OBJECTIVES LEARNING 1. 2. 3. 4. 5. Explain motivating by changing the nature of the work environment. Explain how jobs can be redesigned Explain why managers might want to use employee involvement programs. Explain how to reward employees Describe the implication for managers Core Job Dimensions Skill Variety Task Identity Task Significance Critical Psychological States Meaningfulness of Work Autonomy Responsibility for outcomes Feedback Knowledge of Results Employee’s growth need Personal and work outcomes High intrinsic motivation High job perormance High job satisfaction Low absentee ism & turnover Job rotation Job enlargement Job enrichment 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. Telecommuting Employees do their work at home on a computer that is linked to their office. Categories of telecommuting jobs: • Routine information handling tasks • Mobile activities • Professional and other knowledge-related tasks Participative Management Representative participation ◦ Work councils ◦ Board representatives Quality circles What to pay? (Pay structure) How to construct employee recognition programs? Strategic reward decisions What benefits to offer? How to pay individual employees? (variable and skill based plan) What to pay: Establishing pay structure ◦ Internal Equity: worth of job to the organisation ◦ External equity: competitiveness of an organisation’s pay relative to pay elsewhere in the industry How to pay: Rewarding individual employees through variable pay programs Four widely used variable-pay programs ◦ Piece-rate wages - fixed sum for each unit completed ◦ Merit based pay – pay for individual performance ◦ 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 ◦ ESOPs – Employee stock options 7– 14 Flexible benefits Intrinsic rewards 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.