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7/29/2019 Unit II- Individual Behavior-Applications of Motivation
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UNIT II- INDIVIDUAL BEHAVIOR
PART II (B)- APPLICATIONS OF
MOTIVATION
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TOPICS TO BE DISCUSSED-
1. JOB CHARACTERISTICS MODEL2. REDESIGNING JOBS & WORK ARRANGEMENTS
3. EMPLOYEE INVOLVEMENT
4. REWARD SYSTEMS
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Applications of Motivation Job Characteristics Model: Motivating by Job design
Redesigning Jobs
Job Rotation
Job Enlargement
Job Enrichment Alternative Work Arrangements
Flextime
Job Sharing
Telecommuting
Employee Involvement
Using Rewards to motivate employees
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Motivating by Job Design
Research in Job Design provides a strongerevidence that the way elements in a job are
organized can act to increase or decrease
effort.
Elements of Job:Job Characteristic Model
developed by Oldham and Hackman
Redesigning Jobs
Alternative work arrangements
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JOB CHARACTERISTIC MODEL (JCM)
Model developed by J. Richard Hackman andGreg Oldham
Identifies five job characteristics and their
relationship to personal and work outcomes
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Job Characteristics Model
Jobs with skill variety, task identity, tasksignificance, autonomy and for which feedback ofresults is given, directly affect three psychologicalstates of employees:
Knowledge of results Meaningfulness of work
Personal feelings of responsibility for results
Increases in these psychological states result in
increased motivation, performance and jobsatisfaction.
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JCM: Core Dimensions explained..
Skill Variety
The degree to which a job requires a variety ofdifferent activities (how may different skills are
used in a given day, week, month?)
Task Identity
The degree to which the job requires completion of a
whole and identifiable piece of work (from beginning to
end)
Task Significance
The degree to which the job has a substantial impact on
the lives or work of other people
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JCM: Core Dimensions explained..(contd.)
Autonomy
The degree to which the job provides substantial
freedom, independence and discretion to the individual in
scheduling the work and in determining the procedures to
be used in carrying it out.
Feedback
The degree to which carrying out the work activities
required by a job results in the individual obtaining directand clear information about the effectiveness of his or her
performance.
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Examples of High and Low Job Characteristics
Characteristics Examples
Skill Variety High variety The owner-operator of a garage who does electrical repair, rebuilds engines,
does body work, and interacts with customers
Low variety A bodyshop worker who sprays paint eight hours a day
Task Identity
High identity A cabinetmaker who designs a piece of furniture, selects the wood, builds the
object, and finishes it to perfection
Low identity A worker in a furniture factory who operates a lathe to make table legs
Task Significance
High significance Nursing the sick in a hospital intensive care unit
Low significance Sweeping hospital floors
Autonomy
High autonomy A telephone installer who schedules his or her own work for the day, and
decides on the best techniques for a particular installation
Low autonomy A telephone operator who must handle calls as they come according to a
routine, highly specified procedure
Feedback
High feedback An electronics factory worker who assembles a radio and then tests it to
determine if it operates properly
Low feedback An electronics factory worker who assembles a radio and then routes it to a
quality control inspector who tests and adjusts it
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The Job Characteristics Model
Source: J.R. Hackman and G.R. Oldham, Work Design
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Moderating Variables for the Job Characteristics Model
Growth need strength i.e employees need forself-esteem and self-actualization
job is a vehicle for personal growth, sense ofachievement and avenue for feeling success
Individuals with high growth needs are more likelyto experience the psychological states than theircounterparts
Knowledge and skills
Satisfaction with extrinsic aspects of work
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MOTIVATING POTENTIAL SCORE (MPS)
The core dimensions of a job can be combined into a
single predictive index called MPS
Computing MPS:
Jobs that are high on MPS must be high on at least
one of the core dimensions (that lead toexperiencing meaningfulness) and they must be high
on both autonomy and feedback.
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Job Characteristics and motivation
If jobs score high on MPS, the model predictsthat the motivation, performance andsatisfaction will be positively affected and thatthe likelihood of absence and turnover will be
reduced. Job dimensions operate through the
psychological states in influencing personaland work outcome variables rather thaninfluencing them directly.
