Motivation: From Concepts to Applications

1
Motivation From Concepts to Applications
Essentials of Organizational Behavior,
9/e Stephen P. Robbins/Timothy A. Judge

• Chapter 6

2
After studying this chapter, you should be able
to

1. Discuss the ways in which employees can be
   motivated by changing the work environment
2. Explain why managers might want to use employee
   involvement programs
3. Discuss how the different types of variable-pay
   programs can increase employee motivation
4. Describe the link between skill-based pay plans
   and motivation theories
5. Explain how employee recognition programs affect
   motivation

3
The Job Characteristics Model

• Proposes that any job can be described in terms
  of five core job dimensions
• Skill variety
• Task identity
• Task significance
• Autonomy
• Feedback

4
The Job Characteristics Model
5
Motivating Potential Score (MPS)
Skill variety Task Identity Task significance
MPS
3
x Autonomy x Feedback
6
How can jobs be Redesigned?

• Job Rotation or Cross-training the periodic
  shifting of an employee from one task to another
• Job Enlargement increasing the number and
  variety of tasks
• Job Enrichment increasing the degree to which
  the worker controls the planning, execution and
  evaluation of the work

7
Guidelines for Enriching a Job
8
Alternate Work Arrangements

• Flextime allows some discretion over when
  worker starts and leaves
• Job Sharing two or more individuals split a
  traditional job
• Telecommuting work remotely at least two days
  per week

9
Employee Involvement

• A participative process that uses the input of
  employees to increase their commitment to the
  organizations success

10
Employee Involvement Programs

• Participative Management subordinates share a
  significant degree of decision-making power with
  their immediate superiors
• Representative Participation workers are
  represented by a small group of employees who
  participate in decisions affecting personnel

11
Rewarding Employees

• Major strategic rewards decisions
• What to pay employees
• How to pay individual employees
• What benefits to offer
• How to construct employee recognition programs

12
What to pay

• Need to establish a pay structure
• Balance between
• Internal equity the worth of the job to the
  organization
• External equity the external competitiveness of
  an organizations pay relative to pay elsewhere
  in its industry
• A strategic decision with trade-offs

13
How to pay Variable-Pay Programs

• Bases a portion of the pay on some individual
  and/or organizational measure of performance
• Piece-Rate Pay workers are paid a fixed sum for
  each unit of production completed
• Merit-Based Pay pay is based on individual
  performance appraisal ratings
• Bonuses rewards employees for recent performance

14
Variable Pay Programs (cont.)

• Profit-Sharing Plans organization-wide programs
  that distribute compensation based on an
  established formula designed around profitability
• Gain Sharing compensation based on sharing of
  gains from improved productivity
• Employee Stock Ownership Plans (ESOPs) plans in
  which employees acquire stock, often at
  below-market prices

15
How to pay Skill-Based Pay Plans

• Pay is based on skills acquired instead of job
  title or rank
• Doesnt address the level of performance, only
  ability to perform skill

16
Flexible Benefits

• Allows each employee to put together a benefit
  package tailored to their own needs and situation
• Modular plans predesigned packages to meet the
  needs of a specific group
• Core-plus plans core of essential benefits and
  menu of options to choose from
• Flexible spending plans full choice from menu
  of options

17
Employee Recognition Programs

• Are in addition to extrinsic compensation systems
• Are intrinsic rewards
• Can be as simple as a spontaneous comment
• Can be formalized in a program
• Recognition is the most powerful workplace
  motivator

18
Implications for Managers

• Recognize individual differences
• Use goals and feedback
• Allow employees to participate in decisions that
  affect them
• Link rewards to performance
• Check the system for equity

19
Summary

1. Discussed the ways in which employees can be
   motivated by changing the work environment
2. Explained why managers might want to use employee
   involvement programs
3. Discussed how the different types of variable-pay
   programs can increase employee motivation
4. Described the link between skill-based pay plans
   and motivation theories
5. Explained how employee recognition programs
   affect motivation