Chapter 7

Motivation:
From Concept to
Applications

ORGANIZATIONAL BEHAVIOR
S T E P H E N P. R O B B I N S
E L E V E N T H E D I T I O N
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Cook
 What
What is
is MBO?
MBO?

Management by Objectives (MBO)

A program that encompasses specific goals,
participatively set, for an explicit time period,
with feedback on goal progress.

Key
KeyElements
Elements
1.
1. Goal
Goalspecificity
specificity
2.
2. Participative
Participativedecision
decisionmaking
making
3.
3. An
Anexplicit
explicittime
timeperiod
period
4.
4. Performance
Performancefeedback
feedback

© 2005 Prentice Hall Inc. All rights reserved. 7–2

 Linking
Linking MBO
MBO and
and Goal-Setting
Goal-Setting Theory
Theory

MBO Goal-Setting Theory

Goal Specificity Yes Yes
Goal Difficulty Yes Yes
Feedback Yes Yes
Participation Yes No
(qualified)

© 2005 Prentice Hall Inc. All rights reserved. 7–3

 Why
Why MBO’s
MBO’s Fail
Fail
 Unrealistic expectations about MBO results
 Lack of commitment by top management
 Failure to allocate reward properly
 Cultural incompatibilities

© 2005 Prentice Hall Inc. All rights reserved. 7–4

 Employee
Employee Recognition
Recognition Programs
Programs
 Types of programs
– Personal attention
– Expressing interest
– Approval
– Appreciation for a job well done
 Benefits of programs
– Fulfill employees’ desire for recognition.
– Encourages repetition of desired behaviors.
– Enhance group/team cohesiveness and motivation.
– Encourages employee suggestions for improving
processes and cutting costs.

© 2005 Prentice Hall Inc. All rights reserved. 7–5

 What
What is
is Employee
Employee Involvement?
Involvement?
Employee Involvement Program
A participative process that uses the entire capacity
of employees and is designed to encourage increased
commitment to the organization’s success.

Participative Management
A process in which subordinates share a significant
degree of decision-making power with their
immediate superiors.

© 2005 Prentice Hall Inc. All rights reserved. 7–6

 Examples
Examples of
of Employee
Employee Involvement
Involvement Programs
Programs
(cont’d)
(cont’d)
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
company’s board of directors and represent the interests of the
firm’s employees.

© 2005 Prentice Hall Inc. All rights reserved. 7–7

 Examples
Examples of
of Employee
Employee Involvement
Involvement Programs
Programs
(cont’d)
(cont’d)
Quality Circle
A work group of employees who meet regularly to
discuss their quality problems, investigate causes,
recommend solutions, and take corrective actions.

© 2005 Prentice Hall Inc. All rights reserved. 7–8

 Examples
Examples of
of Employee
Employee Involvement
Involvement Programs
Programs
(cont’d)
(cont’d)

Employee Stock Ownership Plans (ESOPs)

Company-established benefit plans in which
employees acquire stock as part of their benefits.

© 2005 Prentice Hall Inc. All rights reserved. 7–9

 Linking
Linking EI
EI Programs
Programs and
and Motivation
Motivation Theories
Theories

Employee Two-Factor
Two-Factor
Theory
TheoryYY Employee
Participative Involvement Theory
Theory
Participative Involvement Intrinsic
Management Programs Intrinsic
Management Programs Motivation
Motivation

ERG
ERGTheory
Theory
Employee
Employee
Needs
Needs

© 2005 Prentice Hall Inc. All rights reserved. 7–10

 Job
Job Design
Design and
and Scheduling
Scheduling

Job Rotation
The periodic shifting of a worker from one task to
another.

Job Enlargement
The horizontal expansion of jobs.

Job Enrichment
The vertical expansion of jobs.

© 2005 Prentice Hall Inc. All rights reserved. 7–11

 Work
Work Schedule
Schedule Options
Options

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.

Job Sharing
The practice of having two or more people split a
40-hour-a-week job.

© 2005 Prentice Hall Inc. All rights reserved. 7–12

 Work
Work Schedule
Schedule Options
Options

Telecommuting
Employees do their work at home on a computer
that is linked to their office.

