Johns Org-Behaviour 10e PPT ch06

Chapter 6
Motivation in Practice
Canada Inc.
Copyright © 2017 Pearson Chapter 6/ Slide 1
Learning Objectives
LO6.1 Discuss how to tie pay to performance

on production jobs and the difficulties of
wage incentive plans.
LO6.2 Explain how to tie pay to performance
on white-collar jobs and the difficulties
of merit pay plans.
LO6.3 Explain the various approaches to use
pay to motivate teamwork.
Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 2

Learning Objectives (continued)
LO6.4 Compare and contrast the different

approaches to job design including the
traditional approach, the Job
Characteristics Model, job enrichment, work
design, and relational job design.
LO6.5 Understand the connection between
goal setting and Management by
Objectives.

Learning Objectives (continued)
LO6.6 Explain how flexible work

arrangements respect employee
diversity.
LO6.7 Describe the factors that
organizations should consider when
choosing motivational practices.

Money as a Motivator
• How important is pay for you?

(continued)
• Employees and managers seriously
underestimate the importance of pay as a
motivator.

(continued)
• How effective is pay as a motivator?

(continued)
• The motivation theories suggest that pay is a
very important motivator.

Money as a Motivator: Need
Theories
• Pay can satisfy lower-level needs as well as
social, self-esteem, and self-actualization
needs so it should have good potential as a
motivator.
• How can this potential be realized?

Money as a Motivator:
Expectancy Theory
• If pay can satisfy a variety of needs, it should

be highly valent, and it should be a good
motivator to the extent that it is clearly tied
to performance.

(continued)
• Financial incentives and pay-for-performance
plans have been found to increase
performance and lower turnover.
• Pay may well be the most important and
effective motivator of performance.
• The ability to earn money for outstanding
performance is a competitive advantage for
attracting, motivating, and retaining
employees.

Linking Pay to Performance on
Production Jobs
• The prototype of all schemes to link pay to
performance on production jobs is piece-rate.
• Piece-rate refers to a pay system in which
individual workers are paid a certain sum of
money for each unit of production they
complete.

Production Jobs (continued)
• Various schemes to link pay to performance
on production jobs are called wage incentive
plans.
• The introduction of wage incentives usually
leads to substantial increases in productivity.
• One of the best examples of the successful
use of a wage incentive plan is the Lincoln
Electric Company.

Production Jobs (continued)
• Not as many organizations use wage
incentives as you might expect.
• What accounts for the relatively low
utilization of a motivational system that has
proven results?

Potential Problems with Wage
Incentives
• Wage incentives have some potential
problems when they are not managed with
care:
– Lowered quality
– Differential opportunity
– Reduce cooperation
– Incompatible job design
– Restriction of productivity

Lowered Quality
• Wage incentives can increase productivity at

the expense of quality.
• Requires a system to monitor and maintain
quality.

Differential Opportunity
• A threat to the establishment of wage

incentives exists when workers have
differential opportunities to produce at a high
level.
• If the supply of raw materials or the quality
of production equipment varies from
workplace to workplace.

Reduced Cooperation
• Wage incentives that reward individual

productivity might decrease cooperation
among workers.
• Workers might hoard raw materials or refuse
to engage in peripheral tasks (e.g., keeping
the shop clean).

Incompatible Job Design
• The way jobs are designed can make it very

difficult to implement wage incentives.
• On an assembly line it is almost impossible to
identify and reward individual contributions
to productivity.

Incompatible Job Design
(continued)
• Wage incentive systems can be designed to
reward team productivity.
• However, as the size of the team increases,
the relationship between any individual’s
productivity and his or her pay decreases.
• As team size increases the intended incentive
effect is reduced.

Restriction of Productivity
• The artificial limitation of work output that

can occur under wage incentive plans.
• Workers come to an informal agreement
about what constitutes a fair day’s work and
artificially limit their output accordingly.
• This can decrease the expected benefits of
the incentive system.
• Why does restriction often occur under wage
incentive systems?

