RSM260H1 Chapter Notes - Chapter 6: Adam Grant, Job Design, Call Centre

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MONEY AS A MOTIVATOR
Maslow and Alderfer
pay should prove especially motivational to people who have strong lower-level needs.
∵ pay can be exchanged for necessities of life.
function to satisfy social, self-esteem, and self-actualization needs.
expectancy theory
if pay can satisfy a variety of needs, it should be highly valent, and it should be a good
motivator to the extent that it is clearly tied to performance.
Research on pay and financial incentives is consistent with the predictions of need
theory and expectancy theory.
In general, the ability to earn money for outstanding performance is a competitive advantage
for attracting, motivating, and retaining employees
Linking Pay to Performance on Production Jobs
Piece-rate: A pay system in which individual workers are paid a certain sum of money for
each unit of production completed.
Wage,incentive,plans: Various systems that link pay to performance on production jobs.
When it is hard to measure productivity of individual workers
E.g. hourly wage + monthly bonus for production over some minimum quota
Wage incentives Increase productivity.
Potential Problems with Wage Incentives
LOWERED QUALITY
increase productivity at the expense of quality.
DIFFERENTIAL OPPORTUNITY
If the supply of raw materials or the quality of production equipment (that is, different
opportunities) varies from workplace to workplace, some workers will be at an unfair
disadvantage under an incentive system.
In expectancy theory terminology, workers will differ in the expectancy that they can
produce at a high level.
REDUCED COOPERATION
to maintain a high wage rate, machinists might hoard raw materials or refuse to
engage in peripheral tasks, such as keeping the shop clean or unloading supplies.
INCOMPATIBLE JOB DESIGN
On an assembly line it is almost impossible to identify
and reward individual contributions to productivity.
as the size of the team increases, the relationship between any individual’s
productivity and his or her pay decreases.
RESTRICTION OF PRODUCTIVITY
workers to restrict productivity.
Bell-shaped productivity: some have higher productivity and some have lower
When wage incentives are introduced, however, workers sometimes come to an
informal agreement about artificially limit their output
accordingly.
∵ employees fear that if they produce at an especially high level, an employer will
reduce the rate of payment to cut labour costs.
§
Linking Pay to Performance on White-Collar Jobs
Merit pay plans.
Systems that attempt to link pay to performance on white-collar jobs.
Indicator of performance is unclear and subjective
Individuals who see a strong link between rewards and performance tend to
perform better.
§
Merit pay plans are employed with a much greater frequency than wage incentive plans and
have become one of the most common forms of motivation in Canadian organizations.
In a tight labour market, merit pay is often used by organizations to attract and retain
employees and as an alternative to wage increases.
83 percent of organizations with a pay-for-performance system said it was only somewhat
successful or not working at all.
Many individuals who work under such plans do not perceive a link between their job
performance and their pay.
one study of managers showed that pay increases in a given year were often
uncorrelated with pay increases in adjacent years.
Potential Problems with Merit Pay Plans
LOW DISCRIMINATION
managers might be unable or unwilling to discriminate between good performers and
poor performers.
equalization over-rewards poorer performers and under-rewards better performers.
SMALL INCREASES
merit increases are simply too small to be effective motivators
firms abandon merit pay when they encounter economic difficulties.
Merit is spread out over a year
fails to communicate how much of a raise is for merit and how much is for cost of
living.
To overcome this
lump sum bonus
Merit pay that is awarded in a single payment and not built into base pay.
§
PAY SECRECY
even if merit pay is administered fairly, it is contingent on performance, and is
generous, employees might remain ignorant of these facts
because they have no way of comparing their own merit treatment with that of others.
in the absence of better information, employees are inclined to “invent” salaries for
other members.
This reduces both satisfaction and motivation.
§
overestimate the pay of their employees and their peers and to underestimate
the pay of their superiors
§
Open pay system
expose the inadequacy of the merit system and lead managers to evaluate
performance in a manner that reduces conflict.
supervisors felt pressured to give better ratings
§
increases in performance and satisfaction with pay
§
E.g. Whole Foods, MASS (a public consultation firm in Toronto)
§
Using Pay to Motivate Teamwork
Profit sharing.
The return of some company profit to employees in the form of a cash bonus or a
retirement supplement
one of the most commonly used
unlikely a normally practise
∵ economy, hard to see individual’s contribution
§
Only work for small firms
§
Employee stock ownership plans (ESOPs).
Incentive plans that allow employees to own a set amount of a company’s shares and
provide employees with a stake in the company’s future earnings and success
Purposes
attracting and retaining talent
§
motivating employee performance
§
focusing employee attention on organizational performance
§
creating a culture of ownership
§
educating employees about the business
§
conserving cash by substituting options for cash.
§
E.g. RBC
A study conducted by the Toronto Stock Exchange
companies with employee stock ownership plans outperformed those that do not
§
work best in small organizations, ∵
large companies can’t identify employees’ effort to company profit
§
Stock price is subject to other factors
§
lose their motivational potential in a weak economy when a company’s share
price goes down.
§
Gainsharing
A group pay incentive plan based on productivity or performance improvements over
which the workforce has some control.
E.g. reductions in the cost of labour, material, or supplies.
The most common gainsharing plan: the Scanlon Plan
stresses participatory management and joint problem solving between
employees and managers,
§
also stresses using the pay system to reward employees for this cooperative
behaviour.
§
Thus, pay is used to align company and employee goals.
§
has been used successfully by many small, family-owned manufacturing firms
§
in recent years, many large corporations (e.g. General Electric) have installed
Scanlon-like plans in some manufacturing plants
§
part of a joint union–management effort to respond to economic downturns and
competitive challenges in the auto industry.
§
Skill-based pay (pay for knowledge)
A system in which people are paid according to the number of job skills they have
acquired.
encourage employee flexibility in task assignments and to give them a broader picture
of the work process.
