McShane4e Ch06

Chapter 6
Applied Performance Practices
"earning %)*ecti(es
6.1 Discuss the meaning of money and identify several individual-level, team-level and organisation-level performance-based rewards 6.2 Describe five ways to improve reward effectiveness 6.3 ist the advantages and disadvantages of !ob specialisation 6." #utline the !ob characteristics model and describe three ways to improve employee motivation through !ob design 6.$ Define empowerment and identify strategies that support empowerment 6.6 Describe the five elements of self-leadership and identify specific personal and wor% environment influences on self-leadership
Copyright 2013 McGraw- ill A!stralia Pty "td Mc#hane$ %le&alns$ 'ra(aglione$ Organisational Behaviour, 4e
6-2
Applying Performance Practices 'hro!gh the +,cellence Philosophy

& 'ercedes-(en) embraces effective and efficient !ob design models and empowers staff through creativity and entrepreneurship. *he company provides wor%ers with authority to ma%e decisions and encourages selfmanaged teams
++,nsert 'ercedes ,mage ch-6, p. 1.$//
6-3
.inancial /eward Practices

& 0inancial rewards1fundamental part of employment relationship & 2ay has multiple meanings
3 3 3 3 4ymbol of success 5einforcer and motivator 5eflection of performance Can reduce an6iety
Corel Corp. With permission.
& 'en value money more than women do & Cultural values influence the meaning and value of money
6--
'ypes of /ewards in the 1or&place

& & & & 'embership and seniority 7ob status Competencies *as% performance
Corel Corp. With permission.
6-0
Mem)ership2#eniority 3ased /ewards

& 4ome benefits increase with seniority & 8dvantages
3 8ttract !ob applicants 3 5educe turnover
& Disadvantages
3 Do not motivate high performance 3 Discourage poor performers from leaving
6-6
5o) #tat!s-3ased /ewards

& ,ncludes !ob evaluation and status per%s & 8dvantages9
3 7ob evaluation tries to maintain fairness :pay e;uity< 3 'otivates competition for promotions
& Disadvantages9
3 =ncourages bureaucratic hierarchy 3 'ight undermine cost-efficiency and responsiveness 3 5einforces status mentality 3 =ncourages competition, not collaboration
6-4
Competency-3ased /ewards
& 2ay increases with ac;uired and demonstrated competencies & 4%ill-based pay
3 2ay increases with s%ill modules learned
& 8dvantages
3 'ore fle6ible wor%force, better ;uality, consistent with employability
& Disadvantages
3 2otentially sub!ective, higher training costs
6-6
Call Centre +mployees +ngaged
=ngagement has always been a cultural value for 4almat 4alesforce, which was built on the values of >fun, focus and fulfilment?. 0le6ible pay and reward systems are a ma!or factor in employee commitment
6-7
Performance-3ased /ewards
#rganisational rewards
& & & & 2rofit sharing 4hare ownership 4toc% options (alanced scorecard
*eam & (onuses rewards & @ainsharing
,ndividual rewards
& (onuses & Commissions & 2iece rate
6-10
+(al!ating %rganisational /ewards

& 2ositive effects
3 Creates an >ownership culture? 3 8d!usts pay with firm?s prosperity
& Concerns with performance pay

3 Aea% connection between individual effort and rewards 3 5eward amounts affected by e6ternal forces
6-11
8mpro(ing /eward +ffecti(eness

& in% rewards to performance & =nsure rewards are relevant & *eam rewards for interdependent !obs & =nsure rewards are valued & Aatch out for unintended conse;uences
Corel Corp. With permission. Copyright 2013 McGraw- ill A!stralia Pty "td Mc#hane$ %le&alns$ 'ra(aglione$ Organisational Behaviour, 4e
6-12
5o) 9esign
& 8ssigning tas%s to a !ob, including the interdependency of those tas%s with other !obs & #rganisationBs goal1to create !obs that can be performed efficiently, yet employees are motivated and engaged
6-13
5o) 9esign and 1or& +fficiency
& Dividing wor% into separate !obs that include a subset of the tas%s re;uired to complete the product or service & 4cientific management
3 0rederic% Ainslow *aylor 3 8dvocated !ob specialisation 3 *aylor also emphasised person-!ob matching, training, goal setting, wor% incentives
6-1-
+(al!ating 5o) #pecialisation

8dvantage s Disadvantage s
&
ess time changing activities & ower training costs & 7ob mastered ;uic%ly & (etter person-!ob matching
& 7ob boredom & Discontentment pay & Cigher costs & ower ;uality & ower motivation
6-10
5o) 9esign and 1or& Moti(ation

& 'otivation is now the central focus of many !ob design changes & 'otivator9 hygiene theory proposes that employees e6perience !ob satisfaction when they fulfil growth and esteem needs :motivators<, and e6perience dissatisfaction when they have poor wor%ing conditions :hygienes<
6-16
5o) Characteristics Model
6-14
5o) 9esign Practices that Moti(ate