Hypothetical Productivity
Distributions

Reasons for Restriction of
Productivity
• Employees feel that increased productivity
due to the incentive will lead to reductions in
the workforce.
• Employees fear that if they produce at an
especially high level, an employer will reduce
the rate of payment to cut labour costs.
• Restriction is less likely when a climate of
trust and a history of good relations exist
between employees and management.

White-Collar Jobs
• Objective indicators of individual
performance on white-collar jobs are often
difficult to find.
• Performance in many such jobs is evaluated
by the subjective judgment of an individual’s
manager.

White-Collar Jobs (continued)
• Merit pay plans are systems that attempt to

link pay to performance on white-collar jobs.
• Managers evaluate the performance of
employees and then recommend some
amount of merit pay be awarded.
• Although merit pay can improve performance,
many merit pay systems are ineffective.

White-Collar Jobs (continued)
• Individuals who work under such a system
often do not perceive a link between their
job performance and pay.
• There is also evidence that pay is not related
to performance under some merit pay plans.
• In most organizations, seniority, number of
employees, and job level account for more
variation in pay than performance.

Potential Problems with Merit
Pay Plans
• Merit pay plans have several potential
problems if employers do not manage them
carefully:
– Low discrimination
– Small increases
– Pay secrecy

Low Discrimination
• Managers might be unable or unwilling to

discriminate between good performers and
poor performers.
• Subjective evaluations of performance are
often distorted by a number of perceptual
errors.

Small Increases
• Sometimes merit increases are too small to
be effective motivators.
• Some firms have replaced conventional merit
pay with a lump sum bonus that is paid out all
at one time and not built into base pay.
• Management has to ensure that it ties such
bonuses to performance criteria that benefit
the organization.

Pay Secrecy
• Extreme secrecy that surrounds salaries in

most organizations.
• Pay secrecy can severely damage the
motivational impact of a well-designed merit
plan.
• Many organizations fail to inform employees
about the average raise received by those
doing similar work.

Pay Secrecy (continued)
• Managers overestimate the pay of their

employees and their peers and underestimate
the pay of their superiors.
• These tendencies reduce satisfaction with
pay, damage perceptions of the linkage
between performance and rewards, and
reduce the valence of promotion to a higher
level of management.

A Manager’s Estimates of Pay
Earned by Boss, Peers, and
Subordinates

Pay Secrecy (continued)
• Pay disclosure can increase performance and

satisfaction with pay if the system is properly
designed and implemented.
• If performance evaluation systems are
inadequate and poorly implemented, a more
open pay policy will simply expose the
inadequacy of the merit system and lead
managers to evaluate performance in a
manner that reduces conflict.

Using Pay to Motivate
Teamwork
• Some firms have either replaced or
supplemented individual incentive pay with
plans designed to foster more cooperation
and teamwork.
• Organizations have to choose pay plans that
support their strategic needs.

Pay Plans to Motivate Teamwork
• Each of the following plans has a different

motivational focus:
– Profit sharing
– Employee stock ownership plans (ESOPs)
– Gainsharing
– Skill-based pay

Profit Sharing
• The return of some company profit to

employees in the form of a cash bonus or a
retirement supplement.
• One of the most commonly used group-
oriented incentive systems.

Profit Sharing (continued)
• A major problem is that many factors beyond

the control of the workforce can affect
profits no matter how well people perform
their jobs.
• In a large firm, it is difficult to see the
impact of one’s own actions on profits.
• Profit sharing works best in small firms that
regularly turn a profit.

Employee Stock Ownership
Plans (ESOPs)
• Incentive plans that allow employees to own

a set amount of a company’s shares and
provide employees with a stake in the
company’s future earnings and success.
• They can increase employee loyalty and
motivation.
• They align employees’ goals and interests
with those of the organization and create a
sense of legal and psychological ownership.

