MGMT FINAL pt3
Managing Manager -doer
Performing functions associated with planning, investigating, organizing, and control Implement the vision and strategic plan of an organization
Matching Conflict Styles with Situations
Thomas-Kilmann's 5 Conflict Resolution Strategies Accommodating Avoiding Compromising Competing Collaborating The best style depends on the situation People have different preferences or tendencies for different styles
To Negotiate or Not?
Two points to consider: 1) Whether an issue that appears to be non-negotiable truly is 2) If there is no way to create added value for yourself, you should not be negotiating
Behavior Theory
Unique behaviors displayed by effective leaders.
What are the Mechanisms Behind the Power of Goal-Setting Theory?
1.Goals Direct Attention 2.Goals Increase Persistence 3.Goals Foster Development & Application of Task Strategies and Action Plans 4.Goals Regulate Effort
Point system method
A quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it. Permits jobs to be evaluated quantitatively on the basis of factors or elements—compensable factors—that constitute the job. The Point Manual A handbook that contains a description of the compensable factors and the degrees to which these factors may exist within the jobs.
The end of negotiation
Always keep multiple issues on the table until the very end Ask for documentation of the agreement (verbal, handshake, written)
Why do managers care about motivation?
Because motivation causes employees to: Join the organization Stay with the organization (reduces turnover) Be engaged at work Perform OCBs Help others
BATNA
Best Alternative to a Negotiated Agreement = the alternative left if a negotiated agreement is not reached Considerations The current BATNA Likelihood of favorable negotiated outcomes Direct cost of negotiating Indirect and opportunity costs
Transformational leadership
CHART
ATJD: Job rotation
Calls for moving employees from one specialized job to another Advantages -Engagement and motivation are increased -Increased worker flexibility and easier scheduling -Increased employee knowledge and abilities
Broadbanding and wage compensation
Collapses many traditional salary grades into a few wide salary bands vs Compression of pay between new and experienced employees caused by the higher starting salaries of new employees; also the differential between hourly workers and their Managers.
ch 16 Basic forms of compensation
Hourly/Salary Exempt/Non-exempt
bonus vs raise
Incentive payment that is supplemental to the base wage for cost reduction, quality improvement, or other performance criteria. (a raise is an increase in base salary) vs Links an increase in base pay to how successfully an employee achieved some objective performance standard.
CH 9 Define power and list and describe the different bases of power that leaders can use to affect followers' behavior
Power: the ability to marshal human, informational, and other resources to get something done. 5 Basis of Power: 1.Legitimate Power - Base power is what people think of as authority as is anchored to one's formal position. 2.Positive Legitimate power focuses constructively on job performance 3.Negative Legitimate power tends to be threatening and demeaning to those being influenced, if not simply an exercise in building the power holder's ego 4.Reward Power - obtaining compliance by promising or granting rewards 5.Coercive Power - ability to make threats of punishment and deliver actual punishment 6.Expert Power - power gained from a person having valued knowledge or information Referent Power - power gained when one's personal characteristics and social relationships are the reason for compliance (Ex. Charisma)
Mediation
Use of an independent, impartial, and respected third party (called the conciliator or mediator) in settlement of a dispute, instead of opting for arbitration or litigation. Unlike an arbitrator, a mediator has no legal power to force acceptance of his or her decision but relies on persuasion to reach an agreement. Also called conciliation. Trust Building is essential to this process Mediation Process: Stabilize the setting Help the parties communicate Help the parties negotiate Clarify the agreement
Content theory of motivation
Using Maslow's Theory To motivate employees: -Remember employees have needs beyond a paycheck -Helping employees cope with the cost of health care (phsiologicial need) by offering free or low cost wellness exams, physicals, vaccines, flu shots, etc Focus on satisfying employee needs related to -----self-concepts: -Self-esteem -Self-actualization -Satisfied needs lose their potential -Managers are advised to motivate employees by devising programs or practices aimed at satisfying emerging or unmet needs -Be careful when estimating employee's needs
Negotiations
Win-lose negotiation = someone has to lose Win-win negotiation = Focused on cooperative problem solving Treat conflict as separate from the relationship and work to seek a mutually acceptable solution
Passive Leadership
represents a general failure to take responsibility for leading. Also called laissez-faire leadership. Avoiding conflict, failing to provide coaching on difficult assignments, failing to assist employees in setting performance goals, failing to give performance feedback, failing to address issues associated with bullying, or being so hands off that employees have little idea about what they should be doing. Demoralizing and makes employees feel unsupported
Positive effects of conflict
-Brings problems into the open that might other way being ignored -Motivate people to understand other's positions and ideas -Encourages people to voice new ideas, facilitating innovation and change -Forces people to challenge their thinking, improving the quality of decisons
Conflict styles
-Compromising Finding some expedient, mutually acceptable solution that partially satisfies everyone involved Appropriate when the conflict has significant role factors or to arrive at solution when under time pressures -Competition Dominant and non-supportive Individuals pursue their own concerns aggressively at the expense of others Tips: Be direct Explain later Use this strategy selectively -Collaborating Dominant and supportive, assertive and collaborative Finding a solution that fully satisfies the concerns of both people Good when you need to gain commitment by incorporating everyone's concerns
Myths of conflict and negotiation
-Conflict is always dysfunctional. -Conflict is generally a "personality" problem. -Negotiation creates a winner and loser. -You should always negotiate -Good conflict mediators are born, not made.
