eleventh organizational ior editi on behav stephen p robbins Chapter Motivation: From Concept to Applications ORGANIZATIONAL BEHAVIOR S T E P H E N P R O B B I N S E L E V E N T H © 2005 Prentice Hall Inc All rights reserved E D I T I O N WWW PRE N HALL C OM / ROB BI N S PowerPoint Presentation by Charlie Cook OBJECTIVES LEARNING After studying this chapter, you should be able to: Identify the four ingredients common to MBO programs Explain why managers might want to use employee involvement programs Contrast participative management with employee involvement Explain how ESOPs can increase employee motivation Describe how a job can be enriched © 2005 Prentice Hall Inc All rights reserved 7–3 O B J E C T I V E S (cont’d) LEARNING After studying this chapter, you should be able to: Compare the benefits and drawbacks to telecommuting from the employee’s point of view Contrast gainsharing and profit sharing Describe the link between skill-based pay plans and motivation theories Explain how flexible benefits turn benefits into motivators © 2005 Prentice Hall Inc All rights reserved 7–4 What What is is MBO? MBO? Management by Objectives (MBO) A program that encompasses specific goals, participatively set, for an explicit time period, with feedback on goal progress Key KeyElements Elements 1 Goal Goalspecificity specificity 2 3 Participative Participativedecision decisionmaking making An Anexplicit explicittime timeperiod period 4 Performance Performancefeedback feedback © 2005 Prentice Hall Inc All rights reserved 7–5 Cascading Cascading of of Objectives Objectives © 2005 Prentice Hall Inc All rights reserved E X H I B I T 7–1 E X H I B I T 7–1 7–6 Linking Linking MBO MBO and and Goal-Setting Goal-Setting Theory Theory MBO Goal-Setting Theory Goal Specificity Yes Yes Goal Difficulty Yes Yes Feedback Yes Yes Participation Yes No (qualified) © 2005 Prentice Hall Inc All rights reserved 7–7 Why Why MBO’s MBO’s Fail Fail  Unrealistic expectations about MBO results  Lack of commitment by top management  Failure to allocate reward properly  Cultural incompatibilities © 2005 Prentice Hall Inc All rights reserved 7–8 Employee Employee Recognition Recognition Programs Programs  Types of programs – Personal attention – Expressing interest – Approval – Appreciation for a job well done  Benefits of programs – Fulfill employees’ desire for recognition – Encourages repetition of desired behaviors – Enhance group/team cohesiveness and motivation – Encourages employee suggestions for improving processes and cutting costs © 2005 Prentice Hall Inc All rights reserved 7–9 © 2005 Prentice Hall Inc All rights reserved From the Wall Street Journal, October 21, 1997 Reprinted by permission of Cartoon Features Syndicate E X H I B I T 7–2 E X H I B I T 7–2 7–10 Examples Examples of of Employee Employee Involvement Involvement Programs Programs (cont’d) (cont’d) Quality Circle A work group of employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions, and take corrective actions © 2005 Prentice Hall Inc All rights reserved 7–15 Examples Examples of of Employee Employee Involvement Involvement Programs Programs (cont’d) (cont’d) Employee Stock Ownership Plans (ESOPs) Company-established benefit plans in which employees acquire stock as part of their benefits © 2005 Prentice Hall Inc All rights reserved 7–16 Linking Linking EI EI Programs Programs and and Motivation Motivation Theories Theories Theory TheoryYY Participative Participative Management Management Employee Employee Involvement Involvement Programs Programs Two-Factor Two-Factor Theory Theory Intrinsic Intrinsic Motivation Motivation ERG ERGTheory Theory Employee Employee Needs Needs © 2005 Prentice Hall Inc All rights reserved 7–17 Job Job Design Design and and Scheduling Scheduling Job Rotation The periodic shifting of a worker from one task to another Job Enlargement The horizontal expansion of jobs Job Enrichment The vertical expansion of jobs © 2005 Prentice Hall Inc All rights reserved 7–18 Guidelines Guidelines for for Enriching Enriching aa Job Job © 2005 Prentice Hall Inc All rights reserved Source: J.R Hackman and J.L Suttle, eds., Improving Life at Work (Glenview, IL: Scott Foresman, 1977), p 138 E X H I B I T 7–4 E X H I B I T 7–4 7–19 Work