Differential

Opportunity:Athreattotheestablishmentofwageincentivesexistswhenworkershavedifferentialopportunitiestoproduceatahighlevel.Chapter

6/

Slide

10?

Reduced

Cooperation:Wageincentivesthatrewardindividualproductivitymightdecreasecooperationamongworkers.?

Incompatible

Job

Design:Thewayjobsaredesignedcanmakeitverydifficulttoimplementwageincentives.?

Restriction

of

Productivity:Amajorpsychologicalimpedimenttotheuseofwageincentivesisthetendencyforworkerstorestrictproductivity.Chapter

6/

Slide

11RestrictionofProductivity?

Theartificiallimitationofworkoutputthatcanoccurunderwageincentiveplans.?

Workerscometoaninformalagreementaboutwhatconstitutesafairday’swork.Chapter

6/

Slide

12HypotheticalProductivityDistributionsChapter

6/

Slide

13ReasonsforRestrictionofProductivity?

Employeesfeelthatincreasedproductivityduetotheincentivewillleadtoreductionsintheworkforce.?

Employeesfearthatiftheyproduceatanespeciallyhighlevel,anemployerwillreducetherateofpaymenttocutlabourcosts.?

Restrictionislesslikelywhenaclimateoftrustandahistoryofgoodrelationsexistbetweenemployeesandmanagement.Chapter

6/

Slide

14?

Performanceinmanysuchjobsisoftenevaluatedbythesubjectivejudgmentofanindividual’smanager.Chapter

6/

Slide

15?

Merit

pay

plans

aresystemsthatattempttolinkpaytoperformanceonwhite-collarjobs.?

Managersevaluatetheperformanceofemployeesandthenrecommendsomeamountofmeritpayberewarded.?

Althoughmeritpaycanimproveperformance,manymeritpaysystemsare

ineffective.Chapter

6/

Slide

16?

Thereisalsoevidencethatpayis

not

relatedChapter

6/

Slide

17?

Small

Increases:Sometimesmeritincreases?

Somefirmshavereplacedconventionalmeritpaywithalump

sum

bonus

thatispaidoutallatonetimeandnotbuiltintobasepay.Chapter

6/

Slide

18?

Pay

Secrecy:Extremesecrecythatsurroundssalariesinmostorganizations.?

Paysecrecycanseverelydamagethemotivationalimpactofawell-designedmeritplan.?

Managersoverestimatethepayoftheiremployeesandtheirpeersandunderestimatethepayoftheirsuperiors.Chapter

6/

Slide

19Chapter

6/

Slide

20?

Thesetendenciesreducesatisfactionwithpay,damageperceptionsofthelinkagebetweenperformanceandrewards,andreducethevalenceofpromotiontoahigherlevelofmanagement.Chapter

6/

Slide

21UsingPaytoMotivateTeamwork?

Organizationshavetochoosepayplansthatsupporttheirstrategicneeds.Chapter

6/

Slide

22PayPlanstoMotivateTeamwork?

Profitsharing?

Skill-basedpayChapter

6/

Slide

23?

Thereturnofsomecompanyprofittoemployeesintheformofacashbonusoraretirementsupplement.?

Oneofthemostcommonlyusedgroup-orientedincentivesystems.Chapter

6/

Slide

24ProfitSharing(continued)?

Amajorproblemisthatmanyfactorsbeyondthecontroloftheworkforcecanaffectprofitsnomatterhowwellpeopleperformtheirjobs.?

Inalargefirm,itisdifficulttoseetheimpactofone’sownactionsonprofits.?

Worksbestinsmallfirmsthatregularlyturnaprofit.Chapter

6/

Slide

25?

Incentiveplansthatallowemployeestoownasetamountofacompany’ssharesandprovideemployeeswithastakeinthecompany’sfutureearningsandsuccess.?

Alignsemployees’goalsandinterestswiththoseoftheorganizationandcreatesasenseoflegalandpsychologicalownership.Chapter

6/

Slide

26?

SomeevidencethatESOPsimproveemployeeretentionandprofitability.?

Theylosetheirmotivationalpotentialinaweakeconomywhenacompany’ssharepricegoesdown.Chapter

6/

Slide

27Chapter

6/

Slide

28?