Plans (ESOPs) (continued)
• Some evidence that ESOPs improve employee

retention and profitability.
• They work best in small organizations that
regularly make a profit.
• In large organizations, it is difficult for
employees to see the connection between
their efforts and company profits.

Plans (ESOPs) (continued)
• Many other factors can influence the value of

a company’s stock besides employee effort
and performance.
• They lose their motivational potential in a
weak economy when a company’s share price
goes down.

Gainsharing
• A group pay incentive plan based on

productivity or performance improvements
over which the workforce has some control.
• Such plans often include reductions in the
cost of labour, material, or supplies.

Gainsharing (continued)
• When measured costs decrease, the company

pays a monthly bonus according to a
predetermined formula that shares the “gain”
between employees and the firm.
• They are usually implemented using
committees that include extensive workforce
participation.
• The most common gainsharing plan is the
Scanlon Plan.

The Scanlon Plan
• Stresses participatory management and joint
problem solving between employees and
managers, and uses the pay system to reward
employees for cooperative behaviour.
• Pay is used to align company and employee
goals.
• Productivity improvements have been found
following the introduction of Scanlon-type
plans.
• Perception that the plan is fair is critical.

Skill-Based Pay
• A system in which employees are paid

according to the number of job skills they
have acquired.
• The idea is to motivate employees to learn a
wide variety of skills and work tasks.
• The more skills that are acquired, the higher
the person’s pay.

Skill-Based Pay (continued)
• Encourages employee flexibility in task

assignments and provides employees with a
broader picture of the work process.
• Especially useful for self-managed teams and
in flexible manufacturing.
• Training costs can be high.
• Skill-based pay plans have been found to
increase productivity, lower labour costs, and
reduce the amount of scrap.

Using Pay to Motivate
Teamwork (continued)
• Research has found that group-based financial
incentives can have a positive effect on the
collective efforts of employees and business-
unit outcomes.

Job Design as a Motivator
• Job design refers to the structure, content,

and configuration of a person’s work tasks
and roles.
• It is an attempt to capitalize on intrinsic
motivation.
• The goal of job design is to identify the
characteristics that make some tasks more
motivating than others and to capture these
characteristics in the design of jobs.

Traditional Views of Job Design
• From the beginning of the Industrial

Revolution until the 1960s, the prevailing
philosophy regarding the design of most non-
managerial jobs was job simplification.
• Organizations recognized that specialization
was the key to efficient productivity.

Scientific Management
• The zenith of job simplification occurred in

the early 1990s with Taylor’s principles of
scientific management that advocated:
– Extreme division of labour and specialization.
– Careful standardization and regulation of work
activities and rest pauses.

Scientific Management
(continued)
• Jobs designed according to the principles of
scientific management are not intrinsically
motivating.
• The motivational strategies consisted of close
supervision and piece-rate pay.
• Simplification helped workers achieve a
reasonable standard of living.

Job Scope and Motivation
• Job scope refers to the breadth and depth of

a job.
• Breadth refers to the number of different
activities performed on the job.
• Depth refers to the degree of discretion or
control the worker has over how these tasks
are performed.
• Jobs that have great breadth and depth are
called high-scope jobs.

Job Scope as a Function of Job
Depth and Job Breadth

Job Scope and Motivation
(continued)
• Traditional views of job design were attempts

to construct low-scope jobs in which workers
specialized in a single task.
• The motivation theories suggest that high-
scope jobs provide more intrinsic motivation
than low-scope jobs.

Stretch Assignments
• One way to increase the scope of a job is to
assign employees stretch assignments.
• They provide employees challenging
opportunities to broaden their skills by
working on a variety of tasks with new
responsibilities.

Job Rotation
• Another approach for increasing the scope of
an individual’s job is job rotation.
• Employees are rotated to different tasks and
jobs in an organization.
• It can involve working in different functional
areas and departments.
• It can provide a variety of challenging
assignments, develop new skills and
expertise, and prepare employees for future
roles.

