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Motivational
Tools-
(Incentives,
Job design,
Goal setting
(MBO),
EmployeeRecognition
Programs,
. EmployeeInvolvement
Programs,
Variable PayPrograms,
Skill Based Pay
Plans,Flexible Benefit),
Issues in
Motivation. 2009 Prentice-Hall Inc. All rights reserved. 7-0
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a) Motivational tools By job design-
1. Job characteristic model and Job
designing by-
a) job rotation,
b) job enlargement, and
c) job enrichment
d) Job simplification
Alternative work arrangementa) Flextime. (flexible work hours).
b) Job Sharing-
c) Telecommuting-
d) The Virtual Office
Employ involvement program
1. Participative Management
2. Representative Participation
1. Works councils
2. Board representative
3. Quality Circle
Rewards Variable pay plan
a)Piece Rate:b)Merit-Based:
c)Bonuses:
Skill-Based Programs
a)Profit Sharing
a)Gain Sharingb)Employee Stock Ownership Plans
(ESOPs)
Flexible benefit
b) Modular Plans
c) Core-Plus Plansd) Flexible Spending Plans
Recogisition programa) Intrinsic Rewards: Stimulate
Intrinsic Motivation
b)Benefits of Programsc)Drawbacks of Programs
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Motivational tools
By job design-
1. Job characteristic model and
2. Alternative work arrangement
Employ involvement program
1. Participative Management
2. Representative Participation
1. Works councils
2. Board representative
3. Quality Circle Using rewards
Piece RateMerit-Based:Bonuses:
2009 Prentice-Hall Inc. All rights reserved. 7-2
Profit SharingGain Sharing:Employee Stock Ownership Plans (ESOPs)
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Motivation by Job Design: The JCM
The Job Characteristics Model (JCM)
(Skill variety, Task identity, Task significance, Autonomy,Feedback).
How Can Jobs Be Redesigned?
job rotation,
job enlargement, and
job enrichment
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Motivation by Job Design: The JCM
Alternative WorkArrangements
Flextime (flexible work hours).
Job Sharing.
Telecommuting
The Virtual Office
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Motivation by Job Design: The JCM
Ability and Opportunity
Success on a job is facilitated or hindered by the
existence or absence of support resources.
A popular although arguably simplistic way of thinking
about employee performance is as a function of theinteraction of ability and motivation; that is,
performance = f(Av M).
If either is inadequate, performance will be negatively
affected. We need to add opportunity to perform to our
equationperformance = f(Av M v O).
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Motivation by Job Design: The JCM
How Can Jobs Be Redesigned?
Ways to reshape jobs so that they are more challenging,stimulating, and motivating. Work arrangement(orrearrangement) aimed at reducing orovercoming job dissatisfaction
and employee alignment arising from repetitive and mechanistic
tasks. Through job design, organization try to raise productivity
levels by offering non-monetary rewards such as greater satisfaction
from a sense of personal achievement in meeting the increased
challenge and responsibility of one's work.
Job enlargement,
job enrichment,
job rotation, and
job simplification
are the various techniques used in a job design.7-6
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Motivation by Job Design: The JCM
Job Characteristics Model (JCM)
Hackman and Oldhams model proposes that any job can be
described through five core job dimensions:
Skill variety
Task identityTask significance
Autonomy
Feedback
The way elements in a job are organized (job design) impacts
motivation, satisfaction, and performance.
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Motivation by Job Design: The JCM
Skill variety Degree to which the job requires a variety of different
activities, so the worker can use a number of different skills andtalent. Requirements for different tasks in the job.
Task identity The degree to which the job requires completion of a
whole and identifiable piece of work . Completion of a whole piece of
work.Task significance The degree to which the job has a substantial
impact on the lives or work of other people. The jobs impact onothers.
Autonomy The degree to which the job provides substantial
freedom, independence, and discretion to the individual in
scheduling the work and determining the procedures to be used in
carrying it out Level of discretion in decision making.