Disadvantages: high training fees, manager wants workers to work only on task that
they are good at
Advantages: in a large organization that manufactures vehicle safety systems reported
an increase in productivity, lower labour costs per part, and a reduction in scrap
E.g. Quebec’s Bell Helicopter Textron
JOB DESIGN AS A MOTIVATOR
Job design
The structure, content, and configuration of a person’s work tasks and roles
Goal:
identify the characteristics that make some tasks more motivating than others and to
capture these characteristics in the design of jobs
Traditional Views of Job Design
Beginning,of,the,Industrial,Revolution:,the design of most non-managerial jobs was
job simplification
∵ uneducated, untrained workforce
§
∵ increase productivity
§
Motivational strategy:
Close supervision and the use of piece-rate pay
Good for low-skilled workers, but not for educated workers
§
Problems: on performance, customer satisfaction, and the quality of working life.
§
Frederick Winslow Taylor
Industrial engineer
§
Advocate specialization,
§
standardization and regulation of work activities and rest pauses
Job Scope and Motivation
Job scope
The breadth and depth of a job.
§
Breadth
The number of different activities performed on a job.
§
Depth
The degree of discretion or control a worker has over how work tasks are
performed.
§
emphasize freedom in planning how to do the work.
§
high-scope,jobs: jobs that have great breadth and depth
E.g. professor
have a fair amount of freedom to choose a particular teaching style, grading
format, and research area
§
low-scope job
E.g. the traditional assembly line job
§
jobs that have high breadth but little depth,
E.g. a utility worker on an assembly line fills in for absent workers on
various parts
§
Jobs that have high depth but little breadth
quality control inspectors
§
high-scope jobs should provide more intrinsic motivation than low-scope jobs.
Maslow’s need hierarchy and ERG theory
people can fulfill higher-order needs by the opportunity to perform high-
scope jobs.
§
Expectancy theory
high-scope jobs can provide intrinsic motivation if the outcomes derived
from such jobs are attractive.
§
Increase the scope of a job
assign employees stretch assignments
offer employees challenging opportunities to broaden their skills by
working on a variety of tasks with new responsibilities
E.g. Javelin Technologies Inc.
§
Job rotation
Rotating employees to different tasks and jobs in an organization.
E.g. Bell Canada
§
Advantages
developing new skills and expertise that can prepare employees for future
roles
§
The Job Characteristics Model
there are several “core” job characteristics that have a certain psychological impact on
workers.
CORE JOB CHARACTERISTICS (affect worker motivation)
Skill variety (breadth)
The opportunity to do a variety of job activities using various skills and
talents.
High variety: The owner-operator of a garage who does electrical repair,
rebuilds engines, does body work, and interacts with customers.
Low variety: A body shop worker who sprays paint eight hours a day.
i.
Task identity
The extent to which a job involves doing a complete piece of work, from
beginning to end.
High identity: A cabinet maker who designs a piece of furniture, selects the
wood, builds the object, and finishes it to perfection.
Low identity: A worker in a furniture factory who operates a lathe solely to
make table legs.
ii.
Task significance
The impact that a job has on other people.
High significance: Nursing the sick in a hospital intensive care unit.
Low significance: Sweeping hospital floors.
iii.
Autonomy (depth)
The freedom to schedule one’s own work activities and decide work
procedures.
High autonomy: A telephone installer who schedules his or her own work
for the day, makes visits without supervision, and decides on the most
effective techniques for a particular installation.
Low autonomy: A telephone operator who must handle calls as they come
according to a routine, highly specified procedure.
iv.
Job feedback
Information about the effectiveness of one’s work performance.
High feedback: An electronics factory worker who assembles a radio and
then tests it to determine if it operates properly.
Low feedback: An electronics factory worker who assembles a radio and
then routes it to a quality control inspector who tests it for proper
operation and makes needed adjustments
v.
§
Job Diagnostic Survey (JDS)
Developed by Hackman and Oldham
to measure the core characteristics of jobs
Compare lower-level managers in a utility company and keypunchers in
another firm
®
§
an overall measure of the motivating potential of a job formula (by Hackman and
Oldham)
score could theoretically range from 1 to 343
The average motivating potential score for 6930 employees on 876 jobs
has been calculated at 128.
§
CRITICAL PSYCHOLOGICAL STATES
work will be intrinsically motivating when
perceived as meaningful
®
feels responsible for the outcomes
®
has knowledge about his or her work progress
®
§
OUTCOMES
key prerequisites for intrinsic motivation
When the worker is truly in control of a challenging job that provides good
feedback about performance,
The relationship between the work and the worker is emphasized
the worker is able to draw motivation from the job itself.
§
This will result in high-quality productivity, satisfaction with higher-order needs
and general satisfaction with the job itself.
§
This should lead to reduced absenteeism and turnover.
§
MODERATORS
job-relevant knowledge and skill of the worker.
Low-skilled workers should not respond favourably to jobs that are high in
motivating potential
∵ too demanding.
§
Growth need strength
The extent to which people desire to achieve higher-order need satisfaction
by performing their jobs.
those with high growth needs should be most responsive to challenging
work.
workers who are dissatisfied with the context factors surrounding the job
(e.g. pay, supervision, and company policy) will be less responsive to
challenging work
§
RESEARCH EVIDENCE
In tests of the Job Characteristics Model
workers tend to respond more favourably to jobs that are higher in
motivating potential.
§
all five core job characteristics were positively related to the outcomes in the
model
i.e. job satisfaction, growth satisfaction, and internal work motivation
Other outcomes
®
§
some of the core job characteristics (e.g., autonomy and feedback from the job)
were also related to behavioural (e.g., absenteeism and performance) and well-
being (e.g., anxiety and stress) outcomes.
§
With respect to the critical psychological states,
strong support for the role of experienced meaningfulness of the work
but less support for experienced responsibility
and no support for the role of knowledge of results.
§
Job Enrichment
The design of jobs to enhance intrinsic motivation, quality of working life, and job
involvement.
Job involvement.
A cognitive state of psychological identification with one’s job and the
importance of work to one’s total self-image.
§
Employees who have challenging and enriched jobs tend to have higher levels of job
involvement
all of the core job characteristics have been found to be positively related to job
involvement.
Employees who are more involved in their job have higher job satisfaction and
organizational commitment and are less likely to consider leaving their organization
job enrichment schemes
Combining tasks
assigning tasks that might be performed by diff erent workers to a single
individual.
increase the variety of skills employed
contribute to task identity
®
§
Establishing external client relationships
putting employees in touch with people outside the organization who
depend on their products or services
interpersonal skills
increase the identity and significance of the job
increase feedback about one’s performance.
