Chapter 08 16th

8-1
Copyright 2015 Pearson Education, Inc.
Chapter 8: Motivation:
From Concepts to
Applications
8-2
Learning Objectives
After studying this chapter, you should be able to:
Describe the job characteristics model and the
way it motivates by changing the work
environment.
Compare the main ways jobs can be redesigned.
Explain how specific alternative work
arrangements can motivate employees.
Describe how employee involvement measures
can motivate employees.
Demonstrate how the different types of variablepay programs can increase employee motivation.
Show how flexible benefits turn benefits into
motivators.
Identify the motivational benefits of intrinsic
rewards.
8-3
Job Characteristics Model

Identifies five job
characteristics and
their relationship to
personal and work
outcomes.
Characteristics:
Characteristics:
1.
1. Skill
Skillvariety
variety
2.
2. Task
Taskidentity
identity
3.
3. Task
Tasksignificance
significance
4.
4. Autonomy
Autonomy
5.
5. Feedback
Feedback
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Skill Variety
The degree to which a job requires a variety
of different activities (how may different
skills are used in a given day, week,
month?).
Task Identity
The degree to which the job requires
completion of a whole and identifiable piece
of work (from beginning to end) that results in
a visible outcome.
Task Significance
The degree to which the job has a
substantial impact on the lives or work
of other people.
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Job Characteristics Model (contd)

Autonomy
The degree to which the job provides substantial
freedom and discretion to the individual in
scheduling the work and in determining the
procedures to be used in carrying it out.
Feedback
The degree to which carrying out the
work activities required by a job results
in the individual obtaining direct and
clear information about the effectiveness
of his or her performance.
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2007 Prentice
Job Characteristics
Examples
Skill Variety- i.e. the job of an owner-operator
of a garage who does electrical repairs, rebuilds
engines and interacts with customers
Task Identity - i.e. the job of a cabinet maker
who designs a piece of furniture, selects the
wood, builds the object and finishes it to
perfection
Task Significance - i.e. the job of a nurse
handling the diverse needs of patients in an
intensive care unit of a hospital
Job Characteristics
Examples
Autonomy - i.e. a salesperson scheduling

his or her own work each day.
Feedback - the job of a factory worker
who assembles iPods and tests them to see
if they operate properly

Jobs with skill variety, task identity, task
significance, autonomy, and for which feedback
of results is given, directly affect three
psychological states of employees:
Knowledge of results
Meaningfulness of work
Personal feelings of responsibility for results
LO 1
Describe the Job Characteristics

Model
and the Way It Motivates by
Changing the Work Environment
8-10
Describe the job characteristics model and

evaluate the way it motivates by changing
LO 1
the work environment
Much evidence supports the JCM concept that the
presence of a set of job characteristicsvariety,
identity, significance, autonomy, and feedback
does generate higher and more satisfying job
performance.
A few studies have tested the job characteristics
model in different cultures, but the results arent very
consistent.
8-11
Compare the Main Ways Jobs

Can Be Redesigned
LO 2
Repetitive jobs provide little variety, autonomy,

or motivation.
Job Rotation
Referred to as cross-training.
Periodic shifting from one task to another.
Strengths: reduces boredom, increases
motivation, and helps employees better
understand their work contributions.
Weaknesses: creates disruptions, requires extra
time for supervisors addressing questions and
training time, and reduced efficiencies.
8-12
Job Enrichment
Job Enrichment - The vertical expansion
of jobs. This is done by increasing the
depth of a job by adding the responsibility
for planning, organizing, controlling and
evaluating the job.
Expanding jobs vertically gives employees
responsibilities and control formerly
reserved for management.

Can Be Redesigned
LO 2
8-14
LO 2
Compare and contrast the main

ways jobs can be redesigned
Some newer versions of job enrichment

concentrate specifically on improving the
meaningfulness of work.
One method is to relate employee experiences
to customer outcomes.
Another method for improving the
meaningfulness of work is providing employees
with mutual assistance programs.
8-15
LO 2
Compare and contrast the main

ways jobs can be redesigned
The evidence on job enrichment shows it reduces

absenteeism and turnover costs and increases
satisfaction, but not all programs are equally
effective.
Some recent evidence suggests job enrichment
works best when it compensates for poor feedback
and reward systems.
Work design may also not affect everyone in the
same way.

Can Be Redesigned
LO 2
Relational Job Design

To make jobs more prosocially motivating:
Connect employees with the beneficiaries of their
work.
Relate stories from customers who have found the
companys products or services to be helpful.
Meet beneficiaries firsthand.
Employees see that their actions affect a real person,
and that their jobs have tangible consequences.
Connections make customers or clients more
accessible in memory and more emotionally vivid.
Leads employees to consider the effects of their
actions more.
Fosters higher levels of commitment.
8-17
Alternative Work
Arrangements
Flextime
Employees work during a common core time
period each day but have discretion in
forming their total workday from a flexible
set of hours outside the core.
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LO 3
Explain How Specific Alternative

Work Arrangements Can Motivate
Employees
8-19

Employees
Job Sharing
LO 3
Two or more people split a 40-hour-a-week job.

