Topic 18 :

HR Management: Non-financial Rewards

By Zhu Wenzhong

Copyright 2002 by Harcourt, Inc. All rights reserved.

LEARNING GOALS
State the definition of non-financial rewards

and the importance of developing such

rewards
State 5 possible non-financial rewards that
may be an incentive for individuals
State 6 methods of job design and redesign
in order to motivate workers
State the advantages and disadvantages of
team-working and empowerment
Copyright 2002 by Harcourt, Inc. All rights reserved.

What is non-financial rewards?

The non-monetary factors to motivate workers

and to improve productivity

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Copyright 2002 by Harcourt, Inc. All rights reserved.

Employees needs from the work

environment
Chances of promotion
Holidays
Prestige and recognition of achievement
A fair wages for work
A healthy work environment
Remaining enthusiastic about work
Security
Independence
Working with friendly colleagues
Chances to take responsibility
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Copyright 2002 by Harcourt, Inc. All rights reserved.

Major types of non-financial

rewards

Creating a healthy and secure work

environment for workers
Giving chances of promotion
Giving more holidays
Giving a fair wage for work
Giving more responsibility for workers
Encouraging employees participation
in decision making

Copyright 2002 by Harcourt, Inc. All rights reserved.

Methods of job design and

redesign

Job enlargement
Job enrichment
Job rotation
Team-working
Empowerment
Quality control cycles

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Copyright 2002 by Harcourt, Inc. All rights reserved.

Main factors for increasing job

satisfaction and motivation

Variety of jobs
Completeness of jobs
Authority of jobs
Responsibility of jobs

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Copyright 2002 by Harcourt, Inc. All rights reserved.

Motivating Employees

Job Design and Motivation

Job enlargementjob design that expands an

employees responsibilities by increasing the
number and variety of tasks they entail.

Job enrichmentchange in job duties to

increase employees authority in planning their
work, deciding how it should be done, and
learning new skills.
Copyright 2002 by Harcourt, Inc. All rights reserved.

Methods of job design and

redesign
Giving employees more work to do
Job
Job enlargement
enlargement

of the same nature so that they can

remain more enthusiastic about
work.
Advantages: Preventing or reducing
job dissatisfaction
Disadvantages: Simply giving a
worker more of the same (horizontal
loading) may not reduce boredom.

Copyright 2002 by Harcourt, Inc. All rights reserved.

Question for critical thinking

Job enlargement is simply a method

of horizontal loading or expansion.
Could you explain this statement?

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Copyright 2002 by Harcourt, Inc. All rights reserved.

Methods of job design and

redesign
Giving employees
Job
Job enlargement
enlargement

Job
Jobenrichment
enrichment

greater responsibility by
vertical extending their
role in the production
process
Advantages: giving
employees a challenge for
developing unused skills,
encouraging them to be
more productive, etc.
Disadvantages: those who
are unable to do extra
tasks may feel forced to
do or unhappy

Copyright 2002 by Harcourt, Inc. All rights reserved.

Methods of job design and redesign

Changes of jobs or
Job enlargement

Job enrichment

Job rotation

tasks from time to time

Advantages: reducing
boredom, developing
various skills, and
gaining more experience
Disadvantages: Those
who dislike the certainty
of job changes may not
be happy. Lack of
experience and skills
may affect productivity.

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Copyright 2002 by Harcourt, Inc. All rights reserved.

Methods of job design and redesign

Job enlargement

Job enrichment
Job rotation

Team-working

Highly-skilled people
working in small groups
with a common aim.
Advantages: Pooled
talents, brainstorming new
ideas, improved
productivity, problemsolving
Disadvantages: too much
emphasis on harmony,
arguments and conflicts,
too many meetings and
time-wasting

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Copyright 2002 by Harcourt, Inc. All rights reserved.

Methods of job design and

redesign
Giving official power to
Job enlargement
Job enrichment

Job rotation
Team-working
Empowerment

employees to make decisions

and to control their own
activities
Advantages: feeling trusted,
self-confident and interested in
work , improving decisionmaking skills of employees
Disadvantages: Manages may
feel insecure or unsatisfied,
more costs of training for
employees required

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Copyright 2002 by Harcourt, Inc. All rights reserved.

Methods of job design and

redesign
Job enlargement
Small groups of workers in
Job enrichment
Job rotation
Team-working

Empowerment
Quality
Quality control
control cycles
cycles

the same area of production

meeting regularly to study
and solve production
problems
Advantages: shop-floor
workers are involved in
decisions and thus motivated
Disadvantages: Requiring
strong support from both
management and employees.

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Copyright 2002 by Harcourt, Inc. All rights reserved.

Question for critical thinking

Could you please tell which needs

of employees each of the six
methods of job design are trying to
meet?

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Copyright 2002 by Harcourt, Inc. All rights reserved.