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1. Applied
Performance
Practices
CHAPTER 6:

2. Discuss the meaning of money and identify several individual-,
team-, and organizational-level performance-based rewards.
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Learning Objectives
Describe five ways to improve reward effectiveness.
List the advantages and disadvantages of job specialization.
Diagram the job characteristics model and describe three ways to
improve employee motivation through job design.
Define empowerment and identify strategies that support
empowerment.
Describe the five elements of self-leadership and identify specific
personal and work environment influences on self-leadership.

3. The Meaning of Money
in the Workplace
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4. High Power Distance – China and Japan have higher respect
and priority to money Denmark, Australia, and Israel are
discouraged from openly talking about money or displaying
their personal wealth.
 A taboo topic in many social settings
 A source of evil
 A symbol of status and prestige
 A source of security
 A source of anxiety or feeling of inadequacy
 Money tool and as a “drug”
Vary Across Culture
Meaning of money varies from one person to the
next

5.  A symbol of power and Status
 View its value in terms of things for which it can be exchanged
Money: Men and Women
Money is much more than an object of
compensation
 An influence on our prosperity to make ethical or risky decisions
 A motivator
 Money relates to our needs, our emotions, and our self-concept
 A symbol of achievement and status
 A source of enhanced and reduced anxiety
Money: A Form of Exchange
 Money and related rewards align employee goals and the
organizational goal
 Pay in Hebrew, and Swedish: making equal

6. Money: Generates a Variety of
Emotions
Negative Emotions Positive Emotions
Power
Symbol for achievement
Respect
Should be budgeted
carefully
Anxiety
Depression
Anger
Helplessness

7. Financial
Reward
Practice

8. Membership- and Seniority- Based
Rewards
 Sometimes called “pay for pulse”
 Represent the largest part of most paycheck
Examples: shopping bonus,
free meals, and
housekeeping services
 Attract job applicant

9.  They do not directly motivate job performance
 They discourage poof performers from seeking work
better suited to their abilities
 They discourage employees from quitting
 Golden handcuffs potentially weaken job
performance
 Golden handcuffs generate continuance rather than
affective commitment
Membership- and Seniority- Based
Rewards

10. Job Status-Based Rewards
 Job evaluation
 Required skills
 Responsibility
 Working condition
 The higher the worth assigned to a job, the higher the
minimum and maximum pay for people in that job.
 Improve feeling of fairness: people in higher evaluated
jobs should get higher pay
 Motivate employees to complete for promotions
 Motivates employees to raise the value of their own jobs by
exaggerating job duties and hoarding resources

11. Competency Based Rewards
 Skill-based pay plans are a more specific variation of
competency-based rewards
 Motivate employees to learn new skills.
 Supports flexible workforce
 Increase employee creativity
 Allow employees to be more adaptive to new practices i a
dynamic environment
 Produce a service quality tend to improve

12. Competency-based pay plans have not always worked out
 They are often over-designed
 Competency definitions tend to be abstract
 Skill-based pay systems measure specific skills:
they are more objective but expensive.
Competency Based Rewards

13. Performance-Based Rewards
 Individual Rewards
 Bonuses: a specific amounts
 Commissions: their pay depends on the
volume they generate
 Team Rewards
 Earn bonuses/lose bonuses: Penalties
 Gainsharing plan

14.  Organizational Rewards
 Give employees the right to purchase
shares at a predetermined price up to a
fixed expiration date.
 Encourage employees to buy company
 Employee share ownership plan ( ESOPs) -
Employees receive a percentage of the
previous year’s company profits
Performance-Based Rewards

15.  Evaluation of Organizational-Level Rewards
 Creates an ownership culture in which
employees feel aligned with the
success
Performance-Based Rewards

16. Improve Reward
Effect
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17. 1 Link Rewards to Performance
 Organizational behavior modification theory and
expectancy theory both recommend that employees
with better performance should be rewarded more
than those with poorer performance.
 Companies also need to apply rewards soon after
the performance occurs, and in a large-enough
dose so employees experience positive emotions
when they receive the reward

18. 2 Ensure that rewards are
relevant
 Companies need to align rewards with performance
within the employee’s control. The more employees
see a “line of sight” between their daily actions
and the reward, the more they are motivated to
improve performance.

19. 3 Use team rewards for
interdependent jobs
 Team rewards are better than individual rewards when
employees work in highly interdependent jobs, because it
is difficult to measure individual performance in these
situations.
 Team rewards also encourage cooperation, which is more
important when work is highly interdependent.
 A third benefit of team rewards is that they tend to
support employee preferences for team-based work.

20. 4 Ensure that rewards are
valued
 It seems obvious that rewards work best when
they are valued.
 The Important fact is, of course, is to ask
employees what they value, even though the cost
of what they ask cost much less but if that’s
what they value it will be more rewarding for
them.

