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After reading this chapter, you should be able to answer the following questions: What is the link between motivation, rewards, and performance? What are the essentials of performance management? How do job designs influence motivation and performance? What are the motivational opportunities of alternative work arrangements?
Chapter Motivation and Performance It’s about the person job fit Chapter Study Questions What is the link between motivation, rewards, and performance? What are the essentials of performance management? How job designs influence motivation and performance? What are the motivational opportunities of alternative work arrangements? Copyright © 2014 John Wiley & Sons, 6-2 Figure 6.1: An integrated model of individual motivation to work Copyright © 2014 John 6-3 What is the link between motivation, performance, and rewards? Copyright © 2014 John Wiley & Sons, 6-4 What is the link between motivation, performance, and rewards? Intrinsic rewards • Positively valued work outcomes that an individual receives directly as a result of task performance Extrinsic rewards • Positively valued work outcomes that are given to an individual or group by some other person or source in the work setting Copyright © 2014 John Wiley & Sons, Inc 6-5 What is the link between motivation, performance, and rewards? Pay for performance • When pay functions well it can help organizations attract and retain highly capable workers • Pay can also help satisfy and motivate workers to work hard to achieve high performance • When something goes wrong with pay, negative effects on motivation performance may occur Copyright © 2014 John Wiley & Sons, 6-6 What is the link between motivation, performance, and rewards? Merit pay • Compensation system that directly ties an individual’s salary or wage increase to measures of performance accomplishments during a specific time period • Seeks to create a belief among employees that the way to achieve high pay is to perform at high levels • Bonus – extra pay for performance that meets certain benchmarks or is above expectations Copyright © 2014 John Wiley & Sons, Inc 6-7 What is the link between motivation, performance, and rewards? Gain sharing • Gives workers the opportunity to earn more by receiving shares of any productivity gains that they help to create Copyright © 2014 John Wiley & Sons, Inc 6-8 What is the link between motivation, performance, and rewards? Profitsharing plans • Reward employees for increased organizational profits Criticism: organizational profit increases and decreases are not always a direct result of employees’ efforts Copyright © 2014 John Wiley & Sons, Inc 6-9 What is the link between motivation, performance, and rewards? Stock Options • Provide employees with an opportunity to buy shares of stock at a future date at a fixed price Copyright © 2014 John Wiley & Sons, 6-10 How job designs influence motivation and performance? Job simplification • A scientific management approach to job design that standardizes work procedures and employs people in clearly defined and highly specialized tasks • Intent is to increase efficiency, but it may be decreased due to the motivational impact of unappealing jobs Copyright © 2014 John Wiley & Sons, 6-26 How job designs influence motivation and performance? Job enlargement • Increases task variety by combining into one job two or more tasks that were previously assigned to separate workers Job rotation • Increases task variety by periodically shifting workers among jobs involving different tasks Copyright © 2014 John Wiley & Sons, 6-27 How job designs influence motivation and performance? Job enrichment • The practice of enhancing job content by building high content jobs full of motivating factors such as responsibility, achievement, recognition, and personal growth Copyright © 2014 John Wiley & Sons, 6-28 How job designs influence motivation and Job characteristics model performance? • Provides a data-based approach for creating job designs with good person-job fits that maximize the potential for motivation and performance Copyright © 2014 John Wiley & Sons, 6-29 Figure 6.5: Job design considerations according to the job characteristics model Copyright © 2014 John Wiley & Sons, 6-30 What are the keys to designing motivating • When the core characteristics are highly enriched, three jobs? critical psychological states are positively influenced: Experienced meaningfulness of work Experienced responsibility for work outcomes Knowledge of actual results of work activities Copyright © 2014 John Wiley & Sons, 6-31 How job designs influence motivation and Moderators that influenceperformance? the degree of positive outcomes of enriched jobs: • Employee growth-need strength is high • The employee has the required knowledge and skills • Employee is satisfied with the work context (salary, supervision, relationships) Copyright © 2014 John Wiley & Sons, 6-32 How job designs influence motivation and Managerial and global implications of enriching performance? jobs • Not everyone’s job should be enriched • Job enrichment can apply to groups Copyright © 2014 John Wiley & Sons, 6-33 What are the motivational opportunities of alternative work assignments? Alternative work arrangements • New work arrangements reshaping the traditional 40-hour week • Designed to provide work-life balance and more “family friendly” employers are growing ever more apparent Copyright © 2014 John Wiley & Sons, 6-34 What are the motivational opportunities of alternative work assignments? Compressed work weeks – any scheduling of work that allows a full time job to be completed in fewer than the standard five days • Advantages For workers: added time off, increased leisure time, lower commuting costs For organizations: lower absenteeism and improved recruiting of new employees • Disadvantages For workers: increased fatigue from the extended work day and family adjustment problems For organizations: work scheduling problems, customer complaints, possible union opposition Copyright © 2014 John Wiley & Sons, 6-35 What are the motivational opportunities of alternative work assignments? Flexible working hours • Gives individuals a daily choice in the timing of their work commitments • Advantages: For workers: shorter commuting time, more leisure time, more job satisfaction, and greater sense of responsibility For organizations: less absenteeism, tardiness, and turnover; more commitment, and higher performance Copyright © 2014 John Wiley & Sons, 6-36 What are the motivational opportunities of alternative work assignments? Job sharing • One full-time job is assigned to two or more persons who then divide the work according to agreed-upon hours • Advantages: For workers: less burnout and higher energy level For organizations: attracting talented people who would otherwise be unable to work Copyright © 2014 John Wiley & Sons, 6-37 What are the motivational opportunities of alternative work assignments? Work sharing • Workers agree to cut back on the number of hours they work in order to protect against layoffs • Some employers may mandate a cutback due to economic necessity Copyright © 2010 John Wiley & Sons, 1-38 What are the motivational opportunities of alternative work assignments? Telecommuting Work done at home or in a remote location via the use of computers and advanced telecommunication linkages with a central office or other employment location Advantages: • For workers: flexibility, comforts of home, and choice of work locations consistent with one’s lifestyle Disadvantages: • For workers: isolation from co-workers, decreased identification with work team, family distractions Copyright © 2010 John Wiley & Sons, 1-39 What are the motivational opportunities of alternative work assignments? Advantages of parttime work • For workers: appeals to people who want to supplement other jobs or not want fulltime work • For organizations: lower labor costs, ability to better accommodate peaks and valleys of business cycle, can easily release and hire as needs dictate Disadvantages Copyright © 2014 John Wiley & Sons, 6-40 ... Behavioral – Adds more sophistication by linking ratings to specific and observable job-related behaviors • Critical incident diaries Written records that give examples of a person’s work behavior. .. Wiley & Sons, Inc 6-8 What is the link between motivation, performance, and rewards? Profitsharing plans • Reward employees for increased organizational profits Criticism: organizational profit... customers and self-ratings Copyright © 2014 John Wiley & Sons, Inc 6-2 0 What are the essentials of performance To be meaningful, an appraisal system management? must be: • Reliable - provide consistent