FeedbackAmount of direct and clear information on performance.
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Motivation by Job Design: The JCM
The links between job dimensions and the outcomes are moderated
by the strength of the individuals growth need. Individuals with a
high growth need are more likely to experience the psychological
states when their jobs are enriched.
Motivating potential score (MPS)
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The Job Characteristics Model
7-10Employee growth-need strength moderates the relationships.
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Motivating Potential Score (MPS)
The Five core dimensions can be combined into a singlepredictive index of motivation, called- MPS
People who work on jobs with high core dimensions aregenerally more motivated, satisfied, and productive.
Job dimensions operate through the psychological states in
influencing personal and work outcome variables ratherthan influencing them directly.
While the JCM framework is supported by research, theMPS model isnt practical and doesnt work well.
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How Can Jobs Be Redesigned?
Repetitive jobs provide little variety,autonomy, or motivation. People generally
seek out jobs that are challenging and
stimulating.
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 jobs7-12
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How Can Jobs Be Redesigned?
Job Rotation
Often referred to as cross-training
Periodic shifting of an employee from one task to another
When activity is no longer challenging, the employee is shifted to a different task.
Strengths of job rotation include:
1. reduces boredom,
2. increases motivation, and
3. helps employees better understand their work contributions.
Indirect benefits in that employees with wider range of skills give management
more flexibility in scheduling, adapting to changes and filling vacancies
Weaknesses include:
1. creates disruptions,
2. extra time for supervisors addressing questions,
3. training time and efficiencies 7-13
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How Can Jobs Be Redesigned?
Job Enlargement (Horizontal loading) Increasing the number and variety of tasks / responsibility that an individual performs
Creates more diversity
Difference between enlargement and rotation is that enlargement redesigns jobs where
rotation does not.
Job enlargement interventions usually have led to less than successful outcomes.
Advantage1. Avoid monotony (which is the result of specialization and division of work)
2. Decrease production cost
3. Increase efficiency, satisfaction and motivation
Disadvantage1. Additional training cost
2. Employee may demand increase pay due to increased responsibility
3. Productivity may fall during redesigning of job
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How Can Jobs Be Redesigned?
Job Enrichment
Refers to the vertical expansion of jobs It is direct outgrowth ofHerzbergs 2 factor theory. It adds responsibility and opportunity
related to existing task for personal growth.
Overall evidence indicates that job enrichment reduces
absenteeism and turnover costs and increases satisfaction.Advantage
1. Increases the degree to which the worker controls the planning,
execution, and evaluation of the work
2. Allows worker to complete an entire activity3. Increases employees freedom and independence
4. Increases responsibility and provides feedback
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Guidelines for Enriching a Job
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Alternative Work Arrangements
1. Flextime. (flexible work hours).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.
Allows employees some discretion over when they arrive at and leave work.
Benefits include
1. reduced absenteeism,
2. increased productivity,
3. reduced overtime expense, and
4. reduced hostility toward management, and
5. increased autonomy and responsibility for employees.
Major drawback is that its not applicable to all jobs. 7-17
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Another Alternative: Telecommuting
Job Sharing- The practice of having two or more people split
a 40-hour-a-week job. Allows two or more individuals to splita traditional 40-hour a week job. Not very popular because
finding compatible partner is difficult.
Telecommuting- Employees who do their work at home at
least two days a week on a computer that is linked to their
office .
Typical Telecommuting Jobs
Professional and other knowledge-related tasks
Routine information-handling tasks
Mobile activities
The Virtual Office- Employees
work out of their home on
a relatively permanent basis.7-18
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Reasons for and against Telecommuting
Advantages
Larger labor pool
Higher productivity
Less turnover
Improved morale
Reduced office-space costs
Disadvantages
Employer
Less direct supervision of
employees
Difficult to coordinateteamwork
Difficult to evaluate non-
quantitative performance Employee
May not be as noticed for hisor her efforts
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Motivation Is Not the Whole Story
Performance
(P)
Motivation
(M)
Ability
(A)
Opportunityto Perform
(O)
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P =f(A x M x O)
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Dont Forget Ability and Opportunity
Success on a job is facilitated or hindered by the existence or
absence of support resources.
