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Ch07

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  • 1. ORGANIZATIONAL BEHAVIOR S T E P H E N P. R O B B I N S WWW.PRENHALL.COM/ROBBINS T E N T H E D I T I O N© 2003 Prentice Hall Inc. All rights reserved. PowerPoint Presentation by Charlie Cook
  • 2. O B J E C T I V E S AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO: 1. Identify the four ingredients common to MBO programs. 2. Explain why managers might want to use employee involvement programs.L E A R N I N G 3. Contrast participative management with employee involvement. 4. Define quality circles. 5. Explain how ESOPs can increase employee motivation. © 2003 Prentice Hall Inc. All rights reserved. 7–2
  • 3. O B J E C T I V E S (cont’d) AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO: 6. Contrast gain-sharing and profit-sharing. 7. Describe the link between skill-based pay plans and motivation theories. 8. Explain how flexible benefits turn benefits into motivators. 9. Contrast the challenges of motivatingL E A R N I N G professional employees versus low-skilled employees. © 2003 Prentice Hall Inc. All rights reserved. 7–3
  • 4. What is MBO?What is MBO? 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© 2003 Prentice Hall Performance feedback 4. Inc. 4. Performance feedbackAll rights reserved. 7–4
  • 5. 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© 2003 Prentice Hall Inc.All rights reserved. 7–5
  • 6. Cascading of ObjectivesCascading of Objectives© 2003 Prentice Hall Inc. EXHIBIT 7-1All rights reserved. 7–6
  • 7. Employee Recognition ProgramsEmployee Recognition Programs Types of programs – Personal attention – Expressing interest – Approval – Appreciation for a job well done Benefits of programs – Fulfills employees’ desire for recognition. – Encourages repetition of desired behaviors. – Enhances group/team cohesiveness and motivation. – Encourages employee suggestions for improving processes and cutting costs.© 2003 Prentice Hall Inc.All rights reserved. 7–7
  • 8. What is Employee Involvement?What is Employee Involvement?© 2003 Prentice Hall Inc.All rights reserved. 7–8
  • 9. Examples of Employee Involvement ProgramsExamples of Employee Involvement Programs© 2003 Prentice Hall Inc.All rights reserved. 7–9
  • 10. Examples of Employee Involvement Programs Examples of Employee Involvement Programs(cont’d) (cont’d)© 2003 Prentice Hall Inc.All rights reserved. 7–10
  • 11. Examples of Employee Involvement Programs Examples of Employee Involvement Programs(cont’d) (cont’d)© 2003 Prentice Hall Inc.All rights reserved. 7–11
  • 12. How a TypicalHow a TypicalQuality CircleQuality CircleOperatesOperates© H2003 Prentice Hall Inc.EX IBIT 7-4All rights reserved. 7–12
  • 13. Examples of Employee Involvement Programs Examples of Employee Involvement Programs(cont’d) (cont’d)© 2003 Prentice Hall Inc.All rights reserved. 7–13
  • 14. Variable Pay ProgramsVariable Pay Programs© 2003 Prentice Hall Inc.All rights reserved. 7–14
  • 15. Variable Pay Programs (cont’d)Variable Pay Programs (cont’d)© 2003 Prentice Hall Inc.All rights reserved. 7–15
  • 16. Skill-Based Pay PlansSkill-Based Pay Plans 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).© 2003Leadsto performance improvements. 5. Leads to performance improvements. 5. Prentice Hall Inc.All rights reserved. 7–16
  • 17. 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.© 2003 Prentice Hall Inc.All rights reserved. 7–17
  • 18. Flexible BenefitsFlexible Benefits Core-plus Plans: Core-plus Plans: aacore of essential core of essential benefits and aamenu-like benefits and menu-like selection of other benefit selection of other benefit options. options. Modular Plans: Flexible Spending Plans: Flexible Spending Plans: Modular Plans: allow employees to use predesigned benefits predesigned benefits allow employees to use packages for specific their tax-free benefit their tax-free benefit packages for specific dollars to purchase groups of employees. groups of employees. dollars to purchase benefits and pay service benefits and pay service premiums. premiums.© 2003 Prentice Hall Inc.All rights reserved. 7–18
  • 19. Special Issues in MotivationSpecial Issues in Motivation Motivating Professionals – Provide challenging projects. – Allow them the autonomy to be productive. – Reward with educational opportunities. – Reward with recognition. – Express interest in what they are doing. – Create alternative career paths. Motivating Contingent Workers – Provide opportunity for permanent status. – Provide opportunities for training. – Provide equitable pay.© 2003 Prentice Hall Inc.All rights reserved. 7–19
  • 20. Special Issues in Motivation (cont’d)Special Issues in Motivation (cont’d) Motivating the Diversified Workforce – Provide flexible work, leave, and pay schedules. – Provide child and elder care benefits. – Structure working relationships to account for cultural differences and similarities. Motivating Low-Skilled Service Workers – Recruit widely. – Increase pay and benefits. – Make jobs more appealing.© 2003 Prentice Hall Inc.All rights reserved. 7–20
  • 21. Special Issues in Motivation (cont’d)Special Issues in Motivation (cont’d) Motivating People Doing Highly Repetitive Tasks – Recruit and select employees that fit the job. – Create a pleasant work environment. – Mechanize the most distasteful aspects of the job.© 2003 Prentice Hall Inc.All rights reserved. 7–21

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