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Implementing Concepts for the Job Characteristics Model
Combine tasks: Effects skill variety, task
identity, & task significance
Group tasks into natural work units: Effects
task significance and task identity
Give workers contact with customers: Effects
skill variety, autonomy and feedback
Vertically load jobs: Effects autonomy
Open feedback channels: Effects feedback
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Critical Appraisal of Job Characteristics Model
JCM has been well researched and most of theevidence supports the general framework of thetheory
MPS Model may not work- we can better derive MPSby adding the job characteristics rather than usingthe complex formula
Effect of other Moderating Variables ignored:Beyond employee growth-need strength, othervariables such as employees perception of his/herworkload compared with that of others
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JOB REDESIGN
Job redesign the process by which managers
reconsider what employees are expected to
do
The well-being of organizations and people
relates to how well management designs jobs
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REDESIGNING JOBS
Job Rotation
The periodic shifting of a worker from one task to another
Job EnlargementThe horizontal expansion of jobs
Job Enrichment
The vertical expansion of jobs
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Job Enlargement
Job Enlargement is a job design that combine s a series of
task into one new, broader job to give employees varietyand challenge
Involves an increase in the variety of an employeesactivities without increasing decision making authority
Also known as horizontal job expansion
Job enlargement does improve worker satisfaction andthe quality of production
It does not appear to affect the quantity of production
Increasing the number of tasks for which an individual is
responsible Increases job range, but not depth
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Job Rotation
Job Rotation is a job design that systematically
moves employees from one job to another toprovide them with variety and stimulation.
Moving individuals from one job to another
Individual completes more job activities becauseeach job includes different tasks
Involves increasing the range of jobs and theperception of variety in job content
Also known as Cross-training
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Job Rotation: Advantages
Results in increasing flexibility and avoidinglayoffs
Reduces boredom, increases motivation throughdiversifying employees activities and helps
employees better understand how their workcontributes to organization
Also helps employees to widen their range ofskills; This indirectly helps the organization by
giving management more flexibility in schedulingwork, adapting to changes and filling vacancies
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Job Rotation: Drawbacks
Increases training costs Productivity is reduced by moving a worker
into a new job just when efficiency at the priorjob was about to create organizational
economies Also creates disruptions
Adjustment problems
Increased supervision and monitoringrequired
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Job Rotation vs. Job Enlargement
In Job Rotation, jobs are not redesigned;
employees simply move from one job to
another.
Nature of the work does not change in case of
Job Rotation whereas Job Enlargement
actually involves changing the job
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Job Enrichment
Concerned with designing jobs that include agreater variety of work content, require higher
level of knowledge and skill, more autonomy
and responsibility, opportunity for personal
growth and a meaningful work experience.
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Job Enrichment
The practice of increasing discretionindividuals can use to select activities andoutcomes
Increases job depth and accordingly fulfills
growth and autonomy needsIt is an extension of job rotation and job
enlargement techniques of job redesign
Herzbergs two-factor theory of motivation isthe impetus for designing job depth
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Guidelines for Enriching a Job
Managers can provide employees with greateropportunities to exercise discretion by makingthe following changes:
Direct feedback
New learning Scheduling
Uniqueness
Control over resources
Personal accountability
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Guidelines for Enriching a Job
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ALTERNATIVE WORK ARRANGEMENTS
Another approach to make the work
environment more motivating
Alternative work arrangements include:
Flextime
Job Sharing
Telecommuting
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Flextime
Employees work during a commoncore time period each day but havediscretion in forming their totalworkday from a flexible set of hoursoutside the core.
Short for flexible work time
Allows employees some discretion overwhen they arrive and when they leave
All employees are required to be attheir jobs during the common coreperiod
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Example of a Flextime Schedule
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FLEXTIME: Advantages
Reduced absenteeism
Increased productivity
Reduced overtime expenses
Reduced hostility towards management
Reduced traffic congestion around work sites Elimination oftardiness and absences
Enables employees adjust their work activities to
those hours when they are individually mostproductive
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Job Sharing
The practice of having two or more people
split a 40-hour-a-week job
Two employees share the responsibility of one
full-time position, with the salary, vacation and
leave, pension rights, and fringe benefits dividedbetween them, in proportion to the time each one
works.
