Human Resources 3100 Midterm 1

Strategic Planning

- A road map or guide by which an organization moves from a current state of affairs to a future desired state. - Not just administrative, supports org strategy. - Strategic planning critical to organization's success - Evidence Based HR: Collecting and using data to show that HR practices have a positive influence on the company's profits or stakeholders

Hard Skills vs Soft Skills

- Hard skills are the technical expertise and knowledge required to do a particular task or job function, while soft skills relate to human interactions and include both interpersonal skills and personal attributes - Hard skills may get you the interview, but soft skills get you the job

Emotions in the Workplace

- Relatively brief responses aimed at a specific target, such as a person, information, experience, or event. Emotions can change our psychological and physiological states. - Positive or Negative (e.g., happy or sad) - Past vs. Future (e.g., anger about past, fear about future) - Felt versus displayed emotions

Proactive Personality

- Someone who is relatively unconstrained by situational forces and who affects environmental change. - People high in proactive personality tend to: identify opportunities, show initiative, take action, and persevere until meaningful change occurs - Proactivity is highly valued to employers

Rewards on Your Motivation

-Extrinsic rewards are temporary -Extrinsic rewards assume people are driven by lower needs -Extrinsic rewards does not necessarily undermine intrinsic motivation!

Five models of job satisfaction

-Need fulfillment -Met expectations -Value attainment -Equity -Dispositional/ genetic components

Key Workplace Attitudes

-Organizational Commitment -Perceived Organizational Support -Employee Engagement -Job Satisfaction

Expectancy Theory

-People do things that lead to desired outcomes. -Three linkages must be present for motivation to occur. Individuals must feel that each path is satisfied: o Path 1: Can I achieve my desired level of performance? (expectancy). o Path 2: What intrinsic and extrinsic rewards will I receive if I achieve my desired level of performance? (instrumentality). o Path 3: How much do I value the rewards I receive? (valence).

Three Components of Attitudes

1. Affective — Feelings 2. Cognitive — Beliefs 3. Behavioral — Intentions All three components of attitudes influence behavior

We can seek to reduce cognitive dissonance by:

1. Changing the attitude or behavior or both. 2. Belittling the importance of the inconsistent behavior. 3. Finding things that outweigh the dissonant things.

Schwartz's Value Theory

2 Dimensions of Values: First bipolar dimension - Self transcendence and Self enhancement Second bipolar dimension - Openness to Change and Conservation • Values are motivational & Represent broad goals over time • Bipolar values are incongruent while • Adjacent values are complementary

Self-Efficacy- "I can do that"

A belief about your chances of successfully accomplishing a specific task. - It is only the "belief" that one can perform well, regardless of actual ability - High self-efficacy leads to higher performance - Implication: Try to increase your own self-efficacy, and increase the self-efficacy of your employees

Core self-evaluations (CSE)

A broad personality trait comprised of four narrow and positive individual traits. It is about individuals' fundamental evaluations of themselves.

Self-Esteem

A general belief about your self-worth. People with high self-esteem see themselves as worthwhile, capable, and accepted

Affect

A generic term that encompasses both moods and emotions.

Motivating Employees: Job Design

Altering jobs to improve the quality of employee job experience and level productivity

Job Satisfaction

An affective or emotional response towards various facets of a job.

What Is OB/HR

Attempts to overcome the pitfalls of relying on common sense by relying on a systematic science-based approach Based on a contingency perspective

Outcomes Linked with Job Satisfaction

Attitudes: -Motivation -Job Involvement -Withdrawal Cognitions -Perceived Stress Behaviors: -Job Performance -Organizational Citizenship Behavior (OCB) -Counterproductive Work Behavior (CWB) -Turnover

How OB/HR Is Related to Strategy?

Company Strategy <-> HR Strategy <-> Employees

The Human Relations Movement

Consideration of the people! • In 1935, there was the first legalization of union- management collective bargaining in the United States. • More attention was paid to the "human factor."

Job Satisfaction & CWB

Counterproductive work behavior (CWB) are behaviors that harm other employees, the organization as a whole, or organizational stakeholders such as customers and shareholders.

Competitive Advantage

Creating more economic value than rival firms (where economic value is the difference between the perceived benefits gained and the costs).

