plannin contd

download plannin contd

of 43

Transcript of plannin contd

  • 8/8/2019 plannin contd

    1/43

    Motivational

    Tools-

    (Incentives,

    Job design,

    Goal setting

    (MBO),

    EmployeeRecognition

    Programs,

    . EmployeeInvolvement

    Programs,

    Variable PayPrograms,

    Skill Based Pay

    Plans,Flexible Benefit),

    Issues in

    Motivation. 2009 Prentice-Hall Inc. All rights reserved. 7-0

  • 8/8/2019 plannin contd

    2/43

    a) Motivational tools By job design-

    1. Job characteristic model and Job

    designing by-

    a) job rotation,

    b) job enlargement, and

    c) job enrichment

    d) Job simplification

    Alternative work arrangementa) Flextime. (flexible work hours).

    b) Job Sharing-

    c) Telecommuting-

    d) The Virtual Office

    Employ involvement program

    1. Participative Management

    2. Representative Participation

    1. Works councils

    2. Board representative

    3. Quality Circle

    Rewards Variable pay plan

    a)Piece Rate:b)Merit-Based:

    c)Bonuses:

    Skill-Based Programs

    a)Profit Sharing

    a)Gain Sharingb)Employee Stock Ownership Plans

    (ESOPs)

    Flexible benefit

    b) Modular Plans

    c) Core-Plus Plansd) Flexible Spending Plans

    Recogisition programa) Intrinsic Rewards: Stimulate

    Intrinsic Motivation

    b)Benefits of Programsc)Drawbacks of Programs

    7-1

  • 8/8/2019 plannin contd

    3/43

    Motivational tools

    By job design-

    1. Job characteristic model and

    2. Alternative work arrangement

    Employ involvement program

    1. Participative Management

    2. Representative Participation

    1. Works councils

    2. Board representative

    3. Quality Circle Using rewards

    Piece RateMerit-Based:Bonuses:

    2009 Prentice-Hall Inc. All rights reserved. 7-2

    Profit SharingGain Sharing:Employee Stock Ownership Plans (ESOPs)

  • 8/8/2019 plannin contd

    4/43

    Motivation by Job Design: The JCM

    The Job Characteristics Model (JCM)

    (Skill variety, Task identity, Task significance, Autonomy,Feedback).

    How Can Jobs Be Redesigned?

    job rotation,

    job enlargement, and

    job enrichment

    7-3

  • 8/8/2019 plannin contd

    5/43

    Motivation by Job Design: The JCM

    Alternative WorkArrangements

    Flextime (flexible work hours).

    Job Sharing.

    Telecommuting

    The Virtual Office

    7-4

  • 8/8/2019 plannin contd

    6/43

    Motivation by Job Design: The JCM

    Ability and Opportunity

    Success on a job is facilitated or hindered by the

    existence or absence of support resources.

    A popular although arguably simplistic way of thinking

    about employee performance is as a function of theinteraction of ability and motivation; that is,

    performance = f(Av M).

    If either is inadequate, performance will be negatively

    affected. We need to add opportunity to perform to our

    equationperformance = f(Av M v O).

    7-5

  • 8/8/2019 plannin contd

    7/43

    Motivation by Job Design: The JCM

    How Can Jobs Be Redesigned?

    Ways to reshape jobs so that they are more challenging,stimulating, and motivating. Work arrangement(orrearrangement) aimed at reducing orovercoming job dissatisfaction

    and employee alignment arising from repetitive and mechanistic

    tasks. Through job design, organization try to raise productivity

    levels by offering non-monetary rewards such as greater satisfaction

    from a sense of personal achievement in meeting the increased

    challenge and responsibility of one's work.

    Job enlargement,

    job enrichment,

    job rotation, and

    job simplification

    are the various techniques used in a job design.7-6

  • 8/8/2019 plannin contd

    8/43

    Motivation by Job Design: The JCM

    Job Characteristics Model (JCM)

    Hackman and Oldhams model proposes that any job can be

    described through five core job dimensions:

    Skill variety

    Task identityTask significance

    Autonomy

    Feedback

    The way elements in a job are organized (job design) impacts

    motivation, satisfaction, and performance.

    7-7

  • 8/8/2019 plannin contd

    9/43

    Motivation by Job Design: The JCM

    Skill variety Degree to which the job requires a variety of different

    activities, so the worker can use a number of different skills andtalent. Requirements for different tasks in the job.

