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5 Individual Performance 130919_rz
 

5 Individual Performance 130919_rz

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    5 Individual Performance 130919_rz 5 Individual Performance 130919_rz Presentation Transcript

    • Individual Performance Prof. Dr. Robert J. Zaugg robert.zaugg@swissonline.ch
    • Motivation II 2Organizational Behavior Prof. Dr. Robert J. Zaugg Learning Objectives •  Relate motivation and employee performance •  Discuss work design, including its evolution and alternative approaches •  Relate employment involvement in work and motivation •  Identify and describe key alternative work arrangements •  Describe goal setting and relate it to motivation •  Discuss performance management in organizations •  Identify the key elements in understanding individual rewards in organizations •  Describe the issues and processes involved in managing reward systems
    • Motivation II 3Organizational Behavior Prof. Dr. Robert J. Zaugg Figure 5.1 Enhancing Performance in Organizations
    • Motivation II 4Organizational Behavior Prof. Dr. Robert J. Zaugg Work Design in Organizations Job Design How organizations define and structure jobs Job Specialization Frederick Taylor: Jobs should be scientifically studied, broken down into small component tasks, and then standardized across all workers doing those jobs
    • Motivation II 5Organizational Behavior Prof. Dr. Robert J. Zaugg Work Design in Organizations Alternatives to Job Specialization •  Job rotation: Systematically moving workers from one job to another in an attempt to minimize monotony and boredom •  Job enlargement: Giving workers more tasks to perform •  Job enrichment: Giving workers more tasks to perform and more control over how to perform them
    • Motivation II 6Organizational Behavior Prof. Dr. Robert J. Zaugg Alternatives to Job Specialization
    • Motivation II 7Organizational Behavior Prof. Dr. Robert J. Zaugg Work Design in Organizations The Job Characteristics Theory Motivational Properties of Tasks – Skill variety – Task identity – Task significance – Autonomy – Feedback Critical Psychological States of People – Experienced meaningfulness of the work – Experienced responsibility for work outcomes – Knowledge of results
    • Motivation II 8Organizational Behavior Prof. Dr. Robert J. Zaugg Figure 5.2 The Job Characteristics Theory From J. R. Hackman and G. R. Oldham, “Motivation Through the Design of Work: Test of a Theory,” Organizational Behavior and Human Performance, Volume 16, 250-279. Copyright © 1976, Elsevier Science (USA), reproduced by permission of the publisher.
    • Motivation II 9Organizational Behavior Prof. Dr. Robert J. Zaugg Figure 5.3 Implementing the Job Characteristics Theory J. R. Hackman, G. R. Oldham, R. Janson, and K. Purdy, “A New Stage for Job Enrichment.” Copyright © 1975 by the Regents of the University of California. Reprinted from California Management Review, vol. 17, no. 4. By permission of the Regents. “Implementation Guidelines”
    • Motivation II 10Organizational Behavior Prof. Dr. Robert J. Zaugg Employee Involvement and Motivation Extending job design to include: •  Participation: Giving employees a voice in making decisions about their own work •  Empowerment: Enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility and authority
    • Motivation II 11Organizational Behavior Prof. Dr. Robert J. Zaugg Employee Involvement and Motivation Early Perspectives on Employee Involvement Beginning – Employee satisfaction is a result of participation in decision-making Recently – Employees are valued human resources who can contribute to organizational effectiveness – Their participation is valued
    • Motivation II 12Organizational Behavior Prof. Dr. Robert J. Zaugg Employee Involvement and Motivation Areas of Employee Involvement –  Personal job-related decisions –  Administrative matters (e.g. work schedules) –  Product quality decisions Techniques/Issues in Employee Involvement –  Empowerment through work teams (quality circles) –  Decentralization of decision-making
    • Motivation II 13Organizational Behavior Prof. Dr. Robert J. Zaugg Alternative Work Arrangements Variable Work Schedules Compressed work week: Employees work a full forty- hour week in fewer than the traditional five days Flexible Work Schedules (flextime) Employees gain more personal control over the hours they work each day Source: © Royalty Free/ Corbis
    • Motivation II 14Organizational Behavior Prof. Dr. Robert J. Zaugg Figure 5.4 Flexible Work Schedules
    • Motivation II 15Organizational Behavior Prof. Dr. Robert J. Zaugg Alternative Work Arrangements Job Sharing Two or more part-time employees share one full-time job Telecommuting Employees spend part of their time working off-site Benefits to organizations – Reduced absenteeism/turnover – Reduction in indirect expenses Downside considerations – Employees miss the workplace social interaction – Employees lack self-control/discipline – Difficulties arise when coordinating in-face meetings – Workplace safety requirements
    • Motivation II 16Organizational Behavior Prof. Dr. Robert J. Zaugg Goal Setting and Motivation Enhancing employee performance through goal setting –  Goal: A desirable objective –  Self-efficacy: The extent to which we believe we can accomplish our goals even if we failed to do so in the past Source: © Royalty Free/Stockbyte/ Getty Images
    • Motivation II 17Organizational Behavior Prof. Dr. Robert J. Zaugg Goal Setting and Motivation Goal-Setting Theory: Edwin Locke et al Goal characteristics which shape performance – Goal difficulty: The extent to which a goal is challenging and requires effort – Goal specificity: The clarity and precision of a goal The Goal-Setting Process: Gary Latham et al Goal-directed effort is a function of four attributes – Goal difficulty – Goal specificity – Goal acceptance: The extent to which a person accepts a goal as his/her own – Goal commitment: The extent to which a person is interested in reaching a goal