Bob has a goal to work hard and eventually apply for a promotion at the Great Grain Company. Bob is most likely to exhibit positive emotions if: A. the emotions are congruent with his goal. B. he has emotional intelligence. C. the emotions are incongruent with his goal. D. he feels inadequate. E. he had a bad experience being promoted at his former company.

EXAMPLE EXAM QUESTION Answer: A

Values represent beliefs that influence behaviors _____________; attitudes relate to behavior __________. A. across all situations; toward specific targets B. toward specific targets; across all situations C. across all situations; toward people D. toward specific objects; toward specific people E. toward specific people; toward specific objects

EXAMPLE EXAM QUESTION Answer: A

George does not score particularly well on standard IQ tests yet he has a unique ability to deal with complex interpersonal situations. What would explain this phenomenon? A. practical intelligence B. multiple intelligences C. reasoning ability D. emotions and attitude E. gender

EXAMPLE EXAM QUESTION Answer: B

Kyle is considering volunteering to help his company with its annual food drive. Which of the following is NOT an indicator of whether he will do so? A. Kyle thinks the food bank is a great way to help his community. B. Kyle is already volunteering at the animal shelter. C. Kyle's boss expects him to volunteer. D. Kyle's company gives employees a day off to volunteer. E. The food bank is located close to Kyle's home.

EXAMPLE EXAM QUESTION Answer: B

Jorge would like to increase intrinsic motivation by giving his employees independence and discretion in certain aspects of their job. According to the job characteristics model, which core job dimension is he using? A. task identity B. task significance C. autonomy D. feedback E. skill variety

EXAMPLE EXAM QUESTION Answer: C

Martha would like to hire employees who will be strong performers in her organization. Which of the Big Five personality dimensions should she try to make sure the new employees score high on? A. extraversion B. agreeableness C. conscientiousness D. emotional stability E. openness to experience

EXAMPLE EXAM QUESTION Answer: C

Which approach calls for using management concepts and techniques in a situationally appropriate manner? A. One best way approach B. Human relations approach C. Theory X management approach D. Contingency approach E. Theory Y management approach

EXAMPLE EXAM QUESTION Answer: D

The organizing framework for understanding and applying OB is based upon A. a systems approach. B. using person and environmental factors as inputs. C. processes including individual level, group/team level, and organizational level. D. outcomes organized into individual level, group/team level, and organizational level. E. The framework is based on all of these.

EXAMPLE EXAM QUESTION Answer: E

For each of the following actions, indicate which part of the expectancy model, specifically, would be improved for an unmotivated employee? A. Effort to Performance (Expectancy) B. Performance to Outcome (Instrumentality) C. Value of rewards (Valence) 1.Show direct link between performance and raises. 2.Set clear goals, establish positive expectations. 3.Base rewards on what the employee values. 4.Provide adequate resources and training.

EXAMPLE EXAM QUESTION Answers: B, A, C, A

True or False? • The more difficult the goal, the higher performance will be. • "Do your best" goals maximize performance. • Feedback enhances the effect of specific, challenging goals.

EXAMPLE EXAM QUESTION Answers: F, F, T

Matt, an accountant with Brighter Future Corporation, is experiencing job dissatisfaction due to comparing how hard he works and how much he gets paid versus his perception of a coworker's effort and reward. Matt's dissatisfaction can be explained by ______ model. A. disposition/genetic components B. equity C. need fulfillment D. value attainment E. met expectations

EXAMPLE EXAM QUESTION Answer: B

Juan is trying to learn how to use advanced spreadsheet features. He is not getting the correct answers but he keeps trying. What is Juan exhibiting? A. direction B. extrinsic motivation C. persistence D. attention to detail E. emotional Intelligence

EXAMPLE EXAM QUESTION Answer: C

Inez was content with her job at Pieces Packaging until the company added two levels of supervision, lowered bonuses, and decreased breaks. Her current dissatisfaction reflects ______ factors. A. Relatedness B. Motivating C. Hygiene D. Achievement E. Affiliation

EXAMPLE EXAM QUESTION Answer: C (Related to dissatisfaction)

As discussed in class, the performance equation tells us that performance is a function of ________. A. enthusiasm, progress, and achievement. B. interest, activity, and reward. C. awareness, effort, and outcome. D. motivation, ability, and opportunity. E. knowledge, resources, and goals.