Whenmeasuredcostsdecrease,thecompanypaysamonthlybonusaccordingtoapredeterminedformulathatsharesthis“gain”betweenemployeesandthefirm.?

ThemostcommongainsharingplanistheChapter

6/

Slide

29?

Stressesparticipatorymanagementandjointproblemsolvingbetweenemployeesandmanagers,andusesthepaysystemtorewardemployeesforthiscooperativebehaviour.?

ProductivityimprovementshavebeenshowntofollowtheintroductionofScanlon-typeplans.?

Perceptionthattheplanisfairiscritical.Chapter

6/

Slide

30?

Asysteminwhichemployeesarepaidaccordingtothenumberofjobskillstheyhaveacquired.?

Themoreskillsthatareacquired,thehighertheperson’spay.Chapter

6/

Slide

31Skill-BasedPay(continued)?

Especiallyusefulforself-managedteamsandinflexiblemanufacturing.?

Havebeenfoundtoimproveproductivity,lowerlabourcosts,andreducetheamountofscrap.Chapter

6/

Slide

32JobDesignasaMotivator?

Anattempttocapitalizeonintrinsicmotivation.Chapter

6/

Slide

33?

FromtheadventoftheIndustrialRevolutionuntilthe1960s,theprevailingphilosophyregardingthedesignofmostnon-managerialjobswasjobsimplification.Chapter

6/

Slide

34–

Extremedivisionoflabourandspecialization.–

Carefulstandardizationandregulationofworkactivitiesandrestpauses.?

Themotivationalstrategiesconsistedofclosesupervisionandpiece-ratepay.Chapter

6/

Slide

35?

Job

scope

referstothebreadthanddepthof?

Breadth

referstothenumberofdifferent?

Depth

referstothedegreeofdiscretionorcontroltheworkerhasoverhowthesetasksareperformed.?

JobsthathavegreatbreadthanddepthareChapter

6/

Slide

36Chapter

6/

Slide

37?

Traditionalviewsofjobdesignwereattemptstoconstructlow-scopejobsinwhichworkersspecializedinasingletask.Chapter

6/

Slide

38?

OnewaytoincreasethescopeofajobistoChapter

6/

Slide

39?

Anotherapproachforincreasingthescopeofanindividual’sjobis

job

rotation.?

Employeesarerotatedtodifferenttasksandjobsinanorganization.?

Itcaninvolveworkingindifferentfunctionalareasanddepartments.Chapter

6/

Slide

40?

TheJobCharacteristicsModelproposesthatthereareseveral“core”jobcharacteristicsthathaveacertainpsychologicalimpactonworkers.?

Thepsychological

states

inducedbythe?

Severalfactorscalled

moderators

influencetheextenttowhichtheserelationshipsholdtrue.Chapter

6/

Slide

41Chapter

6/

Slide

42–

Skillvariety–

Taskidentity–

Tasksignificance–

AutonomyChapter

6/

Slide

43Chapter

6/

Slide

44Chapter

6/

Slide

45?

Theimpactthatajobhasonotherpeople.Chapter

6/

Slide

46Chapter

6/

Slide

47?

Informationabouttheeffectivenessofone’sworkperformance.Chapter

6/

Slide

48?

TheJob

Diagnostic

Survey

(JDS)isaquestionnairetomeasurethecorejobcharacteristics.Chapter

6/

Slide

49?

Themotivatingpotentialscore(MPS)ofajobiscalculatedusingthefollowingformula:Chapter

6/

Slide

50–

Experiencedmeaningfulnessofthework–

ExperiencedresponsibilityfortheoutcomesoftheworkChapter

6/

Slide

51?

Jobsthatarehighon

autonomy

provideforgreater

personal

responsibility

forworkoutcomes.?

Jobsthatarehighonperformance

feedbackprovideworkerswith

knowledge

of

theresults

oftheirworkactivities.Chapter

6/

Slide

52?

Thepresenceofthecriticalpsychologicalstatesleadstoanumberofoutcomesthatarerelevanttoboththeindividualandtheorganization:Chapter

6/

Slide

53?