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Telecommuting
Employees do their work at home on a computer
that is linked to their office. The linking of ones home computer with the
employers computer system which permits thecompletion of all or part of ones job at home
Jobs suitable for telecommuting: routine information handling
mobile activities
other professional and knowledge related tasks
Growth in this area is massive Societal, environmental, psychological and
economic benefits
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TELECOMMUTING: Advantages
Reduced overheads (reduced need for office
space)
Employees content over being close to
families
Higher job satisfaction levels
Higher productivity
Less turnover Improved morale
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TELECOMMUTING: Disadvantages
Lack of face-time (social isolation)
Less direct supervision of employees
Difficult to coordinate teamwork
Difficult to evaluate non-quantitativeperformance
f
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Performance Dimensions
Performance=f(A X M X O)
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EMPLOYEE INVOLVEMENT
A participative process, that uses the inputs and
entire capacity of employees related to decisionsthat affect them, designed to encourage andincrease the commitment to the organization'ssuccess
Increasing employees autonomy and control overtheir work lives
As a result, employees become more motivated,
more committed to the organisation Increases their productivity and job satisfaction
l I l
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Employee Involvement Programs
Participative management
Representative participation
Quality Circles
P ti i ti t
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Participative management
Joint Decision Making: Subordinates share asignificant degree of decision-making powerwith their immediate superiors
Increases morale and employee productivity
Essentials: Employees must have the competence and
knowledge to make a useful contribution
Trust and confidence among parties involved
Issues must be relevant to employees interests
R t ti ti i ti
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Representative participation
A system in which workers participate in organizational
decision making through a small group ofrepresentative employees
The goal is to redistribute power within anorganization, putting labour on a more equal footing
with the interest of management and stockholders Forms of representative participation:
Work Councils: Groups of nominated or electedemployees who must be consulted when management
makes decisions involving personnel Board representatives: Employees who sit on a
companys board of directors and represent the interestof the firms employees
Q lit Ci l
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Quality Circles
A Quality circle is:
A voluntary groups of employees who work on
similar tasks or share an area of responsibility.
agree to meet on a regular basis to discuss &
solve problems related to work.
operate on the principle that employee
participation in decision-making and problem-
solving improves the quality of work.
Q lit Ci l
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Quality Circles
Advantages of quality circles:
Improve Quality
Increase Productivity
Boost Employee Morale
Li ki EI P d M ti ti Th i
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Linking EI Programs and Motivation Theories
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I Establishing a pa str ct re What to pa ?
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I. Establishing a pay structure: What to pay?
Process of initially setting pay levels iscomplicated and shall balance internal equityand external equity: Internal Equity: the worth of the job to the
organization
Established throughJob Evaluation External Equity: the external competitiveness of an
organizations pay relative to pay elsewhere in itsindustry
The best pay system is the one that pays a jobwhat it is worth while also paying competitiverelative to other firms in the same industry
I Establishing a pay structure What to pay? (contd )
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I. Establishing a pay structure: What to pay?....(contd.)
Trade-off b/w paying more & paying less
Paying more than the competitors helps in
attracting and retaining better-qualified and highly
motivated employees but paying too much can
make the organizations products or services tooexpensive
Paying less than the competitors (Lag the market)
may lead to high employee turnover; high cost of
recruitment etc.
II Rewarding Individual Employees: How to Pay?
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II. Rewarding Individual Employees: How to Pay?
Variable Pay Programs: A pay plan that bases aportion of an employees pay on some individualand/or organization measure of performance.
Piece rate pay plans
Merit-based pays Bonuses
Profit sharing plans
Gain sharing plans ESOPs
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Variable Pay Programs (contd )
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Variable-Pay Programs.(contd.)