The Job Characteristics Model
• The Job Characteristics Model proposes that

there are several “core” job characteristics
that have a certain psychological impact on
workers.
• The psychological states induced by the
nature of the job lead to certain outcomes.
• Several factors called moderators influence
the extent to which these relationships hold
true.

The Job Characteristics Model

Core Job Characteristics
• There are five core job characteristics that

have particularly strong potential to affect
worker motivation:
– Skill variety
– Task identity
– Task significance
– Autonomy
– Job feedback

Skill Variety
• The opportunity to do a variety of job

activities using various skills and talents.
• It corresponds to job breadth.

Autonomy
• The freedom to schedule one’s own work

activities and decide work procedures.
• It corresponds to job depth.

Task Significance
• The impact that a job has on other people.

Task Identity
• The extent to which a job involves doing a

complete piece of work, from beginning to
end.

Feedback
• Information about the effectiveness of one’s

work performance.
• People are not motivated for long if they do
not know how well they are doing.

Job Diagnostic Survey
• The Job Diagnostic Survey (JDS) is a

questionnaire to measure the core job
characteristics.
• Individuals report the amount of the various
core job characteristics contained in their
jobs.
• An overall measure of the motivating
potential of a job can be calculated from
scores on the core job characteristics.

Motivating Potential Score
• The motivating potential score (MPS) of a job

is calculated using the following formula:
Skill Task Task

MPS = variety + identity + significance x Autonomy x Feedback

Critical Psychological States
• Jobs that are higher on the core job

characteristics are more instrinsically
motivating because of their effect on three
psychological states:
– Experienced meaningfulness of the work
– Experienced responsibility for outcomes of the
work
– Knowledge of the actual results of the work
activities

Critical Psychological States
(continued)
• Jobs that are high on skill variety, task
significance, and task identity are perceived
as more meaningful.
• Jobs that are high on autonomy provide for
greater personal responsibility for work
outcomes.
• Jobs that are high on performance feedback
provide workers with knowledge of the
results of their work activities.

Outcomes
• The presence of the critical psychological
states leads to a number of outcomes that are
relevant to both the individual and the
organization:
– High intrinsic motivation
– High-quality productivity
– Satisfaction with higher-order needs
– General satisfaction with the job
– Reduced absenteeism and turnover

Moderators
• Jobs that are high in motivating potential do

not always lead to favourable outcomes.
• Three moderator or contingency variables
intervene between job characteristics and
outcomes:
– Knowledge and skill
– Growth need strength
– “Context” satisfactions

Moderators (continued)
• Job-relevant knowledge and skill required to
perform jobs high in motivating potential.
• Growth need strength which refers to the
extent to which people desire to achieve
higher-order need satisfaction by performing
their jobs.
• Workers who are dissatisfied with the context
factors that surround their job (e.g., pay) will
be less responsive to challenging work than
those who are reasonably satisfied with
context factors.

Research Evidence
• Workers respond more favourably to jobs that
are higher in motivating potential.
• All five job characteristics are related to
work outcomes.
• Among the psychological states, the strongest
support is for experienced meaningfulness of
the work, less support for experienced
responsibility, and no support for the role of
knowledge of results.
• Evidence for the role of growth needs and
context satisfaction is weak or contradictory.

Job Enrichment
• The design of jobs to enhance intrinsic

motivation, quality of working life, and job
involvement.
• Job enrichment involves increasing the
motivating potential of jobs via the
arrangement of their core job characteristics.

Job Involvement
• A cognitive state of psychological

identification with one’s job and the
importance of work to one’s total self-image.
• All of the core job characteristics are
positively related to job involvement.
• Employees who are more involved in their job
have higher job satisfaction and
organizational commitment, and are less
likely to consider leaving their organization.

Job Enrichment Procedures
• Many job enrichment schemes include the

following:
– Combining tasks
– Establishing external client relationships
– Establishing internal client relationships
– Reducing supervision or reliance on others
– Forming work teams
– Making feedback more direct

Combining Tasks
• This involves assigning tasks that might be

performed by different workers to a single
individual.
• Should increase the variety of skills employed
and might contribute to task identity.