Sources of conflict
-Perceptual factors Exert their influence when people have different images or interpretations of the same thing Each person selects the data that supports their point of view and devalues information that does not support it -Role factors People believe that their roles within an organization are in conflict "Turf" associated with their position is being usurped -Environmental factors Scarce resources, uncertainty, degree to which competition is present Mixed-motive situation Employees are rewarded for competing but told to work toward the department's overall outcome as a whole -Zero-sum game Success of one employee means the failure of another Can lead to intense conflict -Personal factors Incompatible personal values Different personalities Differing long and short-term goals Can become bitter arguments with moral overtones
Issues when collecting market wage data
-They are not always compatible with the user's jobs -The user cannot specify what specific data to collect.
List and describe the following individual incentive plans
-profit sharing payments are based on a measure of organization performance (profits), and payments do not become a part of base pay. Advantages profit sharing may encourage employees to think more like owners. labor costs are automatically reduced during difficult economic times, and wealth is shared during good times. Disadvantages workers may perceive their performance has less to do with profit than top management decisions over which they have little control. -stock options -employee stock ownership plans
Evaluate how well it went
Analyze how the process went Superior negotiators analyze negotiations to learn and grow
ATJD: Job Enrichment
Entails modifying a job such that an employee has the opportunity to experience: Achievement Recognition Stimulating work Responsibility Advancement Rather than giving employees additional tasks of similar difficulty (horizontal loading), job enrichment uses vertical loading which gives workers more autonomy and responsibility. Example: Intuit encourages employees to spend 10% of their work time pursuing projects within the company they are passionate about
Process theories
Focus on explaining the process by which internal factors and environmental characteristics influence employee motivation Explain why people with different needs and levels of satisfaction behave the way they do at work. Important to reduce turnover
Content theories
Focus on identifying factors, such as needs and satisfaction, that energize motivation Needs = physiological or psychological deficiencies that arouse behavior What are different needs that activate motivation's direction, intensity and persistence
Discuss the basic premises of gainsharing as a group incentive plan
Gainsharing - form of compensation based on group or plant performance rather than organization-wide profits that does not become part of the employee's base salary. offers a means of sharing productivity gains with employees. Improves performance Scanlon-Rewards come from employee participation in improving productivity and reducing costs. Improshare-Gainsharing based on increases in productivity of the standard hour output of work teams. Increase in productivity is gained when: Greater output is obtained with less or equal input. Equal production output is obtained with less input.
How Does Goal-Setting Theory Work?
Goals that are specific and difficult lead to higher performance Goal specificity refers to the quantifiability of a goal Certain conditions are necessary for goal setting to work People need ability and resources People need to be committed to the goal Performance feedback and participation in deciding how to achieve goals are necessary but not sufficient Higher performance when use feedback and participation to stay focused and committed Goal achievement leads to job satisfaction Reinforces employees to set and commit to even higher levels of performance
Explain the major differences between team compensation plans and individual incentive plans
Group incentives Group incentives measure performace in physical output. Team award plans may use a broader range of performance measures. Individual competition may be replaced by competition between groups or teams. Risks not recognizing differences in individual performance vs reward individual performance but payments are not rolled into base pay. Performance is measured as physical output rather than by subjective ratings.