    Task identity The degree to which the job requires completion of a

    whole and identifiable piece of work . Completion of a whole piece of

    work.Task significance The degree to which the job has a substantial

    impact on the lives or work of other people. The jobs impact onothers.

    Autonomy The degree to which the job provides substantial

    freedom, independence, and discretion to the individual in

    scheduling the work and determining the procedures to be used in

    carrying it out Level of discretion in decision making.

    FeedbackAmount of direct and clear information on performance.

    7-8

  • 8/8/2019 plannin contd

    10/43

    Motivation by Job Design: The JCM

    The links between job dimensions and the outcomes are moderated

    by the strength of the individuals growth need. Individuals with a

    high growth need are more likely to experience the psychological

    states when their jobs are enriched.

    Motivating potential score (MPS)

    7-9

  • 8/8/2019 plannin contd

    11/43

    The Job Characteristics Model

    7-10Employee growth-need strength moderates the relationships.

  • 8/8/2019 plannin contd

    12/43

    Motivating Potential Score (MPS)

    The Five core dimensions can be combined into a singlepredictive index of motivation, called- MPS

    People who work on jobs with high core dimensions aregenerally more motivated, satisfied, and productive.

    Job dimensions operate through the psychological states in

    influencing personal and work outcome variables ratherthan influencing them directly.

    While the JCM framework is supported by research, theMPS model isnt practical and doesnt work well.

    7-11

  • 8/8/2019 plannin contd

    13/43

    How Can Jobs Be Redesigned?

    Repetitive jobs provide little variety,autonomy, or motivation. People generally

    seek out jobs that are challenging and

    stimulating.

    Job Rotation The periodic shifting of a worker from one

    task to another

    Job Enlargement

    The horizontal expansion of jobs

    Job Enrichment

    The vertical expansion of jobs7-12

  • 8/8/2019 plannin contd

    14/43

    How Can Jobs Be Redesigned?

    Job Rotation

    Often referred to as cross-training

    Periodic shifting of an employee from one task to another

    When activity is no longer challenging, the employee is shifted to a different task.

    Strengths of job rotation include:

    1. reduces boredom,

    2. increases motivation, and

    3. helps employees better understand their work contributions.

    Indirect benefits in that employees with wider range of skills give management

    more flexibility in scheduling, adapting to changes and filling vacancies

    Weaknesses include:

    1. creates disruptions,

    2. extra time for supervisors addressing questions,

    3. training time and efficiencies 7-13

  • 8/8/2019 plannin contd

    15/43

    How Can Jobs Be Redesigned?

    Job Enlargement (Horizontal loading) Increasing the number and variety of tasks / responsibility that an individual performs

    Creates more diversity

    Difference between enlargement and rotation is that enlargement redesigns jobs where

    rotation does not.

    Job enlargement interventions usually have led to less than successful outcomes.

    Advantage1. Avoid monotony (which is the result of specialization and division of work)

    2. Decrease production cost

    3. Increase efficiency, satisfaction and motivation

    Disadvantage1. Additional training cost

    2. Employee may demand increase pay due to increased responsibility

    3. Productivity may fall during redesigning of job

    7-14

  • 8/8/2019 plannin contd

    16/43

    How Can Jobs Be Redesigned?

    Job Enrichment

    Refers to the vertical expansion of jobs It is direct outgrowth ofHerzbergs 2 factor theory. It adds responsibility and opportunity

    related to existing task for personal growth.

    Overall evidence indicates that job enrichment reduces

    absenteeism and turnover costs and increases satisfaction.Advantage

    1. Increases the degree to which the worker controls the planning,

    execution, and evaluation of the work

    2. Allows worker to complete an entire activity3. Increases employees freedom and independence

    4. Increases responsibility and provides feedback

    7-15

  • 8/8/2019 plannin contd

    17/43

    Guidelines for Enriching a Job

    7-16

  • 8/8/2019 plannin contd

    18/43

    Alternative Work Arrangements

    1. Flextime. (flexible work hours).Employees work during a common core time period each day but have discretion

    in forming their total workday from a flexible set of hours outside the core.

    Allows employees some discretion over when they arrive at and leave work.

    Benefits include

    1. reduced absenteeism,

    2. increased productivity,

    3. reduced overtime expense, and

    4. reduced hostility toward management, and

    5. increased autonomy and responsibility for employees.

