Chapter 6: Motivation in Practice Flashcards

1
Q

Pay to Performance on Production Jobs

A
  • Variable pay
  • Wage incentive plans
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2
Q

Variable pay

A

a portion of employee’s pay that is baked on a measure of performance

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3
Q

Wage incentive plans

A

various system that link pay to performance on production jobs

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4
Q

Piece rate

A

worker are paid for each unit produced

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5
Q

Potential Problems with Wage Incentives

A

1) Lowered quality
2) Differential opportunity
3) Reduced cooperation
4) Incompatible job design
5) Restriction of productivity

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6
Q

Lowered quality

A

to gain more pay, employee emphasize on quantity rather than quality

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7
Q

Differential opportunity

A

supply of raw materials / equipment technology varies from workplace to workplace → unequal opportunity

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8
Q

Reduced cooperation

A

unwilling to do group tasks, etc

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9
Q

Incompatible to job design

A

ex → on assembly line, it’s hard to identify & reward individual contribution to productivity

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10
Q

Restriction of productivity

A

a. Increased productivity might lead to reduction in workforce

b. Fear employer might cut labour cost

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11
Q

Pay to Performance on White-Collar Jobs

A

Merit pay plans

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12
Q

Merit pay plans

A

System that attempt to link pay to performance on white-collar jobs

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13
Q

Potential problems with Merit Pay Plans

A

1) Low discrimination
2) Small increases
3) Pay secrecy

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14
Q

Problems with Merit Pay Plans - Low Discrimination

A

managers might not differentiate between good & bad performing employee (might be because perceptual errors, etc)

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15
Q

Problems with Merit Pay Plans - Small increases

A

when merit pay is too small to be a motivator

Lump sum bonus : merit pay awarded in a single payment and not built into base pay

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16
Q

Problems with Merit Pay Plans - Pay Secrecy

A

employee can’t compare their merit with others

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17
Q

Types of Pay Plans

A

1) Profit Sharing
2) Employee stock ownership plans (ESOPs)
3) Gainsharing
4) Skill based pay

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18
Q

Types of Pay Plans - Profit Sharing

A

the return of some company profit to employees in the form of a cash bonus or retirement supplement

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19
Q

Advantages of profit sharing

A

i. Sense of ownership
ii. Pays only when org. makes profit
iii. Align employee goals w/ org. goals

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20
Q

Disadvantage of profit sharing

A

i. Difficult for employees to see their impact on org. profits

ii. Many factors affect org. profits that’s beyond employee control

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21
Q

Types of Pay Plans - Employee stock ownership plans (ESOPs)

A

allow employee to own a set amount of company’s shares that they’re allowed to purchase at fixed price

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22
Q

Advantages of Employee Stock Ownership plans (ESOPs)

A

i. Sense of legal & psychological ownership for employees

ii. Align employee goals w/ org. goals

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23
Q

Disadvantages of Employee Stock Ownership Plans (ESOPs)

A

i. They lose motivational potential in a weak economy when value of org. stock declines

ii. Many factors can influence value of org shares, regardless of employee effort & performance

iii. Difficult for employee to see connection between their effort & value of org stocks

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24
Q

Types of Pay Plans - Gainsharing

A

group pay incentive plan based on productivity / performance improvements over which workforce has some control (ex : reduction in labour cost, material, supplies)