ATJD: Job Enlargement
Involves putting more variety into a worker's job by combining specialized tasks of comparable difficulty
Note
Leaders are not necessarily good managers, and good managers are not necessarily good leaders Effective leadership DOES however require effective managerial skills at some level
Common forms of leverage in negotiations
Leverage of Legitimacy = giving the impression the issue is not negotiable Leverage of Timing = telling the party you want to leave to think about the deal Leverage of Limited Authority = having limited authority to negotiate can be helpful in some circumstances
Explain how an organization combines job evaluation and market wage data to produce a compensation system
Measures: -help the company detect potential compensation problems, -make compensation decisions more transparent, and -improve the alignment of compensation decisions with organizational objectives. The compensation scorecard collects and displays the results for all the measures that a company uses to monitor and compare compensation among internal departments or units. The scorecard creates a comparative tool within the organization that can reinforce desired outcomes that are unique to the company's strategy.
Gender and Leadership
Men typically display more task leadership Women typically display more social leadership Women tend to use more democratic or participative style of leadership Men tend to use more autocratic and directive style of leadership Men and women are equally assertive Women executives, when rated by their peers, managers and direct reports, score higher than their male counterparts on a variety of effectiveness criteria
Justice Theory (process)
Organizational justice refers to the extent to which people perceive that they are treated fairly at work Three types of justice Distributive Justice - reflects the perceived fairness of how resources and rewards are distributed or allocated. Procedural Justice - perceived fairness of the process and procedures used to make allocation decisions. Interactional Justice - relates to the quality of the interpersonal treatment people receive when procedures are implemented.
Stages of effective negotiations
Preparation Understand needs of other parties List and discuss options Process tactics Ending Evaluation
CH 4 Motivation
Refers to the psychological processes "that underlie the direction, intensity, and persistence of behavior or thought"
Describe individual incentive plans and discuss their pros and cons
Reward individual performance but payments are not rolled into base pay. Performance is measured as physical output rather than by subjective ratings. -Bonus -Spot bonus Unplanned bonus given for employee effort unrelated to an established performance measure Individual incentives are rare because: -Most jobs have no physical output measure. -Many potential administrative problems. -Employees may only do what they get paid for. -Do not fit in with team approach. -May be inconsistent with organizational goals. -Some incentive plans reward output over quality or service.
how stock options work as a component of executive compensation
Stock Options: Represent on form of equity compensation granted by companies to their employees & executives. They give the holder the right to purchase the company stock at a specified price for a limited duration of time in the quantities spelled out in the options agreement. Advantage: Companies trumpet stock options as the way to link executives' financial interests with shareholders' interests. Disadvantages: When shares go up in value, executives can make a fortune from options - but when they fall, investors lose out while executives are no worse off than before The incentive to keep the share price motoring upward so that options will stay in-the-money encourages executives to focus exclusively on the next quarter and ignore shareholders' longer term interests. Options can even prompt top managers to manipulate the numbers to make sure the short-term targets are met.
Goal-setting theory (process)
Successful people have one thing in common...their lives are goal oriented Goal setting helps individuals, teams, and organizations achieve success
CH 10 Leadership Effectiveness Leadership
The process whereby an individual influences a group of individuals to achieve a common goal. Do not need to have a formal position of authority to be a leader Leaders deal with the interpersonal aspects of a manager's job Inspire others Provide emotional support Motivate employees to rally around a common goal Create a vision and strategic plan for an organization
Job evaluation
The systematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than others within an organization.
