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1、Chapter 6/ Slide 1Chapter 6Motivation in PracticeCopyright 2011 Pearson Canada Inc.Chapter 6/ Slide 2Learning Objectives1. Discuss how to tie pay to performance on production jobs and the difficulties of wage incentive plans.2. Explain how to tie pay to performance on white-collar jobs and the diffi
2、culties of merit pay plans.3. Understand how to use pay to motivate teamwork.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 3Learning Objectives (continued)4. Describe the details of the Job Characteristics Model.5. Discuss the motivational properties of job enrichment.6. Discuss recent developm
3、ents in job design and describe work design characteristics.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 4Learning Objectives (continued)7. Understand the connection between goal setting and Management by Objectives.8. Explain how alternative work schedules respect employee diversity.9. Descri
4、be the factors that organizations should consider when choosing motivational practices.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 5Money as a Motivator How important is pay for you? Employees and managers seriously underestimate the importance of pay as a motivator. How effective is pay as a
5、 motivator?Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 6Money as a Motivator (continued) Pay can satisfy lower-level needs as well as social, self-esteem, and self-actualization needs so it should be a good potential motivator. If pay can satisfy a variety of needs, it should be highly valent
6、 and it should be a good motivator to the extent that it is clearly tied to performance.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 7Money as a Motivator (continued) Financial incentives and pay-for-performance plans have been found to increase performance and lower turnover. Pay may well be
7、the most important and effective motivator of performance. The ability to earn money for outstanding performance is a competitive advantage for attracting, motivating, and retaining employees.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 8Linking Pay to Performance on Production Jobs The protot
8、ype of all schemes to link pay to performance on production jobs is piece-rate. Piece-rate refers to a pay system in which individual workers are paid a certain sum of money for each unit of production they complete.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 9Linking Pay to Performance on Pr
9、oduction Jobs (continued) Various schemes to link pay to performance on production jobs are called wage incentive plans. The introduction of wage incentives usually leads to substantial increases in productivity. One of the best examples of the successful use of a wage incentive plan is the Lincoln
10、Electric Company.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 10Potential Problems with Wage Incentives Lowered Quality: Wage incentives can increase productivity at the expense of quality. Differential Opportunity: A threat to the establishment of wage incentives exists when workers have diff
11、erential opportunities to produce at a high level.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 11Potential Problems with Wage Incentives (continued) Reduced Cooperation: Wage incentives that reward individual productivity might decrease cooperation among workers. Incompatible Job Design: The w
12、ay jobs are designed can make it very difficult to implement wage incentives. Restriction of Productivity: A major psychological impediment to the use of wage incentives is the tendency for workers to restrict productivity.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 12Restriction of Productiv
13、ity The artificial limitation of work output that can occur under wage incentive plans. Workers come to an informal agreement about what constitutes a fair days work.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 13Hypothetical Productivity Distributions Copyright 2011 Pearson Canada Inc.Chapter
14、 6/ Slide 14Reasons for Restriction of Productivity Employees feel that increased productivity due to the incentive will lead to reductions in the workforce. Employees fear that if they produce at an especially high level, an employer will reduce the rate of payment to cut labour costs. Restriction
15、is less likely when a climate of trust and a history of good relations exist between employees and management.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 15Linking Pay to Performance on White-Collar Jobs Objective indicators of individual performance on white-collar jobs are often difficult t
16、o find. Performance in many such jobs is often evaluated by the subjective judgment of an individuals manager.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 16Linking Pay to Performance on White-Collar Jobs (continued) Merit pay plans are systems that attempt to link pay to performance on white-
17、collar jobs. Managers evaluate the performance of employees and then recommend some amount of merit pay be rewarded. Although merit pay can improve performance, many merit pay systems are ineffective.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 17Linking Pay to Performance on White-Collar Jobs
18、 (continued) Individuals who work under such a system often do not see a link between their job performance and pay. There is also evidence that pay is not related to performance under some merit pay plans. In most organizations, seniority, number of employees, and job level account for more variati
19、on in pay than performance does.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 18Potential Problems with Merit Pay Plans Low Discrimination: Managers might be unable or unwilling to discriminate between good performers and poor performers. Small Increases: Sometimes merit increases are too small
20、 to be effective motivators. Some firms have replaced conventional merit pay with a lump sum bonus that is paid out all at one time and not built into base pay.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 19Potential Problems with Merit Pay Plans (continued) Pay Secrecy: Extreme secrecy that s