Establishing External Client
Relationships
• This involves putting employees in touch with
people outside the organization who depend
on their products or services.
• Might involve the use of new interpersonal
skills, increase the identity and significance
of the job, and increase feedback about one’s
performance.

Establishing Internal Client
Relationships
• This involves putting employees in touch with
people who depend on their products and
services within the organization.
• Advantages are similar to those that result
from establishing external client
relationships.

Reducing Supervision or
Reliance on Others
• This increases the autonomy and control one
has over their own work.

Forming Work Teams
• Teams can be formed when a product or

service is too large or complex for one person
to complete alone or to complete an entire
product.
• This can result in the development of a
variety of skills and increase the identity of
the job.

Making Feedback More Direct
• Permit workers to be identified with their

“own” product or service so that if a
customer encounters problems, he or she can
contact the worker directly.
• It is usually used in conjunction with other
job design aspects that permit workers to be
identified with their “own” product or
service.

Potential Problems with Job
Enrichment
• Job enrichment can encounter a number of
challenging problems:
– Poor diagnosis
– Lack of desire or skill
– Demand for rewards
– Union resistance
– Supervisory resistance

Poor Diagnosis
• Problems with job enrichment can occur

when it is instituted without a careful
diagnosis of the needs of the organization and
the particular jobs in question.
• An especially likely error involves increasing
job breadth or what is known as job
enlargement.

Job Enlargement
• Increasing job breadth by giving employees

more tasks to perform at the same level
while leaving the other crucial core
characteristics unchanged.
• Workers are given more boring, fragmented,
routine tasks to do.

Lack of Desire or Skill
• Some workers do not desire enriched jobs.
• Some workers might lack the skills and
competence necessary to perform enriched
jobs effectively.
• Enrichment might entail substantial training
costs for poorly educated or trained workers.
• It might be difficult to train some workers in
certain skills required by enriched jobs (e.g.,
social skills).

Demand for Rewards
• Workers who experience job enrichment

often expect greater extrinsic rewards, such
as pay, to accompany their redesigned jobs.
• This is because enriched jobs often require
the development of new skills and entail
greater responsibility.

Union Resistance
• North American unions have traditionally not

been enthusiastic about job enrichment.
• Companies and unions have begun to
dismantle restrictive contract provisions
regarding job design.
• Fewer job classifications mean more
opportunities for flexibility by combining
tasks and using team approaches.

Supervisory Resistance
• Job enrichment can fail due to unanticipated

effects on other jobs or parts of the
organizational system.
• Enrichment increases the autonomy of
employees and it might “disenrich” the
supervisor’s job.
• This will not help facilitate a smooth
implementation of job redesign.

Supervisory Resistance
(continued)
• Some organizations have eliminated direct
supervision of workers performing enriched
jobs.
• In other cases the supervisor becomes a
trainer and developer of individuals on
enriched jobs.

Work and Relational Job Design
• More comprehensive models of job design
have been developed that go beyond the core
job characteristics and include other
important aspects of job design.
• Two new models include:
– Work design
– Relational job design

Work Design
• Acknowledges both the job and the broader

work environment that consists of a wider
variety of work design characteristics.

Work Design Characteristics
• Attributes of the task, job, and social and

organizational environment.
• Three categories:
– Motivational characteristics
– Social characteristics
– Work context characteristics

Motivational Characteristics
• Includes task characteristics which are similar

to the core job characteristics of the Job
Characteristics Model.
• Knowledge characteristics refer to the kinds
of knowledge, skill, and ability demands
required to perform a job.
• Note the distinction between task variety and
skill variety.

