Unit II- Individual Behavior-Applications of Motivation

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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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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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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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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Documents

Unit II- Individual Behavior-Applications of Motivation