Week 10 Flashcards
Maslow’s Hierarchy of Needs
Basis for Mcgregor’s theories X,Y (and Z)
Self-actualization Esteem Social needs Safety/security Physiological needs
Theory X
McGregor Driven by monitory concerns Avoid work where possible Lack ambition and dislike responsibility Indifferent to organizational needs Lack creativity and resist change
Theory Y
McGregor
Driven by job satisfaction Actively seek work Show ambition and seek responsibility Follow organizational objectives Have creativity and welcome change
Theory Z
Need for self-fulfilment or transendence
Organisations that enable their staff to achieve this will earn their loyalty
Goal Setting
Locke and Latham
Beneficial effect on task performance
More effective if (Challenging (still achievable), specific, quantiative, monetary reward, supportive approach)
Feedback on performance should be provided regularly
MBO/MBR
Management by Objectives/Results
More effective when top management is committed to the approach
Objectives set in appraisal meetings by manager and employee
Performance renewed and new objectives set annually
Bonuses for meeting/exceeding objectives (Objectively measurable) cf traditional factory workers
Appraisal meetings
Constructive place to reflect
Suitable time, private space, planned duration
Summary of last appraisal meeting and agreed objectives
Objectives not met or only partially met in appraisal meetings
Let employee explain the situation from their perspective
Adjustment of the targets
Additional coaching or training
Poorly run appraisals
Checkboxes, subjective evaluations, overt criticisms/threats/defensiveness
Managers unable/unwilling to give direct constructive criticism
Negative perfecptions from employees
Improving poorly run appraisals
Switch to having frequent discussions as opposed to annual appraisal meetings
Setting future goals may be better separated from past performance reviews
Improving subjective and innacurate ratings
360 degree feedback, use multiple raters
Solicit feedback from all areas employee interacts with (Other employees/employers)
Use of feedback in evaluation could be dubious (Large variety in ratings, anonymous reviewers can harbour grudges)
Scott Adams’ Company Model (Dilbert Principle)
Companies with effective employees and good products usually do well
Any activity which is one level removed from people and products will eventually fail or have little benefit
Rule for “one-off” activities should be consistency (don’t tinker)
Out at 5 Managers
Stay out of the way
Eliminate the assholes
Make sure employees learn something every day
Creative an environment which supports curiousity and learning
Teach employees how to be efficient
Adams’ Equity theory
Not Scott Adams
Staff will inevitably compare input/reward ratios, must be a reactive process
If rewards aren’t fair, staff will lose motivation
Performance related pay schemes from Green & Heywood
Increase productivity, effort, earnings
Increase pay variability, lower morale for less productive workers
Should a company use performance pay/bonuses
Highest job satisfaction where no performance pay/bonuses exist
Job security declines where no performance pay/bonuses exist
Although negatives disppear when accounting for worker fixed effects
Conclusion will vary depending on the type of worker and company involved
High performance workplaces
Create belonging, esteem and commitment
Piece rates known to increase efforts more than time rates
Job satisfaction
Declines with education level and company size
Public sector workers tend to be more satisfied
Pay and satisfaction
Only loosely related
Stronger link between pay level and pay satisfaction
Looser link between pay level and job satisfaction
Wellbeing from Diener and Tay
Increasing globally
As average income also rises
Team based rewards as opposed to individual rewards
In many cases, performance is dependent on a team rather than one person
Individual rewards don’t incentivize good team behaviour and may even undermine cooperation in competitive organisations
Some employees concerned about “free riding”
Team based rewards research
DeMatteo : Reports of increases of 28-76% productivity cf previous measures, unclear what under conditions team rewards are effective, worth studying reward, team and organizational characteristics and individual differences
Ladley : Game theory simulation: Group based systems outperform individual or mixed systems. Produce most cooperative behaviour and highest performing individuals/groups
Team-based rewards options
Incentive pay
Recognition
Profit sharing
Gain sharing
Incentive pay
Can be combined with incentive pay per individual
May put off employees averse to identifying as team members
Recognition
One-off additional payment for exceptional performance
After the fact, so doesn’t enhance motivation to begin with
Profit sharing
Gives employees incentive to monitor employers results
Profits may not be affected very much by the team’s performance
Safer as bonus can be varied up or down in line with profits (cf employee share schemes)
Can be demotivating if bonus is significantly lower than a previous year
Gain sharing
Rewards team for improvements in local production measures
Hopefully can be influenced by the team in some way
Employee Share Scheme
Employees have the right to buy shares at a discount giving them a long term stake
Motivation to act in the company’s best interests
Sense of ownership known to encourage them to stay with the firm
If too many shares given, other shareholders lose out
Tax breaks can be given to the employer
Executives may be granted shares based on the company’s performance
Other incentives
Overtime
Company cars
Subsidised travel et.al
Kahneman & Tversky’s prospect theory
Losses hurt more than gains, so are avoided
Drucker’s management functions
Set team/organisational objectives Provide resources to meet objectives Motivate staff Monitor staff performance against objectives Improve performance by developing staff
Walk the corridors (3Gs)
Builds trust, dispels “myths” around those in leadership.
Can listen to staff and understand them better
Real place, real work and real facts
OODA (John Boyd)
Observe, orient, decide, act
Developed by the military, fast decisions required from one person
Less useful for strategic decisions which require longer deliberation and more people