E.g. deal with complaint
§
Establishing internal client relationships
This involves putting employees in touch with people who depend on their
products or services within the organization.
E.g. billers and expediters in a manufacturing firm might be assigned
permanently to certain salespeople
advantages are similar to the above
§
Reducing supervision or reliance on others
to increase autonomy and control over one’s own work.
Allow employees to buy supplies
§
Forming work teams
as an alternative to a sequence of “small” jobs that individual workers
perform when a product or service is too large or complex for one person
to complete alone
Develop a variety of skills and increase the identity of the job
§
Making feedback more direct
usually used in conjunction with other job design aspects that permit
workers to be identified with their “own” product or service.
E.g. assemblers “sign” their output on a tag
®
§
Potential Problems with Job Enrichment
POOR DIAGNOSIS
instituted without a careful diagnosis of the needs of the organization and the
particular jobs
e.g. job enlargement
Increasing job breadth by giving employees more tasks at the same level to
perform but leaving other core characteristics unchanged.
§
Workers are given more boring, fragmented, routine tasks to do
§
E.g. job engorgement
organizations might attempt to enrich jobs that are already perceived as too rich
by their incumbents
§
happened in some “downsized” fi rms in which the remaining employees have
been assigned too many extra responsibilities
§
lead to role overload and work stress
§
LACK OF DESIRE OR SKILL
some workers do not desire enriched jobs.
∵ lack the skills and competence necessary to perform enriched jobs effectively.
Lead to substantial training costs
∵ difficult to train
§
DEMAND FOR REWARDS
workers who experience job enrichment ask that greater extrinsic rewards
motivated by the wish to share in the financial benefits of a successful enrichment
exercise.
UNION RESISTANCE
Traditionally, North American unions have not been enthusiastic about job
enrichment.
due to a historical focus on negotiating with management about easily quantified
extrinsic motivators, such as money
SUPERVISORY RESISTANCE
because of their unanticipated impact on other jobs or other parts of the organizational
system
“dis-enrich” the boss’s job
§
Respond
doing away with direct supervision of workers performing enriched jobs
§
use the supervisor as a trainer and developer of individuals in enriched jobs.
§
Enrichment can increase the need for this supervisory function.
Work Design and Relational Job Design
Work design
acknowledges both the job and the broader work environment
Work design characteristics
Attributes of the task, job, and social and organizational environment.
consist of three categories:
motivational characteristics
task characteristics,
similar to the core job characteristics of the Job Characteristics Model
(I.e. autonomy, task variety, task significance, task identity, and feedback
from the job)
Task variety
®
§
knowledge characteristics
the kinds of knowledge, skill, and ability demands required to perform a
job
Skill variety
®
§
social characteristics
interpersonal and social aspects of work
§
E.g.
social support,
interdependence,
interaction outside of the organization,
and feedback from others.
§
social characteristics are even more strongly related to some outcomes (i.e.,
turnover intentions and organizational commitment) than the motivational
characteristics (i.e., task characteristics and knowledge characteristics).
§
work context characteristics.
context within which work is performed
§
E.g. ergonomics, physical demands, work conditions, and equipment use.
§
Work Design Questionnaire (WDQ)
the most comprehensive measure of work design available
Used for
research purposes and as a diagnostic tool to assess the motivational properties
of jobs prior to work redesign.
§
Relational architecture of jobs.
The structural properties of work that shape employees’ opportunities to connect and
interact with other people.
By Adam Grant
Purpose
to motivate employees to make a difference in other people’s lives (Prosocial
motivation)
§
Prosocial,motivation:
The desire to expend effort to benefit other people.
§
Jobs vary in terms of their potential to have an impact on the lives of others
E.g. firefighters and cashiers
§
jobs can be relationally designed to provide employees with opportunities to interact
and communicate with the people affected by their work
thereby allowing them to see the benefits and significance of their work
§
E.g. call centre employees raising funds for a university
§
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MONEY AS A MOTIVATOR
Maslow and Alderfer
pay should prove especially motivational to people who have strong lower-level needs.
∵ pay can be exchanged for necessities of life.
function to satisfy social, self-esteem, and self-actualization needs.
expectancy theory
if pay can satisfy a variety of needs, it should be highly valent, and it should be a good
motivator to the extent that it is clearly tied to performance.
Research on pay and financial incentives is consistent with the predictions of need
theory and expectancy theory.
In general, the ability to earn money for outstanding performance is a competitive advantage
for attracting, motivating, and retaining employees
Linking Pay to Performance on Production Jobs
Piece-rate: A pay system in which individual workers are paid a certain sum of money for
each unit of production completed.
Wage,incentive,plans: Various systems that link pay to performance on production jobs.
When it is hard to measure productivity of individual workers
E.g. hourly wage + monthly bonus for production over some minimum quota
Wage incentives Increase productivity.
Potential Problems with Wage Incentives
LOWERED QUALITY
increase productivity at the expense of quality.
DIFFERENTIAL OPPORTUNITY
If the supply of raw materials or the quality of production equipment (that is, different
opportunities) varies from workplace to workplace, some workers will be at an unfair
disadvantage under an incentive system.
In expectancy theory terminology, workers will differ in the expectancy that they can
produce at a high level.
REDUCED COOPERATION
to maintain a high wage rate, machinists might hoard raw materials or refuse to
engage in peripheral tasks, such as keeping the shop clean or unloading supplies.
INCOMPATIBLE JOB DESIGN
On an assembly line it is almost impossible to identify
and reward individual contributions to productivity.
as the size of the team increases, the relationship between any individual’s
productivity and his or her pay decreases.
RESTRICTION OF PRODUCTIVITY
workers to restrict productivity.
Bell-shaped productivity: some have higher productivity and some have lower
When wage incentives are introduced, however, workers sometimes come to an
informal agreement about artificially limit their output
accordingly.
∵ employees fear that if they produce at an especially high level, an employer will
reduce the rate of payment to cut labour costs.
§
Linking Pay to Performance on White-Collar Jobs
Merit pay plans.
Systems that attempt to link pay to performance on white-collar jobs.
Indicator of performance is unclear and subjective
Individuals who see a strong link between rewards and performance tend to
perform better.
