Chapter 5
Motivation:
From Concepts to Applications
Stephen P. Robbins
©2003 Prentice Hall
Chapter 5 Robbins
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Objectives
• Identify the four ingredients common to MBO
programs
• Outline the five-step problem-solving model in OB
Modification
• Explain why managers might want to use employee
involvement programs
• Contrast participative management with employee
involvement
• Explain how ESOPs can increase employee
motivation
• Describe the link between skill-based pay plans and
motivation theories
©2003 Prentice Hall
Chapter 5 Robbins
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©2003 Prentice Hall
Chapter 5 Robbins
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Cascading of Objectives
Overall
organizational
objectives
Divisional
objectives
Departmental
objectives
Individual
objectives
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Management by Objectives
Four ingredients common to MBO
programs:
1. Goal specificity
2. Participative decision making
3. Explicit time period
4. Performance feedback
©2003 Prentice Hall
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Management by Objectives (MBO)
• Organizational objectives translated to specific
objectives for each level (division, department,
individual)
• Lower-level managers participate in setting
their own goals
• Results in hierarchy of objectives that links
one level to the next
• If all individuals achieve goals, organizational
objectives will be attained
©2003 Prentice Hall
Chapter 5 Robbins
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©2003 Prentice Hall
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1
Identify
performancerelated
behavioral
events
3
2
Measure:
Baseline the
frequency
of response
Identify existing
behavioral
contingencies
through
functional
analysis
4a
Develop
intervention
strategy
4b
Apply
appropriate
strategy
Steps in OB Mod
No
4c
5
4d
Evaluate for
performance
improvement
Maintain
desirable
behavior
Yes
Problem
solved?
Adapted by permission of the publisher from Personnel, July-August © 1974. Fred Luthans,
American Management Association, New York. All rights reserved.
©2003 Prentice Hall
Chapter 5 Robbins
Measure:
Chart the
frequency
of response
after
intervention
8
©2003 Prentice Hall
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Employee Recognition Programs
• Rewarding behavior with recognition
immediately leads to its repetition
• To maximize motivation potential,
publicly communicate who and why is
being recognized
• Recognizing employee’s superior
performance often costs little
• Suggestion systems are widely used
recognition devices
©2003 Prentice Hall
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©2003 Prentice Hall
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Employee Involvement
• Involve workers in decisions that will
affect them
• Increase their autonomy and control
over their work lives
• Include techniques with a common core
• Employee participation
• Participative management
• Workplace democracy
• Empowerment
• Employee ownership
©2003 Prentice Hall
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©2003 Prentice Hall
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Variable-Pay Programs
Four widely used variable-pay programs
• Piece-rate wages - fixed sum for each unit
completed
• Bonuses - a percent of annual pay based on
company earnings
• Profit sharing - based on a formula designed
around company’s profitability
• Gainsharing - formula-based group incentive
plan for improvements in productivity
©2003 Prentice Hall
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©2003 Prentice Hall
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Skill-Based Pay
Advantages:
• Attractive due to flexibility for management
• Encourages employees to acquire a range of skills
• Facilitates communication and understanding of
others’ jobs
• Meets needs of ambitious employees without a
promotion in job title
Disadvantages:
• Topping out - learning all the skills
• Skills might become obsolete
• Do not address level of performance
©2003 Prentice Hall
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Implications for Managers
• Programs designed to increase employee
motivation, productivity, and satisfaction are
grounded on basic motivation theories
• Six motivation programs described are not
applicable to every organization or every
manager’s needs
• Understanding will help with designing internal
systems to increase employee productivity
and satisfaction
©2003 Prentice Hall
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Summary
• Identified the four ingredients common to MBO
programs
• Outlined the five-step problem-solving model in OB
Modification
• Explained why managers might want to use employee
involvement programs
• Contrasted participative management with employee
involvement
• Explained how ESOPs can increase employee
motivation
• Described the link between skill-based pay plans and
motivation theories
©2003 Prentice Hall
Chapter 5 Robbins
18