Jobsthatarehighinmotivatingpotentialdo?

Threemoderatororcontingencyvariablesintervenebetweenjobcharacteristicsandoutcomes.Chapter

6/

Slide

54Moderators(continued)?

Growth

need

strength

whichreferstotheextenttowhichpeopledesiretoachievehigher-orderneedsatisfactionbyperformingtheirjobs.?

Workerswhoaredissatisfiedwiththecontextfactorsthatsurroundtheirjob(e.g.,pay)willbelessresponsivetochallengingwork.Chapter

6/

Slide

55?

Workersrespondmorefavourablytojobsthatarehigherinmotivatingpotential.?

Allfivejobcharacteristicsarerelatedtoworkoutcomes.?

Amongthepsychologicalstates,strongestsupportforexperiencedmeaningfulness.?

Evidencefortheroleofgrowthneedsandcontextsatisfactionisweakorcontradictory.Chapter

6/

Slide

56arrangementoftheircorejobcharacteristics.Chapter

6/

Slide

57?

Acognitivestateofpsychologicalidentificationwithone’sjobandtheimportanceofworktoone’stotalself-image.?

Allofthecorejobcharacteristicsarepositivelyrelatedtojobinvolvement.?

EmployeeswhoaremoreinvolvedintheirjobhavehigherjobsatisfactionandChapter

6/

Slide

58–

Combiningtasks–

Establishingexternalclientrelationships–

Establishinginternalclientrelationships–

Reducingsupervisionorrelianceonothers–

FormingworkteamsChapter

6/

Slide

59?

Shouldincreasethevarietyofskillsemployedandmightcontributetotaskidentity.Chapter

6/

Slide

60?

Thisinvolvesputtingemployeesintouchwithpeopleoutsidetheorganizationwhodependontheirproductsorservices.?

Mightinvolvetheuseofnewinterpersonalskills,increasetheidentityandsignificanceofthejob,andincreasefeedbackaboutone’sperformance.Chapter

6/

Slide

61EstablishingInternalClientRelationships?

Thisinvolvesputtingemployeesintouchwithpeoplewhodependontheirproductsandserviceswithintheorganization.?

Advantagesaresimilartothosethatresultfromestablishingexternalclientrelationships.Chapter

6/

Slide

62ReducingSupervisionorRelianceonOthersChapter

6/

Slide

63?

Teamscanbeformedwhenaproductorserviceistoolargeorcomplexforonepersontocompletealoneortocompleteanentireproduct.?

Thiscanresultinthedevelopmentofavarietyofskillsandincreasetheidentityofthejob.Chapter

6/

Slide

64?

Permitworkerstobeidentifiedwiththeir“own”productorservicesothatifacustomerencountersproblems,heorshecancontacttheworkerdirectly.?

Isusuallyusedinconjunctionwithotherjobdesignproceduresthatpermitworkerstobeidentifiedwiththeir“own”productorservice.Chapter

6/

Slide

65–

Poordiagnosis–

Lackofdesireorskill–

Demandforrewards–

Unionresistance–

SupervisoryresistanceChapter

6/

Slide

66?

Problemswithjobenrichmentcanoccurwhenitisinstitutedwithoutacarefuldiagnosisoftheneedsoftheorganizationandtheparticularjobsinquestion.Chapter

6/

Slide

67?

Increasingjobbreadthbygivingemployeesmoretaskstoperformatthesamelevelwhileleavingtheothercrucialcorecharacteristicsunchanged.?

Workersaregivenmoreboring,fragmented,routinetaskstodo.Chapter

6/

Slide

68?

Someworkersdonotdesireenrichedjobs.?

Someworkersmightlacktheskillsandcompetencenecessarytoperformenrichedjobseffectively.?

Enrichmentmightentailsubstantialtrainingcosts.Chapter

6/

Slide

69DemandforRewards?

Thisisbecauseenrichedjobsoftenrequirethedevelopmentofnewskillsandentailgreaterresponsibility.Chapter

6/

Slide

70?

NorthAmericanunionshavetraditionallynotbeenenthusiasticaboutjobenrichment.Chapter

6/

Slide

71?