EXAMPLE EXAM QUESTION Answer: D

Jo e was terminated from his job and believed the reason was his boss did not like him and his hard work was not appreciated. Joe likely has A. high emotional stability. B. an internal locus of control. C. low self-efficacy. D. an external locus of control. E. low self-esteem.

EXAMPLE EXAM QUESTION Answer: D

Mary is a manager for Greens and Grits. Mary would like to improve job satisfaction for her employees. She can accomplish this by implementing different policies dealing with _________ A. personality. B. intelligence. C. cognitive ability. D. emotions and attitudes. E. all of the above.

EXAMPLE EXAM QUESTION Answer: D

Myth of Rationality

Emotions were for many years seen as the antithesis of rationality and were consequently viewed as ineffective in the workplace

Individual Differences Part 2

Fixed vs. Flexible Individual Differences - Fixed: stable over time and across situations; difficult to change - Flexible: change over time from situation to situation; can be altered more easily Why Do We Care? • Effective managers and employees must understand and utilize the many individual differences possessed by those with whom we work - Can select employees based on certain fixed traits - Can help to manage more flexible traits to increase work performance

Job Characteristics Model

Focuses on design of job having implications for improved satisfaction, motivation and performance and reduced absenteeism, turnover, etc. Job Characteristics Model (JCM): promote intrinsic motivation by designing jobs that possess five core job characteristics • Skill variety : individual gets to work on variety of tasks that require him/her to use different skills/abilities • Task identity: people have strong identifiability of work (e.g., gets to follow project from beginning to end) • Task significance: individuals see impact of their work on others • Autonomy: individual has freedom and independence • Feedback from job: individual receives clear and direct information about how effectively their performing

OCBs Linked to Many Benefits

For the Individual: Improved job satisfaction Improved performance ratings Reduced intention to quit Lower absenteeism Lower turnover For the Organization: Higher productivity/efficiency Lower costs Improved customer satisfaction Higher unit-level satisfaction Lower turnover

Goal-Setting Theory

Goal: Something an individual is trying to accomplish • Goals that are specific and difficult lead to higher performance than vague or easy goals • As long as... Individual is committed to goal, Goal is attainable (not impossible), and Feedback is available during goal pursuit

Individual Differences

Important Individual Differences - Relatively fixed: • Intelligence • Ability • Personality • Core self evaluation Self esteem Self efficacy Locus of control Emotional stability • Attitudes • Emotions Individual-Level Work Outcomes - • Job performance • Job satisfaction • Turnover • Organization citizenship behavior (OCB) • Counterproductive work behavior (CWB)

Benefits of Employee Engagement

Increases in employee engagement has been linked to: Increased customer loyalty and satisfaction Increased employee performance Increased employee well-being Greater financial performance

Organizational Commitment Part 2

Increasing Employee Commitment • Hire those whose personal values most align with those of the organization. • Guard against managerial breaches of psychological contracts. • Build the level of trust.

Strategic Priorities Examples

Innovation: 3M, Tesla, Intel Brand: P&G, Chanel Price: Walmart, IKEA, Frontier Design: Apple, B&O Quality of product/services: Whole Foods, Amazon

Individual Differences and Emotions

Inputs <=> Processes <=> Outcomes

Values and Attitudes

Inputs <=> Processes <=> Outcomes

Why Study Individual Differences?

Intelligence and Personality

Emotions

Intense feelings that are directed at someone or something

Perceived Organizational Support

It is the extent to which employees believe that the organization • Values their contributions • Genuinely cares about their well-being

Implication of Theory of Planned Behavior

Leaders can influence employees to change their behaviors by: • Influencing them to change their intentions, by: • Influencing the three factors that lead to intentions Attitude Subjective norm Perceived behavioral control

Perceived Organizational Support Part 2

Leads to: • Increased organizational commitment • Job satisfaction • Organizational citizenship behavior • Task performance • Lower turnover

Moods

Less intense feelings that lack a specific contextual stimulus.