Social Characteristics
• The interpersonal and social aspects of work:

– Social support
– Interdependence
– Interaction outside of the organization
– Feedback from others

Work Context Characteristics
• Refers to the context within which work is

performed:
– Ergonomics
– Physical demands
– Work conditions
– Equipment use

Research Evidence
• Each category of work design characteristics

is related to work attitudes and behaviours.
• The social characteristics are more strongly
related to some outcomes (e.g., turnover
intentions) than the motivational
characteristics.
• Overall, work design characteristics have a
large and significant effect on employee
attitudes and behaviours.

Relational Job Design
• Adam Grant developed a relational approach

to job design that he calls the relational
architecture of jobs.

Relational Architecture of Jobs
• The structural properties of work that shape
employees’ opportunities to connect and
interact with other people.
• The basic idea is to motivate employees to
make a difference in other people’s lives or
what is known as prosocial motivation.
• Prosocial motivation refers to the desire to
expand effort to benefit other people.

Relational Architecture of Jobs
(continued)
• This can be done by designing jobs so that
employees have opportunities to interact and
communicate with the people affected by
their work.
• Research has found that re-designing jobs to
emphasize the relational aspects of them
improves employee motivation and
performance.
• Jobs should be designed so employees have
contact with or are aware of those who
benefit from their work.

Management by Objectives
• An elaborate, systematic, ongoing program

designed to facilitate goal establishment,
goal accomplishment, and employee
development.

The Management by Objectives
Process
• Objectives for the organization as a whole are
developed by top management and diffused
down through the organization.
• Organizational objectives are translated into
specific behavioural objectives for individual
members.
• The nature of the interaction between
managers and individual workers in an MBO
program is important.

The Management by Objectives
Process (continued)
• MBO manager-employee interactions:
– The manager meets with individual workers to
develop and agree on employee objectives
which can include job performance and
personal development objectives.
– There are periodic meetings to monitor
employee progress in achieving objectives.
– An appraisal meeting is held to evaluate the
extent to which the agreed upon objectives
have been achieved.
– The MBO cycle is repeated.

Research Evidence
• Research evidence shows that MBO programs
result in productivity gains.
• A number of factors are associated with the
failure of MBO programs:
– Lack of commitment from top management.
– An overemphasis on measurable objectives at
the expense of more qualitative objectives.
– Excessive short-term orientation.
– Performance review becomes an exercise in
browbeating or punishing employees for failure
to achieve objectives.

Flexible Work Arrangements as
Motivators for a Diverse
Workforce
• Many organizations have modified traditional
working schedules and offer their employees
flexible work arrangements.
• Flexible work arrangements are work options
that permit flexibility in terms of “where”
and/or “when” work is completed.
• The purpose is to meet diverse workforce
needs and promote job satisfaction and help
employees manage work and non-work
responsibilities.

Flexible Work Arrangements
• Some of the most common flexible work

arrangements:
– Flex-time
– Compressed workweek
– Job and work sharing
– Telecommuting

Flex-Time
• An alternative work arrangement that
provides flexibility in terms of when
employees work. Thus, arrival and quitting
times are flexible.
• Flex-time is well suited to meeting the needs
of a diverse work-force and is most
frequently implemented in office
environments.

Flex-Time: Research Evidence
• Employees prefer it compared to fixed hours.

• Work attitudes are more positive.
• A positive effect on productivity, job
satisfaction, and satisfaction with work
schedule and lower employee absenteeism.

Compressed Workweek
provides flexibility in terms of when work is
performed.
• Employees work fewer than the normal five
days a week but still put in a normal number
of hours per week.
• The most common compressed workweek is
the 4-40 system.

Compressed Workweek
(continued)
• Potential roadblocks to implementation:
– Reduced customer service
– Negative effects of fatigue

Compressed Workweek:
Research Evidence
• People who have experienced it tend to like
it.
• Workers often report an increase in fatigue
following its introduction.
• Research shows a positive effect on job
satisfaction and satisfaction with work
schedule but no effect on absenteeism or
productivity.

Job and Work Sharing
• Job sharing is an alternative work

arrangement in which two part-time
employees divide the work of a full-time job.
• Work sharing involves reducing the number of
hours employees work to avoid layoffs when
there is a reduction in normal business
activity.
• Many companies implemented work sharing
programs to save jobs and avoid layoffs
during the recession.