§
Merit pay plans are employed with a much greater frequency than wage incentive plans and
have become one of the most common forms of motivation in Canadian organizations.
In a tight labour market, merit pay is often used by organizations to attract and retain
employees and as an alternative to wage increases.
83 percent of organizations with a pay-for-performance system said it was only somewhat
successful or not working at all.
Many individuals who work under such plans do not perceive a link between their job
performance and their pay.
one study of managers showed that pay increases in a given year were often
uncorrelated with pay increases in adjacent years.
Potential Problems with Merit Pay Plans
LOW DISCRIMINATION
managers might be unable or unwilling to discriminate between good performers and
poor performers.
equalization over-rewards poorer performers and under-rewards better performers.
SMALL INCREASES
merit increases are simply too small to be effective motivators
firms abandon merit pay when they encounter economic difficulties.
Merit is spread out over a year
fails to communicate how much of a raise is for merit and how much is for cost of
living.
To overcome this
lump sum bonus
Merit pay that is awarded in a single payment and not built into base pay.
§
PAY SECRECY
even if merit pay is administered fairly, it is contingent on performance, and is
generous, employees might remain ignorant of these facts
because they have no way of comparing their own merit treatment with that of others.
in the absence of better information, employees are inclined to “invent” salaries for
other members.
This reduces both satisfaction and motivation.
§
overestimate the pay of their employees and their peers and to underestimate
the pay of their superiors
§
Open pay system
expose the inadequacy of the merit system and lead managers to evaluate
performance in a manner that reduces conflict.
supervisors felt pressured to give better ratings
§
increases in performance and satisfaction with pay
§
E.g. Whole Foods, MASS (a public consultation firm in Toronto)
§
Using Pay to Motivate Teamwork
Profit sharing.
The return of some company profit to employees in the form of a cash bonus or a
retirement supplement
one of the most commonly used
unlikely a normally practise
∵ economy, hard to see individual’s contribution
§
Only work for small firms
§
Employee stock ownership plans (ESOPs).
Incentive plans that allow employees to own a set amount of a company’s shares and
provide employees with a stake in the company’s future earnings and success
Purposes
attracting and retaining talent
§
motivating employee performance
§
focusing employee attention on organizational performance
§
creating a culture of ownership
§
educating employees about the business
§
conserving cash by substituting options for cash.
§
E.g. RBC
A study conducted by the Toronto Stock Exchange
companies with employee stock ownership plans outperformed those that do not
§
work best in small organizations, ∵
large companies can’t identify employees’ effort to company profit
§
Stock price is subject to other factors
§
lose their motivational potential in a weak economy when a company’s share
price goes down.
§
Gainsharing
A group pay incentive plan based on productivity or performance improvements over
which the workforce has some control.
E.g. reductions in the cost of labour, material, or supplies.
The most common gainsharing plan: the Scanlon Plan
stresses participatory management and joint problem solving between
employees and managers,
§
also stresses using the pay system to reward employees for this cooperative
behaviour.
§
Thus, pay is used to align company and employee goals.
§
has been used successfully by many small, family-owned manufacturing firms
§
in recent years, many large corporations (e.g. General Electric) have installed
Scanlon-like plans in some manufacturing plants
§
part of a joint union–management effort to respond to economic downturns and
competitive challenges in the auto industry.
§
Skill-based pay (pay for knowledge)
A system in which people are paid according to the number of job skills they have
acquired.
encourage employee flexibility in task assignments and to give them a broader picture
of the work process.
Disadvantages: high training fees, manager wants workers to work only on task that
they are good at
Advantages: in a large organization that manufactures vehicle safety systems reported
an increase in productivity, lower labour costs per part, and a reduction in scrap
E.g. Quebec’s Bell Helicopter Textron
JOB DESIGN AS A MOTIVATOR
Job design
The structure, content, and configuration of a person’s work tasks and roles
Goal:
identify the characteristics that make some tasks more motivating than others and to
capture these characteristics in the design of jobs
Traditional Views of Job Design
Beginning,of,the,Industrial,Revolution:,the design of most non-managerial jobs was
job simplification
∵ uneducated, untrained workforce
§
∵ increase productivity
§
Motivational strategy:
Close supervision and the use of piece-rate pay
Good for low-skilled workers, but not for educated workers
§
Problems: on performance, customer satisfaction, and the quality of working life.
§
Frederick Winslow Taylor
Industrial engineer
§
Advocate specialization,
§
standardization and regulation of work activities and rest pauses
Job Scope and Motivation
Job scope
The breadth and depth of a job.
§
Breadth
The number of different activities performed on a job.
§
Depth
The degree of discretion or control a worker has over how work tasks are
performed.
§
emphasize freedom in planning how to do the work.
§
high-scope,jobs: jobs that have great breadth and depth
E.g. professor
have a fair amount of freedom to choose a particular teaching style, grading
format, and research area
§
low-scope job
E.g. the traditional assembly line job
§
jobs that have high breadth but little depth,
E.g. a utility worker on an assembly line fills in for absent workers on
various parts
§
Jobs that have high depth but little breadth
quality control inspectors
§
high-scope jobs should provide more intrinsic motivation than low-scope jobs.
Maslow’s need hierarchy and ERG theory
people can fulfill higher-order needs by the opportunity to perform high-
scope jobs.
§
Expectancy theory
high-scope jobs can provide intrinsic motivation if the outcomes derived
from such jobs are attractive.
§
Increase the scope of a job
assign employees stretch assignments
offer employees challenging opportunities to broaden their skills by
working on a variety of tasks with new responsibilities
E.g. Javelin Technologies Inc.
§
Job rotation
Rotating employees to different tasks and jobs in an organization.
E.g. Bell Canada
§
Advantages
developing new skills and expertise that can prepare employees for future
roles
§
The Job Characteristics Model
there are several “core” job characteristics that have a certain psychological impact on
workers.
CORE JOB CHARACTERISTICS (affect worker motivation)
Skill variety (breadth)
The opportunity to do a variety of job activities using various skills and
talents.
High variety: The owner-operator of a garage who does electrical repair,
rebuilds engines, does body work, and interacts with customers.
Low variety: A body shop worker who sprays paint eight hours a day.
i.