Jobenrichmentcanfailduetounanticipatedeffectsonotherjobsorpartsoftheorganizationalsystem.?

Enrichmentincreasestheautonomyofemployeesanditmight“disenrich”thesupervisor’sjob.?

Onesolutionisforthesupervisortobecomeatraineranddeveloperofindividualsonenrichedjobs.Chapter

6/

Slide

72Chapter

6/

Slide

73?

Threecategories:–

Motivationalcharacteristics–

Socialcharacteristics–

WorkcontextcharacteristicsChapter

6/

Slide

74?

Includestask

characteristics

whicharesimilartothecorejobcharacteristicsoftheJobCharacteristicsModel.?

Knowledge

characteristics

refertothekindsofknowledge,skill,andabilitydemandsrequiredtoperformajob.Chapter

6/

Slide

75SocialCharacteristics–

Socialsupport–

Interactionoutsideoftheorganization–

FeedbackfromothersChapter

6/

Slide

76?

Referstothecontextwithinwhichworkisperformedandconsistsof:–

ErgonomicsChapter

6/

Slide

77?

Eachcategoryofworkdesigncharacteristicsisrelatedtoworkattitudesandbehaviours.?

Thesocialcharacteristicsaremorestronglyrelatedtosomeoutcomes(e.g.,turnoverintentions)thanthemotivationalcharacteristics.Chapter

6/

Slide

78ManagementbyObjectives?

Anelaborate,systematic,ongoingprogramdesignedtofacilitategoalestablishment,goalaccomplishment,andemployeedevelopment.Chapter

6/

Slide

79ManagementbyObjectivesProcess?

Objectivesfortheorganizationasawholearedevelopedbytopmanagementanddiffuseddownthroughtheorganization.?

Organizationalobjectivesaretranslatedintospecificbehaviouralobjectivesforindividualmembers.Chapter

6/

Slide

80ManagementbyObjectivesProcess(continued)?

TheMBOprocessinvolvesmanager-employeeinteractions:–

Themanagermeetswithindividualworkerstodevelopandagreeonemployeeobjectiveswhichcaninclude

job

performance

andpersonal

development

objectives.–

Thereareperiodicmeetingstomonitoremployeeprogressinachievingobjectives.–

Anappraisalmeetingisheldtoevaluatetheextenttowhichtheagreedobjectiveshavebeenachieved.–

TheMBOcycleisrepeated.Chapter

6/

Slide

81–

Lackofcommitmentfromtopmanagement.–

Performancereviewbecomesanexerciseinbrowbeatingorpunishingemployeesforfailuretoachieveobjectives.Chapter

6/

Slide

82?

Manyorganizationshavemodifiedtraditionalworkingschedules.Chapter

6/

Slide

83?

Flex-time?

Compressedworkweek?

Jobandworksharing?

TelecommutingChapter

6/

Slide

84?

Analternativeworkscheduleinwhicharrivalandquittingtimesareflexible.?

Flex-timeiswellsuitedtomeetingtheneedsofadiversework-forceandismostfrequentlyimplementedinofficeenvironments.Chapter

6/

Slide

85?

Employeespreferitcomparedtofixedhours.?

Workattitudesaremorepositive.?

Hasapositiveeffectonproductivity,jobsatisfaction,andsatisfactionwithworkschedule.?

Lowersemployeeabsenteeism.Chapter

6/

Slide

86?

Themostcommoncompressedworkweekisthe4-40system.Chapter

6/

Slide

87CompressedWorkweek:ResearchEvidenceChapter

6/

Slide

88JobandWorkSharing?

Job

sharing

isanalternativeworkscheduleinwhichtwopart-timeemployeesdividetheworkofafull-timejob.?

Work

sharing

involvesreducingthenumberofhoursemployeesworktoavoidlayoffswhenthereisareductioninnormalbusinessactivity.Chapter

6/

Slide

89JobandWorkSharing:ResearchEvidence?

Worksharingcutscosts,savesjobs,avoidslayoffsandallowsorganizationstoretainskilledworkers.?

Jobsharingcanresultincoordination?

Jobsharersmustmakeaconcertedefforttocommunicatewellwi