21、urrounds salaries in most organizations. Pay secrecy can severely damage the motivational impact of a well-designed merit plan. Managers overestimate the pay of their employees and their peers and underestimate the pay of their superiors.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 20A Manager
22、s Estimates of Pay Earned by Boss, Peers, and SubordinatesCopyright 2011 Pearson Canada Inc.Chapter 6/ Slide 21Potential Problems with Merit Pay Plans (continued) These tendencies reduce satisfaction with pay, damage perceptions of the linkage between performance and rewards, and reduce the valence
23、of promotion to a higher level of management.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 22Using Pay to Motivate Teamwork Some firms have either replaced or supplemented individual incentive pay with plans designed to foster more cooperation and teamwork. Organizations have to choose pay plan
24、s that support their strategic needs.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 23Pay Plans to Motivate Teamwork Profit sharing Employee stock ownership plans (ESOPs) Gainsharing Skill-based payCopyright 2011 Pearson Canada Inc.Chapter 6/ Slide 24Profit Sharing The return of some company pro
25、fit to employees in the form of a cash bonus or a retirement supplement. One of the most commonly used group-oriented incentive systems.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 25Profit Sharing (continued) A major problem is that many factors beyond the control of the workforce can affect
26、profits no matter how well people perform their jobs. In a large firm, it is difficult to see the impact of ones own actions on profits. Works best in small firms that regularly turn a profit.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 26Employee Stock Ownership Plans (ESOPs) Incentive plans
27、that allow employees to own a set amount of a companys shares and provide employees with a stake in the companys future earnings and success. Aligns employees goals and interests with those of the organization and creates a sense of legal and psychological ownership.Copyright 2011 Pearson Canada Inc
28、.Chapter 6/ Slide 27Employee Stock Ownership Plans (ESOPs) (continued) Some evidence that ESOPs improve employee retention and profitability. They work best in small organizations that regularly make a profit. They lose their motivational potential in a weak economy when a companys share price goes
29、down.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 28Gainsharing A group pay incentive plan based on productivity or performance improvements over which the workforce has some control. Such plans often include reductions in the cost of labour, material, or supplies.Copyright 2011 Pearson Canada
30、 Inc.Chapter 6/ Slide 29Gainsharing (continued) When measured costs decrease, the company pays a monthly bonus according to a predetermined formula that shares this “gain” between employees and the firm. The most common gainsharing plan is the Scanlon Plan.Copyright 2011 Pearson Canada Inc.Chapter 6
31、/ Slide 30The Scanlon Plan Stresses participatory management and joint problem solving between employees and managers, and uses the pay system to reward employees for this cooperative behaviour. Pay is used to align company and employee goals. Productivity improvements have been shown to follow the
32、introduction of Scanlon-type plans. Perception that the plan is fair is critical.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 31Skill-Based Pay A system in which employees are paid according to the number of job skills they have acquired. The idea is to motivate employees to learn a wide varie
33、ty of skills and work tasks. The more skills that are acquired, the higher the persons pay.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 32Skill-Based Pay (continued) Encourages employee flexibility in task assignments and provides employees with a broader picture of the work process. Especiall
34、y useful for self-managed teams and in flexible manufacturing. Training costs can be high. Have been found to improve productivity, lower labour costs, and reduce the amount of scrap.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 33Job Design as a Motivator The goal of job design is to identify
35、the characteristics that make some tasks more motivating than others and to capture these characteristics in the design of jobs. An attempt to capitalize on intrinsic motivation.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 34Traditional Views of Job Design From the advent of the Industrial Rev
36、olution until the 1960s, the prevailing philosophy regarding the design of most non-managerial jobs was job simplification.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 35Scientific Management The zenith of job simplification occurred in the early 1990s with Taylors principles of Scientific Man
37、agement that advocated: Extreme division of labour and specialization. Careful standardization and regulation of work activities and rest pauses. The motivational strategies consisted of close supervision and piece-rate pay.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 36Job Scope and Motivatio
38、n Job scope refers to the breadth and depth of a job. Breadth refers to the number of different activities performed on the job. Depth refers to the degree of discretion or control the worker has over how these tasks are performed. Jobs that have great breadth and depth are called high-scope jobs.Co
39、pyright 2011 Pearson Canada Inc.Chapter 6/ Slide 37Job Scope as a Function of Job Depth and Job BreadthCopyright 2011 Pearson Canada Inc.Chapter 6/ Slide 38Job Scope and Motivation (continued) Traditional views of job design were attempts to construct low-scope jobs in which workers specialized in a
40、 single task. High-scope jobs provide more intrinsic motivation than low-scope jobs.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 39Stretch Assignments One way to increase the scope of a job is to assign employees stretch assignments. They provide employees challenging opportunities to broaden