A popular although arguably simplistic way of thinking about
employee performance is as a function of the interaction ofability
and motivation; that is, performance = f(A v M).
If either is inadequate, performance will be negatively affected. We
need to add opportunity to perform to our equationperformance= f(A v Mv O).
When you attempt to assess why an employee may not be
performing to the level that you believe he or she is capable of,
look to the environment to see if it is supportive. Opportunity in terms of-
1. Tools and equipment
2. Materials an supply
3. Favorable work environment- rules regulations, peer, senior, information of
work, time decision authority etc 7-21
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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 beconsulted for any personnel decisions
Board representative
An employee sits on a companys board of directors andrepresents the interests of the firms employees
Quality Circle A work group of employees who meet regularly to discuss
their quality problems, investigate causes, recommendsolutions, and take corrective actions
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Types of Employee Involvement Programs
Participative Management
The distinct characteristic common to all participative management programs isthat subordinates actually share a significant immediate degree of decision-
making power with their superiors.
A catchall term covering a variety of techniques-
1. Participation or participative management,
2. Workplace democracy,3. Empowerment, and
4. Employee ownership.
It increases productivity, motivation, commitment and satisfaction.
However, it is not appropriate for every organization.
For it to work, there must be adequate time to participate,
The issues in which employees get involved must be relevant to their
interests,
Employees must have the ability (intelligence, technical knowledge,
communication skills) to participate, and
The organizations culture must support employee involvement.7-23
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Types of Employee Involvement Programs
Participative Management (cont.)
.Why would management want to share its decision-making
power with subordinates?
1. Managers often do not know everything their employees do.
2. Better decisions3. Increased commitment to decisions
4. Intrinsically rewarding employees makes their jobs more
interesting and meaningful
5. Dozens of studies have been conducted but the findings aremixed. It appears that participation typically has only a
modest influence on productivity, motivation, and job
satisfaction.
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Types of Employee Involvement Programs
Representative Participation
Representative participation: Almost every country in WesternEurope has some type of legislation requiring it. It is the most
widely legislated form of employee involvement around the world.
The goal is to redistribute power within an organization,
putting labor on a more equal footing with the interests ofmanagement and stockholders.
The two most common forms:
Works councils link employees with management. They are
groups of nominated or elected employees who must be
consulted when management makes decisions involving
personnel.
Board representatives are employees who sit on a companys
board of directors and represent the interests of the firms
employees. 7-25
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Types of Employee Involvement Programs
Representative Participation (cont.)
In some countries, large companies may be legally required to makesure that employee representatives have the same number of board
seats as stockholder representatives.
The overall influence seems to be minimal. The evidence suggests
that works councils are dominated by management and have littleimpact on employees or the organization.
If one were interested in changing employee attitudes or in improving
organizational performance, representative participation would be apoor choice.
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Types of Employee Involvement Programs
Quality Circles
Quality circles became popular in North America and Europe during the1980s.
A quality circle consists of a work group of eight to ten employees and
supervisors who have a shared area of responsibility.
Key components are:
1. They meet regularly on company time to discuss their qualityproblems, investigate causes of the problems, recommend
solutions, and take corrective actions.
2. They take over the responsibility for solving quality problemsand they generate and evaluate their own feedback.
3. Management typically retains control over the final
implementation decision. 7-27
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Types of Employee Involvement Programs
Quality Circles (cont.)
A review of the evidence indicates that they are likely to
positively affect productivity, however, they tend to show little
or no effect on employee satisfaction.
QCs seem to be a fad that has come and gone.
First is the little bit of time (usually just an hour per week) that
actually deals with employee involvement.
