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
of the same nature so that they can
remain more enthusiastic about
work.
Job enlargement 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
greater responsibility by
vertical extending their
role in the production
Job enlargement process
Advantages: giving
employees a challenge for
developing unused skills,
Job enrichment 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
tasks from time to time
Advantages: reducing
boredom, developing
various skills, and
Job enrichment gaining more experience
Disadvantages: Those
who dislike the certainty
Job rotation 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
Highly-skilled people
working in small groups
Job enlargement with a common aim.
Advantages: Pooled
talents, brainstorming new
Job enrichment ideas, improved
productivity, problem-
solving
Job rotation Disadvantages: too much
emphasis on harmony,
arguments and conflicts,
too many meetings and
Team-working time-wasting
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Copyright 2002 by Harcourt, Inc. All rights reserved.

 Methods of job design and
redesign
Job enlargement Giving official power to
employees to make decisions
and to control their own
Job enrichment activities
Advantages: feeling trusted,
Job rotation self-confident and interested in
work , improving decision-
making skills of employees
Team-working
Disadvantages: Manages may
feel insecure or unsatisfied,
Empowerment more costs of training for
employees required
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Copyright 2002 by Harcourt, Inc. All rights reserved.

 Methods of job design and
Job enlargement
redesign
Small groups of workers in
Job enrichment the same area of production
meeting regularly to study
Job rotation and solve production
problems
Advantages: shop-floor
Team-working workers are involved in
decisions and thus motivated
Empowerment
Disadvantages: Requiring
strong support from both
Quality control cycles 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.