& 7ob 5otation
3 'oving from one !ob to another 3 (enefits
'inimises repetitive strain in!ury 'ultis%ills the wor%force 2otentially reduces !ob boredom
7ob >8? 7ob >(?
7ob >D?
7ob >C?
6-16
5o) +nlargement
& 8dding tas%s to an e6isting !ob & =6ample9 video !ournalist
6-17
5o) +nrichment
& @iving employees more responsibility for scheduling, coordinating and planning their own wor% 1. Clustering tas%s into natural groups
3 4titching highly interdependent tas%s into one !ob 3 =.g. video !ournalist, assembling entire product
2. =stablishing client relationships

3 Directly responsible for specific clients 3 Communicate directly with those clients
6-20
+mpowerment Practices
4elfdetermination =mployees feel they have freedom and discretion =mployees believe their wor% is important =mployees have feelings of selfefficacy =mployees feel their actions influence success
6-21
'eaning
Competence
,mpact
+mpowerment at #(ens&a andels)an&en
4vens%a Candelsban%en gives each branch considerable autonomy without centralised controls, resulting in high levels of employee empowerment. >(eing empowered and having this trust leads to better decisions and higher satisfaction,? e6plains a manager at the 4wedish financial institution
6-22
#!pporting +mpowerment
& ,ndividual factors
3 2ossess re;uired competencies, able to perform the wor%
& 7ob design factors

3 8utonomy, tas% identity, tas% significance, !ob feedbac%
& #rganisational factors

3 5esources, learning orientation, trust
6-23
#elf-"eadership
& *he process of influencing oneself to establish the self-direction and selfmotivation needed to perform a tas% & ,ncludes concepts and practices from9
3 @oal setting 3 4ocial learning theory 3 4ports psychology
6-2-
+lements of #elf-"eadership
& 2ersonal goal setting
3 =mployees set their own goals 3 8pply effective goal setting practices
2ersonal goal setting
Constructive thought patterns
Designing natural rewards
4elfmonitoring
4elfreinforcement
6-20
continued
2ersonal goal setting Constructive thought patterns Designing natural rewards 4elfmonitoring 4elfreinforcement
& 2ositive self-tal%

3 *al%ing to ourselves about thoughts and actions 3 2otentially increases self-efficacy
& 'ental imagery

3 'entally practising a tas% 3 Disualising successful tas% completion
6-26
continued
& 0inding ways to ma%e the !ob itself more motivating

3 =.g. altering the way the tas% is accomplished
6-24
continued
& Eeeping trac% of your progress toward the selfset goal

3 oo%ing for naturally-occurring feedbac% 3 Designing artificial feedbac%
6-26
continued
& >*a%ing? a reinforcer only after completing a selfset goal

3 =.g. watching a movie after writing two more sections of a report 3 =.g. starting a fun tas% after completing a tas% that you do not li%e
6-27
#elf-"eadership Contingencies
& ,ndividual factors
3 Cigher levels of conscientiousness and e6troversion 3 2ositive self-evaluation :self-esteem, self-efficacy, internal locus<
& #rganisational factors

3 7ob autonomy 3 2articipative leadership 3 'easurement-oriented culture
6-30
#!mmary
& 0inancial rewards relate to our needs, emotions and self-concepts & #rganisations reward for membership and seniority, !ob status, competencies and performance & 7ob design :e.g. !ob specialisation, enlargement and enrichment< is the process of assigning tas%s to a !ob in ways that can increase performance and motivation & =mpowered people e6perience more selfdetermination, meaning, competence and impact regarding their role in the organisation & 4elf-leadership is the process of influencing oneself to establish the self-direction and self-motivation needed to perform a tas%
6-31
Chapter 6
Applied Performance Practices

McShane4e Ch06

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McShane4e Ch06

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Chapter 6

Applied Performance Practices

Applying Performance Practices 'hro!gh the +,cellence Philosophy

++,nsert 'ercedes ,mage ch-6, p. 1.$//

.inancial /eward Practices

Corel Corp. With permission.

'ypes of /ewards in the 1or&place

Corel Corp. With permission.

Mem)ership2#eniority 3ased /ewards

5o) #tat!s-3ased /ewards

Call Centre +mployees +ngaged

*eam & (onuses rewards & @ainsharing

& (onuses & Commissions & 2iece rate

+(al!ating %rganisational /ewards

& Concerns with performance pay

8mpro(ing /eward +ffecti(eness

5o) 9esign and 1or& +fficiency

+(al!ating 5o) #pecialisation

5o) 9esign and 1or& Moti(ation

5o) Characteristics Model

5o) 9esign Practices that Moti(ate

2. =stablishing client relationships

+mpowerment at #(ens&a andels)an&en

& 7ob design factors

& #rganisational factors

2ersonal goal setting

Constructive thought patterns

Designing natural rewards

& 2ositive self-tal%

& 'ental imagery

& 0inding ways to ma%e the !ob itself more motivating

& Eeeping trac% of your progress toward the selfset goal

& >*a%ing? a reinforcer only after completing a selfset goal

& #rganisational factors

Applied Performance Practices

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