Applied Motivation Practices

1. 4 C H A P T E R AppliedMotivation Practices F O U R

2. Reinforcement Theory • Behaviors are functions of consequences that they produce • If a behavior is followed by a pleasant experience it will be repeated • In order to change behaviors the consequences must be changed

3. Types of Reinforcement • Positive Reinforcement-rewards • Punishment-Application of a negative outcome • Negative Reinforcement-removal of negative outcomes when behavior is performed • Extinction-absence of reinforcement (removal of positive reinforcement) • Drawbacks

4. 14.9 Reinforcement Process Stimulus (situation) Response(behavior) Consequences(rewards and punishments) Future Behavior Source: From L. W. Porter and E. E. Lawler III. Managerial Attitudes and Performance. Homewood, Ill.: Irwin, 1968, p. 165. Used with permission Adapted from Figure 14.6

5. Types of Organizational Rewards Performance Membership and Seniority Types of Rewards Competency Job Status

6. Membership/Seniority Based Rewards • Fixed wages, seniority increases • Advantages • guaranteed wages may attract job applicants • seniority-based rewards reduce turnover • Disadvantages • doesn’t motivate job performance • discourages poor performers from leaving

7. Job Status-Based Rewards • Job evaluation and executive perks • job evaluation tries to measure job's value • Advantages: • job evaluation tries to maintain pay equity • motivates competition for promotions • Disadvantages: • employees exaggerate duties, hoard resources • motivates focus on narrowly defined tasks • creates psychological distance across hierarchy

8. Competency-Based Rewards • Underlying characteristics that lead to superior performance • Skill-based pay • pay increases with skill modules learned • Advantages • More flexible work force, better quality, consistent with employability • Disadvantages • Potentially subjective, higher training costs

9. Levels of Rewards • Individual Rewards • Piece Rate - wage per widget • Commissions - percentage of sales volume • Royalties - percentage of work ascribed to an individual • Merit pay - based on performance appraisal • Bonuses - for accomplishing specific goals • Team & Organizational Rewards • Gainsharing - employees receive a percentage of cost savings, can also be done on an individual basis

10. Team Rewards (cont.) • ESOP’s • Creates an atmosphere of ownership • employees will align their behavior with organizational success • Over 10,000 companies use them • What does it mean to be vested? • Encourages long term employment • Profit Sharing • Bonuses used in competitive industries • Many other influences besides employee behavior upon profit levels hurts the expectancy of outcomes

11. Profit sharing • Share ownership Organizational rewards • Gainsharing • Special bonuses Team rewards • Piece rate • Commissions • Merit pay • Bonuses Individual rewards Types of Performance-Based Rewards

12. Agency Theory • Principals (company owners) have different objectives than the agents (managers and employees) who work for the organization • Agents will act in self-interest • The principal must monitor the behavior of agents to ensure compliance • Gainshairing, profit sharing, and ESOP’s are a way to overcome the “Agency Problem” • 1 Minute Paper • Explain the agency problem in your own words using an example from the real world.

13. The Trouble with Rewards • Rewards punish • Rewards rupture relationships • Rewards ignore reasons (quick fix) • Rewards discourage risk-taking • Only rewarded behaviors will be performed • Rewards weaken intrinsic motivation © Corel Corp. With permission

14. Minimizing Reward Problems • Measure performance accurately • Ensure rewards are relevant • Team rewards for interdependent jobs • Ensure rewards are valued • Beware of unintended consequences © Corel Corp. With permission

15. Job Design • Assigning tasks to a job, including the interdependency of those tasks with other jobs • Technology doesn’t determine job scope • Employees expected to perform a variety of work (employability) © Photodisc. With permission.

16. How jobs are designed • Job Analysis - breakdown of the tasks for a specific job and the personal characteristics necessary for their successful performance • Job Description - outline of a position’s essential tasks and responsibilities • Job Specification - list of personal characteristics, competencies, and experience a worker needs to carry out a job’s tasks and assume its responsibilities to identify the right person for the job

17. Scientific Management • Fred Taylor • Time and Motion studies • Proposed “One most efficient way” for completing a task • Assumed that employees were economically motivated • Foremen to monitor behavior of employees

18. Gilbreths and Therbligs • Frank and Lillian • Broke tasks down by each motion called “therbligs” • Used motion video • Lillian later played an instrumental role in behavioral movement

19. Less time changing tasks Lower training costs Job mastered quickly Better person-job matching Job boredom Discontentment pay Lower quality Lower motivation Evaluation of Job Specialization Advantages Disadvantages

20. Hackman and Oldham & the JCM • Identified five core job characteristics that lead to 3 psychological states. • Experiencing these psychological states will lead to higher levels of work motivation • Psychological States • experienced meaningfulness - your job matters • experienced responsibility - given autonomy to do a job the way you see fit • knowledge of results - receipt of feedback

21. Moderators of the JCM • Context Satisfaction - situations differ • Knowledge and Skill - can increase stress if one feels incapable • Growth Strength Need • Need level for personal challenges that determines the amount of influence job enrichment will have on motivation • The people have moved through the lower level needs and are in need of challenges and fulfillment from work

22. Skill variety Task identity Task significance Meaningfulness Autonomy Responsibility Feedback from job Knowledge of results Individual differences Job Characteristics Model Core Job Characteristics Critical Psychological States Outcomes Work motivation Growth satisfaction General satisfaction Work effectiveness

23. Job Rotation • Increases motivation through skill variety • Fewer repetitive strain injuries • Creates multi-skilled work force

24. Comparing Job Rotation and Enlargement Job Rotation Job 1 Prepare letter Job 2 Negotiate payment Job 3 Process account Job Enlargement Job 1 Prepare letter Negotiate payment Process account Job 2 Prepare letter Negotiate payment Process account Job 3 Prepare letter Negotiate payment Process account

25. Job Enrichment Strategies • Empowering employees • giving employees more autonomy • feeling of control and self-efficacy • Forming natural work units • completing an entire task • assigning employees to specific clients • Establishing client relationships • employees put in direct contact with clients

26. Obstacles to Job Design • Difficult to accurately measure job characteristics • More team than individual job design • Resistance to change • Problem finding optimal level of enrichment and specialization

27. Self- Reinforcement Self- Monitoring Designing Natural Rewards Constructive Thought Patterns Elements of Self-Leadership Personal Goal Setting