Organizational Behavior: Motivational: From Concepts To Applications

Organizational
Behavior
Chapter 7
Motivational:
From Concepts to Applications
Copyright 2013 Pearson Education 8-1

Chapter 7 Learning Objectives
After studying this chapter you should be able to:

1. Describe the job characteristics model and evaluate the way it motivates by changing
the work environment.
2. Compare and contrast the main ways jobs can be redesigned.
3. Identify three alternative work arrangements and show how they might motive
employees.
4. Give examples of employee involvement measures and show how they can motivate
employees.
5. Demonstrate how the different types of variable-pay programs can increase employee
motivation.
6. Show how flexible benefits turn benefits into motivators.
7. Identify the motivational benefits of intrinsic rewards.

Describe the job characteristics model and
LO 1 evaluate the way it motivates by changing
the work environment
8-3
Copyright 2013 Pearson Education
Motivating Potential Score (MPS)
8-4
Much evidence supports the JCM concept that

the presence of a set of job characteristics
variety, identity, significance, autonomy, and
feedbackdoes generate higher and more
satisfying job performance.
A few studies have tested the job characteristics
model in different cultures, but the results arent
very consistent.
8-5
Compare and contrast the main
LO 2 ways jobs can be redesigned
Repetitive jobs provide little variety, autonomy, or
motivation.
Job Rotation
Referred to as cross-training.
Periodic shifting from one task to another.
Strengths of job rotation: reduces boredom, increases
motivation, and helps employees better understand their
work contributions.
Weaknesses include: creates disruptions, extra time for
supervisors addressing questions, training time and
efficiencies.
8-6
8-7
Some newer versions of job enrichment

concentrate specifically on improving the
meaningfulness of work.
One method is to relate employee
experiences to customer outcomes.
Another method for improving the
meaningfulness of work is providing
employees with mutual assistance programs.
8-8
The evidence on job enrichment shows it

reduces absenteeism and turnover costs and
increases satisfaction, but not all programs are
equally effective.
Some recent evidence suggests job enrichment
works best when it compensates for poor
feedback and reward systems.
Work design may also not affect everyone in the
same way.
8-9
Identify three alternative work arrangements
LO 2 and show how they might motive employees
8-10
Job Sharing
Two or more people split a 40-hour-a-week job.
Approximately 19 percent of large organizations now
offer job sharing.
Job sharing increases flexibility and can increase
motivation and satisfaction when a 40-hour-a-week
job is just not practical.
The major drawback is finding compatible pairs of
employees who can successfully coordinate the
intricacies of one job.
8-11
Telecommuting
Employees who do their work at home at least
two days a week on a computer that is linked to
their office.
8-12
Telecommuting Advantages
Larger labor pool
Higher productivity
Less turnover
Improved morale
Reduced office-space costs
8-13
Telecommuting Disadvantages
Employer
Less direct supervision of employees
Difficult to coordinate teamwork
Difficult to evaluate non-quantitative
performance
Employee
May not be noticed for his or her efforts
8-14
Give examples of employee involvement
LO 4 measures and show how they can
motivate employees
Common to all participative management
programs is joint decision making,
subordinates share a significant degree of
decision-making power with their immediate
superiors.
But for it to work, employees must be engaged in
issues relevant to their interests so theyll be
motivated, they must have the competence and
knowledge to make a useful contribution, and trust
and confidence must exist among all parties.
8-15
Give examples of employee involvement
LO 4 measures and show how they can
motivate employees
Almost every country in Western Europe has some
type of legislation requiring representative
participation.
The goal is to redistribute power within an
organization.
The two most common forms:
Works councils
Board representatives
8-16
Demonstrate how the different types
LO 5 of variable-pay programs can increase
employee motivation
Variable-Pay Programs
A number of organizations are moving away
from paying solely on credentials or length of
service.
Piece-rate plans, merit-based pay, bonuses,
profit sharing, gain sharing, and employee stock
ownership plans are all forms of a variable-pay
program.
Earnings therefore fluctuate up and down.
8-17
employee motivation
Piece-Rate Pay Plans
Workers are paid a fixed sum fore each unit of
production completed.
A pure piece-rate plan provides no base salary
and pays the employee only for what he or she
produces.
Although incentives are motivating and relevant
for some jobs, it is unrealistic to think they can
constitute the only piece of some employees
pay.
8-18
employee motivation
Merit-Based Pay Plansbased on performance
appraisal ratings
Main advantage is that it allows employers to
differentiate pay based on performance.
Create perceptions of relationships between
performance and rewards.
Limitations include: based on annual
performance appraisal; merit pool fluctuations
based on economic conditions; unions typically
resist merit pay plans.
8-19
employee motivation
Bonusesbecoming a wider used system in many
organizations.
An annual bonus is a significant component of
total compensation for many jobs.
Bonus plans increasingly include lower-ranking
employees; many companies now routinely
reward production employees with bonuses in
the thousands of dollars when profits improve.
Downsides of bonuses: employees pay is more
vulnerable to cuts.
8-20
employee motivation
Skill-Based Pay
An alternative to job-based pay bases pay levels
on how many skills employees have or how
many jobs they can do.
Skill-based pay plans is that they increase the
flexibility of the workforce.
Skill-based pay also facilitates communication
across the organization because people gain a
better understanding of each others jobs.
8-21
employee motivation
Profit-sharing plans are organization-wide
programs that distribute compensation based on
some established formula centered around a
companys profitability.
Profit-sharing plans at the organizational level
appear to have positive effects on employee
attitudes.
8-22
employee motivation
An employee stock ownership plan (ESOP) is a
company-established benefit plan in which
employees acquire stock, often at below-market
prices, as part of their benefits.
Research on ESOPs indicates they increase
employee satisfaction and innovation.
ESOP plans for top management can reduce
unethical behavior.
8-23
employee motivation
Do variable-pay programs increase motivation and
productivity?
The answer is a qualified yes.
Studies generally support the idea that

