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  • 1. Chapter 7 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 E D I T I O N© 2005 Prentice Hall Inc. WWW.PRENHALL.COM/ROBBINS PowerPoint PresentationAll rights reserved. by Charlie Cook
  • 2. What is MBO?What is MBO? Management by Objectives (MBO) A program that encompasses specific goals, participatively set, for an explicit time period, with feedback on goal progress. Key Elements Key Elements 1. Goal specificity 1. Goal specificity 2. 2. Participative decision making Participative decision making 3. 3. An explicit time period An explicit time period 4. Performance feedback 4. Performance feedback© 2005 Prentice Hall Inc.All rights reserved. 7–2
  • 3. Linking MBO and Goal-Setting TheoryLinking MBO and Goal-Setting Theory MBO Goal-Setting TheoryGoal Specificity Yes YesGoal Difficulty Yes YesFeedback Yes YesParticipation Yes No (qualified)© 2005 Prentice Hall Inc.All rights reserved. 7–3
  • 4. Why MBO’s FailWhy MBO’s 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. 7–4
  • 5. Employee Recognition ProgramsEmployee Recognition 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. 7–5
  • 6. What is Employee Involvement?What is Employee 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. Participative Management A process in which subordinates share a significant degree of decision-making power with their immediate superiors.© 2005 Prentice Hall Inc.All rights reserved. 7–6
  • 7. Examples of Employee Involvement Programs Examples of Employee Involvement Programs(cont’d) (cont’d) Representative Participation Workers participate in organizational decision making through a small group of representative employees. Works Councils Groups of nominated or elected employees who must be consulted when management makes decisions involving personnel. Board Representative A form of representative participation; employees sit on a company’s board of directors and represent the interests of the firm’s employees.© 2005 Prentice Hall Inc.All rights reserved. 7–7
  • 8. Examples of Employee Involvement Programs Examples of Employee Involvement 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. 7–8
  • 9. Examples of Employee Involvement Programs Examples of Employee Involvement 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. 7–9
  • 10. Linking EI Programs and Motivation TheoriesLinking EI Programs and Motivation Theories Employee Two-Factor Two-Factor Theory Y Theory Y Employee Participative Involvement Theory Theory Participative Involvement Intrinsic Management Programs Intrinsic Management Programs Motivation Motivation ERG Theory ERG Theory Employee Employee Needs Needs© 2005 Prentice Hall Inc. 7–All rights reserved. 10
  • 11. Job Design and SchedulingJob Design and 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. 7–All rights reserved. 11
  • 12. Work Schedule OptionsWork Schedule 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. 7–All rights reserved. 12
  • 13. Work Schedule OptionsWork Schedule Options Telecommuting Employees do their work at home on a computer that is linked to their office. Categories of telecommuting jobs: Categories of telecommuting jobs: • • Routine information handling tasks Routine information handling tasks • • Mobile activities Mobile activities • • Professional and other knowledge-related tasks Professional and other knowledge-related tasks© 2005 Prentice Hall Inc. 7–All rights reserved. 13
  • 14. TelecommutingTelecommuting Advantages  Disadvantages (Employer) – Larger labor pool – Less direct – Higher productivity supervision of – Less turnover employees – Improved morale – Difficult to coordinate teamwork – Reduced office- space costs – Difficult to evaluate non-quantitative performance© 2005 Prentice Hall Inc. 7–All rights reserved. 14
  • 15. Variable Pay ProgramsVariable Pay 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. 7–All rights reserved. 15
  • 16. Variable Pay Programs (cont’d)Variable Pay Programs (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 that is allocated.© 2005 Prentice Hall Inc. 7–All rights reserved. 16
  • 17. Skill-Based Pay PlansSkill-Based Pay Plans Pay levels are based on how many skills employees have or how many jobs they can do. Benefits of Skill-based Pay Plans: Benefits of Skill-based Pay Plans: 1. 1. Provides staffing flexibility. Provides staffing flexibility. 2. 2. Facilitates communication across the organization. Facilitates communication across the organization. 3. 3. Lessens “protection of territory” behaviors. Lessens “protection of territory” behaviors. 4. 4. Meets the needs of employees for advancement Meets the needs of employees for advancement (without promotion). (without promotion). 5. Leads to performance improvements. 5. Leads to performance improvements.© 2005 Prentice Hall Inc. 7–All rights reserved. 17
  • 18. Skill-Based Pay Plans (cont’d)Skill-Based Pay Plans (cont’d) Drawbacks of Skill-based Pay Plans: Drawbacks of Skill-based Pay Plans: 1. Lack of additional learning opportunities that will 1. Lack of additional learning opportunities that will increase employee pay. increase employee pay. 2. Continuing to pay employees for skills that have 2. Continuing to pay employees for skills that have become obsolete. become obsolete. 3. Paying for skills which are of no immediate use 3. Paying for skills which are of no immediate use to the organization. to the organization. 4. Paying for aaskill, not for the level of employee 4. Paying for skill, not for the level of employee performance for the particular skill. performance for the particular skill.© 2005 Prentice Hall Inc. 7–All rights reserved. 18
  • 19. Flexible BenefitsFlexible Benefits Employees tailor their benefit program to Core-Plus Plans: Core-Plus Plans: meet their personal aacore of essential core of essential need by picking and benefits and aamenu-like benefits and menu-like selection of other benefit choosing from a menu selection of other benefit options. options. of benefit options. Modular Plans: Modular Plans: Flexible Spending Plans: Flexible Spending Plans: predesigned benefits predesigned benefits allow employees to use allow employees to use packages for specific packages for specific their tax-free benefit their tax-free benefit groups of employees. groups of employees. dollars purchase benefits dollars purchase benefits and pay service premiums. and pay service premiums.© 2005 Prentice Hall Inc. 7–All rights reserved. 19
  • 20. Implications for Managers Implications for 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. 7–All rights reserved. 20