Task identity
The extent to which a job involves doing a complete piece of work, from
beginning to end.
High identity: A cabinet maker who designs a piece of furniture, selects the
wood, builds the object, and finishes it to perfection.
Low identity: A worker in a furniture factory who operates a lathe solely to
make table legs.
ii.
Task significance
The impact that a job has on other people.
High significance: Nursing the sick in a hospital intensive care unit.
Low significance: Sweeping hospital floors.
iii.
Autonomy (depth)
The freedom to schedule one’s own work activities and decide work
procedures.
High autonomy: A telephone installer who schedules his or her own work
for the day, makes visits without supervision, and decides on the most
effective techniques for a particular installation.
Low autonomy: A telephone operator who must handle calls as they come
according to a routine, highly specified procedure.
iv.
Job feedback
Information about the effectiveness of one’s work performance.
High feedback: An electronics factory worker who assembles a radio and
then tests it to determine if it operates properly.
Low feedback: An electronics factory worker who assembles a radio and
then routes it to a quality control inspector who tests it for proper
operation and makes needed adjustments
v.
§
Job Diagnostic Survey (JDS)
Developed by Hackman and Oldham
to measure the core characteristics of jobs
Compare lower-level managers in a utility company and keypunchers in
another firm
®
§
an overall measure of the motivating potential of a job formula (by Hackman and
Oldham)
score could theoretically range from 1 to 343
The average motivating potential score for 6930 employees on 876 jobs
has been calculated at 128.
§
CRITICAL PSYCHOLOGICAL STATES
work will be intrinsically motivating when
perceived as meaningful
®
feels responsible for the outcomes
®
has knowledge about his or her work progress
®
§
OUTCOMES
key prerequisites for intrinsic motivation
When the worker is truly in control of a challenging job that provides good
feedback about performance,
The relationship between the work and the worker is emphasized
the worker is able to draw motivation from the job itself.
§
This will result in high-quality productivity, satisfaction with higher-order needs
and general satisfaction with the job itself.
§
This should lead to reduced absenteeism and turnover.
§
MODERATORS
job-relevant knowledge and skill of the worker.
Low-skilled workers should not respond favourably to jobs that are high in
motivating potential
∵ too demanding.
§
Growth need strength
The extent to which people desire to achieve higher-order need satisfaction
by performing their jobs.
those with high growth needs should be most responsive to challenging
work.
workers who are dissatisfied with the context factors surrounding the job
(e.g. pay, supervision, and company policy) will be less responsive to
challenging work
§
RESEARCH EVIDENCE
In tests of the Job Characteristics Model
workers tend to respond more favourably to jobs that are higher in
motivating potential.
§
all five core job characteristics were positively related to the outcomes in the
model
i.e. job satisfaction, growth satisfaction, and internal work motivation
Other outcomes
®
§
some of the core job characteristics (e.g., autonomy and feedback from the job)
were also related to behavioural (e.g., absenteeism and performance) and well-
being (e.g., anxiety and stress) outcomes.
§
With respect to the critical psychological states,
strong support for the role of experienced meaningfulness of the work
but less support for experienced responsibility
and no support for the role of knowledge of results.
§
Job Enrichment
The design of jobs to enhance intrinsic motivation, quality of working life, and job
involvement.
Job involvement.
A cognitive state of psychological identification with one’s job and the
importance of work to one’s total self-image.
§
Employees who have challenging and enriched jobs tend to have higher levels of job
involvement
all of the core job characteristics have been found to be positively related to job
involvement.
Employees who are more involved in their job have higher job satisfaction and
organizational commitment and are less likely to consider leaving their organization
job enrichment schemes
Combining tasks
assigning tasks that might be performed by diff erent workers to a single
individual.
increase the variety of skills employed
contribute to task identity
®
§
Establishing external client relationships
putting employees in touch with people outside the organization who
depend on their products or services
interpersonal skills
increase the identity and significance of the job
increase feedback about one’s performance.
E.g. deal with complaint
§
Establishing internal client relationships
This involves putting employees in touch with people who depend on their
products or services within the organization.
E.g. billers and expediters in a manufacturing firm might be assigned
permanently to certain salespeople
advantages are similar to the above
§
Reducing supervision or reliance on others
to increase autonomy and control over one’s own work.
Allow employees to buy supplies
§
Forming work teams
as an alternative to a sequence of “small” jobs that individual workers
perform when a product or service is too large or complex for one person
to complete alone
Develop a variety of skills and increase the identity of the job
§
Making feedback more direct
usually used in conjunction with other job design aspects that permit
workers to be identified with their “own” product or service.
E.g. assemblers “sign” their output on a tag
®
§
Potential Problems with Job Enrichment
POOR DIAGNOSIS
instituted without a careful diagnosis of the needs of the organization and the
particular jobs
e.g. job enlargement
Increasing job breadth by giving employees more tasks at the same level to
perform but leaving other core characteristics unchanged.
§
Workers are given more boring, fragmented, routine tasks to do
§
E.g. job engorgement
organizations might attempt to enrich jobs that are already perceived as too rich
by their incumbents
§
happened in some “downsized” fi rms in which the remaining employees have
been assigned too many extra responsibilities
§
lead to role overload and work stress
§
LACK OF DESIRE OR SKILL
some workers do not desire enriched jobs.
∵ lack the skills and competence necessary to perform enriched jobs effectively.
Lead to substantial training costs
∵ difficult to train
§
DEMAND FOR REWARDS
workers who experience job enrichment ask that greater extrinsic rewards
motivated by the wish to share in the financial benefits of a successful enrichment
exercise.
UNION RESISTANCE
Traditionally, North American unions have not been enthusiastic about job
enrichment.
due to a historical focus on negotiating with management about easily quantified
extrinsic motivators, such as money
SUPERVISORY RESISTANCE
because of their unanticipated impact on other jobs or other parts of the organizational
system
“dis-enrich” the boss’s job
§
Respond
doing away with direct supervision of workers performing enriched jobs
§
use the supervisor as a trainer and developer of individuals in enriched jobs.
§
Enrichment can increase the need for this supervisory function.
