Exam 2 Flashcards
Financial Rewards
fundamental part of employment relationship
pay has multiple meanings to different people:
- symbol of success
- reinforce/motivator
- reflection of performance
- reduce anxiety
how is the value of money assumed
cultural values influence the meaning and value of money based on the individual
types of rewards in the workplace
- membership/seniority
- job status
- competencies
- performance-based
membership/seniority based rewards
- fixed wages, seniority increases
- most common
- advantages: guaranteed wages may attract job applicants, reduce turnover
- disadvantages: doesn’t motivate job performance (based on seniority), discourages poor performers from leaving, may act as golden handcuffs - ties people to the job
Ex: teacher who gets 10 year doesn’t try anymore
job status based rewards
includes job evaluation and status perks
- advantages: maintain pay equity, motivates competition for promotions
- disadvantages: employees exaggerated duties, hoard resources, reinforce status hierarchy, inconsistent with workplace flexibility
Ex: VP and higher get special lunches at the cafeteria - make all other employees feel under appreciated so they left
competency based rewards
pay increases with competencies acquired and demonstrated
skill-based pay
- advantages: more flexible work force, better quality, consistent with employability
- disadvantages: potentially subjective, higher training costs
performance based rewards
different levels of rewards
- organizational - profit sharing, share ownership, stock options, gainsharing, balanced scorecard
- team - bonuses, gainsharing
- individual - bonuses, commissions, piece rate
positive effects of organizational rewards
- creates an “ownership culture”
- adjusts pay with firm’s prosperity
- scorecards align rewards with several specific organizational outcomes
concerns with performance pay (organizational rewards)
- weak connection between individual effort and reward
- reward amounts affected by external factors
improving reward effectiveness
- link reward to performance
- ensure rewards are relevant
- team rewards for interdependent jobs
- ensure rewards are valued
- watch out for unintended consequences
** everyone values things differently
job design
- assigning tasts to a job - including interdependency of tasks with other jobs
- organization’s goal - create jobs that can be performed efficiently yet employees are motivated and engaged
job specialization
dividing work into separate jobs that include a subset of the tasks required to complete the product or service
evaluating job specialization - advantages
=less time changing activities
- lower training costs
- job mastered quickly
- better person-job matching
evaluating job specialization - disadvantages
- job boredom
- discontentment pay
- higher costs
- lower quality
- lower motivation
Job characteristics model
core job characteristics
- skill variety, task identity, task significance, autonomy, feedback from job
—>
critical psychological states
- meaningfulness, responsibility, knowledge of results, individual differences
—->
outcomes
- work motivation, growth satisfaction, general satisfaction, work effectiveness
job rotation
moving from one job to another
- benefits: minimize repetitive strain injury, multi skills in the workforce, potentially reduces job boredom
job enlargement
adding asks to an existing job
Ex: video journalist added to traditional news team
job enrichment
given more responsibility for scheduling, coordinating, and planning one’s own work
1. Clustering tasks into natural groups - stitching the highly interdependent tasks into one job
ex: video journalist assembling the entire product
2. Establishing client relationships
directly responsible for specific clients
communicate directly with those clients
Dimensions of empowerment
- self-determination = employees feel that they have freedom and discretion
- meaning - employees believe their work is important
- competence - employees have feelings of self-efficacy (belief that they can successfully complete a task)
- impact - employees feel that their actions influence success
supporting employee empowerment to ensure success
individual factors - possess required competencies, able to preform the work
job design factors - autonomy, task identity, task significance, job feedback
organizational factors - resources, learning orientation, trust
decision making
conscious process of making choices among one or more alternative with the intention of moving toward some desired state of affairs
- not a factual/logical process
- emotion = unconscious = where risk comes into play
rational choice decision process
- identify problem/opportunity (symptom v. problem)
- choose decision process (ex. nonprogrammer)
- Develop/identify alternatives (search, then develop)
- Choose best alternative (subject expected utility)
- Implement choice
- Evaluate choice
Problem identification process
problems and opportunities are not announced or pre-defined
- use logical analysis and non conscious emotional reaction during perceptual process
problem: emotional reaction piece
Problem identification challenges
- stakeholder framing - vested interest in an outcome - taints view/identification of problem
Ex. NASA -didn’t want failure framed it to skirt the issue - Perceptual defense - block out bad news
Ex. didn’t allow for test to prove damage or listen to engineers - Mental models - auto-fill in blank info - “nothing we can do”
- Decisive leadership makes decisions too quickly - too much pressure for quick decisions
- solution-focused problems - defining problem to support your favorite solution - create problems so they can implement their solution - increase their own self-concept
identifying problems effectively
- Be aware of perceptual and diagnostic limitations
- Fight against pressure to look decisive
- Avoid complacency
- Discussing the situation with colleagues, see different perspectives
managing perception errors through employee involvement
making choices: rational vs. OB views
rational choice paradigm assumptions
- goals are clear, compatible, and agreed upon