Multiple Intelligences (MI)

Linguistic Logical-Mathematical Musical Bodily-Kinesthetic Spatial Interpersonal Intrapersonal Naturalist

Engagement ≠ Satisfaction

Low Engagement High Satisfaction LOSE - WIN High Engagement High Satisfaction WIN - WIN Low Engagement Low Satisfaction LOSE - LOSE High Engagement Low Satisfaction WIN - LOSE

McGregor's Theory X and Theory Y

Managers could view employees in one of two ways: • Theory X Pessimistic view of employees: they dislike work, must be monitored, and can be motivated only with rewards and punishment. • Theory Y Positive assumptions about employees: they are self-engaged, committed, responsible, and creative - Work is seen as a natural activity, like play or rest - Given objectives, people can be very self-directed - People become committed to objectives with some reward - Most people are ambitious and can accept (and seek out) responsibility

Using Self-Determination Theory

Managers should influence behavior by creating work environments that support each need. • Provide tangible resources, time, contacts, and coaching to improve competence. • Empower employees and delegate meaningful assignments and tasks to enhance feelings of autonomy. • Use fun and camaraderie to foster relatedness.

Intrinsic motivation

Motivation to do something for intrinsic rewards that come from doing the thing itself (e.g., enjoying the task itself)

Extrinsic motivation

Motivation to do something in order to receive extrinsic rewards (e.g., money, recognition, status, promotion, etc.)

McClelland's Acquired Needs Theory

Need for Achievement - The desire to excel, overcome obstacles, solve problems, and rival and surpass others. Need for Affiliation - The desire to maintain social relationships, be liked, and join groups. Need for Power - The desire to influence, coach, teach, or encourage others to achieve.

The "Big 5" Model of Personality

Openness to Experience Conscientiousness Extraversion Agreeableness Neuroticism (aka Emotional Stability)

Job Satisfaction & OCB

Organizational citizenship behavior (OCB) Represents discretionary individual behaviors that are: Typically not directly or explicitly recognized by the formal reward system And can, in the aggregate, promote effective functioning of the organization

Positive Inequity

Over rewarded

Emotional Stability

People HIGH in emotional stability tend to be: Relaxed Secure Unworried Less likely to experience negative emotions under pressure Higher job performance More organizational citizenship behaviors Few counter-productive work behaviors

Equity Theory

Perceived equity in the organization impacts employee motivation • Outputs: What one gets from the job (e.g., compensation, promotions) • Inputs: What one puts into the job (e.g., time, effort, knowledge, skills) • Compare Outputs/Inputs Ratio with those of relevant others (can be equitable or inequitable) -Perceived equity → increased motivation and satisfaction -Perceived negative inequity → decreased motivation and satisfaction Focuses on perceived fairness, justice in social exchanges

Why Motivation Matters

Performance equation: P = M x A x O P = Performance M = Motivation: Do you want to? A = Ability: Are you able to? O = Opportunity: Does the situation allow you to?

Some Factors That Influence Emotions

Personality Time of day Time of week • Positive emotions tend to be higher towards end of week; negative emotions in the beginning. Stress Social activities Sleep • Insufficient sleep increases negative emotions Exercise

Herzberg's Motivator-Hygiene Theory

Proposes that job satisfaction and dissatisfaction arise from two different sets of factors- satisfaction comes from motivating factors, and dissatisfaction from hygiene factors • Hygiene factors → Job dissatisfaction - Factors in the work context (company policies, salary, working conditions, etc.) - Good hygiene factors → neutral. Poor hygiene factors > dissatisfaction • Motivating factors → Job satisfaction - Factors associated with work content of the tasks being performed (achievement, recognition, characteristics of the tasks, responsibility, advancement, etc.) - Motivators → satisfaction. No motivators → neutral

Job Satisfaction & Job Performance

Research tells us that job satisfaction and performance: Are moderately related Indirectly influence each other Better to consider the relationship at the business unit level versus at the individual level

4 components of core self-evaluations (CSE):

Self-Efficacy Self-Esteem Locus of Control Emotional Stability

Goals should be SMART

Specific Measurable Attainable Relevant Time-based

What Is Strategy?

Strategy is a set of integrated activities to create a sustainable competitive advantage.

A Shorter Walk to Work

Telecommuting allows employees to do all or some of their work from home • Reason? The need for flexibility • Enhances productivity and retention • Decreases absenteeism

Personality

The combination of stable, physical, behavioral, and mental characteristics that give individuals their unique identity -Describes a person's psychological system -How an individual acts, interacts, and reacts to others

Emotional Labor

The effort required to display emotions that one is not really feeling (EX: call center reps try to be happy on the phone despite getting angry calls all day or Nurses )

Organizational Commitment

The extent to which an employee identifies with an organization and is committed to its goals. And it leads to • Greater employee retention • Greater motivation in pursuit of organizational goals

What Is Employee Engagement?

