Bus 101 - Ch 9

performance and outcome

the strength of the expectation that a certain level of performance will lead to a particular outcome

effort and performance

the strength of the individual's expectation that a certain amount of effort will lead to a certain level of performance

inputs (equity theory)

(e.g., number of hours worked, education, and training)

outcomes (equity theory)

(e.g., salary, benefits

compressed workweek

Employees work the traditional 40 hours, but fit those hours into a shorter workweek. Most common is the 4-40 schedule, where employees work four 10-hour days a week

pay-for-performance (economic incentive)

Financial incentives that allow variability in compensation to reflect an individual employee's contribution are generally known as pay-for-performance programs

Scientific Management

Frederick Taylor, a mechanical engineer, sometimes called the "father of scientific management". Taylor's approach to improved performance was based on economic incentives and the premise that there is "one best way" to perform any job.

extrinsic rewards

come from outside the individual and include things like pay raises, promotions, bonuses, prestigious assignments, recognition, and so forth

Intrinsic rewards

come from within the individual—things like satisfaction, contentment, sense of accomplishment, confidence, and pride

Job enlargement (Motivational Job Design)

The horizontal expansion of a job, increasing the number and variety of tasks that a person performs,

flextime

allows employees to decide what their work hours will be

Profit-sharing plans (economic incentive)

are based on overall company profitability. Using an established formula, management distributes some portion of company profits to all employees

Hygiene factors (also called job dissatisfiers)

are extrinsic elements of the work environment

Gain-sharing plans (economic incentive)

are incentive programs based on group productivity. Employees share in the financial gains attributed to the increased productivity of their group. This encourages employees to increase productivity within their specific work area regardless of the overall profit picture for the organization as a whole.

employee stock ownership plans, or ESOPs

are not the same as stock options, however. In an ESOP, employees receive compensation in the form of company stock; Because ESOP employees are compensated with stock, over time they can become the owners of the company, an attractive exit strategy for current owners seeking a smooth transition

motivating factors (also called job satisfiers)

are primarily intrinsic job elements that lead to satisfaction.

sabbaticals

can mean time off of a month or more, paid or unpaid

Maslow's theory of motivation

contends that people act to satisfy their unmet needs. When you're hungry, for instance, you look for and eat food, thus satisfying a basic physiological need. Once a need is satisfied, its importance to the individual diminishes, and a higher-level need is more likely to motivate the person.

Theory Z (William Ouchi)

emphasizes long-term employment, slow career development, moderate specialization, group decision- making, individual responsibility, relatively informal control over the employee, and concern for workers. Theory Z has many Japanese elements. But it reflects U.S. cultural values.

piece-rate pay plans (economic incentive)

employees are paid a given amount for each unit they produce, directly linking the amount they earn to their productivity

four-day workweek

employees work only four days a week, the same as a compressed workweek, but work 32 hours or less; offered in 13 percent of U.S. companies

expectancy theory

focuses on the link between motivation and behavior; the probability of an individual acting in a particular way depends on the strength of that individual's belief that the act will have a particular outcome and on whether the individual values that outcome.

stock options (economic incentive)

giving employees the right to purchase a given amount of stock at below-market prices. Stock can be a strong motivator because those who receive the options have the chance to make a lot of money. Government tax incentive changes have affected how much equity (stock) companies offer each year, indicating that stock options are declining in popularity

Job sharing

is a scheduling option that allows two individuals to split the tasks, responsibilities, and work hours of one 40-hour-per-week job

Telecommuting

is a work-scheduling option that allows employees to work from home via a computer that is linked with their office, headquarters, or colleagues

Theory Y management style

is based on a more optimistic view of human nature and assumes the following: • Work is as natural as play or rest. People want to and can be self-directed and self-controlled and will try to achieve organizational goals they believe in. • Workers can be motivated using positive incentives and will try hard to accomplish organizational goals if they believe they will be rewarded for doing so. • Under proper conditions, the average person not only accepts responsibility but seeks it out. Most workers have a relatively high degree of imagination and creativity and are willing to help solve problems.

Theory X management style

is based on a pessimistic view of human nature and assumes the following: • The average person dislikes work and will avoid it if possible. • Because people don't like to work, they must be controlled, directed, or threatened with punishment to get them to make an effort. • The average person prefers to be directed, avoids responsibility, is relatively unambitious, and wants security above all else.

equity theory

is based on individuals' perceptions about how fairly they are treated compared with their coworkers. Equity means justice or fairness, and in the workplace it refers to employees' perceived fairness of the way they are treated and the rewards they earn

Goal-setting theory

is based on the premise that an individual's intention to work toward a goal is a primary source of motivation. Once set, the goal clarifies for the employee what needs to be accomplished and how much effort will be required for completion

need

is best defined as the gap between what is and what is required

bonus (economic incentive)

is simply a one-time lump-sum monetary award

want

is the gap between what is and what is desired

motivation

is the set of forces that prompt a person to release energy in a certain direction. As such, motivation is essentially a need- and want-satisfying process; a need or desire that energizes and directs behavior

Job rotation (Cross-training)

is the shifting of workers from one job to another. This may be done to broaden an employee's skill base or because an employee has ceased to be interested in or challenged by a particular job.

Reinforcement theory

says that behavior is a function of its consequences. In other words, people do things because they know other things will follow. So, depending on what type of consequences follows, people will either practice a behavior or refrain from it

outcomes and individual needs

the degree to which the individual expects the anticipated outcome to satisfy personal needs.

Maslow's hierarchy of needs

the most basic human needs are physiological needs, that is, the needs for food, shelter, and clothing. In large part, it is the physiological needs that motivate a person to find a job. .

Job enrichment (Motivational Job Design)

the vertical expansion of an employee's job. Whereas job enlargement addresses the breadth or scope of a job, enrichment attempts to increase job depth by providing the employee with more autonomy, responsibility, and decision-making authority

human relations era

which began in the 1930s and focused primarily on how human behavior and relations affect organizational performance

classical era

which lasted from about 1900 to the mid-1930s, was Frederick W. Taylor, a mechanical engineer sometimes called the "father of scientific management."

Hawthorne effect

which suggests that employees will perform better when they feel singled out for special attention or feel that management is concerned about employee welfare. The studies also provided evidence that informal work groups (the social relationships of employees) and the resulting group pressure have positive effects on group productivity