Work Schedule Schedule Options Options Flextime Employees work during a common core time period each day but have discretion in forming their total workday from a flexible set of hours outside the core Job Sharing The practice of having two or more people split a 40-hour-a-week job © 2005 Prentice Hall Inc All rights reserved 7–20 Example Example of of aa Flextime Flextime Schedule Schedule © 2005 Prentice Hall Inc All rights reserved E X H I B I T 7–5 E X H I B I T 7–5 7–21 Work Work Schedule Schedule Options Options Telecommuting Employees their work at home on a computer that is linked to their office Categories Categoriesof oftelecommuting telecommutingjobs: jobs: • • Routine Routineinformation informationhandling handlingtasks tasks • • Mobile Mobileactivities activities • • Professional Professionaland andother otherknowledge-related knowledge-relatedtasks tasks © 2005 Prentice Hall Inc All rights reserved 7–22 Telecommuting Telecommuting  Advantages – Larger labor pool – Higher productivity – Less turnover – Improved morale – Reduced office-space costs © 2005 Prentice Hall Inc All rights reserved  Disadvantages (Employer) – Less direct supervision of employees – Difficult to coordinate teamwork – Difficult to evaluate non-quantitative performance 7–23 Variable Variable Pay Pay Programs Programs Variable Pay Programs A portion of an employee’s pay is based on some individual and/or organization measure of performance • Piece rate pay plans • Profit sharing plans • Gain sharing plans © 2005 Prentice Hall Inc All rights reserved 7–24 Variable Variable Pay Pay Programs Programs (cont’d) (cont’d) Piece-rate Pay Plans Workers are paid a fixed sum for each unit of production completed Profit-Sharing Plans Organizationwide programs that distribute compensation based on some established formula designed around a company’s profitability Gain Sharing An incentive plan in which improvements in group productivity determine the total amount of money © 2005 Prentice Hall Inc that is allocated All rights reserved 7–25 Skill-Based Skill-Based Pay Pay Plans Plans Pay levels are based on how many skills employees have or how many jobs they can Benefits Benefitsof ofSkill-based Skill-basedPay PayPlans: Plans: 1.1 2.2 Provides Providesstaffing staffingflexibility flexibility Facilitates Facilitatescommunication communicationacross acrossthe theorganization organization 3.3 4.4 Lessens Lessens“protection “protectionof ofterritory” territory”behaviors behaviors Meets Meetsthe theneeds needsof ofemployees employeesfor foradvancement advancement (without (withoutpromotion) promotion) 5.5 Leads Leadsto toperformance performanceimprovements improvements © 2005 Prentice Hall Inc All rights reserved 7–26 Skill-Based Skill-Based Pay Pay Plans Plans (cont’d) (cont’d) Drawbacks Drawbacksof ofSkill-based Skill-basedPay PayPlans: Plans: 1.1 Lack Lackof ofadditional additionallearning learningopportunities opportunitiesthat thatwill will increase increaseemployee employeepay pay 2.2 Continuing Continuingto topay payemployees employeesfor forskills skillsthat thathave have become becomeobsolete obsolete 3.3 Paying Payingfor forskills skillswhich whichare areof ofno noimmediate immediateuse use to tothe theorganization organization 4.4 Paying Payingfor foraaskill, skill,not notfor forthe thelevel levelof ofemployee employee performance performancefor forthe theparticular particularskill skill © 2005 Prentice Hall Inc All rights reserved 7–27 Flexible Flexible Benefits Benefits Employees tailor their benefit program to meet their personal need by picking and choosing from a menu of benefit options Modular ModularPlans: Plans: predesigned predesignedbenefits benefits packages packagesfor forspecific specific groups groupsof ofemployees employees © 2005 Prentice Hall Inc All rights reserved Core-Plus Core-PlusPlans: Plans: aacore coreof ofessential essential benefits benefitsand andaamenu-like menu-like selection selectionof ofother otherbenefit benefit options options Flexible FlexibleSpending SpendingPlans: Plans: allow allowemployees employeesto touse use their theirtax-free tax-freebenefit benefit dollars dollarspurchase purchasebenefits benefits and andpay payservice service premiums premiums 7–28 Implications Implications for for Managers Managers  Motivating Employees in Organizations – 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 © 2005 Prentice Hall Inc All rights reserved 7–29 [...]