    Major drawback is that its not applicable to all jobs. 7-17

  • 8/8/2019 plannin contd

    19/43

    Another Alternative: Telecommuting

    Job Sharing- The practice of having two or more people split

    a 40-hour-a-week job. Allows two or more individuals to splita traditional 40-hour a week job. Not very popular because

    finding compatible partner is difficult.

    Telecommuting- Employees who do their work at home at

    least two days a week on a computer that is linked to their

    office .

    Typical Telecommuting Jobs

    Professional and other knowledge-related tasks

    Routine information-handling tasks

    Mobile activities

    The Virtual Office- Employees

    work out of their home on

    a relatively permanent basis.7-18

  • 8/8/2019 plannin contd

    20/43

    Reasons for and against Telecommuting

    Advantages

    Larger labor pool

    Higher productivity

    Less turnover

    Improved morale

    Reduced office-space costs

    Disadvantages

    Employer

    Less direct supervision of

    employees

    Difficult to coordinateteamwork

    Difficult to evaluate non-

    quantitative performance Employee

    May not be as noticed for hisor her efforts

    7-19

  • 8/8/2019 plannin contd

    21/43

    Motivation Is Not the Whole Story

    Performance

    (P)

    Motivation

    (M)

    Ability

    (A)

    Opportunityto Perform

    (O)

    7-20

    P =f(A x M x O)

  • 8/8/2019 plannin contd

    22/43

    Dont Forget Ability and Opportunity

    Success on a job is facilitated or hindered by the existence or

    absence of support resources.

    A popular although arguably simplistic way of thinking about

    employee performance is as a function of the interaction ofability

    and motivation; that is, performance = f(A v M).

    If either is inadequate, performance will be negatively affected. We

    need to add opportunity to perform to our equationperformance= f(A v Mv O).

    When you attempt to assess why an employee may not be

    performing to the level that you believe he or she is capable of,

    look to the environment to see if it is supportive. Opportunity in terms of-

    1. Tools and equipment

    2. Materials an supply

    3. Favorable work environment- rules regulations, peer, senior, information of

    work, time decision authority etc 7-21

  • 8/8/2019 plannin contd

    23/43

    Types of Employee Involvement Programs

    Participative Management Subordinates share a significant degree of decision-making

    power with their immediate superiors

    Representative Participation

    Works councils

    Groups of nominated or elected employees who must beconsulted for any personnel decisions

    Board representative

    An employee sits on a companys board of directors andrepresents the interests of the firms employees

    Quality Circle A work group of employees who meet regularly to discuss

    their quality problems, investigate causes, recommendsolutions, and take corrective actions

    7-22

  • 8/8/2019 plannin contd

    24/43

    Types of Employee Involvement Programs

    Participative Management

    The distinct characteristic common to all participative management programs isthat subordinates actually share a significant immediate degree of decision-

    making power with their superiors.

    A catchall term covering a variety of techniques-

    1. Participation or participative management,

    2. Workplace democracy,3. Empowerment, and

    4. Employee ownership.

    It increases productivity, motivation, commitment and satisfaction.

    However, it is not appropriate for every organization.

    For it to work, there must be adequate time to participate,

    The issues in which employees get involved must be relevant to their

    interests,

    Employees must have the ability (intelligence, technical knowledge,

    communication skills) to participate, and

    The organizations culture must support employee involvement.7-23

  • 8/8/2019 plannin contd

    25/43

    Types of Employee Involvement Programs

    Participative Management (cont.)

    .Why would management want to share its decision-making

    power with subordinates?

    1. Managers often do not know everything their employees do.

    2. Better decisions3. Increased commitment to decisions

    4. Intrinsically rewarding employees makes their jobs more

    interesting and meaningful

    5. Dozens of studies have been conducted but the findings aremixed. It appears that participation typically has only a

    modest influence on productivity, motivation, and job

    satisfaction.

    7-24

  • 8/8/2019 plannin contd

    26/43

    Types of Employee Involvement Programs

    Representative Participation

    Representative participation: Almost every country in WesternEurope has some type of legislation requiring it. It is the most

    widely legislated form of employee involvement around the world.

    The goal is to redistribute power within an organization,

    putting labor on a more equal footing with the interests ofmanagement and stockholders.