Work Design and Relational Job Design
Work design
acknowledges both the job and the broader work environment
Work design characteristics
Attributes of the task, job, and social and organizational environment.
consist of three categories:
motivational characteristics
task characteristics,
similar to the core job characteristics of the Job Characteristics Model
(I.e. autonomy, task variety, task significance, task identity, and feedback
from the job)
Task variety
®
§
knowledge characteristics
the kinds of knowledge, skill, and ability demands required to perform a
job
Skill variety
®
§
social characteristics
interpersonal and social aspects of work
§
E.g.
social support,
interdependence,
interaction outside of the organization,
and feedback from others.
§
social characteristics are even more strongly related to some outcomes (i.e.,
turnover intentions and organizational commitment) than the motivational
characteristics (i.e., task characteristics and knowledge characteristics).
§
work context characteristics.
context within which work is performed
§
E.g. ergonomics, physical demands, work conditions, and equipment use.
§
Work Design Questionnaire (WDQ)
the most comprehensive measure of work design available
Used for
research purposes and as a diagnostic tool to assess the motivational properties
of jobs prior to work redesign.
§
Relational architecture of jobs.
The structural properties of work that shape employees’ opportunities to connect and
interact with other people.
By Adam Grant
Purpose
to motivate employees to make a difference in other people’s lives (Prosocial
motivation)
§
Prosocial,motivation:
The desire to expend effort to benefit other people.
§
Jobs vary in terms of their potential to have an impact on the lives of others
E.g. firefighters and cashiers
§
jobs can be relationally designed to provide employees with opportunities to interact
and communicate with the people affected by their work
thereby allowing them to see the benefits and significance of their work
§
E.g. call centre employees raising funds for a university
§
Chapter(6
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12:17*AM
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MONEY AS A MOTIVATOR
Maslow and Alderfer
pay should prove especially motivational to people who have strong lower-level needs.
∵ pay can be exchanged for necessities of life.
function to satisfy social, self-esteem, and self-actualization needs.
expectancy theory
if pay can satisfy a variety of needs, it should be highly valent, and it should be a good
motivator to the extent that it is clearly tied to performance.
Research on pay and financial incentives is consistent with the predictions of need
theory and expectancy theory.
In general, the ability to earn money for outstanding performance is a competitive advantage
for attracting, motivating, and retaining employees
Linking Pay to Performance on Production Jobs
Piece-rate: A pay system in which individual workers are paid a certain sum of money for
each unit of production completed.
Wage,incentive,plans: Various systems that link pay to performance on production jobs.
When it is hard to measure productivity of individual workers
E.g. hourly wage + monthly bonus for production over some minimum quota
Wage incentives Increase productivity.
Potential Problems with Wage Incentives
LOWERED QUALITY
increase productivity at the expense of quality.
DIFFERENTIAL OPPORTUNITY
If the supply of raw materials or the quality of production equipment (that is, different
opportunities) varies from workplace to workplace, some workers will be at an unfair
disadvantage under an incentive system.
In expectancy theory terminology, workers will differ in the expectancy that they can
produce at a high level.
REDUCED COOPERATION
to maintain a high wage rate, machinists might hoard raw materials or refuse to
engage in peripheral tasks, such as keeping the shop clean or unloading supplies.
INCOMPATIBLE JOB DESIGN
On an assembly line it is almost impossible to identify
and reward individual contributions to productivity.
as the size of the team increases, the relationship between any individual’s
productivity and his or her pay decreases.
RESTRICTION OF PRODUCTIVITY
workers to restrict productivity.
Bell-shaped productivity: some have higher productivity and some have lower
When wage incentives are introduced, however, workers sometimes come to an
informal agreement about artificially limit their output
accordingly.
∵ employees fear that if they produce at an especially high level, an employer will
reduce the rate of payment to cut labour costs.
§
Linking Pay to Performance on White-Collar Jobs
Merit pay plans.
Systems that attempt to link pay to performance on white-collar jobs.
Indicator of performance is unclear and subjective
Individuals who see a strong link between rewards and performance tend to
perform better.
§
Merit pay plans are employed with a much greater frequency than wage incentive plans and
have become one of the most common forms of motivation in Canadian organizations.
In a tight labour market, merit pay is often used by organizations to attract and retain
employees and as an alternative to wage increases.
83 percent of organizations with a pay-for-performance system said it was only somewhat
successful or not working at all.
Many individuals who work under such plans do not perceive a link between their job
performance and their pay.
one study of managers showed that pay increases in a given year were often
uncorrelated with pay increases in adjacent years.
Potential Problems with Merit Pay Plans
LOW DISCRIMINATION
managers might be unable or unwilling to discriminate between good performers and
poor performers.
equalization over-rewards poorer performers and under-rewards better performers.
SMALL INCREASES
merit increases are simply too small to be effective motivators
firms abandon merit pay when they encounter economic difficulties.
Merit is spread out over a year
fails to communicate how much of a raise is for merit and how much is for cost of
living.
To overcome this
lump sum bonus
Merit pay that is awarded in a single payment and not built into base pay.
§
PAY SECRECY
even if merit pay is administered fairly, it is contingent on performance, and is
generous, employees might remain ignorant of these facts
because they have no way of comparing their own merit treatment with that of others.
in the absence of better information, employees are inclined to “invent” salaries for
other members.
This reduces both satisfaction and motivation.
§
overestimate the pay of their employees and their peers and to underestimate
the pay of their superiors
§
Open pay system
expose the inadequacy of the merit system and lead managers to evaluate
performance in a manner that reduces conflict.
supervisors felt pressured to give better ratings
§
increases in performance and satisfaction with pay
§
E.g. Whole Foods, MASS (a public consultation firm in Toronto)
§
Using Pay to Motivate Teamwork
Profit sharing.
The return of some company profit to employees in the form of a cash bonus or a
retirement supplement
one of the most commonly used
unlikely a normally practise
∵ economy, hard to see individual’s contribution
§
Only work for small firms
§
Employee stock ownership plans (ESOPs).
Incentive plans that allow employees to own a set amount of a company’s shares and
provide employees with a stake in the company’s future earnings and success
Purposes
attracting and retaining talent
§
motivating employee performance
§
focusing employee attention on organizational performance
§
creating a culture of ownership
§
educating employees about the business
§
conserving cash by substituting options for cash.