... Employee Stock Ownership Plans (ESOPs) Company-established benefit plans in which employees acquire stock as part of their benefits © 2005 Prentice Hall Inc All rights reserved 7–16 Linking Linking EI EI Programs Programs and and Motivation Motivation Theories Theories Theory TheoryYY Participative Participative Management Management Employee Employee Involvement Involvement Programs Programs Two-Factor... Employee Involvement Involvement Programs Programs Two-Factor Two-Factor Theory Theory Intrinsic Intrinsic Motivation Motivation ERG ERGTheory Theory Employee Employee Needs Needs © 2005 Prentice Hall Inc All rights reserved 7–17 Job Job Design Design and and Scheduling Scheduling Job Rotation The periodic shifting of a worker from one task to another Job Enlargement The horizontal expansion of jobs Job... communicationacross acrossthe theorganization organization 3.3 4.4 Lessens Lessens“protection “protectionof ofterritory” territory”behaviors behaviors Meets Meetsthe theneeds needsof ofemployees employeesfor foradvancement advancement (without (withoutpromotion) promotion) 5.5 Leads Leadsto toperformance performanceimprovements improvements © 2005 Prentice Hall Inc All rights reserved 7–26 Skill-Based... learningopportunities opportunitiesthat thatwill will increase increaseemployee employeepay pay 2.2 Continuing Continuingto topay payemployees employeesfor forskills skillsthat thathave have become becomeobsolete obsolete 3.3 Paying Payingfor forskills skillswhich whichare areof ofno noimmediate immediateuse use to tothe theorganization organization 4.4 Paying Payingfor foraaskill, skill,not notfor forthe thelevel levelof... employeesto touse use their theirtax-free tax-freebenefit benefit dollars dollarspurchase purchasebenefits benefits and andpay payservice service premiums premiums 7–28 Implications Implications for for Managers Managers  Motivating Employees in Organizations – Recognize individual differences – Use goals and feedback – Allow employees to participate in decisions that affect them – Link rewards to performance... Less turnover – Improved morale – Reduced office-space costs © 2005 Prentice Hall Inc All rights reserved  Disadvantages (Employer) – Less direct supervision of employees – Difficult to coordinate teamwork – Difficult to evaluate non-quantitative performance 7–23 Variable Variable Pay Pay Programs Programs Variable Pay Programs A portion of an employee’s pay is based on some individual and/or organization...What What is is Employee Employee Involvement? Involvement? Employee Involvement Program A participative process that uses the entire capacity of employees and is designed to encourage increased commitment to the organization’s success © 2005 Prentice Hall Inc All rights reserved 7–11 © 2005 Prentice Hall Inc All rights reserved Source: Courtesy of Phoenix Inn Suites E X H I B I T 7–3 E... Representative A form of representative participation; employees sit on a company’s board of directors and represent the interests of the firm’s employees 7–14 Examples Examples of of Employee Employee Involvement Involvement Programs Programs (cont’d) (cont’d) Quality Circle A work group of employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions, and take corrective... performancefor forthe theparticular particularskill skill © 2005 Prentice Hall Inc All rights reserved 7–27 Flexible Flexible Benefits Benefits Employees tailor their benefit program to meet their personal need by picking and choosing from a menu of benefit options Modular ModularPlans: Plans: predesigned predesignedbenefits benefits packages packagesfor forspecific specific groups groupsof ofemployees employees... p 138 E X H I B I T 7–4 E X H I B I T 7–4 7–19 Work Work Schedule Schedule Options Options Flextime Employees work during a common core time period each day but have discretion in forming their total workday from a flexible set of hours outside the core Job Sharing The practice of having two or more people split a 40-hour-a-week job © 2005 Prentice Hall Inc All rights reserved 7–20 Example Example of