    The two most common forms:

    Works councils link employees with management. They are

    groups of nominated or elected employees who must be

    consulted when management makes decisions involving

    personnel.

    Board representatives are employees who sit on a companys

    board of directors and represent the interests of the firms

    employees. 7-25

  • 8/8/2019 plannin contd

    27/43

    Types of Employee Involvement Programs

    Representative Participation (cont.)

    In some countries, large companies may be legally required to makesure that employee representatives have the same number of board

    seats as stockholder representatives.

    The overall influence seems to be minimal. The evidence suggests

    that works councils are dominated by management and have littleimpact on employees or the organization.

    If one were interested in changing employee attitudes or in improving

    organizational performance, representative participation would be apoor choice.

    7-26

  • 8/8/2019 plannin contd

    28/43

    Types of Employee Involvement Programs

    Quality Circles

    Quality circles became popular in North America and Europe during the1980s.

    A quality circle consists of a work group of eight to ten employees and

    supervisors who have a shared area of responsibility.

    Key components are:

    1. They meet regularly on company time to discuss their qualityproblems, investigate causes of the problems, recommend

    solutions, and take corrective actions.

    2. They take over the responsibility for solving quality problemsand they generate and evaluate their own feedback.

    3. Management typically retains control over the final

    implementation decision. 7-27

  • 8/8/2019 plannin contd

    29/43

    Types of Employee Involvement Programs

    Quality Circles (cont.)

    A review of the evidence indicates that they are likely to

    positively affect productivity, however, they tend to show little

    or no effect on employee satisfaction.

    QCs seem to be a fad that has come and gone.

    First is the little bit of time (usually just an hour per week) that

    actually deals with employee involvement.

    Second, the ease of implementing quality circles often worked

    against them. The lack of planning and top-management

    commitment often contributed to quality circle failures

    7-28

  • 8/8/2019 plannin contd

    30/43

    Motivational Theory Links to EI Programs

    Theory Y

    Employeeswant to beinvolved

    Managerialviewpoint

    Two-FactorTheory

    IntrinsicMotivation

    Growth

    Responsibility

    Involvement

    ERG Theory

    StimulatenAch

    Growth

    Recognition

    Self-esteem

    7-29

  • 8/8/2019 plannin contd

    31/43

    Four Major Strategic Reward Decisions

    1. What to pay? (pay

    structure)

    2. How to pay individuals?

    (variable pay plans and

    skill-based pay plans)

    3. What benefits to offer?Do

    we offer choice of

    benefits? (flexible benefits)

    4. How to build recognitionprograms?

    7-30

  • 8/8/2019 plannin contd

    32/43

    1. What to Pay Establishing a Pay Structure

    Internal equity

    The worth of the job to the organization

    Determined byjob evaluations

    External equity

    The competitiveness of the companys pay relative to payelsewhere in the industry

    Determined through pay surveys

    Choose organizational position

    Pay leaders Greater employee loyalty

    Attracts better-quality employees

    Pay laggards accept high turnover for low hourly costs

    7-31

  • 8/8/2019 plannin contd

    33/43

    2. How to Pay- Rewarding Individual Employees Through

    Variable Pay Programs

    Types ofVariable Pay ProgramsAportion ofan employees pay is based on some individualand/or organizationalmeasure ofperformance

    Piece Rate:

    Workers are paid a fixed sum foreach unit of production

    completed Weakness: not feasible for many jobs

    Merit-Based:

    Based on performance appraisal ratings

    Gap increasing between average and top-performers

    Weaknesses: validity of system based on annual appraisals,pay pool can be small, unions strongly resist

    Bonuses:

    Rewards recent performance

    Weakness: employees consider this a pay

    7-32

  • 8/8/2019 plannin contd

    34/43

    2.How to Pay - Skill-Based Pay Programs

    Types of Skill-Based Programs: is alternative to job basedpay-

    Also known as competency- orknowledge-basedpay - setspay based on skills or number ofjobs an employee can perform

    Profit Sharing:

    Organization-wide programs that distribute compensation basedon some established formula designed around a companysprofitability(in terms of cash or stock option)

    Gain Sharing:

    An incentive plan in which improvements in group productivitydetermine the total amount of money that is allocated (increase inproductivity does not always mean profit), Productivity is aninternal factor where as profit is internal and external factor

    Employee Stock Ownership Plans (ESOPs)

    Company-established benefit plans in which employees acquirestock as part of their benefits

