Chapter 7
Motivational Methods
and Programs
PowerPoint Presentation by Charlie Cook
Copyright © 2005 South-Western. All rights reserved.
Learning Objectives
After reading and studying this chapter and doing the
exercises, you should be able to:
1. Explain how to enhance motivation through job
enrichment, the job characteristics model, job crafting 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.
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7–2
Learning Objectives (cont’d)
After reading and studying this chapter and doing the
exercises, you should be able to:
5.
Describe how to effectively use financial incentives to
motivate others, including the use of stock options and
gainsharing.
6.
Choose an appropriate motivational model for a given
situation.
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7–3
Motivation Through Job Design
• Job enrichment
 Is making a job more motivational and satisfying by
adding variety, responsibility, and managerial decision
making.
 Gives workers a sense of ownership, responsibility,
and accountability for their jobs.
 Jobs are enriched by including more
planning, decision making, and
responsibility by workers.
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7–4
Characteristics and Consequences of
an Enriched Job
EXHIBIT 7-1
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7–5
Guidelines for Implementing Job
Enrichment
• Determine if employees need or want more
responsibility, variety, and growth.
• Identify workers with strong needs for growth
and offer them more challenge and responsibility
in performing enriched work.
• Use brainstorming to pinpoint
changes for those who
want enrichment.
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7–6
The Job Characteristics Model
• A method of job design that focuses on the
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.
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7–7
The Job Characteristics Model (cont’d)
• Increases in personal and work outcomes are
calculated as an index called the Motivating
Potential Score (MPS):
Skill
Task
Task
MPS = Variety + Identity + Significance x Autonomy x Feedback
3
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7–8
The Job Characteristics Model (cont’d)
• Five measurable characteristics of jobs:
 Skill variety—how many skills to perform the job.
 Task Identity—how complete is the job, from
beginning to end, with a tangible outcome.
 Task Significance—the impact that the job has on
others in the work place or the external environment.
 Autonomy—the worker’s freedom, independence,
and discretion to do the job.
 Feedback—how much direct information about
performance is available.
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7–9
The Job Characteristics Model of Job Enrichment
Source: J. R. Hackman and G. R. Oldham, Work
Redesign, (Reading, MA: Addison-Wesley, 1980) p. 77.
Copyright © 2005 South-Western. All rights reserved.
EXHIBIT 7-2
7–10
Job Crafting
• Job crafting
 The physical and mental changes workers make in
the task or relationship aspects of their job.
 Three common types of job crafting involve changing:
 the number, scope, and type of job tasks
 the interaction with others on the job
 one’s view of the job.
• The most frequent purpose of crafting is to make
the job more meaningful or enriched.
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7–11
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.
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7–12
Key Purposes for Establishing
Self-Managed 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.
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7–13
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 7-3
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7–14
Self-Managed Work Teams
• Method of operation
 Work together on an ongoing day-to-day basis.
 Have total responsibility or “ownership” of a product/
service and think in terms of customer requirements.
 Trained in team skills and cross-trained as
generalists rather than specialists.
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7–15
Self-Managed Work Teams Effectiveness
• Advantages
 Good record of improving
productivity, quality, and
customer service.
 Morale is higher.
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• Disadvantages
 Absenteeism is higher.
 Teams require a higher
quality workforce.
 Equipment costs are
higher with the modular
design of teams.
7–16
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).
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7–17
must be
Identify
Behaviors for change
Measure
Baseline frequency of response
use
• Observable
• Measurable
• Task-related
• Critical to the task
• Direct observation
• Time sampling
• Archival
• Historical data
Behavioral contingencies
Analyze
Functional consequences
Consider organizational context
Develop intervention
• Positive reinforcement
• Financial
• Non-financial
• Social
• Combination
Apply intervention
2
Measure post-test frequency
No
%
Time
ABC
Note: A = antecedent
B = behavior
C = consequences
Intervene
1
OB Mod
Application
Model
Behavior
modified
?
Yes
Maintain the modification
• Industry
• Structure
• Size
• Processes
• Technology
• Continuous
• Intermittent
• Ratio
• Interval
Schedules of
Reinforcement
EXHIBIT 7-5
Source: Adapted from Fred Luthans and Alexander D. Stajkovic,
“Reinforce for Performance: The Need to Go Beyond Pay and Even
Rewards,“ Academy of Management Executive, May 1999, p. 53.
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Evaluate
For performance improvement
7–18
Steps in a Formal OB
• Identify 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?
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7–19
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 it through a
schedule of reinforcement:
 Continuous
 Intermittent (Ratio or Interval)
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7–20
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 rewards visible to the recipient and to others.
8.
Change the reward periodically.
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7–21
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.
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7–22
Motivation Through Financial Incentives
• Linking pay to performance
 Financial incentives are more effective when linked to
(or contingent upon) specific performance criteria.
• Stock options
 The future right to purchase shares of stock at a
specified price (usually at time of issue)
 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.
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7–23
How a Stock Option Works
Employee decides to exercise option for 400 shares at $10.57
each when stock reaches $35 per share.
Brokerage sells 400 shares of company stock
at $35 each (400 shares X $35) =
Brokerage deducts exercise price (400 shares X $10.57)
Taxes withheld (28% for federal income tax + 7.56%
for social security tax)
Brokerage deducts fees/commissions/interest
Brokerage pays profit to employee
$14,000
– 4,228
9,772
– 3,475
6,297
– 100
$ 6,197
Source: Carrington Nelson, “Exercising Your Stock Options,” Gannett News Service, 26 July
1998. Copyright 1998, Gannett Co., Inc. Reprinted with permission.
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7–24
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
 Employee
involvement is the mechanism through
which operational improvements are identified,
communicated and implemented.
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7–25
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.
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7–26
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 to discern their
interests and concerns.
4. Apply the motivational
technique.
5. Monitor for the expected
change in performance.
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7–27