Fiedler's Contingency Theory
based on the premise that a leader's effectiveness is contingent on the extent to which a leader's style fits or matches characteristics of the situation at hand. Belief that leaders have one dominant or natural leadership style that is resistant to change
Fair labors Standards act of 1938
established a minimum wage and overtime pay rate. Minimum wage is $7.25 an hour. It is the lowest amount that employers are legally allowed to pay. Exempt - those employees (executive, professional, administrative and outside sales) not covered by the FLSA and not eligible for overtime pay. Davis-Bacon Act and Walsh-Healy Public Contracts Act require federal contractors to pay employees no less than area's prevailing wages
internal vs external equity vs individual equity
fairness of your pay relative to others in the organization in different jobs vs fairness of your pay relative to others in the labor market vs fairness of your pay compared to others in the organization with the same job
Distributive Bargaining
focused on dividing a fixed economic "pie" between the two sides. Ex. A wage increase means the union gets a larger share and management gets a smaller share Win-Lose Situation
House's Path Goal Theory
holds that leader behaviors are effective when employees view them as a source of satisfaction or as paving the way to future satisfaction. Reducing roadblocks that interfere with goal accomplishment Providing the guidance and support needed by employees Linking meaningful rewards to goal accomplishment Leadership effectiveness is influenced by the interaction between 8 leadership behaviors and a variety of contingency factors
Leadership theories -Trait Approach
personality characteristics or interpersonal attributes used to differentiate leaders from followers
Fiedler's Contingency Theory Situational Control
refers to the amount of control and influence the leader has in his/her immediate work environment. Leader-member relations - reflect the extent to which the leader has the support, loyalty, and trust of the work group. Task structure - concerned with the amount of structure contained within tasks performed by the work group. Ex. Managerial job contains less structure than a bank teller Position power - refers to the degree to which the leader has formal power to reward, punish, or otherwise obtain compliance from employees
Integrative Bargaining
seeks solutions beneficial to both sides Win-Win Situation Ex. If management needs to reduce labor costs, it could reach an agreement with the union to avoid layoffs in exchange for changes to the work rules that could increase productivity
Task Oriented Leader Behavior
to ensure people, equipment, and other resources are used in an efficient way to accomplish the mission of a group or organization. Initiating Structure - leader behavior that organizes and defines what group members should be doing to maximize output. Transactional Leadership - focuses on clarifying employees' role and task requirements and providing followers with positive and negative rewards contingent on performance. Encompasses fundamental managerial activities such as: goal setting, goal monitoring towards to progress of achievement, and rewarding/punishing people for their level of goal accomplishment
Transformational Leadership
transforms followers to pursue organizational goals over self-interest. Key Behaviors: Inspirational motivation- includes the use of charisma, involves establishing an attractive vision of the future, the use of emotional arguments, and exhibition of optimism and enthusiasm Idealized influence - to instill pride, respect, and trust within employees Individualized consideration - entails behaviors associated with providing support, encouragement, empowerment, and coaching to all employees (help people develop and grow) Intellectual stimulation - involves behaviors that encourage employees to question the status quo and to see innovative and creative solutions to organizational problems.
hourly vs salaried employees
work paid on an hourly basis vs compensation is computed on the basis of weekly, biweekly, or monthly pay periods.
Trait Approach Core Traits Possessed by Leaders
-Intelligence -Dominance -Self-confidence -Level of energy and activity -Task-relevant knowledge *Premise - these leadership traits are not innate, but can be developed through experience and learning
External factors that influence the wage mix
-Labor Market Conditions Availability and quality of potential employees is affected by economic conditions, government regulations and policies, and the presence of unions. -Area Wage Rates A firm's formal wage structure of rates is influenced by those being paid by other area employers for comparable jobs. -Cost of Living Local housing and environmental conditions can cause wide variations in the cost of living for employees. Inflation can require that compensation rates be adjusted upward periodically to help employees maintain their purchasing power. Consumer Price Index (CPI) A Bureau of Labor Statistics measure of the average change in prices over time in a fixed "market basket" of goods and services -Collective Bargaining Escalator clauses in labor agreements provide for quarterly upward cost-of-living (COLA) wage adjustments for inflation to protect employees' purchasing power. Unions bargain for real wage increases that raise the standard of living for their members. Real wages are increases larger than rises in the consumer price index; that is, the real earning power of wages
Conflict styles