Merit-based Pay Plans
A pay plan based on performance appraisal ratings Allow employers to differentiate pay based on
performance
Ideal for those employed in sales-driven capacities
Individual effort and ambition are linked directly to reward,
thereby boosting employee morale
Further employees' commitment toward achieving
company goals
Creates and cultivates an environment for a strong, highly
productive workforce; allowing employers to retain toptalent
Merit based pay example: CITY OF MILTON
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Merit-based pay example: CITY OF MILTON
Source: http://www.mrsc.org/policyprocedures/m54comp.pdf
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Variable Pay Programs (contd )
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Variable-Pay Programs.(contd.)
Skill-based pay
A pay plan that sets pay levels on the basis of how many
skills employees have or how many jobs they can do
Also known as Competency-based and knowledge-
based pay
For example: Frito-Lay Corporation ties its
compensation for front-line operations managers todeveloping their skills in leadership, workforce
development, and functional excellence
Variable-Pay Programs (contd )
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Variable-Pay Programs.(contd.)
Skill-based pay
Advantages
Provides staffing flexibility
Facilitates communication across the organization
Lessens protection of territory behaviors
Meets the needs of employees foradvancement (without promotion)
Leads to performance improvements
Disadvantages
May frustrate the employer resulting from top out
Continuing to pay employees for skills that have become obsolete
Paying for skills that are ofno immediate use to the organization
Paying for a skill, not for the level of employee performance for theparticular skill
Variable-Pay Programs (contd )
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Variable-Pay Programs.(contd.)
Profit Sharing Plans
Organization-wide programs that distribute compensationbased on some established formula designed around a
companys profitability
Gain Sharing
An incentive plan in which improvements in groupproductivity determine the total amount of money that is
allocated.
Employee Stock Ownership Plans (ESOPs)
Company-established benefit plans in which employees
acquire stock often at below market prices as part of
their benefits.
III Flexible Benefits: Developing a benefits package
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III. Flexible Benefits: Developing a benefits package
Flexible Benefits
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Flexible Benefits
A benefits plan that allows employees to select
from a pool of choices, some or all of which may
be tax-advantaged.
Potential choices include cash, retirement plan
contributions, vacation days, health insurance,retirement benefits and reimbursement accounts
that employees can use to pay for out-of-pocket
health or dependent care expenses
Also called cafeteria plan.
IV Intrinsic Rewards: Employee Recognition Programs
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IV. Intrinsic Rewards: Employee 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
Encourages repetition of desired behaviors
Drawbacks of Programs Susceptible to manipulation by management
Implications for Managers
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Implications for Managers
In Order to Motivate Employees:
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
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I. Motivation in action : Enterprise Rent-A-Car
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I. Motivation in action : Enterprise Rent A Car
Customer service involves all those activities designed toidentify and satisfy customer needs. The company uses asimple customer satisfaction survey - the Enterprise ServiceQuality index (ESQi) - to find out how satisfied its customersare. It is based on two simple questions:
Were you completely satisfied with your rental experience
at Enterprise? Given the opportunity to return to Enterprise, would you?
Enterprise knows that to perform well on the ESQi it needsto have motivated employees. The company prides itself onproviding superb customer service. Only highly motivatedstaff will provide this quality of service. Employees dealwith customers face-to-face and by phone, email andonline.
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II. Motivation within a creative environment: Siemens
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o a o a c ea e e o e S e e s
Opportunities
Siemens provides opportunities for young people at alllevels to enter the world of engineering. It recruits at anumber of different levels. For example, it offersapprenticeships for those entering the company withGCSEs. There are programs for individuals with A-levels
that provide work experience alongside the opportunityto study for a degree.
Siemens also recruits undergraduates and graduates intoprofessional engineering jobs. It goes beyond thestandard approaches to attracting good people because
its employees enable it to be competitive. This approachhas led to Siemens becoming an open culture withopportunities for employees at all levels.
II. Motivation within a creative environment: Siemens
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Opportunities
Siemens provides opportunities for young people at alllevels to enter the world of engineering. It recruits at anumber of different levels. For example, it offersapprenticeships for those entering the company withGCSEs. There are programs for individuals with A-levels
that provide work experience alongside the opportunityto study for a degree.
Siemens also recruits undergraduates and graduates intoprofessional engineering jobs. It goes beyond thestandard approaches to attracting good people because
its employees enable it to be competitive. This approachhas led to Siemens becoming an open culture withopportunities for employees at all levels.
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