C H A P T E R

4
F O U R

Applied Motivation
Practices
McGraw-Hill Ryerson

The McGraw-Hill Companies, Inc. 2001

IKEAs Big Thank-You Bonus

Stephen Benson (shown) and
other IKEA employees
received a large bonus when
the company pledged an
entire days sales revenue to
employees. The event also
doubled previous sales
records at the Scandinavian
home furnishings retailer.

McGraw-Hill Ryerson

S. Oatway, Calgary Herald

The McGraw-Hill Companies, Inc. 2001

The Meaning of Money

Money and employee needs
affects existence, relatedness,
growth needs, as well as need for
achievement and power

Money and attitudes

Money ethic -- not evil, represents
success, should be budgeted
carefully

Money and self-identity

Partly defines who we are
Corel Corp. With permission

McGraw-Hill Ryerson

The McGraw-Hill Companies, Inc. 2001

Types of Organizational Rewards

Membership and senioritybased rewards
Job status-based rewards
Competency-based
rewards
Performance-based
rewards
Corel Corp. With permission

McGraw-Hill Ryerson

The McGraw-Hill Companies, Inc. 2001

Membership/Seniority Based Rewards

Fixed wages, seniority increases
Advantages
guaranteed wages may attract job
applicants
seniority-based rewards reduce turnover

Disadvantages
doesnt motivate job performance
discourages poor performers from leaving

McGraw-Hill Ryerson

The McGraw-Hill Companies, Inc. 2001

Job Status-Based Rewards

Includes job evaluation and status perks
Advantages:
job evaluation tries to maintain pay equity
motivates competition for promotions

Disadvantages:
employees exaggerate duties, hoard
resources
creates psychological distance across
hierarchy
McGraw-Hill Ryerson

The McGraw-Hill Companies, Inc. 2001

Competency-Based Rewards
Underlying characteristics that lead to
superior performance
Skill-based pay
pay increases with skill modules learned

Advantages
More flexible work force, better quality,
consistent with employability

Disadvantages
Potentially subjective, higher training costs
McGraw-Hill Ryerson

The McGraw-Hill Companies, Inc. 2001

Performance-Based Rewards
Organizational
rewards

Share ownership
Share options
Profit sharing

Team
rewards

Gainsharing
Special bonuses

Individual
rewards

McGraw-Hill Ryerson

Piece rate
Commissions
Merit pay
Bonuses

The McGraw-Hill Companies, Inc. 2001

Performance Reward Effectiveness

Positive effects
Create an ownership culture
Adjusts pay with firm's prosperity

Negative effects

Rewards undermine intrinsic motivation

Rewards rupture relationships
Rewards are quick fixes
Rewards discourage risk taking

McGraw-Hill Ryerson

The McGraw-Hill Companies, Inc. 2001

Improving Reward Effectiveness

Link rewards to performance
Ensure rewards are relevant
Team rewards for
interdependent jobs
Ensure rewards are valued
Beware of unintended
consequences
Corel Corp. With permission

McGraw-Hill Ryerson

10

The McGraw-Hill Companies, Inc. 2001

Job Design
Assigning tasks to a job, including the
interdependency of those tasks with other
jobs
Technology doesnt determine job scope
Employees expected to perform a variety of
work (employability)

McGraw-Hill Ryerson

11

The McGraw-Hill Companies, Inc. 2001

Evaluating Job Specialization

Advantages

Disadvantages
Job boredom

Less time changing

tasks

Discontentment pay

Lower training costs

Lower quality

Job mastered quickly

Lower motivation

Better person-job
matching

McGraw-Hill Ryerson

12

The McGraw-Hill Companies, Inc. 2001

Job Characteristics Model

Core Job
Characteristics

Critical
Psychological
States

Outcomes

Work
motivation

Skill variety
Task identity
Task significance

Meaningfulness

Autonomy

Responsibility

General
satisfaction

Feedback
from job

Knowledge
of results

Work
effectiveness

Growth
satisfaction

Individual
differences
McGraw-Hill Ryerson

13

The McGraw-Hill Companies, Inc. 2001

James Waltons Work Motivation

As founder of Vancouver-based
Storm Brewing Ltd., James
Walton has plenty of motivational
potential in his job. He performs
a variety of tasks, has a lot of
autonomy, completes work from
beginning to end, sees the value
of his product in the marketplace,
and gets feedback from the work
itself.