21. 5 Watch out for unintended
consequences
 Performance-based reward systems sometimes have
unexpected—and undesirable— effects on employee
motivation and behavior. Avoiding unintended
consequences of rewards isn’t easy, but they can
often be averted by carefully thinking through
what the rewards actually motivate people to do
and, where possible, test the incentives in a
pilot project before applying them across the
organization.

22. Job Design
Practices
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23. Job Design and Work Efficiency
Job design is the process
of assigning tasks to a
including the
of those tasks with other
jobs.
Job specialization occurs
when the work required to
serve a customer—or provide
any other product or
is subdivided into separate
jobs assigned to different
people.
Why would companies divide
work into such tiny bits?
“The simple answer
is that job
specialization
potentially improves
work efficiency”

24. Reasons for Higher Efficiency
1) Employees have less variety of tasks to juggle, so
there is less time lost changing over to a different
type of activity. Even when people can change tasks
quickly, their mental attention lingers on the
previous type of work, which slows down performance
on the new task.
2) Employees can become proficient more quickly in
specialized jobs. There are fewer physical and mental
skills to learn and therefore less time to train and
develop people for high performance.

25. Reasons for Higher Efficiency
3) Shorter work cycles give employees more frequent
practice with the task, so jobs are mastered more
quickly.
4) Specialization tends to increase work efficiency by
allowing employees with specific aptitudes or skills
to be matched more precisely to the jobs for which
they are best suited.

26. Scientific Management
One of the strongest advocates of job specialization was
Frederick Winslow Taylor, an American industrial
engineer who introduced the principles of scientific
management in the early 1900s.
Scientific management the practice of systematically
partitioning work into its smallest elements and
standardizing tasks to achieve maximum efficiency.

27. Scientific Management
According to Taylor, the most effective companies have
detailed procedures and work practices developed by
engineers, enforced by supervisors, and executed by
employees. Even the supervisor’s tasks should be
divided: One person manages operational efficiency,
another manages inspection, and another is the
disciplinarian.

28. Problems with Job Specification
Frederick Winslow Taylor and his
contemporaries focused on how job
specialization reduces labor
“waste” by improving the
mechanical efficiency of work.
Yet they didn’t seem to notice
how this extreme job
specialization adversely affects
employee attitudes and
motivation.

29. Problems with Job Specification
 Employee turnover and absenteeism tend to be higher
in specialized jobs with very short cycle times.
 Companies sometimes have to pay higher wages to
attract job applicants to this dissatisfying, narrowly
defined work.
 Job specialization affects output quality, but in two
opposing ways. Job incumbents of specialized jobs
potentially produce higher-quality results because, as
we mentioned earlier, they master their work faster
than do employees in jobs with many and varied tasks.

30. Problems with Job Specification
 Many jobs such as supermarket cashiers are
specialized to the point that they are highly
repetitive and tedious. In these repetitive jobs, the
positive effect of higher proficiency is easily offset
by the negative effect of lower attentiveness and
motivation caused by the tedious work patterns.
 Job specialization also undermines work quality by
disassociating job incumbents from the overall product
or service. By performing a small part of the overall
work, employees have difficulty striving for better
quality or even noticing flaws.

31. Job Design and Work
Motivation
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32. Frederick
Herzberg
 Organizational Behavior Scholar
 Introduced Motivator-Hygiene Theory or
Two-Factor in 1950’s
 He argued that only characteristics of the job
itself motivate employees, whereas the
hygiene factors merely prevent
dissatisfaction.

33. Motivator - Hygiene Theory
This theory proposes that employees experience
job satisfaction when they fulfill growth and
esteem needs (called motivators), and they
experience dissatisfaction when they have poor
working conditions, low job security, and other
factors categorized as lower-order needs (called
hygienes).

34. MOTIVATOR
Responsibility
Recognition
Achievement
Poor Working
Conditions
Compensation
Policies
HYGIENE
Motivator - Hygiene Theory

35. Job Characteristics Model
It is a universal job design model made by
organizational psychologists, Greg R. Oldham and J.
Richard Hackman that relates the motivational
properties of jobs to specific personal and
organizational consequences of those properties.

36. Core Job
Characteristics
Critical
Psychological
States
Outcomes
Skill Variety
Task Identity
Task Significance
Autonomy
Feedback from Job
Meaningfulness
Responsibility
Knowledge of Results
Work Motivation
Growth Satisfaction
General Satisfaction
Work Effectiveness
Individual Differences: Knowledge and skill, context satisfaction, and growth-need strength.
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37. Core Job Characteristics
Skill Variety
Task Identity
Task Significance
Autonomy
Feedback from Job
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Use of different skills and talents to complete a
variety of work activities.
Job requires completion of a whole or identifiable
piece of work.
Job affects the organization and/or larger society.
Job that gives employees the freedom, independence,
and discretion to schedule their work and determine
the procedures used in completing it.
Employees can tell how well they are doing from direct
sensory information from the job itself.

