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241 applied motivation chpt.6

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  • 1. A skills crisis: what skills? 1. We have a high level of unemployment We have an ageing population We have a falling birth rate We have a ‘brain-drain’ Our competitors e.g. Australia seem to be doing much better. Why would skilled immigrants want to come here? Do we need them? © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 1
  • 2. Attracting skilled migrants How as a nation are we seen? What do we offer have to offer? What could they bring (do we need them anyway?) Do we make them welcome? What do we do in terms of immigration policies to attract skilled immigrants? © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 2
  • 3. The value of an international student Comes from Asia for 3-4 years Flies here and back on Air New Zealand ($$$) Comes down to Hamilton by shuttle ($$$) Moves into a ‘home-stay’ – soon leaves to go into a flat in Silverdale with other Asian students ($$$) Pays 3X fees of Kiwi student($$) Buys a car($$$) Buys petrol ($$$$$$$$$$$$$$$) Eats out at mostly Asian restaurant ($) Uses electricity, gas, phone, etc, etc, etc, ($$$$) The ‘multiplier’ effect How much does this student INVEST in Aotearoa New Zealand? Many want to stay after graduation. What do they then face? © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 3
  • 4. The $64,000 question: what do people want from work today? No simple answer e.g. money ‘Contingent’ upon: Age e.g. ‘older worker’ Circumstances e.g. current needs Values e.g. to do ‘good’ Social needs e.g. acceptance Cultural influences e.g. ‘golden generation’ © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 4
  • 5. What types of rewards doorganisations offer?  Intrinsic or extrinsic rewards?  Recognition vs $$$$  Membership and seniority  Status  Opportunity to acquire skills Growth and development © Corel Corp © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 5
  • 6. Performance-based rewards • Share ownership Organisational • Share options rewards • Profit sharing Team • Gainsharing rewards • Bonuses • Piece rate Individual • Commissions rewards • Royalties • Merit pay © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 6
  • 7. Skill-based rewards Pay increases with skill or competencies acquired or demonstrated Skill-based pay  pay increases with skill modules learned Advantages  more flexible work force, better quality, consistent with employability Disadvantages  potentially subjective, higher training costs © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 7
  • 8. So we want individuals to reach‘high’ levels of performance? What does performance depend on? How do we define and measure performance? Performance is a function of Motivation x Ability x Opportunity P = (f) M X A X O © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 8
  • 9. Improving performance? Performance is a {f} of Motivation x Ability x Opportunity What do we mean by the performance of waiter or waitress? What do we mean by a high performing retail sales assistant? How can a geriatric nurse improve her or his performance? Do organisations really want ‘high performance’ or ‘adequate performance’? Do many jobs have within them the scope to ‘improve ‘ performance? © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 9
  • 10. Expectancy-theory; effort, performanceand reward must be seen to be connected Makes sense but . . we have to: 1. Identify and agree on what we mean by performance e.g. for a child-minder 2. Agree how we will assess individual performance 3. Agree on how we are going to reward individual performance © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 10
  • 11. Focus on rewards  Effort, performance and reward must be perceived to be linked  Ensure rewards must be relevant to the employee  Rewards must be valued by the individual  Rewards must be of sufficient magnitude to motivate  Use team rewards for interdependent jobs  Beware of unintended consequences e.g. Hovey & Beard case © Corel Corp© 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 11
  • 12. But …contradictions…we reward individuals while talking teams Performance assessment invariably individually-based On which individuals are rewarded But organisations stress team work! So why not more team-based rewards? Difficult to assess e.g. equity Difficult to administer Cost © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 12
  • 13. Types of team and organisationalrewards Gainsharing plans  based on cost reductions and increased labour efficiency Employee Share Ownership Programme e.g. The Warehouse  employees own company shares Share options e.g. senior management  right to purchase company shares at a future date at a predetermined price Profit sharing e.g. Mainfreight  employees receive share of profits © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 13
  • 14. Job re-design: can we ‘enrich’ make jobsto make them more interesting? Assigning tasks to a job, including the interdependency of those tasks with other jobs Technology has a great influence on the design of jobs (technological determinism) Taylorist/Fordist design Employability affects job design © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 14
  • 15. Job specialisationAdvantages Disadvantages Basically greater efficiency  Job boredom Less time changing tasks  Discontentment pay Lower training costs  Lower quality? Job mastered quickly  Lower motivation Better person-job matching Lower costs Greater control over quality © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 15
  • 16. The Job characteristics model (Hackman & Lawler) Core job Critical characteristics psychological Outcomes states Skill variety Work motivation Task identity MeaningfulnessTask significance Growth satisfaction Autonomy Responsibility General satisfaction Feedback Knowledge Work from job of results effectiveness Individual differences © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 16
  • 17. Job rotation vs job enlargementJob rotation Job 1 Job 2 Job 3 Operate camera Operate sound Report storyJob enlargement Job 1 Job 2 Job 3 Operate camera Operate camera Operate camera Operate sound Operate sound Operate sound Report story Report story Report story © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 17
  • 18. Job enrichment strategies – based on Lawler & Hackman and Herzberg Empowering employees  gives employees more autonomy  feeling of control and self-efficacy  actual control?  over what? Forming natural work units (autonomous work groups)  completing an entire task  assigning employees to specific clients Establishing client relationships  employees put in direct contact with clients © Marlborough Express (NZ)  limited by the nature of the business e.g. production workers © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 18
  • 19. Major obstacles to job design Difficult to accurately measure job characteristics Cost effectiveness Resistance to change  skilled workers  union  supervisors Problem finding optimal level of enrichment and specialisation Maintaining ‘enrichment’ Concerns about the validity of the theoretical base Over-taken by speed of technological change © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 19
  • 20. Conclusion Has proved difficult to apply motivational theories in practice Lots of failures e.g. Volvos JE programmes Selective use of profit sharing, P-f-P, skill-based reward systems The question of size and resources How do NZ SME go about motivating and rewarding their employees? ‘Family-feel’ ‘culture’ Informal © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 20