2. MBO MBO is a program that encompasses specific goals, participatively set, for an explicit time period, with feed back on goal progress. The set goals are tangible, verifiable and measurable. MBO’s appeal lies in its emphasis on converting overall organizational objectives into specific objectives for organizational units and individual members.
3. The organizational overall objectives are translated into specific objectives for each succeeding levels i. e. Divisional Departmental Individual MBO works from the BOTTOMM UP as well from the TOP DOWN. As a result a hierarchy of objectives is developed and MBO provides specific personal performance objectives.
4. Cascading of objectives Any Organisation Consumer Products Division Industrial Products division Development Research Sales Production Marketing Customer Service
5. 4 Common Ingredients of MBO Program Goal Specificity Participative Decision Making An explicit time Period Performance feedback
6. Motivation by Job Design: The JCM Job Characteristics Model (JCM) Hackman and Oldham’s concept that any job can be described through five core job dimensions: Skill variety – Requirements for different tasks in the job. Task identity – Completion of a whole piece of work. Task significance – The job’s impact on others. Autonomy – Level of discretion in decision making. Feedback – Amount of direct and clear information on performance. The way elements in a job are organized (job design) impacts motivation, satisfaction, and performance.
8. Employee Recognition Programs Recognition can be a potent motivator. ERPs can be very informal like a private and prompt ‘thank you’ or sealed notes left at employees seats after every one has gone home. A formal ERP can be a widely publicized formal program in which specific types of behaviour are encouraged and the procedure for attaining recognition are clearly identified.
9. Employee involvement Programs It is a participative process that uses the entire capacity of employees and is designed to encourage increased commitment to the organization's success. Employees will be more motivated, committed, productive & satisfied; by Involving them in decisions, by increasing their autonomy, and control over their work lives.
10. Participative Management It is a process in which subordinates share a significant degree of decision making power with immediate superiors. It is an ethical imperative but participative management is not appropriate for every organisation or every work unit.
11. Representative participation Workers participate in organizational decision making through a small group of representative employees. It is known as the most widely legislated form of employee involvement around the world. The goal of representative participation is to redistribute power within an organisation, putting labor on a more equal platform with management & stakeholders.
12. Forms of Representative Participation WORK COUNSILS BOARD REPRESENTATIVES are the most common ones. QUALITY CIRCLES And ESOPs are the other initiatives taken for representative participation.
13. Work Councils Work Councils link employees with management. They are groups of nominated or elected employees who must be consulted when mgmt makes decision involving personnel. Very effective while mergers and takeovers
14. Board Representatives A form of representative participation where employees sit on a company’s Board of Directors and represent the interest of the firms’ employees. In some countries large companies may be legally required to make sure that employee representatives have the same no. of board seats as stockholders representatives.
15. Quality Circles A work group of employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions and take corrective actions. Success of Quality Circles? Easy way to get on the employee involvement Bandwagon?
16. Employee Stock Ownership Plans It is a company established benefit plans in which employees acquire stock as part of their benefits. ESOPs have the potential to increase Employee job satisfaction and work motivation; But for this Employees need to Psychologically experience ownership.
17. Job Redesign & Scheduling Programs Three popular ways of job redesign: 1. Job Rotation 2. Job Enlargement 3. Job Enrichment Three popular scheduling options are: 1. Flextime 2. Job sharing 3. Telecommuting
18. Job Rotation It is the periodic shifting of an employee from one task to another. Best suits those who suffer with over –routinization. Also Known as cross training. It reduces boredom and increases motivation through diversifying the employee’s activities.
19. Advantages & Disadvantages of Job rotation Work Scheduling Adapting to changes Filling vacancies. Training costs are increased Productivity is reduced by moving an employee to newer positions. Also creates disruptions. Supervision time is also increased Adjustment of the new employees.
20. Job Enlargement Means expanding the jobs horizontally. Best suits the job of lower level with less conceptual and analytical capabilities. The number and variety of tasks that an individual performs is increased and it results into a more diverse job.
21. Job Enrichment It means the vertical expansion of jobs. Increases the control of a worker over planning , execution and evaluation of his/her own job. Core job dimensions like Skill variety, task identity, Task significance, autonomy & feedback are focused in such a way that can yield satisfaction for an employee.
22. Flextime It allows employees some discretion over when they arrive at and leave work. Employees have to work a specific number of hours a week, but they are free to vary the hours of work within certain limits.
23. Benefits and drawbacks of Flextime Reduced absenteeism. Frequently improves worker productivity. Adjustment of work activities to those hrs in which they are individually more productive. Not applicable to every job Like the jobs which requires availability of the employee for interaction with outside people at predetermined time.
24. Job sharing An arrangement that allows two or more individuals to split a traditional 40 to 60 hrs a week job. It’s a recent innovation in the field of work scheduling. It increases flexibility; but finding compatible pairs of employees who can successfully coordinate the intricacies of one job is a bit difficult .
25. Telecommuting It refers to employees who do their work at home at least twice a week on a computer that is linked to their office. A virtual office kind of phenomena. Most suitable for -Routine info handling tasks -Mobile activities -other professional & knowledge related tasks.
26. Benefits & drawbacks A larger labor pool. Higher productivity Less turnover –(undoubtedly employee turnover) Improved morale Reduced office space costs. Less direct supervision of employees. Less coordinated teamwork. Increased feeling of isolation . Possibility of overlooking or undervaluing the contribution of less seen employees, increases.
27. Variable Pay Program A portion of an employees pay is based on some individual or organizational measure of performance, instead of paying for tenure or seniority. Different forms of variable pay programs are: Piece Rate plans Bonuses Profit Sharing Gain Sharing
28. Piece Rate plans Workers are paid a fixed sum fro each unit of production completed. A pure piece rate plan is a situation when an employee gets no base salary and is paid only for what he or she produces. Modified piece rate plan includes a base hourly wage plus a piece rate differential.
29. Bonuses Bonuses are the additional benefits given to the employees when company’s profits improve. Can be paid to executives for increasing total shareholder return as well as to all employees. Some companies include lower ranking employees also and routinely reward production employees with bonuses.
30. Profit sharing plans These are organization wide programs that distribute compensation based on some established formula designed around a company’s profitability. These can be direct cash outlays or allocated as stock options (in case of top managers)
31. Gain sharing It is a formula based group incentive plan in which improvements in group productivity determine the total amount of money that is to be allocated . The division of productivity saving can be split between the companies and the employees in 50 -50 or nay other way.
32. Gain Sharing Vs Profit Sharing Gain Sharing It focuses on productivity gains. It rewards specific behavior and less influenced by external factors. Employees can receive incentive awards even when the orgn is not profitable. Profit Sharing It focuses on profits. Influenced by external factors. It is dependent on organization's profit.
33. Skill based pay plans Also called competency based or knowledge based pay. Pay levels are based on how many skills employees have or how many jobs they can do. Skill based pay plans encourage employees to learn, expand their skills and grow.
34. Flexible benefits Employees tailor their benefit programs to meet their personal needs by picking and choosing from a menu of benefit options. It replaces “one benefit plan fits all” concept to a tailored package as per employee own needs and situations.
35. Ground rules for Practitioners Recognize individual differences. Use goals and feed back Allow employees to participate in decisions that affect them Link rewards to performance Check the system for equity