-Accommodation Supportive and submissive, unassertive and cooperative Individuals neglect their own concerns to satisfy the concerns of others Can be helpful if the issue is not very important Tips: Acknowledge the accommodation Have a rationale -Avoiding Submissive non-supportive, unassertive and uncooperative People do not immediately pursue their own concerns or those of others Can be good way to delay issues until they are more appropriate to address Tips: Set time limits Set goals for the "time-out" period
Negative effects of conflict
-Can lead to negative emotions and stress -reduces communiaction among participants which can hurt coordination -top-down authoritarian decisons -negative stereotyping and group divisions
Sources of conflict
-Relationship-centered disputes Stem from what has transpired between two or more people Often deteriorate into name-calling, resentment, etc. Sometimes outside of the scope of the manager to mediate Manager may need to reassign conflicting parties -Task-centered disputes Debates over competing ideas, proposals, interests, or resources Emotions usually run "cooler" than in relationship-centered disputes -Informational factors Come into play when people have developed their point of view on the basis of a different set of facts
Characterisitics of a win-win negotiation
-focus on common interests rather than differences -attempt to address needs and interests rather than barganaing positions -commitment to help the other party meet their needs -exchange of info and ideas -creation of options for mutual gain
Difficult negotiations
Agressive Opener: nasty comments about opponents or previous performance Long pauser: long silences so the other side may reveal important info Mocker: mocks the other side to make it angry and say something they will regret Interrogator: challenges the other party to make it look unprepared Sheep's clothing: appears to be reasonable while making impossible demands Divide and conqueror: try to put one member of the other team against his/her team Dummy: pretends to be dense in hoping to draw more info or lulling the other a flase sense of superiority
Job design
Any set of activities that involves: Alteration of specific or interdependent systems of jobs Intent of improving the quality of employee job experience and on-the-job productivity
Equal Pay Act 1963
Comparable worth (or pay equity) is a public policy that advocates remedies for any undervaluation of women's jobs. United States federal law amending the Fair Labor Standards Act, aimed at abolishing wage disparity based on sex (see Gender pay gap). It was signed into law on June 10, 1963, by John F. Kennedy as part of his New Frontier Program.[ equal skill, effort, and responsibility, and which are performed under similar working conditions, except where such payment is made pursuant to (i) a seniority system; (ii) a merit system; (iii) a system which measures earnings by quantity or quality of production; or (iv) a differential based on any other factor other than sex
CH 7 Conflict
Conflict = Disagreement An inevitable part of organizational life Is not always bad, but can be very destructive if left unchecked Different kinds of conflict Different styles of conflict resolution Significant portion of manager's job is negotiating
Executive Compensation packages components
Criticism Some executives are very highly paid. U.S. executives - highest paid in the world. Ratio of executive pay to average worker pay creates a "trust gap" - workers do not trust executives' intentions and resent their pay.
Discuss the criticisms of merit pay plans
Edward W. Deming, a critic of merit pay, argued that it is unfair to rate individual performance. Deming's solution was to eliminate the link between individual performance and pay. Criticisms of merit pay include: Focus on merit pay discourages teamwork. Measurement of performance is unfair and inaccurate. Too much emphasis on individual performance Merit pay does not really exist - high performers paid more than marginal and poor performers Money for merit increases may be inadequate to satisfactorily raise all employees' base pay. Managers may have no guidance in how to define and measure performance; there may be vagueness regarding merit award criteria. Employees may not believe that their compensation is tied to effort and performance; they may be unable to differentiate between merit pay and other types of pay increases. Employees and their managers may hold different views of the factors that contribute to job success. Merit pay plans may create feelings of pay inequity.
Maslow's Need Hierarchy Theory
Self-Actualization Esteem Love Safety Physiological
Emotional Intelligence & Leadership
Emotional Intelligence: the ability to manage oneself and one's relationship in mature and constructive ways. An input to transformational leadership - helps managers to effectively enact the behaviors associated with transformational leadership Has a small, positive, and significant association with leadership effectiveness - will help a person lead more effectively, but is not the secret elixir of leadership effectiveness
Using Equity and Justice Theories
Employee perceptions are what count Employees want a voice in decisions that affect them Employees should be given an appeals process Leader behavior matters A climate for justice makes a difference
exempt vs non exempt employees
Employees who are not covered in the overtime provisions of the Fair Labor Standards Act. Managers, supervisors, and white-collar professional employees are exempted on the basis of their exercise of independent judgment and other criteria. VS Employees covered by the overtime provisions of the Fair Labor Standards Act. They must be paid time and one-half their regular pay for all work performed after forty regular hours of work in a workweek.