Categories
Categoriesof
oftelecommuting
telecommutingjobs:
jobs:
• • Routine
Routineinformation
informationhandling
handlingtasks
tasks
• • Mobile
Mobileactivities
activities
• • Professional
Professionaland
andother
otherknowledge-related
knowledge-relatedtasks
tasks

© 2005 Prentice Hall Inc. All rights reserved. 7–13

 Telecommuting
Telecommuting
 Advantages  Disadvantages
(Employer)
– Larger labor pool
– Less direct
– Higher productivity
supervision of
– Less turnover employees
– Improved morale – Difficult to
coordinate teamwork
– Reduced office-space
costs – Difficult to evaluate
non-quantitative
performance

© 2005 Prentice Hall Inc. All rights reserved. 7–14

 Variable
Variable Pay
Pay Programs
Programs

Variable Pay Programs

A portion of an employee’s pay is based on some
individual and/or organization measure of
performance.
• Piece rate pay plans
• Profit sharing plans
• Gain sharing plans

© 2005 Prentice Hall Inc. All rights reserved. 7–15

 Variable
Variable Pay
Pay Programs
Programs (cont’d)
(cont’d)
Piece-rate Pay Plans
Workers are paid a fixed sum for each unit of
production completed.

Profit-Sharing Plans
Organizationwide programs that distribute
compensation based on some established formula
designed around a company’s profitability.

Gain Sharing
An incentive plan in which improvements in group
productivity determine the total amount of money
that is allocated.
© 2005 Prentice Hall Inc. All rights reserved. 7–16
 Skill-Based
Skill-Based Pay
Pay Plans
Plans

Pay levels are based on how many skills employees

have or how many jobs they can do.

Benefits
Benefitsof
ofSkill-based
Skill-basedPay
PayPlans:
Plans:
1.1. Provides
Providesstaffing
staffingflexibility.
flexibility.
2.2. Facilitates
Facilitatescommunication
communicationacross acrossthe
theorganization.
organization.
3.3. Lessens
Lessens“protection
“protectionof
ofterritory”
territory”behaviors.
behaviors.
4.4. Meets
Meetsthe
theneeds
needsofofemployees
employeesforforadvancement
advancement
(without
(withoutpromotion).
promotion).
5.5. Leads
Leadsto
toperformance
performanceimprovements.
improvements.

© 2005 Prentice Hall Inc. All rights reserved. 7–17

 Skill-Based
Skill-Based Pay
Pay Plans
Plans (cont’d)
(cont’d)

Drawbacks
Drawbacksof
ofSkill-based
Skill-basedPay
PayPlans:
Plans:
1.1. Lack
Lackof
ofadditional
additionallearning
learningopportunities
opportunitiesthat
thatwill
will
increase
increaseemployee
employeepay.
pay.
2.2. Continuing
Continuingto
topay
payemployees
employeesfor
forskills
skillsthat
thathave
have
become
becomeobsolete.
obsolete.
3.3. Paying
Payingfor
forskills
skillswhich
whichare
areof
ofno
noimmediate
immediateuse
use
to
tothe
theorganization.
organization.
4.4. Paying
Payingfor
foraaskill,
skill,not
notfor
forthe
thelevel
levelof
ofemployee
employee
performance
performancefor forthe
theparticular
particularskill.
skill.

© 2005 Prentice Hall Inc. All rights reserved. 7–18

 Flexible
Flexible Benefits
Benefits

Employees tailor their

benefit program to Core-Plus
Core-PlusPlans:
Plans:
meet their personal aacore
coreof
ofessential
essential
need by picking and benefits
benefitsand
andaamenu-like
menu-like
selection
selectionof
ofother
otherbenefit
choosing from a menu benefit
options.
options.
of benefit options.

Modular Flexible
FlexibleSpending
SpendingPlans:
Plans:
ModularPlans:
Plans: allow
predesigned
predesignedbenefits
benefits allowemployees
employeestotouse
use
packages their
theirtax-free
tax-freebenefit
benefit
packagesfor
forspecific
specific dollars
groups
groupsof
ofemployees.
employees. dollarspurchase
purchasebenefits
benefits
and
andpay
payservice
service
premiums.
premiums.

© 2005 Prentice Hall Inc. All rights reserved. 7–19

 Implications
Implications for
for Managers
Managers
 Motivating Employees in Organizations
– Recognize individual differences.
– Use goals and feedback.
– Allow employees to participate in decisions that affect
them.
– Link rewards to performance.
– Check the system for equity.

© 2005 Prentice Hall Inc. All rights reserved. 7–20