§
E.g. RBC
A study conducted by the Toronto Stock Exchange
companies with employee stock ownership plans outperformed those that do not
§
work best in small organizations, ∵
large companies can’t identify employees’ effort to company profit
§
Stock price is subject to other factors
§
lose their motivational potential in a weak economy when a company’s share
price goes down.
§
Gainsharing
A group pay incentive plan based on productivity or performance improvements over
which the workforce has some control.
E.g. reductions in the cost of labour, material, or supplies.
The most common gainsharing plan: the Scanlon Plan
stresses participatory management and joint problem solving between
employees and managers,
§
also stresses using the pay system to reward employees for this cooperative
behaviour.
§
Thus, pay is used to align company and employee goals.
§
has been used successfully by many small, family-owned manufacturing firms
§
in recent years, many large corporations (e.g. General Electric) have installed
Scanlon-like plans in some manufacturing plants
§
part of a joint union–management effort to respond to economic downturns and
competitive challenges in the auto industry.
§
Skill-based pay (pay for knowledge)
A system in which people are paid according to the number of job skills they have
acquired.
encourage employee flexibility in task assignments and to give them a broader picture
of the work process.
Disadvantages: high training fees, manager wants workers to work only on task that
they are good at
Advantages: in a large organization that manufactures vehicle safety systems reported
an increase in productivity, lower labour costs per part, and a reduction in scrap
E.g. Quebec’s Bell Helicopter Textron
JOB DESIGN AS A MOTIVATOR
Job design
The structure, content, and configuration of a person’s work tasks and roles
Goal:
identify the characteristics that make some tasks more motivating than others and to
capture these characteristics in the design of jobs
Traditional Views of Job Design
Beginning,of,the,Industrial,Revolution:,the design of most non-managerial jobs was
job simplification
∵ uneducated, untrained workforce
§
∵ increase productivity
§
Motivational strategy:
Close supervision and the use of piece-rate pay
Good for low-skilled workers, but not for educated workers
§
Problems: on performance, customer satisfaction, and the quality of working life.
§
Frederick Winslow Taylor
Industrial engineer
§
Advocate specialization,
§
standardization and regulation of work activities and rest pauses
Job Scope and Motivation
Job scope
The breadth and depth of a job.
§
Breadth
The number of different activities performed on a job.
§
Depth
The degree of discretion or control a worker has over how work tasks are
performed.
§
emphasize freedom in planning how to do the work.
§
high-scope,jobs: jobs that have great breadth and depth
E.g. professor
have a fair amount of freedom to choose a particular teaching style, grading
format, and research area
§
low-scope job
E.g. the traditional assembly line job
§
jobs that have high breadth but little depth,
E.g. a utility worker on an assembly line fills in for absent workers on
various parts
§
Jobs that have high depth but little breadth
quality control inspectors
§
high-scope jobs should provide more intrinsic motivation than low-scope jobs.
Maslow’s need hierarchy and ERG theory
people can fulfill higher-order needs by the opportunity to perform high-
scope jobs.
§
Expectancy theory
high-scope jobs can provide intrinsic motivation if the outcomes derived
from such jobs are attractive.
§
Increase the scope of a job
assign employees stretch assignments
offer employees challenging opportunities to broaden their skills by
working on a variety of tasks with new responsibilities
E.g. Javelin Technologies Inc.
§
Job rotation
Rotating employees to different tasks and jobs in an organization.
E.g. Bell Canada
§
Advantages
developing new skills and expertise that can prepare employees for future
roles
§
The Job Characteristics Model
there are several “core” job characteristics that have a certain psychological impact on
workers.
CORE JOB CHARACTERISTICS (affect worker motivation)
Skill variety (breadth)
The opportunity to do a variety of job activities using various skills and
talents.
High variety: The owner-operator of a garage who does electrical repair,
rebuilds engines, does body work, and interacts with customers.
Low variety: A body shop worker who sprays paint eight hours a day.
i.
Task identity
The extent to which a job involves doing a complete piece of work, from
beginning to end.
High identity: A cabinet maker who designs a piece of furniture, selects the
wood, builds the object, and finishes it to perfection.
Low identity: A worker in a furniture factory who operates a lathe solely to
make table legs.
ii.
Task significance
The impact that a job has on other people.
High significance: Nursing the sick in a hospital intensive care unit.
Low significance: Sweeping hospital floors.
iii.
Autonomy (depth)
The freedom to schedule one’s own work activities and decide work
procedures.
High autonomy: A telephone installer who schedules his or her own work
for the day, makes visits without supervision, and decides on the most
effective techniques for a particular installation.
Low autonomy: A telephone operator who must handle calls as they come
according to a routine, highly specified procedure.
iv.
Job feedback
Information about the effectiveness of one’s work performance.
High feedback: An electronics factory worker who assembles a radio and
then tests it to determine if it operates properly.
Low feedback: An electronics factory worker who assembles a radio and
then routes it to a quality control inspector who tests it for proper
operation and makes needed adjustments
v.
§
Job Diagnostic Survey (JDS)
Developed by Hackman and Oldham
to measure the core characteristics of jobs
Compare lower-level managers in a utility company and keypunchers in
another firm
®
§
an overall measure of the motivating potential of a job formula (by Hackman and
Oldham)
score could theoretically range from 1 to 343
The average motivating potential score for 6930 employees on 876 jobs
has been calculated at 128.
§
CRITICAL PSYCHOLOGICAL STATES
work will be intrinsically motivating when
perceived as meaningful
®
feels responsible for the outcomes
®
has knowledge about his or her work progress
®
§
OUTCOMES
key prerequisites for intrinsic motivation
When the worker is truly in control of a challenging job that provides good
feedback about performance,
The relationship between the work and the worker is emphasized
the worker is able to draw motivation from the job itself.
§
This will result in high-quality productivity, satisfaction with higher-order needs
and general satisfaction with the job itself.
§
This should lead to reduced absenteeism and turnover.
§
MODERATORS
job-relevant knowledge and skill of the worker.
Low-skilled workers should not respond favourably to jobs that are high in
motivating potential
∵ too demanding.