Equity/Justice Theory (process)
Equity theory is a model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships People are motivated to maintain consistency between their beliefs and their behavior "Am I being treated fairly and I respond"
Types of motivation
Extrinsic Results from external rewards Examples - recognition, money or promotion Represent a "payoff" received from others for performing a particular task Intrinsic Results from internal feelings Examples - positive emotions, self satisfaction and self-praise. Ex. - The joy on someone's face when winning a competition Created by giving yourself intrinsic rewards
Expectancy theory (process)
Holds that people are motivated to behave in ways that produce desired combinations of expected outcomes Used to predict behavior in any situation in which a choice between two or more alternatives must be made. Ex. Used to predict whether to quit or stay at a job Major elements Expectancy - A person's belief that a particular degree of effort will be followed by a particular level of performance Instrumentality - how a person perceives the movement from performance to outcome Valence - the positive or negative value people place on outcomes
The Outcomes of Equity Comparison
I/O Ratio is Equal to Relevant Other's Satisfaction I/O Ratio is Less than Relevant Other's Negative Inequity May Result in Anger and/or Change in Attitude or Behavior I/O Ratio is Greater than Relevant Other's May Result in Satisfaction May also Result in Feelings of Guilt
Transformational leadership
Implications for managers: The establishment of a positive vision of the future - inspirational motivation should be considered the first step at applying transformational leadership The best leaders are not just transformational but also rely on their task-oriented and relationship-oriented behaviors Transformational leadership affects outcomes at the individual, group, and organizational levels Transformational leadership works virtually Transformational leaders can be ethical or unethical - ethical transformational leaders enable employees to enhance their self-concepts; unethical transformational leaders select or produce obedient, dependent, and compliant followers
Actions of superior negotiations
In negotiation planning -consider more possible solutions and options -spend more time looking for common interests -Thin more about long-term consequences In the actual negotiation -take cooperative rather than competitive side -make fewer immediate counterproposals -make a greater effort to understand the other party interests -ask more questions specially to test understnding -less likely to describe their offers in offensively terms -greater frequency of topic changes -summarize the progress made during the negotiaton
Internal factors that influence the wage mix
Internal -Employer's Compensation Strategy Establishes the internal wage relationship among jobs and skill levels Sets organization compensation policy to lead, lag, or match competitors' pay. Rewards employee performance Guides administrative decisions concerning elements of the pay system such as overtime premiums, payment periods, and short-term or long-term incentives. -Worth of a Job Establishing the internal wage relationship among jobs and skill levels -Employee's Relative Worth Rewarding individual employee performance -Employer's Ability-to-Pay Having the resources and profits to pay employees.
Fiedler's Contingency Theory
Key Leadership Styles: Task Orientation - focused on accomplishing goals Relationship Orientation - focused on developing positive relationships with followers Least Preferred Coworker Scale (LPC) - evaluates a coworker you least enjoy working with on 16 pairs of opposite characteristics. High Scores - indicate that an individual is relationship-motivated Low Scores - suggest an individual has a more task-oriented style
Describe how a merit pay plan works and explain merit pay using the merit increase grid
Links an increase in base pay to how successfully an employee achieved some objective performance standard. -Merit Guidelines: Guidelines for awarding merit raises that are tied to performance objectives. -A merit increase grid combines an employee's performance rating with employee's position in a pay range to determine size and frequency of his or her pay increases.
McClelland's Acquired Needs Theory (content)
Need for Achievement Prefers working on challenges Situations in which performance is due to effort and ability Prefers to work with other high achievers Need for Affiliation Likes to work in teams in with cooperation and collegiality Tends to avoid conflict Likes to be praised in private Need for Power Likes to be in charge Likes to be in control of people and events Appreciates being recognized
Negotiation
Negotiation = Bargaining (give and take) process between two or more parties (each with its own aims, needs, and viewpoints) seeking to discover a common ground and reach an agreement to settle a matter of mutual concern or resolve a conflict.
Specific process tactics
Silence Good Guy / Bad Guy Routine The Wince The Trial Balloon Bait-and-Switch Outrageous Behavior Red Herring The Written Word Bluffing
Elements of equity theory
Outputs (O) What a person perceives they are getting out of their job Ex.: Pay, benefits, assignments, etc. Inputs (I) What a person perceives they are putting into their job Ex: Time, skills, education, etc. Comparison How does a person's O/I ratio compare with relevant others' O/I ratios
ch17 Describe the relationship between pay and individual employee behavior from the following three perspectives.