Second, the ease of implementing quality circles often worked
against them. The lack of planning and top-management
commitment often contributed to quality circle failures
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Motivational Theory Links to EI Programs
Theory Y
Employeeswant to beinvolved
Managerialviewpoint
Two-FactorTheory
IntrinsicMotivation
Growth
Responsibility
Involvement
ERG Theory
StimulatenAch
Growth
Recognition
Self-esteem
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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 recognitionprograms?
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1. What to Pay Establishing a Pay Structure
Internal equity
The worth of the job to the organization
Determined byjob evaluations
External equity
The competitiveness of the companys pay relative to payelsewhere 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
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2. How to Pay- Rewarding Individual Employees Through
Variable Pay Programs
Types ofVariable Pay ProgramsAportion ofan employees pay is based on some individualand/or organizationalmeasure ofperformance
Piece Rate:
Workers are paid a fixed sum foreach 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
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2.How to Pay - Skill-Based Pay Programs
Types of Skill-Based Programs: is alternative to job basedpay-
Also known as competency- orknowledge-basedpay - setspay based on skills or number ofjobs an employee can perform
Profit Sharing:
Organization-wide programs that distribute compensation basedon some established formula designed around a companysprofitability(in terms of cash or stock option)
Gain Sharing:
An incentive plan in which improvements in group productivitydetermine the total amount of money that is allocated (increase inproductivity does not always mean profit), Productivity is aninternal factor where as profit is internal and external factor
Employee Stock Ownership Plans (ESOPs)
Company-established benefit plans in which employees acquirestock as part of their benefits
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Evaluation of Variable and Skill-based Pay
To some extent, variable pay does increasemotivation 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 forobsolete skills Paying forskills of no immediate use to the
organization
Paying for a skill, not for performance of the skill.This plan deals with quality and team work not withlevel of performance.
People will opt for any any training 7-34
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3. What Benefits to Offer - Flexible Benefits
Employees tailor their benefitprogram to meet theirpersonalneed by picking and choosingfrom a menu of
benefit options.
Modular Plans
Predesigned benefits packages for specific groups ofemployees
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
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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
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Special issues in motivation
Motivating professional Motivating contingent worker
Motivating diversified work force
Motivating low skill service worker
Motivating people doing highly repetitive task
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Special issues in motivation
Motivating professional- they are well paid. They getgreat deal of intrinsic satisfaction from work they do and
have long term commitment with their field of expertise
than organisation. They are more loyal to their profession.
Motivation-
1. Money and promotion has low priority
2. They need to update their knowledge regularly.(skill
development opportunity like- training, development,
seminars, work shop etc. motivates them)
3. Challenging job
4. Reward with recognition
5. Creating alternative career path, allowing them to earn
more money and status without assuming managerial
responsibility. 7-38
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Special issues in motivation
Motivating contingent worker-
Contingent employee do not have job security and stability in the
organization that a permanent employee has. Eg. temporaryemployee, part time, working from home, short term hirer, on call
worker, day laborer, independent contractor, leases worker etc.
Motivation
1. Freedom to work2. Opportunity for permanent status,
3. developing sellable skills
Motivating diversified work force
Need to understand and respond to diversity. Flexibility in
1. work hour
2. Compensation plan
3. Benefit
4. Physical work setting7-39
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Special issues in motivation
Motivating low skill service worker1. Increase pay/ promotion
2. Flexible work schedule
3. Recruit young or retirees who have low financial need
4. respect
Motivating people doing highly repetitive task
1. Careful selection of people, who have tolerance for
ambiguity.
2. Try automation of job (ATM)
3. High pay- less turn over- but not high motivation
4. Create pleasant work environment.
5. Ample work breaks
6. Employee supervisions 7-40
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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
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Summary and Managerial Implications
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To Motivate Employees
Recognize individual differences- link to ability and then
give opportunity.
Use goals and feedback
Allow employees to participate in decisions that affect them
Link rewards to performance
Check the reward system for equity