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.