    7-33

  • 8/8/2019 plannin contd

    35/43

    Evaluation of Variable and Skill-based Pay

    To some extent, variable pay does increasemotivation and productivity

    Benefits of Skill-based Pay Plans Provide staffing flexibility

    Facilitate communication across the organization

    Lessen protection of territory behaviors

    Meet the needs of employees for advancement

    Lead to performance improvements

    Drawbacks: Lack of additional learning opportunities

    Continuing to pay employees forobsolete skills Paying forskills of no immediate use to the

    organization

    Paying for a skill, not for performance of the skill.This plan deals with quality and team work not withlevel of performance.

    People will opt for any any training 7-34

  • 8/8/2019 plannin contd

    36/43

    3. What Benefits to Offer - Flexible Benefits

    Employees tailor their benefitprogram to meet theirpersonalneed by picking and choosingfrom a menu of

    benefit options.

    Modular Plans

    Predesigned benefits packages for specific groups ofemployees

    Core-Plus Plans

    A core of essential benefits and a menu-like selection of

    other benefit options

    Flexible Spending Plans

    Allow employees to use their tax-free benefit dollars to

    purchase benefits and pay service premiums

    7-35

  • 8/8/2019 plannin contd

    37/43

    4.How to Build Recognition Programs

    Intrinsic Rewards: Stimulate Intrinsic Motivation Personal attention given to employee

    Approval and appreciation for a job well done

    Growing in popularity and usage

    Benefits of Programs

    Fulfill employees desire for recognition

    Inexpensive to implement

    Encourage repetition of desired behaviors

    Drawbacks of Programs

    Susceptible to manipulation by management

    7-36

  • 8/8/2019 plannin contd

    38/43

    Special issues in motivation

    Motivating professional Motivating contingent worker

    Motivating diversified work force

    Motivating low skill service worker

    Motivating people doing highly repetitive task

    7-37

  • 8/8/2019 plannin contd

    39/43

    Special issues in motivation

    Motivating professional- they are well paid. They getgreat deal of intrinsic satisfaction from work they do and

    have long term commitment with their field of expertise

    than organisation. They are more loyal to their profession.

    Motivation-

    1. Money and promotion has low priority

    2. They need to update their knowledge regularly.(skill

    development opportunity like- training, development,

    seminars, work shop etc. motivates them)

    3. Challenging job

    4. Reward with recognition

    5. Creating alternative career path, allowing them to earn

    more money and status without assuming managerial

    responsibility. 7-38

  • 8/8/2019 plannin contd

    40/43

    Special issues in motivation

    Motivating contingent worker-

    Contingent employee do not have job security and stability in the

    organization that a permanent employee has. Eg. temporaryemployee, part time, working from home, short term hirer, on call

    worker, day laborer, independent contractor, leases worker etc.

    Motivation

    1. Freedom to work2. Opportunity for permanent status,

    3. developing sellable skills

    Motivating diversified work force

    Need to understand and respond to diversity. Flexibility in

    1. work hour

    2. Compensation plan

    3. Benefit

    4. Physical work setting7-39

  • 8/8/2019 plannin contd

    41/43

    Special issues in motivation

    Motivating low skill service worker1. Increase pay/ promotion

    2. Flexible work schedule

    3. Recruit young or retirees who have low financial need

    4. respect

    Motivating people doing highly repetitive task

    1. Careful selection of people, who have tolerance for

    ambiguity.

    2. Try automation of job (ATM)

    3. High pay- less turn over- but not high motivation

    4. Create pleasant work environment.

    5. Ample work breaks

    6. Employee supervisions 7-40

  • 8/8/2019 plannin contd

    42/43

    Global Implications

    Job Characteristics and Job Enrichment Inconsistent results across cultures

    Telecommuting

    U.S. does this more, but EU workers are interested in it

    Variable Pay Not much research available, but some possible hypotheses

    on relationships

    Flexible Benefits

    This concept is becoming more prevalent globally

    Employee Benefits

    Practices must be modified to match culture

    7-41

  • 8/8/2019 plannin contd

    43/43

    Summary and Managerial Implications

    7-42

    To Motivate Employees

    Recognize individual differences- link to ability and then

    give opportunity.

    Use goals and feedback

    Allow employees to participate in decisions that affect them

    Link rewards to performance

    Check the reward system for equity