What is the link between motivation, performance, and rewards? What are the essentials of performance management? How do job designs influence motivation

What is the link between motivation,

performance, and rewards?

What are the essentials of performance

management?

How do job designs influence motivation and

performance?

What are the motivational opportunities of

alternative work arrangements?

6-2Copyright © 2010 John Wiley & Sons, Inc.

Copyright © 2010 John Wiley & Sons, Inc.6-3



Intrinsic rewards Positively valued work outcomes that the

individual receives directly as a result of task

performance.

Extrinsic rewards Positively valued work outcomes that are

given to an individual or group by some other

person or source in the work setting.

Pay for performance – the concept that

monetary rewards are in whole, or in part,

linked to accomplishments (individual or

team). Programs that provide incentives for employees to

increase their outputs.

In the 2008-09 economic recession, HRGURU finds

that employers are finding that ‘cash is still king’

when it comes to incentives.



Merit pay Compensation system that directly ties an

individual’s salary or wage increase to measures of

performance accomplishments during a specific

time period.

Seeks to create a belief among employees that the

way to achieve high pay is to perform at high

levels.

Bonus – additional monetary award that meets

specified benchmarks.


Gain sharing

Gives workers the opportunity to earn

more by receiving shares of any

productivity gains that they help to create.


Profit-sharing plans

Reward employees based on overall

organizational profit.

Criticism: organizational profits are not

always a direct result of employees’ efforts,


Skill-based pay

Rewards people for acquiring and

developing job relevant skills.

Stock Options

Provide employees with an opportunity to

buy shares of stock at a future date at a

fixed price.


Employee stock ownership plans

(ESOPs)

May give stock to employees, or allow

stock to be purchased at a price below

market value.



Performance management

Fair and accurate measurement and

application of rewards, and the

various human resource

management decisions and actions

based on such measurement.



Performance management is:

Evaluative - lets people know where they

stand relative to objectives and standards;

Developmental – provides insights into

individual strengths and weaknesses that

are useful for personal development.


Performance Measurement

Output measures

assess actual work results

Activity measures

assess work efforts or inputs


Performance

appraisal

Formal procedure for

measuring and

documenting a person’s

work performance.

Copyright © 2010 John Wiley & Sons, Inc. 6-18


Rating scales

Graphic - Raters assign scores on a list of dimensions

related to high performance outcomes in a given job.

Behavioral - Raters identify observable job behaviors,

and specifically describe superior or inferior

performance.

Critical incident diaries

Rater records incidents of unusual success or failure

in a given performance aspect.




360° Evaluation

Includes not only the evaluations of

bosses, peers, and subordinates, but also

self-ratings, customer ratings, and ratings

by others with whom the employee deals

with outside the immediate work unit.

Think of a performance management

discussion you have had with a

manager?

Did you look forward to the meeting?

Put yourself in the manager’s place.

What would you change about the procedure?

Which evaluation tool will be most beneficial?



To be meaningful, an appraisal system

must be:

Reliable - provide consistent results across

time.

Valid - actually measure people on relevant

job content.

Job design

Process through which managers plan and

specify job tasks and the work

arrangements that allow them to be

accomplished.


Scientific management

Sought to improve work efficiency by

creating small, repetitive tasks and

training workers to do these tasks well.



Job simplification A scientific management

approach that standardizes work

procedures and employs people

in clearly defined and highly

specialized tasks.

Intent is to increase efficiency,

but it may be decreased due to

the motivational impact of

unappealing jobs.


Job enlargement

Increases task variety by combining into

one job two or more tasks that were

previously assigned to separate workers.

Job rotation

Increases task variety by periodically

shifting workers among jobs involving

different tasks.


Job enrichment

The practice of enhancing job content by

building motivating factors such as

responsibility, achievement, recognition,

and personal growth into the job.


Concerns about job enrichment

Job enrichment can be very costly.

Controversy concerning whether pay must

be increased when jobs are enriched.



Job characteristics model

Provides a data-based approach to

creating job designs with good person-job

fit that maximize the potential for

motivation and performance.


Motivating potential score

MPS indicates the degree to which the job

is capable of motivating people.

A job’s MPS can be raised by enriching the

core characteristics.


When the core characteristics are highly

enriched, three critical psychological states

are positively influenced:

Experienced meaningfulness of work

Experienced responsibility for work

outcomes

Knowledge of actual results of work activities


Moderators that influence the degree of

positive outcomes of enriched jobs:

Employee growth-need strength is high.

The employee has the required knowledge

and skills.

Employee is satisfied with the work context

(salary, supervision, relationships).


Managerial and global implications of

enriching jobs

Not everyone’s job should be enriched.

Job enrichment can apply to groups.

Culture has a substantial impact on job

enrichment.


Alternative work arrangements

A key feature of contemporary

organizations.

Designed to provide work-life balance and

increase employee motivation,

performance and job satisfaction.


Compressed work weeks – any scheduling of work that allows

a full time job to be completed in fewer than the standard five

days.

Advantages

For workers: added time off.

For organizations: lower absenteeism and improved

recruiting of new employees.

Disadvantages

For workers: increased fatigue and family adjustment

problems.

For organizations: work scheduling problems,

customer complaints, possible union opposition.6-39Copyright © 2010 John Wiley & Sons, Inc.

Flexible working hours

Gives individuals a daily choice in the timing of their

work commitments.

Advantages:

For workers: shorter commuting time, more leisure time,

more job satisfaction, and greater sense of responsibility.

For organizations: less absenteeism, tardiness, and

turnover; more commitment, and higher performance.


Job sharing One full-time job is assigned to two or more

persons who divide the work according to agreed-

upon hours.

Advantages:

For workers: less burnout and higher energy level.

For organizations: attracting talented people who

would otherwise be unable to work.


Work sharing Workers agree to cut back on the number of

hours they work in order to protect against

layoffs.

Some employers may mandate a cutback due to

economic necessity.


Telecommuting - Work done at home or in a remote location utilizing technology to communicate with a central office or other employment location.

Advantages For workers: flexibility, comforts of home, and choice of

work locations consistent with one’s lifestyle.

For organizations: costs savings, efficiency, and improved employee satisfaction.

Disadvantages For workers: isolation from co-workers, decreased

identification with work team, family distractions.


Advantages of part-time work For workers: appeals to people who want to supplement other

jobs or do not want full-time work.

For organizations: lower labor costs, ability to better

accommodate peaks and valleys of business cycle, and better

management of retention.

Disadvantages For workers: added stress and potentially diminished

performance if holding two jobs, failure to qualify for benefits,

and lower pay rates than full-time counterparts.› For organizations: when a person holds multiple part-time

jobs, the work burdens can be stressful; performance may suffer on the job.


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What is the link between motivation, performance, and rewards? What are the essentials of performance management? How do job designs influence motivation