McGraw-Hill Ryerson

14

Ian Lindsay, Vancouver Sun

The McGraw-Hill Companies, Inc. 2001

Job Design Strategies

Job rotation
Moving from one job to
another

Job enlargement
increasing number of tasks
performed within a job

Job enrichment
Increasing employee
autonomy and the resulting
feelings of responsibility

McGraw-Hill Ryerson

15

Ian Lindsay, Vancouver Sun

The McGraw-Hill Companies, Inc. 2001

Job Rotation vs
vs.. Job Enlargement
Job Rotation
Job 1
Operate Camera

Job 2
Operate Sound

Job 3
Report Story

Job Enlargement
Job 1

Job 2

Job 3

Operate Camera
Operate Sound
Report Story

Operate Camera
Operate Sound
Report Story

Operate Camera
Operate Sound
Report Story

McGraw-Hill Ryerson

16

The McGraw-Hill Companies, Inc. 2001

Job Enrichment Strategies

Empowering employees
giving employees more autonomy
feeling of control and self-efficacy

Forming natural work units

completing an entire task
assigning employees to specific clients

Establishing client relationships

employees put in direct contact with clients

McGraw-Hill Ryerson

17

The McGraw-Hill Companies, Inc. 2001

Obstacles to Job Design

Difficult to accurately measure job
characteristics
More team than individual job design
Resistance to change
Problem finding optimal level of
enrichment and specialization

McGraw-Hill Ryerson

18

The McGraw-Hill Companies, Inc. 2001

Elements of Self-Leadership
Personal
Goal Setting

Constructive
Thought
Patterns

Designing
Natural
Rewards

SelfMonitoring

SelfReinforcement

Personal goal setting

Employees set their own goals
Apply effective goal setting practices

McGraw-Hill Ryerson

19

The McGraw-Hill Companies, Inc. 2001

Elements of Self-Leadership
Constructive
Personal
Thought
Goal Setting
Patterns

Designing
Natural
Rewards

SelfMonitoring

SelfReinforcement

Positive self-talk
Talking to ourselves about thoughts/actions
Potentially increases self-efficacy

Mental imagery
Mentally practising a task
Visualizing successful task completion

McGraw-Hill Ryerson

20

The McGraw-Hill Companies, Inc. 2001

Elements of Self-Leadership
Constructive
Personal
Thought
Goal Setting
Patterns

Designing
Natural
Rewards

SelfMonitoring

SelfReinforcement

Finding ways to make the job itself more

motivating
eg. altering the way the task is
accomplished

McGraw-Hill Ryerson

21

The McGraw-Hill Companies, Inc. 2001

Elements of Self-Leadership
Constructive
Personal
Thought
Goal Setting
Patterns

Designing
Natural
Rewards

SelfMonitoring

SelfReinforcement

Keeping track of your progress toward

the self-set goal
Looking for naturally-occurring feedback
Designing artifical feedback

McGraw-Hill Ryerson

22

The McGraw-Hill Companies, Inc. 2001

Elements of Self-Leadership
Constructive
Personal
Thought
Goal Setting
Patterns

Designing
Natural
Rewards

SelfMonitoring

SelfReinforcement

Taking a reinforcer only after

completing a self-set goal
eg. Watching a movie after writing two more
sections of a report
eg. Starting a fun task after completing a
task that you dont like

McGraw-Hill Ryerson

23

The McGraw-Hill Companies, Inc. 2001

C H A P T E R

4
F O U R

Applied Motivation
Practices
McGraw-Hill Ryerson

24

The McGraw-Hill Companies, Inc. 2001