organizations with profit-sharing plans have higher
levels of profitability than those without them.
8-24
Show how flexible benefits turn
LO 6 benefits into motivators
Developing a Benefits Package

The idea is to allow each employee to choose a
benefit package that is individually tailored to
his/her own needs and situation.
An organization sets up a flexible spending
account for each employee, usually based on
some percentage of his or her salary, and then a
price tag is put on each benefit.
8-25
Show how flexible benefits turn
LO 6 benefits into motivators
There are three basic types of programs:

Modular Plans: Pre-designed with each module
meeting needs of a specific group of employees.
Core-plus Plans: A core of essential benefits
and a menu like selection of other benefit
options.
Flexible Spending Plans: Employees set aside a
specific dollar amount for benefits tax-free and
draw against the account for medical and dental
services as needed.
8-26
Identify the motivational benefits
LO 7 of intrinsic rewards
Intrinsic Rewards in Employee Recognition

Programs
Organizations are increasingly recognizing that
important work rewards can be both intrinsic and
extrinsic.
Rewards are intrinsic in the form of employee
recognition programs and extrinsic in the form of
compensation systems.
8-27
Identify the motivational benefits
LO 7 of intrinsic rewards
8-28
Summary and Implications for Managers
Managers should be sensitive to individual

differences.
Spend the time necessary to understand whats
important to each employee.
Use Goals and Feedback. Employees should have
firm, specific goals, and they should get feedback
on how well they are faring in pursuit of those
goals.
8-29
Summary and Implications for Managers
Allow employees to participate in decisions that

affect them.
Link rewards to performance.
Check the system for equity.
8-30
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Organizational

Copyright 2013 Pearson Education 8-1

After studying this chapter you should be able to:

2. Compare and contrast the main ways jobs can be redesigned.

6. Show how flexible benefits turn benefits into motivators.

7. Identify the motivational benefits of intrinsic rewards.

Copyright 2013 Pearson Education 8-2

Motivating Potential Score (MPS)

Much evidence supports the JCM concept that

Some newer versions of job enrichment

The evidence on job enrichment shows it

Studies generally support the idea that

Developing a Benefits Package

There are three basic types of programs:

Intrinsic Rewards in Employee Recognition

Managers should be sensitive to individual

Allow employees to participate in decisions that

Check the system for equity.

Copyright 2013 Pearson Education

Copyright 2013 Pearson Education 8-31

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