Reinforcement theory -In Thorndike's Law of Effect, a response followed by a reward is more likely to recur in the future. The importance of a person's actual experience in receiving the reward is critical. If high performance is followed by a reward, high performance is likely to be repeated. Expectancy theory -says that motivation is a function of valence, instrumentality, and expectancy. Expectancy Theory focuses on the link between rewards and behaviors and emphasizes expected (rather than experienced) rewards and on the effects of incentives. Behaviors (job performance) can be described as a function of ability and motivation. Motivation is a function of expectancy, instrumentality, and valence perceptions. Agency theory -focuses on divergent interests and goals of the organization's stakeholders and the ways that compensation can be used to align these interests and goals. -E. L. Thorndike's Law of Effect states that a response followed by a reward is more likely to recur in the future. The implication for compensation management is that high employee performance followed by a monetary reward will make future high performance more likely.
Approaches to Job Design
Scientific management Kind of management which conducts a business by standards established by facts or truths gained through systematic observation, experiment, or reasoning Pros: Efficiency & productivity increase Cons: Repetitive jobs lead to job dissatisfaction, poor mental health, stress, low sense of accomplishment and growth
Discuss the pros and cons of each of the individual incentive plans
Straight salary program Compensation plan that permits salespeople to be paid for performing various duties that are not reflected immediately in their sales volume. Advantages: Encourages building customer relationships. Provides compensation during periods of poor sales. Disadvantage: May not provide sufficient motivation for maximizing sales volume. Straight Comission Plan Compensation plan based upon a percentage of sales. Draw is a cash advance that must be paid back as commissions are earned. Disadvantages: Salespeople will stress high-priced products. Customer service after the sale is likely to be neglected. Earnings tend to fluctuate widely between good and poor periods of business, an turnover of trained sales employees tends to increase in poor periods. Salespeople are tempted to grant price concessions. Combined Salary and Commission Plan A compensation plan that includes a straight salary and a commission component ("leverage"). Advantages: Combines the advantages of straight salary and straight commission forms of compensation. Offers greater design flexibility Can be used to develop the most favorable ratio of selling expense to sales. Motivates sales force to achieve specific company marketing objectives in addition to sales volume.
Forms of conflict
Task Conflict = occurs over tasks, ideas, and issues and is divorced from evaluations of people's character. Can be seen as good conflict May induce a healthy level of constructive criticism and more fact based discussion Usually leads to more effective decision making and problem solving Relationship Conflict = personalized and is therefore, highly threatening and damaging for personal relationships, team functioning, and problem solving.
ATJD:The Job Characteristics Model
The Job Characteristics Model Skill variety - extent to which the job requires an individual to perform a variety of tasks that require him/her to use different skills and abilities Task Identity - extent to which the job requires an individual to perform a whole or completely identifiable piece of work. High when a person works on a project from beginning to end. Task Significance - extent to which the job affects the lives of other people within or outside the organization Autonomy - extent to which the job enables a person to experience freedom, independence, and discretion in both scheduling and determining the procedures used in completing the job Feedback - extent to which an individual receives direct and clear information about how effectively he or she is performing the job. Can be used to increase job satisfaction Managers can enhance employees' intrinsic motivation Increases in quality of performance
Relationship Oriented Leader Behavior
purpose is to enhance employees' skills and to create a positive work relationships among co-workers and between the leader and his/her employees Consideration - involves leader behavior associated with creating mutual respect or trust and focuses on a concern for group members' needs and desires. Promotes social interactions and identification with the team and leader Empowerment - represents the extent to which a leader creates perceptions of psychological empowerment in others. Psychological empowerment - reflects employees' belief that they have control over their work and drive intrinsic motivation Lead for meaningfulness - inspiring employees and modeling desired behaviors Lead for self-determination of choice - delegating meaningful assignments Leading for competence - supporting and coaching employees Leading for progress - monitoring and rewarding Servant Leadership - focuses on increased service to others rather than to oneself Characteristics: Listening, empathy, healing, awareness, persuasion, conceptualization, foresight, stewardship, commitment to growth of people, building community
