Chapter 5: Reward System and Motivating by Job Redesign

Question 1

Motivation In Action:

Answer 1

How motivation is implemented in organizations, focus on practices rather than theories

Question 2

The Role of Money:
and percent of Canadians believed were underpaid

Answer 2

Money is the most commonly used reward in organizations
46%

Question 3

How managers can set pay levels, pros and cons
Pay Below Market:
Pay Above Market:

Answer 3

• cuts operating cost, increase profit, morale may suffer
• keep and attract motivated and qualified employees, but decreases company profits

Question 4

Setting pay levels: Internal Equity

Answer 4

Worth of the job to the organization (job evaluation)

Question 5

Setting Pay levels: External Equity

Answer 5

The competitiveness of an organization’s pay relative to industry standards

Question 6

Pay Programs: Fixed Pay Programs

Answer 6

Employee’s level of pay is fixed at a certain level

Question 7

Pay Programs: Variable Pay Programs:

Answer 7

Portion of an employee’s pay is based on some individual and organizational measure of performance. Only a portion rather than full amount, of the pay is variable.

Question 8

Individual Based Programs - Piece Rate Pay Plan

Answer 8

Pay a fixed sum for each unit of production completed

Question 9

Individual Based Programs - Merit-based pay plan

Answer 9

pay is based on performance appraisal ratings

Question 10

Individual Based Programs - Bonuses

Answer 10

One-time rewards for defined work rather than ongoing entitlements

Question 11

Individual Based Programs - skill based pay
Based on (2)

Answer 11

Based on number of skills employees have or # of jobs can do

Question 12

Group based Programs - Gainsharing

Answer 12

Productivity gains and reward is shared, fund comes from savings in production cost, rather than after those products have been sold

Question 13

Organizational Based Incentives - Profit Sharing Plans

Answer 13

Organization-wide programs that distribute compensation based on some established formula designed around a company’s profitability

Question 14

Profitability Plans program Downsides (2)

Answer 14

they lack focus on the future, as profit is calculated based on the past performance rather than expected future performance

lack of consideration for programs that maintain long-term profitability, customer service and employee development, programs don’t directly generate profits.

Question 15

Employee Stock Ownership Plans (ESOPs)

Answer 15

Company established benefit plans in which employees acquire stock as part of their benefits

Question 16

Stock Options

Answer 16

Give employees the right to buy stocks in the company at a later date for a guaranteed price

Question 17

Employee Stock Ownership Plans (ESOPs) and Stock Options are future oriented meaning

Answer 17

employees who receive benefits have to hold onto for some time before selling or exercising them. Programs motivate employees by aligning employee self-interest with the best interests of their organizations

Question 18

Challenges to variable pay programs: Teamwork (2)

Answer 18

managers often forget that not all variables pay programs are created equal.

group-based programs are beneficial for teams but programs based on individuals’ incentives can harm team performance

Question 19

Challenges to variable pay programs: Unions (3)
Which country has more?
Paid on basis of……rather than…..
How much range and opportunity?

Answer 19

Canada has more unionized workplace than in the United States

Unionized employees are paid on the basis of seniority and job category, rather than performance

Little range within a category and few opportunities to receive performance-based pay

Question 20

Challenges to variable pay programs: Public Sector Employees

Answer 20

jobs in PS are mostly service in nature, difficult to quantify

Question 21

Challenges to variable pay programs: Ethical Consideration and 2 examples

Answer 21

Performance-based pay programs lead to manipulation of performance

Etc: Managers force staff to work without pay to keep their own bonus
Employees compete for self interest, rather than interest of the organization

Question 22

Flexible Benefits: Developing a reward Package

Answer 22

Reward systems monetary compensation and benefits packages to enhance employee well-being indirectly.

Question 23

Flexible Benefits: Developing a Benefits Packages: What was it originally and why didn’t it work

Answer 23

• Originally one-benefit-plan fits all approach but now viewed as costly and ineffective as individuals have different needs.
• employees with families pay prefer insurance coverages for whole family while others without family prefer coverage for themselves at lower costs.

Question 24

Modular Plan Benefit

Answer 24

Predesigned packages of benefits, with each module put together to meet needs of specific groups of employers

Question 25

Core-Plus Plans

Answer 25

Plans that consist of essential benefits and a menu-like selection of other benefit options from which employees can select

Question 26

Flexible Spending Plans and examples

Answer 26

Plans that allow employees to set aside pre-tax dollars up to the dollar amount offered in the plan to pay for particular benefits, such as eye care and dental premiums

Question 27

Job Characteristic Model (JCM):

Answer 27

Proposes how different elements in a job are organized can act to increase or decrease effort of job

Question 28

Job Characteristic Model (JCM): 5 dimensions

Answer 28

Skill variety, Task Identity, Task Significance Autonomy, Feedback

Question 29

Job Characteristic Model (JCM): Autonomy

Answer 29

job provides employee freedom, independence, and discretion in scheduling work each day and determining procedure for carrying it out

Question 30

What does MPS Stand for?

Answer 30

motivating potential score (MPS)

Question 31

What is MPS used for

Answer 31

Combine the core dimensions into a single predictive index to evaluating jobs based on Job Characteristic Model

Question 32

Motivational Performance Score Formula

Answer 32

(Skill variety + Task Identity + Task Significance)/3 * Autonomy * Feedback

Question 33

Redesign Jobs that motivate: Job Rotation

Answer 33

Periodic shifting of workers from one task to another

Question 34

Redesign Jobs that motivate: Job Enrichment

Answer 34

vertical expansion of jobs that allow employees to do a complete activity, employee controls plannings, execution and evaluation of work

Question 35

Redesign Jobs that motivate: Relational Job Design

Answer 35

How managers design work so employees are motivated to promote well-being of the organization’s customers, clients, or other users of their services and products (beneficiaries)

Question 36

Redesign Jobs that motivate: Flextime (Flexible Work Time)

Answer 36

Employees work a specific number of hours a week, but they are free to vary the hours of work within certain limits (common core (e.g., 9am-3pm) + flexibility band (e.g., 6am-9am or 3pm-6pm)

Question 37

Redesign Jobs that motivate: Job Sharing
what is it?
where is it popular
percentage of Canada employers

Answer 37

Two or more people split 40hour week job.
Popular in Europe
14%

Question 38

Redesign Jobs that motivate: Telecommunications (teleworking or virtual office)

Answer 38

Employees complete their work at home for at least two days a week on a computer linked to the employer’s office by VPN or the whole week

Question 39

Redesign Jobs that motivate: Employee Involvement

Answer 39

Participative Processes that use employees input to increase their commitment to the organization’s success

Question 40

Procedural Justice

Answer 40

employees are engaged in making decisions that affect them and increase their autonomy and control, will be more motivated, committed, productive and satisfied

Question 41

Redesign Jobs that motivate: Participative Management

Answer 41

Process in which subordinates share a significant degree of decision-making power with their immediate superiors (joint decision making)

Question 42

Redesign Jobs that motivate: - Representative Participation

Answer 42

Employees participate in organizational decisions making through a small group of representative employees

Ex councils and board representatives