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25
Advantages of Gainsharing
i. Align employee goals w/ org goals ii. Encourage teamwork & cooperative behaviour
26
Disadvantages of Gainsharing
i. Bonuses might be paid even when org doesn’t make a profit ii. Employees might neglect objectives that not included in the formula
27
Types of Pay Plans - Skill based pay
the more skill employee acquired, the higher the pay
28
Advantages of Skill based pay
i. Encourage employee learn & new skills ii. Provide greater flexibility in task assignments iii. Provide employee w/ broader picture of work process
29
Disadvantages of skill based pay
i. Increase cost of training ii. Labour cost can increase as employee acquire more skills
30
Job Design as a Motivator
Job design --> Structure, content, configuration of a person's work tasks & roles
31
Job Scope
breadth & depth of a job
32
Breadth of job
num of different activities performed on the job
33
Depth of Job
extent of control the worker has over how these tasks are performed
34
What happens to motivation if there is greath breadth and depth involved?
More intrinsic motivation Ex: Professor, management
35
What happens to motivation if there is minimum breadth and depth involved?
Low scope jobs --> Less intrinsic motivation Ex: Assembly line job
36
Ways to increase job scope
1) Stretch assignments 2) Job rotation
37
Increasing job scope - Stretch assignments
challenging assignment & projects that are larger in scope than one’s current job & involve more responsibility
38
Increasing job scope - Job rotation
rotating employee to different task & jobs in org
39
Model on how to Design High-scope Jobs
a. Core job characteristics b. Critical psychological states c. Critical psychological states
40
High-scope Jobs - Core job characteristics to Affect worker
- Skill variety --> Opportunity to do various job activities w/ various skils - Autonomy --> Freedom to schedule one's own work activities - Task significance --> Impact the job has on people - Task identity --> Doing a complete piece of work from beginning to end - Feedback --> Info about the effectiveness of one's work performance
41
High-scope Jobs - Critical psychological states
- Work will be intrinsically motivating when meaningful - Allowing workers to be responsible for the outcome - Workers know their work progress
42
High-scope Jobs - Outcomes
- High intrinsic motivation - High “growth” satisfaction - High general job satisfaction - High work effectiveness
43
High-scope Jobs - Moderators
variables that determine how job characteristics lead to an outcome - Knowledge & skill - Growth needs strength: the extent to which people desire to achieve higher-order need satisfaction by performing their jobs - “Context” satisfactions
44
Jobs Enrichment
1) Job Involvement 2) How to enrich the job 3) Establishing external client relationship 4) Establishing internal client relationship 5) Reducing supervision/reliance on others 6) Forming work team 7) Making feedback more direct
45
Enrichment - Job involvement
psychological identification with one’s job & importance of work to one’s self image
46
Enrichment - How to enrich job
Combining task : assigning task that might be performed by diff workers to a single individual
47
Enrichment - Establishing external client relationship
putting employee in touch w/ ppl outside org who depend on their product / service
48
Enrichment - Establishing internal client relationship
putting employee in touch w/ ppl inside org who depend on their product / service
49
Enrichment - Reducing supervision / reliance on others
increase autonomy (control over one’s own work)
50
Making feedback more direct
permits worker to be identified with their “own” product / service
51
Potential Problems with Job Enrichment
1) Poor diagnosis 2) Lack of desire / skill 3) Demand for rewards 4) Union resistance 5) Supervisory resistance
52
Potential Problems with Job Enrichment - Poor diagnosis
Ex → Job enlargement : increasing job breadth by giving employee more task, but leaving other core characteristics unchanged
53
Potential Problems with Job Enrichment - Lack of desire / skill
Ex : difficult to train workers in certain skills required by enriched job, such as social skills
54
Potential Problems with Job Enrichment - Union Resistance
Unions have been historically focus on negotiating extrinsic motivators (Pay)
55
Supervisory resistance
job enrichment of an employee might “dis-enrich” the job of their supervisor
56
Work Design Characteristics
1) Motivational characteristic 2) Social characteristic 3) Work context characteristic
57
Work design - Motivational Characteristic
a. Task characteristic : similar to core job characteristics b. Knowledge characteristic : knowledge, skills, ability demand required to perform a job - Job complexity - Information processing - Problem solving - Skill variety - Specialization
58
Work design - Social characteristic
interpersonal & social aspect of work - Social support - Interaction outside of org - Interdependence - Feedback from others
59
Work design - Work context characteristic
the context within work is performed. - Ergonomics : degree to which job allows correct / appropriate posture and movement - Physical demands - Work conditions - Equipment use
60
Relational Job Design
Relational architecture of jobs: Properties of work that shape employee opportunities to connect & interact w/ other ppl → prosocial motivation : desire to expand effort to benefit other ppl
61
Job Crafting
Self-initiated changes that employee make to improve match between job characteristics & their needs
62
Job Crafting
1. Increasing social job resources : asking for feedback, advice, support from supervisor & colleague 2. Increasing structural job resources : increase autonomy & skill variety 3. Increasing challenging job demands : asking for more responsibilities & projects 4. Decreasing hindering job demands : minimize physical, cognitive, & emotional demand (reducing one’s workload / work-family conflict)
63
Management by Objectives (MBO)
Elaborate, systemic, ongoing program, facilitating goal establishment, goal accomplishment, and employee development
64
Characteristics of Management by Objectives
1) Manager meet w/ employee to agree on employee objectives 2) Periodic meetings to monitor employee progress in achieving objectives 3) Appraisal meeting to evaluate the extent of objectives that has been achieved 4) MBO cycle is repeated
65
Types of Flexible work arrangements
1) Flex Time 2) Compressed workweek 3) Job & work sharing 4) Telecommuting
66
Flex Time
arrival & departure time are flexible, as long as present during core times (+) Good for office environments (-) Not good for doctors, etc
67
Compressed workweek
employee work fewer than the normal 5 days a week but still put normal number hours / week (+) Reduce customer service jobs (-) Difficult when work is strenuous (-) Short-term impact only
68
Job & work sharing
Job sharing : 2 part time divide the work of a full time job (-) Result in problem if communication is not good (-) Problem w/ performance appraisal Work sharing : reduce num of hours employee work to avoid layoff & when there's reduction in normal business activity
69
Telecommuting
employee can work remotely
70
Implementing Motivational Practice
1) Employee needs : money, challenging work 2) Nature of job : individual / group 3) Characteristics of org : strategy, culture 4) Desired outcome : job performance, retention