38. Core Job
Characteristics
Skill Variety
Task Identity
Task Significance
Autonomy
Feedback from Job
Meaningfulness
Responsibility
Knowledge of Results
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Critical
Psychological
States
The belief that one’s work
is worthwhile or important.
A sense of being personally
accountable for the work
outcomes.
An awareness of the work
outcomes based on
information from the job
itself.

39. Core Job
Characteristics
Critical
Psychological
States
Outcomes
Skill Variety
Task Identity
Task Significance
Autonomy
Feedback from Job
Meaningfulness
Responsibility
Knowledge of Results
Work Motivation
Growth Satisfaction
General Satisfaction
Work Effectiveness
Individual Differences: Knowledge and skill, context satisfaction, and growth-need strength.
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40. J
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It overlooks two clusters of job features:
Social Characteristics
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 Extent to which the job requires employees
to interact with other people.
 Emotional Labor
 Task Interdependence - the extent to
which team members must share
materials, information, or expertise
in order to perform their jobs
 Feedback from others.

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It overlooks two clusters of job features:
Information processing demands of the job.
2
 Task Variability – How predictable the job
duties are from one day to the next.
 Task Analyzability – How much the job can
be performed using known procedures and
rules.

42. Job Design
Practices That
Motivate

43. Job Rotation
The practice of moving
employees from one job to
another for the purpose of
improving the motivational
and physiological
conditions of the work.
Job Enlargement
The practice of adding
more tasks to an
existing job.
Job Enrichment
The practice of giving
employees more
responsibility for
scheduling, coordinating,
and planning their own
work
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44. Empowerment
Practices
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45. Empowerment
Empowerment
Self-
determination
Meaning
Competence
Impact

46. Self-Leadership
Practices
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47. Self-
leadership
- Refers to specific cognitive and behavioral strategies
to achieve personal goals and standards of behavior.

48. 6.6 Five Elements of Self-leadership

49. Personal Goal Setting

50. Constructive Thought Strategies
Refers to any
situation in which we
talk to ourselves
about our own
thoughts or actions.
The process of
mentally practicing a
task and visualizing
its successful
completion.

51. Designing Natural Rewards
Incorporating natural rewards into your routine
allows new ways for the job to become more
motivating. As an example, alter the way a task gets
accomplished. If you stand up a lot at your job,
find a way to accomplish the same task while sitting
down. If you enjoy teamwork, find a way to call
customers as a team and, therefore, increase the
enjoyment of your job.

52. Self -monitoring Self -reinforcement
The key to success in
self-reinforcement is
to stick to your own
self reward and to not
take the reward unless
you finish your goal.
Self-monitoring is the
process of keeping track
at regular intervals of
one’s progress toward a
goal by using naturally
occurring feedback. Self-
monitoring significantly
improves employee
performance.

54. Learning Objective 1
1) Money
 Meaning of Money
 Men and Women
 More than an object of compensation
 Form of Exchange
 Generates a variety of emotions
2)Financial Reward Practice
 Membership- and Seniority- Based Rewards
 Job Status-Based Rewards
 Competency Based Rewards
 Performance Based Rewards

55. Learning
Objective 2
• Improve Reward Effect
a. Link rewards to
performance
b. Ensure that rewards are
relevant
c. Use team rewards for
interdependent jobs
d. Ensure that rewards are
valued
e. Watch out for
unintended consequences
• Job design practices
 Job Design and Work
Specialization
 Reasons for higher
efficiency
 Scientific Management
 Problems with Job
Specification
Learning
Objective 3

56. Learning
Objective 4
• Job design and work motivation
 Motivator-Hygiene Theory
 Job Characteristics Model
 Core Job Characteristics
 Critical Psychological
States
 Outcomes
• Job design practices that
motivate
 Job Rotation, Enlargement,
and Enrichment
• Empowerment practices
 Self-determination
 Meaning
 Competence
 Impact
Learning
Objective 5

57. Learning Objective 6
1) Self-leadership Practices
 Self-motivation
 Self-direction
2)Five Elements of Self-Leadership
 Designing natural
rewards
 Personal goal setting
 Self-monitoring
 Constructive thought
strategies
 Self-reinforcement
3) Personal Goal Setting
 Self-awareness
 Self-determination
4) Constructive Though Strategies
 Self-talk
 Mental Imagery
5) Designing Natural Rewards
6) Self-monitoring and Self-
reinforcement