Declining in use.
Can be difficult to find compatible pairs of
employees who can successfully coordinate
the intricacies of one job.
Increases flexibility and can increase
motivation and satisfaction when a 40-hour-aweek job is just not practical.
8-20
LO 3

Employees
Telecommuting
Employees who do their work at home at
least two days a week on a computer
that is linked to their office.
Virtual office
Well-known organizations that actively
encourage telecommuting include
AT&T, IBM, American Express, Sun
Microsystems
8-21
LO 3

Employees
Telecommuting Advantages
Larger labor pool
Higher productivity
Less turnover
Improved morale
Reduced office-space costs
8-22
LO 3

Employees
Telecommuting Disadvantages
Employer
Less direct supervision of employees.
Difficult to coordinate teamwork.
Difficult to evaluate non-quantitative
performance.
Employee
May not be noticed for his or her
efforts.
8-23
LO 3

Employees
The Social and Physical Context Of

Work
The job characteristics model shows most
employees are more motivated and
satisfied when their intrinsic work tasks
are engaging.
Research demonstrates that social
aspects and work context are as
important as other job design features.
8-24
Employee Involvement
Programs
Participative Management
A process in which subordinates share a
significant degree of decision-making
power with their immediate superiors.
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Inc.
Describe How Employee

LO 4
Involvement
Measures Can Motivate Employees
Participative management
Acts as a panacea for poor morale and
low productivity.
Trust and confidence in leaders is
essential.
Studies of the participation-performance
have yielded mixed results.
8-26
LO 4
Give examples of employee involvement

measures and show how they can
motivate employees
Common to all participative management

programs is joint decision making,
But for it to work, employees must: a.) be
engaged in issues relevant to their interests so
theyll be motivated; b.) they must have the
competence and knowledge to make a useful
contribution, and c.) trust and confidence must
exist among all parties.
Examples of Employee Involvement

Programs (contd)
Representative
Participation
Workers participate in
organizational
decision making
through a small group
of representative
employees.
Works Councils
Groups of nominated or
elected employees who
must be consulted when
management makes
decisions involving
personnel.
Board Representative
A form of representative
participation; employees sit
on a companys board of
directors and represent the
interests of the firms
employees.
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PearsonEducation,
Education,Inc.
Inc.
Describe How Employee

LO 4
Involvement
Measures
Can Motivate Employees
Linking
Employee Involvement Programs
and Motivation Theories
Theory Y is consistent with participative
management.
Theory X aligns with autocratic style.
Two-factor theory aligns with employee
involvement programs in providing intrinsic
motivation.
Extensive employee involvement programs
clearly have the potential to increase employee
intrinsic motivation in work tasks.
8-29
LO 5
Demonstrate How the Different

Types of Variable-Pay Programs Can
Increase Employee Motivation
What to Pay: Establishing a Pay

Structure
Complex process that entails balancing internal
equity and external equity.
Some organizations prefer to pay leaders by
paying above market.
Paying more may net better-qualified and more
highly motivated employees who may stay with
the firm longer.
8-30

LO 5
How to Pay: Rewarding Individual Employees

Through Variable-Pay Programs
Many organizations are moving away from paying
solely on credentials or length of service.
Piece-rate plans
Merit-based pay
Bonuses
Profit sharing
Gain sharing
Employee stock ownership plans
Earnings therefore fluctuate up and down.
8-31

LO 5
Piece-Rate Pay
Workers are paid a fixed sum for each unit of
production completed.
A pure piece-rate plan provides no base salary
and pays the employee only for what he or she
produces.
Limitation: not a feasible approach for many jobs.
Although incentives are motivating and relevant
for some jobs, it is unrealistic to think they can
constitute the only piece of employees pay.
8-32

LO 5
Merit-Based Pay
Based on performance appraisal ratings.
Allows employers to differentiate pay based on
performance.
Creates perceptions of relationships between
performance and rewards.
Limitations:
Based on annual performance appraisal;
merit pool fluctuations based on economic
conditions; unions typically resist merit-based
pay plans.
8-33

LO 5
Bonuses
An annual bonus is a significant component of
total compensation for many jobs.
Increasingly include lower-ranking employees.
Many companies now routinely reward
production employees with bonuses when
profits improve.
Downside: employees pay is more vulnerable
to cuts.
8-34

LO 5
Skill-Based Pay
Bases pay levels on how many skills employees have or
how many jobs they can do.
Increases the flexibility of the workforce.
Facilitates communication across the organization
because people gain a better understanding of each
others jobs.
Limitations:
People can top-out and learn all the skills.
Dont address performance.
8-35

LO 5
Profit-Sharing Plans
Organization-wide programs that distribute
compensation based on some established
formula centered around a companys
profitability.
Appear to have positive effects on employee
attitudes at the organizational level.
Employees have a feeling of psychological
ownership.
8-36

LO 5
Gainsharing
Uses improvements in group productivity from one
period to the next to determine the total amount of
money allocated.
Common among large manufacturing companies and in
some healthcare organizations.
Ties rewards to productivity gains rather than profits.
Employees can receive incentive awards even when
the organization isnt profitable.
Because the benefits accrue to groups of workers, high
performers pressure weaker ones to work harder,
improving performance for the group as a whole.
8-37

