HRM303 Chapter Notes - Chapter 3: Job Enrichment, Civic Virtue, Job Satisfaction

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Chapter 3: a behavioural framework for compensation
Three main categories of reward problems:
1. Failure to produce desired behaviour
2. Production of desired behaviour but with undesirable consequences
3. Production of reward dissatisfaction
Three types of desired employee behaviour
1. Membership behaviour
2. Task behaviour
3. Organizational citizenship behaviour
Types of reward problems
Failure to produce desired behaviour
Too often, reward system has no impact on behaviour
Production of desired behaviour and undesirable consequences
Generates desired behaviour but with unanticipated negative consequences
Or when reward system does generate desired behaviours with no obvious
negative consequences but also suppresses other desirable behaviours that
are not measured or rewarded
Production of reward dissatisfaction
When employees believe that rewards they receive are not consistent with
contributions they are making to organization or when they believe reward
system is unfair
Desired reward outcomes
Three key employee behaviours:
Membership behaviour: occurs when employees decide to join and remain with a
firm
Task behaviour: occurs when employees perform specific tasks that have been
assigned to them
Organizational citizenship behaviour: occurs when employees voluntarily
undertake special behaviours beneficial to the organization
Three key employee attitudes
Job satisfaction: attitude one holds toward one’s job and workplace
Work motivation: attitude one holds toward good job performance
Organizational identification: a sense of shared goals and belongingness and the
desire to remain a member of the organization
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Satisfied, happy workers are not necessarily more productive workers, but
they are less likely to quit, to be absent or to submit grievances and they are
more likely to be pleasant with other employees and customers
Causes and consequences of reward dissatisfaction
Causes of reward dissatisfaction
Violation of the psychological contract:
Psychological contract: expectations about the rewards offered by a given
job and the contributions necessary to perform the job
Problems with psychological contract arise for 2 main reasons: there are not
been accurate communication about rewards that will be provided or the
employer unilaterally changes the contract
Perceived inequity
Equity theory: employees’ base perceptions of equity (fairness) on a
comparison of their contributions/rewards ratio to the ratios of others
perceived as being similar
Relative deprivation
Employees experience dissatisfaction with their pay level under six conditions
1. There is actually a discrepancy between the outcome they want and what
they actually receive
2. They see that a comparison “other” receives more than they do
3. Past experience has led them to expect more than they now receive
4. Expectations for achieving better outcomes are low
5. They feel they are entitled to more
6. They absolve themselves of personal responsibility for the lack of better
outcomes
Lack of organizational justice
Distributive justice: perception that overall reward outcomes are fair
Procedural justice: perception that the process for reward determination is
fair
Procedural justice can be achieved if pay system meets the following
conditions
oConsistent: procedures applied uniformly to diff jobs and time periods
oFree of bias: personal interests do not enter into application of
procedures
oFlexible: there must be procedures for employees to appeal pay
system decisions
oAccurate: application of procedures must be based on factual info
oEthical: accepted moral principles must guide the application of
procedures
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