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Why Goals Motivate
• Mobilize energy in relation to goal
• Focus attention towards goals attainment
• Encourages setting of action plans or strategies for goal attainment
• Encourages persistence until goal is attained
Incentives for Individuals
• For Executives– Compensation tied to achieving strategic goals
• For Lower Level Employees– Tied to performance: bonuses, commissions,
piecework
Where Pay Fails to Motivate
• Bonuses or merit pay is too small
• Non-existent link between pay and performance
• Performance appraisal is done poorly
• Effect of unions
• Adaptation problems
Effective Reward Systems
• Set high goals for performance
• Develop accurate ways to measure performance
• Train supervisors in performance appraisal
• Link pay to performance
• Make increases noticeable and meaningful
Hackman & Oldham’s Job Characteristics Model
Core Dimensions Psychological States Outcomes
Skill VarietyTask IdentityTask Signif.
Autonomy
Feedback
Meaningfulness of Work
Responsibilityfor outcomes
Knowledge ofResults
High intrinsicmotivationHigh job per-ormanceHigh job satis-factionLow absenteeism & turnover
Moderating Variables for the Job Characteristics Model
• Growth need strength– job is a vehicle for personal growth, sense of
achievement, avenue for feeling success
• Knowledge and skills
• Satisfaction with extrinsic aspects of work
Motivating Potential Score
MPS =
Skill Variety +Task Identity+Task Significance3
X
Autonomy
X
Feedback
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, feedback
• Vertically load jobs: Effects autonomy• Open feedback channels: Effects feedback
Criticisms of the Job Characteristics Model
• Job characteristics are not distinct
• Link to critical psychological states is not clear
• Individual differences have an important effect
• Job outcomes are not clearly linked to job characteristics
Designing Jobs for Teams
• Team has to be an identifiable group, doing a specified piece of work, and be self-managing
• Key behaviors: Ask for ideas, give suggestions,. listen to others, share information, help others
• Manager’s role: Make alterations needed for effective group performance, consult
Business Process Re-engineering
• The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as quality, service and speed. (Hammer & Champy, 1993)
What BPR Is & Is Not
• Deals with business processes (work activities with a beginning & end with inputs & outputs)
• Process is difficult to see
• Does not deal with structure
• Structure is easily seen• Not replacement of
computer systems• Not technology
initiated• Not a piecemeal
approach
Role of Technology in BPR
• Re-engineering originally used with change in software systems or hardware
• These changes in Information Technology often accompany BPR
• Information technology support BPR and enables the reconstruction of work
Demand -Control Model of Job Strain
• Decision latitude and psychological demands
• Job strain level and activity level
• Interaction of demands and decision making
• Social support
Decision Latitude and Psychological Demands
• Decision latitudes - Combination of decision making authority and opportunity to use and develop skills on the job
• Psychological demands - The mental workload or intellectual requirements of the job
Job Strain Level and Activity Level
• Job strain level - level of stress derived from the workplace. Job strain relates positively to feelings of passivity and helplessness on the job
• Activity level - Level of job demands in relation to decision latitude.– High activity - lawyers, engineers, teachers, nurses
– Low activity - clerks, janitors
Interaction of Demands & Decision Making
Job demandsHigh Low
JobDecisionLatitude
High
Low
Low Strain
High Strain
Active
PassiveRisk of psychologicalstrain & illness
Activelearning, etc.