41、their skills by working on a variety of tasks with new responsibilities.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 40Job Rotation Another approach for increasing the scope of an individuals job is job rotation. Employees are rotated to different tasks and jobs in an organization. It can invo
42、lve working in different functional areas and departments. It can provide a variety of challenging assignments, develop new skills and expertise, and prepare employees for future roles.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 41The Job Characteristics Model The Job Characteristics Model pr
43、oposes that there are several “core” job characteristics that have a certain psychological impact on workers. The psychological states induced by the nature of the job lead to certain outcomes. Several factors called moderators influence the extent to which these relationships hold true.Copyright 20
44、11 Pearson Canada Inc.Chapter 6/ Slide 42The Job Characteristics Model Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 43Core Job Characteristics There are five core job characteristics that have particularly strong potential to affect worker motivation. They are: Skill variety Task identity Task
45、 significance Autonomy Job feedbackCopyright 2011 Pearson Canada Inc.Chapter 6/ Slide 44Skill Variety The opportunity to do a variety of job activities using various skills and talents.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 45Autonomy The freedom to schedule ones own work activities and
46、decide work procedures.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 46Task Significance The impact that a job has on other people.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 47Task Identity The extent to which a job involves doing a complete piece of work, from beginning to end.Copyrigh
47、t 2011 Pearson Canada Inc.Chapter 6/ Slide 48Feedback Information about the effectiveness of ones work performance.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 49Job Diagnostic Survey The Job Diagnostic Survey (JDS) is a questionnaire to measure the core job characteristics. Individuals report
48、 the amount of the various core job characteristics contained in their jobs. An overall measure of the motivating potential of a job can be calculated from scores on the core job characteristics.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 50Motivating Potential Score The motivating potential
49、score (MPS) of a job is calculated using the following formula: Skill Task TaskMPS = variety + identity + significance x Autonomy x Feedback 3 Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 51 Jobs that are higher on the core job characteristics are more instrinsically motivating because of thei
50、r effect on three psychological states: Experienced meaningfulness of the work Experienced responsibility for the outcomes of the work Knowledge of the actual results of the work activitiesCritical Psychological StatesCopyright 2011 Pearson Canada Inc.Chapter 6/ Slide 52 Jobs that are high on skill
51、variety, task significance, and task identity are perceived as more meaningful. Jobs that are high on autonomy provide for greater personal responsibility for work outcomes. Jobs that are high on performance feedback provide workers with knowledge of the results of their work activities.Critical Psy
52、chological States (continued)Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 53Outcomes The presence of the critical psychological states leads to a number of outcomes that are relevant to both the individual and the organization: High intrinsic motivation High-quality productivity Satisfaction w
53、ith higher-order needs General satisfaction with the job Reduced absenteeism and turnover Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 54Moderators Jobs that are high in motivating potential do not always lead to favourable outcomes. Three moderator or contingency variables intervene between j
54、ob characteristics and outcomes.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 55Moderators (continued) Job-relevant knowledge and skill of the worker. Growth need strength which refers to the extent to which people desire to achieve higher-order need satisfaction by performing their jobs. Worke
55、rs who are dissatisfied with the context factors that surround their job (e.g., pay) will be less responsive to challenging work.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 56Research Evidence Workers respond more favourably to jobs that are higher in motivating potential. All five job charac
56、teristics are related to work outcomes. Among the psychological states, strongest support for experienced meaningfulness. Evidence for the role of growth needs and context satisfaction is weak or contradictory.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 57Job Enrichment The design of jobs to
57、enhance intrinsic motivation, quality of working life, and job involvement. Job enrichment involves increasing the motivating potential of jobs via the arrangement of their core job characteristics.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 58Job Involvement A cognitive state of psychologica
58、l identification with ones job and the importance of work to ones total self-image. All of the core job characteristics are positively related to job involvement. Employees who are more involved in their job have higher job satisfaction and organizational commitment, and are less likely to consider
59、leaving their organization.Copyright 2011 Pearson Canada Inc.Chapter 6/ Slide 59Job Enrichment Procedures Many job enrichment schemes include the following: Combining tasks Establishing external client relationships Establishing internal client relationships Reducing supervision or reliance on other
60、s Forming work teams Making feedback more directCopyright 2011 Pearson Canada Inc.Chapter 6/ Slide 60Combining Tasks This involves assigning tasks that might be performed by different workers to a single individual. Should increase the variety of skills employed and might contribute to task identity
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