HRM 601 Organizational Behavior

1. HRM 601 Organizational Behavior Session 6 Motivational Applications

2. Goals That Motivate • Specific Goals • Difficult Goals • Goal Acceptance • Goal Feedback

3. Why Goals Motivate • Mobilize energy in relation to goal • Focus attention towards goals attainment • Encourages setting of action plans or strategies for goal attainment • Encourages persistence until goal is attained

4. Enhancing Goal Acceptance • Participation • Rewards • Supportiveness

5. Incentives for Individuals • For Executives • Compensation tied to achieving strategic goals • For Lower Level Employees • Tied to performance: bonuses, commissions, piecework

6. Incentives for Groups • Team incentives • Profit sharing • Gain sharing • Stock options

7. Where Pay Fails to Motivate • Bonuses or merit pay is too small • Non-existent link between pay and performance • Performance appraisal is done poorly • Effect of unions • Adaptation problems

8. Effective Reward Systems • Set high goals for performance • Develop accurate ways to measure performance • Train supervisors in performance appraisal • Link pay to performance • Make increases noticeable and meaningful

9. Hackman & Oldham’s Job Characteristics Model Core Dimensions Psychological States Outcomes Skill Variety Task Identity Task Signif. High intrinsic motivation High job per- ormance High job satis- faction Low absentee ism & turnover Meaningfulness of Work Responsibility for outcomes Autonomy Knowledge of Results Feedback

10. Moderating Variables for the Job Characteristics Model • Growth need strength • job is a vehicle for personal growth, sense of achievement, avenue for feeling success • Knowledge and skills • Satisfaction with extrinsic aspects of work

11. Motivating Potential Score Skill Variety +Task Identity+Task Significance 3 MPS = X Autonomy X Feedback

12. Implementing Concepts for the Job Characteristics Model • Combine tasks: Effects skill variety, task identity, & task significance • Group tasks into natural work units: Effects task significance and task identity • Give workers contact with customers: Effects skill variety, autonomy, feedback • Vertically load jobs: Effects autonomy • Open feedback channels: Effects feedback

13. Criticisms of the Job Characteristics Model • Job characteristics are not distinct • Link to critical psychological states is not clear • Individual differences have an important effect • Job outcomes are not clearly linked to job characteristics

14. Designing Jobs for Teams • Team has to be an identifiable group, doing a specified piece of work, and be self-managing • Key behaviors: Ask for ideas, give suggestions,. listen to others, share information, help others • Manager’s role: Make alterations needed for effective group performance, consult

15. Business Process Re-engineering • The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as quality, service and speed. (Hammer & Champy, 1993)

16. What BPR Is & Is Not • Deals with business processes (work activities with a beginning & end with inputs & outputs) • Process is difficult to see • Does not deal with structure • Structure is easily seen • Not replacement of computer systems • Not technology initiated • Not a piecemeal approach

17. Role of Technology in BPR • Re-engineering originally used with change in software systems or hardware • These changes in Information Technology often accompany BPR • Information technology support BPR and enables the reconstruction of work

18. Demand -Control Model of Job Strain • Decision latitude and psychological demands • Job strain level and activity level • Interaction of demands and decision making • Social support

19. Decision Latitude and Psychological Demands • Decision latitudes - Combination of decision making authority and opportunity to use and develop skills on the job • Psychological demands - The mental workload or intellectual requirements of the job

20. Job Strain Level and Activity Level • Job strain level - level of stress derived from the workplace. Job strain relates positively to feelings of passivity and helplessness on the job • Activity level - Level of job demands in relation to decision latitude. • High activity - lawyers, engineers, teachers, nurses • Low activity - clerks, janitors

21. Interaction of Demands & Decision Making Job demands High Low Active learning, etc. High Active Low Strain Job Decision Latitude High Strain Passive Risk of psychological strain & illness Low

22. Social Support • Buffering effect on job strain • Social isolation carries risk • Social isolation with high strain carries higher risk