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Learning Objectives
After studying this chapter, you should be able to:
1. Describe the relationships among performance measured
at different levels within an organization and discuss how
training, development, and job redesign can help improve
performance
2. Discuss the role of alternate work arrangements in
motivating and enhancing performance
3. Describe the role of incentive pay and identify different
programs for individual-based and team-based incentive
plans
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–2
Learning Objectives (cont’d)
After studying this chapter, you should be able to:
4. Discuss the best ways to deliver performance feedback
and the issues involved with feedback and describe the
basic operation of the ProMES system
5. Discuss how organizations evaluate performanceenhancement programs
6. Discuss how recent world events have affected the role
of HR.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–3
Enhancing Performance
at Different Levels
• Firm-Level Performance
 Is an indication of the likelihood of long-term
survival of the firm.
 Generates profits for potential profit sharing
and determines the firm’s stock price.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–4
Enhancing Performance
• Training
 Is a planned attempt by an organization to
facilitate employee learning of job-related
knowledge, skills, and behaviors
• Development
 Involves teaching managers and
professionals the skills needed for both
present and future jobs.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–5
Enhancing Job Performance
Job Redesign
Job
rotation
Job
enlargement
Job
enrichment
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–6
Enhancing Performance
• The Job Characteristics Approach
 Takes into account the work system and
employee preferences
 Suggests that jobs can be diagnosed and
improved along five core dimensions:
Skill variety
 Task variety
 Task significance
 Autonomy
 Feedback

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–7
The Job Characteristics Model of Job Design
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–8
Alternative Work Arrangements
• At Work
 Work teams
 Flexible work hours
 Compressed workweeks
• Away from Work
 Home work programs
 Telecommuting
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–9
Flexible Work Schedules
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–10
Employed Workers with Alternative Work Arrangements by
Occupation and Industry (Percentage Distribution for 2009)
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–11
Beyond the Book:
Successful Telecommuting
 Identify jobs best suited for telecommuting
 Select responsible employees
 Establish procedures
 Establish a training program
 Keep telecommuters informed
 Recognize when telecommuting does not work
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–12
Incentives and Performance-Based
Rewards
• Merit Pay
 Is awarded individuals on the basis
of the relative value of their
individual contributions
to the organization.
• Merit Pay Plans
 Base a portion of
compensation on
individual merit.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–13
Individual Incentive Plans
Incentive Plans
Base Salary
Sales
commission
Nonmonetary
Awards
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–14
Team and Group
Incentive Plans
Gainsharing
Plans
(Scanlon)
Profit
sharing
plans
Stock
options
plans
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Employee
stock
ownership
(ESOPS)
14–15
Performance Management
and Feedback
• Performance-Management Techniques
 Behavior modification
 Goal setting
 Performance feedback
 Self-appraisal
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–16
Performance Management
and Feedback (cont’d)
• Productivity Measurement and Evaluation
System (ProMES)
 Is used to improve group- or firm-level productivity
• Evaluating Performance-Enhancement
Programs
 Determining whether or not strategic goals were met
 Using multiple performance indicators
(e.g. human and financial goals)
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–17
A Sample ProMES Curve
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–18
HR in the Headlines
• HRM and the Arab Spring
 Multicultural differences in workforces can
greatly affect HRM practices.
• HR Meets High Tech
 Workplace cultures that respect worker
privacy and work-life balance concerns
• Toward a Two-Class Benefits System
 Benefits shrink at older firms and grow in
benefits at newer, more profitable firms
• HR at Faith-Based Businesses
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14–19