Chapter 8: Pay, Careers, and Changing Employment Relationships

1. Understanding And Managing Organizational Behavior 4th Edition Chapter 8:Pay, Careers, and Changing Employment Relationships JENNIFER GEORGE & GARETH JONES

2. Chapter Objectives • Describe the determinants and types of psychological contacts and what happens when they are broken • Appreciate the two major roles of performance appraisal • Understand the different kinds and methods of performance appraisal

3. Chapter Objectives • Appreciate the importance of merit pay and the choices organizations face in using pay to motivate employees • Understand the importance of careers, different kinds of careers, and effective career management

4. Opening Case: Changing with the times at Briggs & Stratton • How can organizations in traditional industries remain competitive? • Relocation • Goal-setting • Pay linked to productivity • Career development and guidance

5. What is a Psychological Contract? • An employee’s perception of • his or her exchange relationship with an organization, • outcomes the organization has promised to provide to the employee, and • contributions the employee is obligated to make to the organization

6. Sources of Information • Direct communication from coworkers and supervisors • Observations of what actually transpires in the organization • Written documents

7. Consequences of Broken Contracts • Poor motivation and performance • Negative moods and emotions • Job dissatisfaction • Intent to quit

8. Performance Appraisal • Encourage high levels of employee motivation and performance • Provide accurate information to be used in managerial decision making

9. Information Provided To Employees • Level of contribution • Accuracy of tasks and direction Performance appraisals give employees feedback that contributes to intrinsic motivation!

10. Developing a Performance Appraisal System • The mix of formal and informal appraisals • What factors to evaluate • Methods of appraisal • Who appraises performance

11. Factors to Evaluate • Traits • Behaviors • Results

12. Supervisors Self-appraisals Peer appraisals Subordinate appraisals Customer/client appraisals Multiple raters Who Appraises Performance? 360-degree appraisal

13. Stereotypes Primacy effect Contrast effect Halo effect Similar-to-me effect Harshness, leniency, and average tendency biases Knowledge-of-predictor bias Problems and Biases in Performance Appraisal

14. Merit Pay Plans • Use when • Individual performance can be accurately assessed • Employees are highly independent • Distribute by • Salary increase • Bonuses

15. Piece-rate pay Paid for each unit produced Commission pay Paid by percentage of sales Full Partial Individual-Based Merit Pay Plans

16. Gain-Sharing • Employees receive share of profits or saved expenses • Encourages camaraderie and team spirit • Discourages personal motivation • Types • Scanlon plan • Profit sharing

17. Pay Differentials and Comparable Worth • Gender • Age • Race • Leadership level

18. Types of Careers • Steady-state • Linear • Spiral • Transitory

19. Career Stages • Preparation for Work • Organizational Entry • Early Career • Mid-Career • Late Career

20. Contemporary Career Challenges • Ethical Career Management • Career Management in an Era of Dual-Career Couples