Chapter 6 Motivational Methods and Programs Fundamentals of Organizational Behavior 2e Andrew J. DuBrin PowerPoint Presentation by Charlie Cook Learning Objectives 1. Explain how to enhance motivation through job enrichment, the job characteristics model, and work group design. 2. Summarize the basics of a behavior modification program in the workplace. 3. Identify rules and suggestions for motivating group members through behavior modification. 4. Describe why recognition is a good motivator and the nature of reward and recognition programs in the workplace. 5. Describe how to effectively use financial incentives to motivate others, including the use of gainsharing. 6. Choose an appropriate motivational model for a given situation. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–2 Motivation Through Job Design Job Enrichment Is making a job more motivational and satisfying by adding variety, responsibility, and managerial decision making. Provides workers sense of ownership, responsibility, and accountability for their jobs. Jobs are enriched by including more planning, decision making, and responsibility by workers. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–3 Characteristics and Consequences of an Enriched Job Characteristics Direct feedback Client relationships New learning Scheduling Unique experience Control over resources Direct communication authority Personal accountability Consequences Increased motivation, satisfaction, productivity, and quality of work life EXHIBIT 6-1 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–4 Guidelines for Implementing Job Enrichment 1. Determine if employees need or want more responsibility, variety, and growth. 2. Identify workers with strong needs for growth and offer them more challenge and responsibility in performing enriched work. 3. Use brainstorming to pinpoint changes for those who want enrichment. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–5 The Job Characteristics Model A method of job design that focuses on the task and interpersonal demands of the job. Based on both needs theory and expectancy theory. Job outcomes help satisfy deficiency and growth needs. Core job characteristics relate to critical psychological states. Redesigned jobs result in heightened internal motivation (increases in personal and work outcomes) calculated as an index called the Motivating Potential Score (MPS): Skill Task Task MPS = Variety + Identity + Significance x Autonomy x Feedback 3 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–6 The Job Characteristics Model Five measurable characteristics of jobs: 1. Skill variety—the degree to which there are skills to perform. 2. Task Identity—the degree to which one worker does a complete job, from beginning to end, with a tangible and possible outcome. 3. Task Significance—the degree to which work has a heavy impact on others in the immediate organization or the external environment. 4. Autonomy—the degree to which a job offers freedom, independence, and discretion in its implementation. 5. Feedback—the degree to which a job provides direct information about performance. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–7 The Job Characteristics Model of Job Enrichment Core Job Characteristics Skill Variety Task Identity Task Significance Critical Psychological States Experienced Meaningfulness of Work Autonomy Experienced Responsibility for Outcomes of Work Feedback from Job Knowledge of Actual Results of Work Activities EXHIBIT 6-2 Personal and Work Outcomes High Internal Work Motivation High General Job Satisfaction High Growth Satisfaction Low Turnover and Absenteeism High-Quality Work Performance Strength of Employee’s Need for Growth Source: J. R. Hackman and G. R. Oldham, Work Redesign, (Reading, MA: Addison-Wesley, 1980) p. 77. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–8 Self-Managed Work Teams A formally recognized group of employees who are responsible for an entire work process or segment that delivers a product or service to an internal or external customer. Concept is widely used form of job design that is an outgrowth of job enrichment. Serves to broaden the responsibility of team members. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–9 Key Purposes for Establishing SelfManaged Work Teams 1. Increase productivity. 2. Enhance quality. 3. Reduce cycle time (amount of time required to complete a transaction). 4. Respond more rapidly to a changing workplace. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–10 Characteristics of a Self-Managed Work Team 1. Team members are empowered to share many management and leadership functions, such as making job assignments and giving pep talks. 2. Members plan, control, and improve their own work processes. 3. Members set their own goals and inspect their own work. 4. Members create their own schedules and review their group performance. 5. Members often prepare their own budgets and coordinated their work with other departments. 6. Members typically order materials, keep inventories, and deal with suppliers. 7. Members are sometimes responsible for obtaining any new training that they might need. (The organization, however, usually mandates the start-up training as described above.) 8. Members are authorized to hire their own replacements or assume responsibility for disciplining their own members. 9. Members assume responsibility for the quality of their products and services, whether provided to internal or external customers. EXHIBIT 6-3 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–11 Self-Managed Work Teams Method of Operation Work together on an ongoing day-to-day basis. Often given total responsibility or “ownership” of a product or service and to think in terms of customer requirements. Trained in team skills and cross-trained as generalists rather than specialists. Self-Managed Work Team Effectiveness Pro: Good record of improving productivity, quality, and customer service. Con: Absenteeism is higher; equipment costs are higher in modular design. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–12 Organizational Behavior Modification (OB Mod) The application of reinforcement theory for motivating people in work settings Focuses on behavior that requires change or is desired. Typically uses positive reinforcement rather than punishment. Links desired behavior with positive consequences (more effective and less controversial than using negative motivators). A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–13 Steps in a Formal OB Identifying behaviors that require change. Behaviors to be reinforced should be observable, measurable, task-related, and critical to the task. Measure baseline performance. Measurement techniques include direct observation, time sampling, archival data, and historical data. Analyze the behavioral antecedents and contingent consequences. What situational factors trigger the desired behavior? What are the rewards for the desired behavior? A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–14 Steps in a Formal OB (cont’d) Select an intervention strategy. Positive reinforcement is applied to increase behaviors and decrease dysfunctional behaviors. Punishment is used as a last resort. Evaluate change in performance. If performance does not improve, reevaluate and change the intervention strategy. If performance improves, maintain with reinforcement through a schedule of reinforcement: Continuous Intermittent (Ratio or Interval) A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–15 Rules for the Application of OB Mod 1. Choose an appropriate reward or punishment. 2. Reinforce the behaviors you really want to encourage. 3. Supply ample feedback. 4. Rewards should be commensurate with the good deed. 5. Schedule rewards intermittently. 6. Reward and punishments should follow the observed behavior closely in time. 7. Make reward visible to the recipient and to others. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–16 Motivation Through Recognition 1. Feedback is an essential part of recognition. 2. Praise is one of the most powerful forms of recognition. 3. Rewards and recognition programs should be linked to organizational goals. 4. Employee input into what type of rewards and recognition are valued is useful. 5. It is important to evaluate the effectiveness of the reward and recognition program. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–17 Motivation Through Financial Incentives Linking pay to performance Financial incentives are more effective when linked to (or contingent upon) specific performance criteria. Stock options Are the future right to purchase shares of stock at a specified price (usually at time of issue) . Options are used to attract employees and motivate them to work hard to make the company successful. If stock price rises, employees benefit from the appreciation in value. If stock price falls, the options are worthless and the employees receive no benefit from the option. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–18 Gainsharing A formal program of allowing employees to participate financially in the productivity gains they have achieved. Gainsharing is based on positive reinforcement and the motivational impact of money. Productivity gains from reductions in production (or labor) costs are entered into a formula that calculates the bonus pool that is distributed to the employees. Employee involvement is an essential mechanism through which operational improvements are identified, communicated and implemented. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–19 Problems Associated with Financial Incentives 1. Creates disagreement with managers over the value of employees contributions. 2. May foster conflict and lack of cooperation among competing groups of employees. 3. Focuses too much attention on the external reward and its size at the expense of intrinsic rewards. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–20 Choosing an Appropriate Motivational Model 1. Carefully diagnose the situation. 2. Choose a motivational approach that best fits the situation’s deficiencies or neglected opportunity. 3. Observe the people to be motivated. Try to discern their interests and concerns. 4. Apply the motivational technique. 5. Monitor for the expected change in performance. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 6–21