- people are able to calculate all alternatives and their outcomes
- people evaluate all alternatives simultaneously
observations from OB
- goals are ambiguous, conflicting, and lack agreement
- people have limited information processing abilities
- people evaluate alternatives sequentially
paralyzed by choice
- when decision makers are presented with more options, they are less likely to make any decision at all
- occurs even when there are clear benefits of selecting any alternative
emotions and making choices
- emotions form preferences before we consciously evaluate those choices
- moods and emtions influence how well we follow the decision process
- we “listen in” on our emotions and use that information to make choices
- emotions effect all stages of the decision process
intuitive decision making
- ability to know when a problem or opportunity exists and select the best course of action without conscious reasoning
- intuition as emotional experience - gut feelings are emotional signals
- intuition as rapid unconscious analysis - uses action scripts - preprogrammed routines such as pick up the phone to answer it when it rings
pre programmed decision
routine, repetitive, almost unconscious reaction
Ex: calling a company to have something fixed, first person goes through a series of scripts to fix it - common problems
non programmed decision
brand new + complex situation, emotion comes in = risk
Ex: if the preprogrammed scripts don’t help you move on to a non-programmed person who helps you
post decisional justification
- tendency to inflate quality of the selected option; forget or downplay rejected alternatives
- results from need to maintain a positive self-identity (self concept)
- initially produces excessively optimistic evaluation of decision
escalation of commitment
- the tendency to repeat an apparently bad decision or allocate more resources to a failing course of action
- four main causes:
1. self-justification - saving face/impression mgmt
2. prospect theory effect - losing a given amount is more disliked than winning the same amount
3. perceptual blinders - perceptual defense/screen out bad info
4. closing costs - costs of ending a project
evaluating decisions more effectively
- separate decision choosers from evaluators
- establish a preset level to abandon the project
- find sources of systematic and clear feedback
- involve several people in the evaluation process
employee involvement defined
degree to which employees influence how their work is organized and carried out
different levels and forms of involvement
employee involvement model
potential involvement outcomes:
- better problem identification
- synergy produces more/better solutions
- better at picking the best choice
- higher decision commitment
effected by contingencies of involvement
contingencies of involvement
higher employee involvement is better when:
- decision structure - problem is new and complex - nonprogrammed decision
- knowledge source - employees have relevant knowledge beyond leader
- decision commitment - employees would lack commitment unless involved
- risk of conflict - norms support firms goals, employee agreement likely
everyone has their own implicit favorite –> competing = conflict
What are teams?
groups of two or more people
exist to fulfill a purpose
interdependent - interact and influence each other
mutually accountable for achieving common goals
perceive themselves as a social entity
becomes identification process
many types of teams
- departmental teams = similar skills (accounting)
- production/service/leadership teams - multiskilled producing common product (iPhone)
- self-directed teams - independ work process (hands-off leader)
- advisory teams - recommendations (consulting)
- task-force (project) teams - multi-skilled temporary
- skunkworks - borrowing people/multi skilled/moved outside of organ
- virtual teams - linked through technology across space, time, location
- communities of practice - shared expertise - medical practices
informal groups
-groups that exist primarily for the benefit of their members not the ultimate output
exist because of:
1. innate drive to bond
2. social identity - we define ourselves by group memberships
3. goal accomplishment
4. emotional support
advantages and disadvantages of teams
advantages:
- make better decisions, products/services
- better informational sharing
- higher employee motivation/engagement - fulfills drive to bond, closer scrutiny by team members, team members are benchmarks of comparison
disadvantages:
- individuals are better/faster on some tasks
- can limit creativity because of fear of being judge by others (self concept drives this)
- process losses - cost of developing and maintaining teams
- social loafing
how to minimize social loafing
make individual performance more visible
- form smaller teams, specialize tasks, measure individual performance
increase employee motivation
- increase job enrichment
- select motivated employees
team effectiveness model (managed and controlled through team charters)
organizational and team environment –>
team design - task characteristics, team size, team composition
—> team processes
- team development, norms, cohesiveness, trust
—>
team effectiveness
- accomplish tasks, satisfy member needs, maintain team survival
organization/team environment
- reward system
- communications systems
- organizational structure
- organizational leadership
- physical space
team’s task characteristics
- teams work better when tasks are clear, easy to implement
- learn roles gaster, easier to become cohesive
- ill-defined tasks require members with diverse background and more time to coordinate
- teams preferred with higher task interdependence - extent that employees need to share materials, information, or expertise to perform their jobs
Levels of task interdependence
High - reciprocal - between A B C
sequential - A –> B –> C
Low - pooled: resource —> A, B, C separately
team size
smaller teams tend to be better because:
- need less time to coordinate roles and resolve differences, develop more member involvement, thus higher commitment
- but team must be large enough to accomplish task