§
Growth need strength
The extent to which people desire to achieve higher-order need satisfaction
by performing their jobs.
those with high growth needs should be most responsive to challenging
work.
workers who are dissatisfied with the context factors surrounding the job
(e.g. pay, supervision, and company policy) will be less responsive to
challenging work
§
RESEARCH EVIDENCE
In tests of the Job Characteristics Model
workers tend to respond more favourably to jobs that are higher in
motivating potential.
§
all five core job characteristics were positively related to the outcomes in the
model
i.e. job satisfaction, growth satisfaction, and internal work motivation
Other outcomes
®
§
some of the core job characteristics (e.g., autonomy and feedback from the job)
were also related to behavioural (e.g., absenteeism and performance) and well-
being (e.g., anxiety and stress) outcomes.
§
With respect to the critical psychological states,
strong support for the role of experienced meaningfulness of the work
but less support for experienced responsibility
and no support for the role of knowledge of results.
§
Job Enrichment
The design of jobs to enhance intrinsic motivation, quality of working life, and job
involvement.
Job involvement.
A cognitive state of psychological identification with one’s job and the
importance of work to one’s total self-image.
§
Employees who have challenging and enriched jobs tend to have higher levels of job
involvement
all of the core job characteristics have been found to be positively related to job
involvement.
Employees who are more involved in their job have higher job satisfaction and
organizational commitment and are less likely to consider leaving their organization
job enrichment schemes
Combining tasks
assigning tasks that might be performed by diff erent workers to a single
individual.
increase the variety of skills employed
contribute to task identity
®
§
Establishing external client relationships
putting employees in touch with people outside the organization who
depend on their products or services
interpersonal skills
increase the identity and significance of the job
increase feedback about one’s performance.
E.g. deal with complaint
§
Establishing internal client relationships
This involves putting employees in touch with people who depend on their
products or services within the organization.
E.g. billers and expediters in a manufacturing firm might be assigned
permanently to certain salespeople
advantages are similar to the above
§
Reducing supervision or reliance on others
to increase autonomy and control over one’s own work.
Allow employees to buy supplies
§
Forming work teams
as an alternative to a sequence of “small” jobs that individual workers
perform when a product or service is too large or complex for one person
to complete alone
Develop a variety of skills and increase the identity of the job
§
Making feedback more direct
usually used in conjunction with other job design aspects that permit
workers to be identified with their “own” product or service.
E.g. assemblers “sign” their output on a tag
®
§
Potential Problems with Job Enrichment
POOR DIAGNOSIS
instituted without a careful diagnosis of the needs of the organization and the
particular jobs
e.g. job enlargement
Increasing job breadth by giving employees more tasks at the same level to
perform but leaving other core characteristics unchanged.
§
Workers are given more boring, fragmented, routine tasks to do
§
E.g. job engorgement
organizations might attempt to enrich jobs that are already perceived as too rich
by their incumbents
§
happened in some “downsized” fi rms in which the remaining employees have
been assigned too many extra responsibilities
§
lead to role overload and work stress
§
LACK OF DESIRE OR SKILL
some workers do not desire enriched jobs.
∵ lack the skills and competence necessary to perform enriched jobs effectively.
Lead to substantial training costs
∵ difficult to train
§
DEMAND FOR REWARDS
workers who experience job enrichment ask that greater extrinsic rewards
motivated by the wish to share in the financial benefits of a successful enrichment
exercise.
UNION RESISTANCE
Traditionally, North American unions have not been enthusiastic about job
enrichment.
due to a historical focus on negotiating with management about easily quantified
extrinsic motivators, such as money
SUPERVISORY RESISTANCE
because of their unanticipated impact on other jobs or other parts of the organizational
system
“dis-enrich” the boss’s job
§
Respond
doing away with direct supervision of workers performing enriched jobs
§
use the supervisor as a trainer and developer of individuals in enriched jobs.
§
Enrichment can increase the need for this supervisory function.
Work Design and Relational Job Design
Work design
acknowledges both the job and the broader work environment
Work design characteristics
Attributes of the task, job, and social and organizational environment.
consist of three categories:
motivational characteristics
task characteristics,
similar to the core job characteristics of the Job Characteristics Model
(I.e. autonomy, task variety, task significance, task identity, and feedback
from the job)
Task variety
®
§
knowledge characteristics
the kinds of knowledge, skill, and ability demands required to perform a
job
Skill variety
®
§
social characteristics
interpersonal and social aspects of work
§
E.g.
social support,
interdependence,
interaction outside of the organization,
and feedback from others.
§
social characteristics are even more strongly related to some outcomes (i.e.,
turnover intentions and organizational commitment) than the motivational
characteristics (i.e., task characteristics and knowledge characteristics).
§
work context characteristics.
context within which work is performed
§
E.g. ergonomics, physical demands, work conditions, and equipment use.
§
Work Design Questionnaire (WDQ)
the most comprehensive measure of work design available
Used for
research purposes and as a diagnostic tool to assess the motivational properties
of jobs prior to work redesign.
§
Relational architecture of jobs.
The structural properties of work that shape employees’ opportunities to connect and
interact with other people.
By Adam Grant
Purpose
to motivate employees to make a difference in other people’s lives (Prosocial
motivation)
§
Prosocial,motivation:
The desire to expend effort to benefit other people.
§
Jobs vary in terms of their potential to have an impact on the lives of others
E.g. firefighters and cashiers
§
jobs can be relationally designed to provide employees with opportunities to interact
and communicate with the people affected by their work
thereby allowing them to see the benefits and significance of their work
§
E.g. call centre employees raising funds for a university
§
Chapter(6
Friday,*May*11,*2018
12:17*AM
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Document Summary

Maslow and alderfer pay should prove especially motivational to people who have strong lower-level needs. Research on pay and nancial incentives is consistent with the predictions of need theory and expectancy theory. In general, the ability to earn money for outstanding performance is a competitive advantage for attracting, motivating, and retaining employees. Piece-rate: a pay system in which individual workers are paid a certain sum of money for each unit of production completed. Wage incentive plans: various systems that link pay to performance on production jobs. When it is hard to measure productivity of individual workers. E. g. hourly wage + monthly bonus for production over some minimum quota. Lowered quality increase productivity at the expense of quality. If the supply of raw materials or the quality of production equipment (that is, different opportunities) varies from workplace to workplace, some workers will be at an unfair disadvantage under an incentive system.

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