Skill Development at its Best Organizational Behavior BBA
Skill Development at it’s Best Organizational Behavior BBA & MBA Lecture 192021 Motivation: From Concepts to Application Course Lecturer: Farhan Mir Copyright 2018@MIRS
Skill Development at it’s Best After studying this chapter, you should be able to: 1. Describe the way in which employees can be motivated by changing their work environment. 2. Compare and contrast the three main ways jobs can be redesigned. 3. Give examples of employee involvement measures and how they can motivate employees. 4. Describe the four major strategic rewards decisions. 5. Demonstrate how the different types of variable-pay programs can increase employee motivation. 6. Describe how the application of motivation theories varies across cultures. 6 -2 Copyright 2018@MIRS
Skill Development at it’s Best Motivating by Changing the Work Environment: JCM The Job Characteristics Model - jobs are described in terms of five core dimensions: – Skill variety – Task identity – Task significance – Autonomy – Feedback Copyright 2018@MIRS
Skill Development at it’s Best The Job Characteristics Model 6 -4 Copyright 2018@MIRS
Skill Development at it’s Best JCM: Designing Motivational Jobs • JCM-designed jobs give internal rewards • Individual’s growth needs are moderating factors • Motivating jobs must be: – Autonomous – Provide feedback, and – Have at least one of the three meaningfulness factors Copyright 2018@MIRS
Skill Development at it’s Best How Can Jobs be Redesigned? Job Rotation 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 Copyright 2018@MIRS
Skill Development at it’s Best Guidelines for Enriching a Job Using JCM Enrichment reduces turnover and absenteeism while increasing satisfaction. Copyright 2018@MIRS
Skill Development at it’s Best Alternate Work Arrangements • Flextime – 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 Copyright 2018@MIRS
Skill Development at it’s Best Copyright 2018@MIRS
Skill Development at it’s Best Copyright 2018@MIRS
Skill Development at it’s Best What is a Teleworker? An employee who works remotely, usually from their home, facilitated by collaborative information and communication technologies – Also known as: “telecommuter”, “mobile worker”, “virtual worker”, “remote worker” – The daily commute to a central place of work is replaced by technology links – Can range from a few hours a week to full time – May work from a home office, a co-working facility, or in many locations for jobs such as sales and service Source: Ae. A, “Telework in the information Age”, April 2008 Copyright 2018@MIRS
Skill Development at it’s Best Keys for Successful Telecommuting • Identify jobs best suited to distance work. • Select responsible employees. • Establish employee feedback procedures and performance review methods for evaluation. • Establish formalized telecommuting procedures. • Begin a formal training program. • Keep telecommuters informed and “in the loop. ” • Recognize when telecommuting isn’t working. Copyright 2018@MIRS
Skill Development at it’s Best The Way People Work is Changing A brief look at the Teleworking Opportunity Copyright 2018@MIRS
Skill Development at it’s Best Before Copyright 2018@MIRS
Skill Development at it’s Best After Copyright 2018@MIRS
Skill Development at it’s Best “Best Companies” Support Teleworking! Telecommuting & Top U. S. Companies: – 84 of the 100 “Best Companies” allow employees to telecommute or work at home – These 10 have the highest percentage of telecommuters Company Best companies rank Cisco Systems* e. Bay Booz Allen Hamilton S. C. Johnson & Son American Fidelity Assurance Shared Technologies Principal Financial Group Goldman Sachs Yahoo Qualcomm 06 69 81 27 24 25 21 09 87 08 % of "regular" telecommuters 70% 48% 34% 32% 30% 26% 23% 22% 20% 18% * Estimate: Cisco doesn't formally track this data. Source: “ 100 Best Companies to Work For”, Fortune Magazine, Feb 2008 Copyright 2018@MIRS
Skill Development at it’s Best Copyright 2018@MIRS
Skill Development at it’s Best If Not Now – When? Copyright 2018@MIRS
Skill Development at it’s Best Employee Involvement A participative process that uses the input of employees to increase their commitment to the organization’s success Two types: Participative Management Representative Participation Copyright 2018@MIRS
Skill Development at it’s Best Participative Management • Subordinates share a significant degree of decision-making power with superiors • Required conditions: – Issues must be relevant – Employees must be competent and knowledgeable – All parties must act in good faith • Only a modest influence on productivity, motivation, and job satisfaction Copyright 2018@MIRS
Skill Development at it’s Best Representative Participation • Workers are represented by a small group of employees who participate in decisions affecting personnel – Works Councils – Board membership • Desires to redistribute power within an organization • Does not appear to be very motivational Copyright 2018@MIRS
Skill Development at it’s Best Rewarding Employees Major strategic rewards decisions: 1. 2. 3. 4. What to pay employees How to pay individual employees What benefits to offer How to construct employee recognition programs Copyright 2018@MIRS
Skill Development at it’s Best 1. 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 organization’s pay relative to pay elsewhere in its industry • A strategic decision with trade-offs Copyright 2018@MIRS
Skill Development at it’s Best 2. How to Pay: Variable-Pay Programs Bases a portion of the pay on a given 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 – Skill-Based Pay – pay is based on skills acquired instead of job title or rank – doesn’t address the level of performance Copyright 2018@MIRS
Skill Development at it’s Best Copyright 2018@MIRS
Skill Development at it’s Best More Variable Pay Programs • Profit-Sharing Plans – organization-wide programs that distribute compensation based on an established formula designed around profitability • Gainsharing – 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 While it appears that pay does increase productivity, it seems that not everyone responds positively to variable-pay plans. Copyright 2018@MIRS
Skill Development at it’s Best 3. What Benefit to Offer: Flexible Benefits Each employee creates 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 Copyright 2018@MIRS
Skill Development at it’s Best 4. How to Recognize Them: Employee Recognition Programs • In addition to pay there are intrinsic rewards – Can be as simple as a spontaneous comment – Can be formalized in a program • Recognition is the most powerful workplace motivator – and the least expensive! Thank you! Copyright 2018@MIRS
Skill Development at it’s Best Global Implications Do motivational approaches vary by culture? – Job Characteristics/Enrichment: may not be the same in collectivist cultures – Telecommuting, variable pay, flexible benefits: while all of these seem to be on the increase, not enough research has been done to make any conclusions – Employee Involvement: important to modify practices to reflect national culture Copyright 2018@MIRS
Skill Development at it’s Best Implications for Managers • Recognize and allow for individual differences • Use specific goals and feedback • Allow employees to participate in decisions that affect them • Link rewards to performance • Check the reward system for equity Copyright 2018@MIRS
Skill Development at it’s Best Keep in Mind… • Most people respond to the intrinsic job characteristics of the JCM • It is not clear that employee involvement programs work – use caution! • Variable-pay plans can enhance motivation Copyright 2018@MIRS
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