The extent to which employees give it their all to their work roles. And includes the feeling of • Urgency • Being Focused • Intensity • Enthusiasm

Justice Theory

The extent to which people perceive they are treated fairly at work influences their behaviors and attitudes Distributive Justice: The perceived fairness of how resources and rewards are distributed (decision/outcome itself). Procedural Justice: The perceived fairness of the processes and procedures used to make allocation decisions. Interactional Justice: Quality of the interpersonal treatment people receive when procedures are implemented. • All three types of justice impact employees' satisfaction, commitment, turnover, stress, and performance.

Emotional Contagion

The influence of one person's affect on the moods of others. - It happens quickly and typically without your immediate awareness. - The closer your relationship, the more likely you are to "catch" emotions. - Extraverts tend to "project" emotions more powerfully; introverts tend to be more susceptible to the emotions of others.

Management

The process of working with and through others to achieve organizational objectives efficiently and ethically

Organizational Behavior (OB)

The study of the actions and attitudes that people exhibit in organizations. - Multiple levels—individual, group/team, organization - Varying "depth"—behaviors, attitudes, values - All different kinds of organizations

Human Resource Management (HRM)

The study of the policies, practices, and systems that influence employees' behavior, attitudes, and performance. - Economist perspective: Employees = Expense - HRM perspective: Employees = Value

Self-Determination Theory

Three innate needs drive intrinsic motivation: • Need for Competence o The desire to feel qualified, knowledgeable, and capable to complete a task or goal • Need for Autonomy o The desire to have freedom and discretion in determining what you want to do and how you want to do it • Need for Relatedness o The desire to feel part of a group, to belong, and to be connected with others. People are intrinsically motivated to satisfy these needs. - People are intrinsically motivated to satisfy these needs.

How can managers increase employee engagement?

Timely feedback and being charismatic

Using Maslow's Theory

To motivate employees: • Remember employees have needs beyond a paycheck. • Focus on satisfying employee needs related to self-concepts. • Self-esteem • Self-actualization • Satisfied needs lose their potential. • Be careful when estimating employee's needs.

Job Satisfaction & Turnover

Turnover is harmful when high-performing employees voluntarily leave the organization. To reduce voluntary turnover: ― Hire people who "fit" with the organization's culture. ― Spend time fostering employee engagement. ― Provide effective onboarding. ― Recognize and reward high-performing employees.

Negative Inequity

Under rewarded

Locus of Control

Who's responsible- me or external factors?" How much personal responsibility you take for your behavior and consequences.

What is Motivation?

Why we do the things we do? "Psychological processes that underlie the direction, intensity, and persistence of behavior or thought." -Direction: where efforts are channeled or what the individual is doing -Intensity: how hard a person tries or the amount of effort invested in the activity -Persistence: how long the effort is maintained

Expectancy, Instrumentality, Valence

Will more effort lead to better performance? Will better performance lead to the outcomes I want? How much do I value the final outcomes? (Motivation is highest when expectancy, instrumentality, and valence are all high)

Implication of Schwartz's Value Theory

Workplace Application • Managers can better manage their employees when they understand an employees' values and motivation • Pursuit of incongruent goals may lead to conflicting employee actions and behaviors Personal Application • Employees will derive more meaning from work by pursuing goals that are consistent with their values

Bottom-Up Approach

You design your own job! Examples: • Job crafting: employees' attempts to proactively shape their work characteristics • Task boundaries: Scope, number and types of tasks • Relational nature: Quality and amount of interaction with others • Cognitive crafting: Perception of or thinking about tasks and relationships in job

Practical Intelligence

ability to solve everyday problems by utilizing knowledge gained from experience in order to purposefully adapt to, shape, and select environments Involves: • Changing oneself to the environment (adaptation) • Changing the environment to suit oneself (shaping) • Finding a new environment with which to work (selection)

Values

abstract ideals that guide our thinking and behavior across all situations - Generally remain stable across time - Global, not specific to context A match between an individual's values, and his/her environment and behavior, leads to positive attitudes and motivation

Intelligence

an individual's capacity for constructive thinking, reasoning, and problem solving • IQ tests were more common in the past • IQ is mostly fixed • Intelligence is not just about IQ: Intelligence is broad and includes many types of general mental abilities or cognitive abilities

Process theories

focus on explaining the process by which internal factors and situational factors influence employee motivation

Content theories

focus on identifying internal factors, such as need fulfillment, that influence employee motivation

Human Resource Planning

identifying the numbers and types of employees the organization will require to meet its objectives.