Job and Work Sharing: Research
Evidence
• Work sharing cuts costs, saves jobs, avoids

layoffs and allows organizations to retain
skilled workers.
• Job sharing can result in coordination
problems if communication is not adequate.
• Job sharers must make a concerted effort to
communicate well with each other as well as
with superiors, co-workers, and clients.

Telecommuting

provides employees with flexibility in terms
of where they perform their job.
• Employees are able to work at remote
locations but stay in touch with their offices
through the use of information and
communication technology, such as a
computer network, voice mail, and electronic
messages.

Telecommuting (continued)
• Distant staffing enables employees to work for
a company without ever having to come into
the office or even be in the same country.
• Telework centres provide workers all of the
amenities of a home office in a location close
to their home.
• Distributed work programs involve a
combination of remote work arrangements
that allow employees to work at their business
office, a satellite office, and a home office.

Telecommuting: Research
Evidence
• Telecommuting has a small but positive
effect on perceived autonomy and lower
work-family conflict.
• It has a positive effect on job satisfaction and
job performance and results in lower stress
and turnover intentions.
• It does not have detrimental effects on the
quality of workplace relationships or one’s
career prospects.

Telecommuting: Research
Evidence (continued)
• A greater frequency of telecommuting is
associated with a greater reduction in work-
family-conflict and stress.
• The positive effects of telecommuting are
mostly due to an increase in perceived
autonomy.

Telecommuting: Potential
Problems
• Negative consequences can result due to a
lack of informal communication.
• It can have a negative effect on relationships
with co-workers.
• Distractions in the home environment.
• Feelings of isolation and overwork.
• Concerns about trust and control and that
workers will not be as productive.

Motivation Practices in
Perspective
• What motivational system should an

organization use?

Perspective (continued)
• The motivational system used by an

organization has to fit with the organization’s
culture and other management practices.

• The choice of motivational practices requires
a thorough diagnosis of the organization and
the needs and desires of employees.
• The most effective approach will depend on:
– Employee needs (e.g., money, challenge)
– The nature of the job (e.g., individual, group
work)
– Organizational characteristics (e.g., culture)
– Desired outcome (e.g., learning)

• Motivational systems that make use of a

variety of motivators (e.g., performance-
based pay, job enrichment) used in
conjunction with one another are likely to be
the most effective.

Contingency Factors and
Motivational Practices

Johns Org-Behaviour 10e PPT ch06

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Johns Org-Behaviour 10e PPT ch06

Uploaded by

Copyright:

Available Formats

Chapter 6

LO6.1 Discuss how to tie pay to performance

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 2

LO6.4 Compare and contrast the different

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 3

LO6.6 Explain how flexible work

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 4

• How important is pay for you?

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 5

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 6

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 7

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 8

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 9

• If pay can satisfy a variety of needs, it should

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 10

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 11

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 12

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 13

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 14

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 15

• Wage incentives can increase productivity at

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 16

• A threat to the establishment of wage

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 17

• Wage incentives that reward individual

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 18

• The way jobs are designed can make it very

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 19

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 20

• The artificial limitation of work output that

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 21

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 22

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 23

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 24

• Merit pay plans are systems that attempt to

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 25

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 26

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 27

• Managers might be unable or unwilling to

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 28

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 29

• Extreme secrecy that surrounds salaries in

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 30

• Managers overestimate the pay of their

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 31

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 32

• Pay disclosure can increase performance and

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 33

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 34

• Each of the following plans has a different

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 35

• The return of some company profit to

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 36

• A major problem is that many factors beyond

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 37

• Incentive plans that allow employees to own

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 38

• Some evidence that ESOPs improve employee

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 39

• Many other factors can influence the value of

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 40

• A group pay incentive plan based on

Copyright © 2017 Pearson Canada Inc. Chapter 6/ Slide 41