LO 5
Employee Stock Ownership Plan (ESOP)

A company-established benefit plan in which
employees acquire stock, often at below-market
prices, as part of their benefits.
Increases employee satisfaction and innovation.
Employees need to psychologically experience
ownership.
Can reduce unethical behavior.
8-38

LO 5
Evaluation of Variable Pay

Do variable-pay programs increase motivation
and productivity? The answer is a qualified yes.
Studies generally support the idea that
organizations with profit-sharing plans have
higher levels of profitability than those without
them.
Are there cultural differences?
Maybe, but more research is needed.
8-39
LO 6
Show How Flexible Benefits

Turn Benefits Into Motivators
Flexible Benefits: Developing a Benefits Package

Flexible benefits individualize rewards.
Allow each employee to choose the
compensation package that best satisfies his
or her current needs and situation.
Replaces the one-benefit-plan-fits-all
programs designed for a male with a wife
and two children at home that dominated
organizations for more than 50 years.
8-40
LO 6
Show How Flexible Benefits

Turn Benefits Into Motivators
There are three basic types of programs:

1. Modular plans: pre-designed with each
module put together to meet the needs of a
specific group of employees.
2. Core-plus plans: a core of essential benefits
and a menu-like selection of other benefit
options.
3. Flexible spending plans: employees set
aside pretax dollars up to the amount offered
in the plan to pay for particular benefits, such
as healthcare and dental premiums.
8-41
Identify the Motivational

Benefits of Intrinsic Rewards
LO 7
Intrinsic Rewards: Employee Recognition

Programs
Organizations are increasingly recognizing that
important work rewards can be both intrinsic
and extrinsic.
Rewards are intrinsic in the form of employee
recognition programs and extrinsic in the form
of compensation systems.
Financial incentives might be more motivating
in the short-term, but nonfinancial rewards
are more important in the long-term.
8-42
Identify the Motivational

Benefits of Intrinsic Rewards
LO 7
8-43
Implications for Managers

Recognize individual differences.
Spend the time necessary to understand
whats important to each employee.
Design jobs to align with individual needs
and maximize their motivation potential.
Use goals and feedback.
You should give employees firm, specific
goals, and they should get feedback on
how well they are faring in pursuit of
those goals.
8-44
Implications for Managers

Allow employees to participate in decisions
that affect them.
Employees can contribute to setting work goals,
choosing their own benefits packages, and solving
productivity and quality problems.
Link rewards to performance.
Rewards should be contingent on performance, and
employees must perceive the link between the two.
Check the system for equity.
Employees should perceive that experience, skills,
abilities, effort, and other obvious inputs explain
differences in performance and hence in pay, job
assignments, and other obvious rewards.
8-45
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means, electronic, mechanical, photocopying, recording, or otherwise,
without the prior written permission of the publisher. Printed in the
United States of America.
Copyright 2014 Pearson Education

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8-1

Copyright 2015 Pearson Education, Inc.

Job Characteristics Model

Job Characteristics Model

Job Characteristics Model (contd)

Copyright 2015 Pearson Education, Inc.

Autonomy - i.e. a salesperson scheduling

Copyright 2015 Pearson Education, Inc.

Job Characteristics Model

Copyright 2015 Pearson Education, Inc.

Describe the Job Characteristics

Describe the job characteristics model and

Copyright 2015 Pearson Education, Inc.

Compare the Main Ways Jobs

Repetitive jobs provide little variety, autonomy,

Copyright 2015 Pearson Education, Inc.

Compare the Main Ways Jobs

Compare and contrast the main

Some newer versions of job enrichment

Copyright 2015 Pearson Education, Inc.

Compare and contrast the main

The evidence on job enrichment shows it reduces

Copyright 2015 Pearson Education, Inc.

Compare the Main Ways Jobs

Relational Job Design

Explain How Specific Alternative

Explain How Specific Alternative

Two or more people split a 40-hour-a-week job.

Explain How Specific Alternative

Explain How Specific Alternative

Explain How Specific Alternative

Explain How Specific Alternative

The Social and Physical Context Of

Describe How Employee

Give examples of employee involvement

Common to all participative management

Copyright 2015 Pearson Education, Inc.

Examples of Employee Involvement

Describe How Employee

Demonstrate How the Different

What to Pay: Establishing a Pay

Demonstrate How the Different

How to Pay: Rewarding Individual Employees

Demonstrate How the Different

Demonstrate How the Different

Demonstrate How the Different

Demonstrate How the Different

Demonstrate How the Different

Demonstrate How the Different

Demonstrate How the Different

Employee Stock Ownership Plan (ESOP)

Demonstrate How the Different

Evaluation of Variable Pay

Show How Flexible Benefits

Flexible Benefits: Developing a Benefits Package

Show How Flexible Benefits

There are three basic types of programs:

Identify the Motivational

Intrinsic Rewards: Employee Recognition

Identify the Motivational

Implications for Managers

Implications for Managers