    • Motivation II 18Organizational Behavior Prof. Dr. Robert J. Zaugg Figure 6.1 The Goal-Setting Theory of Motivation “Goal-setting Motivational Technique That Works,” by Gary P. Latham et al. Reprinted from Organizational Dynamics, Autumn, 1979, Latham et al: “The Goal-Setting Theory of Motivation” with permission from Elsevier Science.
    • Motivation II 19Organizational Behavior Prof. Dr. Robert J. Zaugg Goal Setting and Motivation Broader Perspectives on Goal Setting Management by Objectives (MBO) – A collaborative goal-setting process through which organizational goals cascade down throughout the organization – Requires customizing to each organization – Can be effective for managing reward systems where the manager has individual interactions with each employee
    • Motivation II 20Organizational Behavior Prof. Dr. Robert J. Zaugg Performance Management in Organizations The Nature of Performance Management Performance measurement/appraisal – Process by which someone: – evaluates an employee’s work behaviors by measurement and comparison with previously established standards – documents the results – communicates the results to the employee Performance management system – Comprises the processes and activities involved in performance appraisals
    • Motivation II 21Organizational Behavior Prof. Dr. Robert J. Zaugg Figure 6.2 The Performance Management System
    • Motivation II 22Organizational Behavior Prof. Dr. Robert J. Zaugg Figure 6.3 Purposes of Performance Measurement
    • Motivation II 23Organizational Behavior Prof. Dr. Robert J. Zaugg Performance Management in Organizations The Appraiser Alternatives – The direct supervisor – Multiple-rater systems – e.g. The 360-degree feedback: A performance management system in which people receive performance feedback from those on all sides of them in the organization (boss, colleagues, peers, subordinates)
    • Motivation II 24Organizational Behavior Prof. Dr. Robert J. Zaugg Performance Management in Organizations Frequency of the Appraisal Determined by convenience for administrative purposes, cultural appropriateness, relevance Measuring Performance Considerations – Desired decisions to be made based on outcome – Instruments must be valid, reliable, free of bias Choices of measurement methods – Graphic rating scales, checklists, essays/diaries, behaviorally anchored rating scales, forced-choice systems – Comparative methods such as ranking, forced distribution, paired comparisons, multiple raters
    • Motivation II 25Organizational Behavior Prof. Dr. Robert J. Zaugg Individual Rewards in Organizations Reward System: Consists of all organizational components including people, processes, rules, procedures, and decision- making activities involved in allocating compensation and benefits to employees in exchange for their contribution to the organization
    • Motivation II 26Organizational Behavior Prof. Dr. Robert J. Zaugg Individual Rewards in Organizations Roles, Purposes, and Meanings of Rewards –  Purpose: To attract, retain, and motivate qualified employees –  Roles of Compensation Structures – It must be equitable and consistent – It should be a fair reward for the individual’s contribution – It must be competitive in the external labor market –  Meanings – Surface value: The objective meaning or worth – Symbolic value: The subjective and personal meaning or worth
    • Motivation II 27Organizational Behavior Prof. Dr. Robert J. Zaugg Individual Rewards in Organizations Types of Rewards –  The compensation package: The total array of money (wages, salary, commission), incentives, benefits, perquisites, and awards provided by the organization –  Base Pay – Symbolizes an employee’s worth – An effectively planned/managed pay system can improve motivation/performance – It is a major cost of doing business – When well-designed it can reduce turnover and increase morale
    • Motivation II 28Organizational Behavior Prof. Dr. Robert J. Zaugg Individual Rewards in Organizations Types of Rewards (cont.) –  Incentive systems/pay: Plans in which employees can earn additional compensation in return for certain types of performance – e.g. piecework programs, gain-sharing programs, bonus systems, long-term compensation, merit pay plans, profit-sharing plans, employee stock option plans –  Indirect compensation: Employee benefits plan – e.g. payment for time not worked, Social Security contributions, unemployment compensation, disability and workers’ compensation benefits, life and health insurance programs, pensions/retirement plans
    • Motivation II 29Organizational Behavior Prof. Dr. Robert J. Zaugg Individual Rewards in Organizations Types of Rewards (cont.) –  Perquisites: Special privileges awarded to selected members of an organization, usually top managers –  Awards – e.g. rewards for seniority, perfect attendance, zero defects (quality work), cost reduction suggestions – Can improve performance
    • Motivation II 30Organizational Behavior Prof. Dr. Robert J. Zaugg Table 6.1 Issues to Consider in Developing Reward Systems
    • Motivation II 31Organizational Behavior Prof. Dr. Robert J. Zaugg Managing Reward Systems Linking Performance and Rewards –  Employee perception of link between pay and performance results in symbolic value of pay Flexible Reward Systems –  Allows employees to choose the combination of benefits that best suits their needs Participative Pay Systems –  Employees are involved in the pay process
    • Motivation II 32Organizational Behavior Prof. Dr. Robert J. Zaugg Managing Reward Systems Pay Secrecy –  No information is available to employees regarding other employees’ salaries, percentage raises, salary ranges Expatriate Compensation –  Compensation packages which adjust for differences in cost of living for the employee being assigned abroad
    • Motivation II 33Organizational Behavior Prof. Dr. Robert J. Zaugg