Extraversion

is associated with success for managers and salespeople, but smaller effect than conscientiousness.

Conscientiousness

is consistently and positively associated with job performance (strongest predictor of the Big 5).

Attitudes

our feelings or opinions about specific people, places, or objects; range from positive to negative. Attitudes are directed to specific "targets," and influence specific behaviors relevant to the target

Cognitive Dissonance

the psychological discomfort experienced when simultaneously holding two or more conflicting cognitions (ideas, beliefs, values, emotions)

How can managers foster positive Perceived Organizational Support?

treat employees fairly, avoid political behavior, provide job security, empower employees, reduce stressors in the work environment, eliminate abusive supervision and fulfill the psychological contract

Contingency Approach

• "Situational approach" • No one best way to manage people, teams, or organizations • The best course of action often will depend upon the interplay of multiple personal and situational factors.

Negative inequity could cause you to:

• Ask for raise (for more output) • Reduce your input • Somehow get Michelangelo's inputs raised • (Somehow!) get Michelangelo's outputs reduced • Voice your dissatisfaction to manager • Leave organization

Why Are There Many Theories of Motivation?

• Behavior is complex. Different people are motivated in different ways. • The same person is motivated in different ways within a given week, day, hour... sometimes even minute • Motivation is a "multi-faceted construct"...it's complex! • That complexity presents a challenge not only for organizations but also for managers (you!). • The theories we'll talk about can be applied to many work situations and settings. • An understanding of these theories can help us not only manage our own motivation and engagement, but that of others as well! - It's worth your time to understand motivation before acting/reacting!

Equity Theory Implications

• Can explain employee motivation in many situations • Perceived equity matters more than actual equity. Help others perceive equity accurately • Treat everyone in an equitable manner • When inequity exists, work to reduce and eliminate it

Total Quality Management

• Do it right the first time and eliminate costly rework • Listen to, and learn from, customers and employees • Make continuous improvement an ongoing focus • Build teamwork, trust, and mutual respect Limitations of Total Quality Management (TQM): • Requires long term commitment in order to achieve results • Expensive to implement

Organizations have two objectives:

• Economic - produce product (cost, profit, efficiency) • Human relations - creating / distributing satisfaction (labor turnover, tenure, sickness, accident rate, wages, employee attitudes)

Maslow's Need Hierarchy Theory

• Five needs are met sequentially • Once a need has been satisfied, it activates the next higher need in the hierarchy, one step at a time. Self-Actualization Needs Esteem Needs Social/"Love" Needs Safety Needs Physiological Needs

Goal-Setting Theory

• Goals should be difficult and ambitious but achievable • As much as possible, try to quantify goals and use the SMART acronym • Provide regular feedback ("constructive" and positive) • Use whatever type of goal setting (participative, assigned, or self-set) seems appropriate • Follow up on goals, actions and outcomes regularly (e.g., quarterly) • Treat employees equitably depending on goal attainment

Justice Theory - Examples

• High distributive justice but low procedural justice: Robin Hood steals (low) from the rich and gives to the poor (high) • High procedural justice but low distributive justice: You get fired. You think this outcome is unfair(low); but your company followed the established policies (high) in making the decision

Top - Down Approach

• Management designs your job! Examples: • Scientific management • Job rotation: moving employees from one specialized job to another • Job enrichment: modifying a job such that an employee has the opportunity to experience greater achievement, recognition, and stimulating work

If managers adopt the Theory Y view of employees:

• Managers are then more likely to treat employees in ways that lead to increased intrinsic motivation, engagement, and performance • Employee behavior tends to become consistent with how they are viewed by the manager

Expectancy Theory Implications

• Maximizing Expectancies (effort -> performance) o Create situation where increased effort leads to increased performance o Clearly define tasks, accountabilities, and expectations o Provide clear training and instruction • Maximizing Instrumentalities (performance -> rewards) o Accurately measure performance o Have well-designed, fair reward systems o Provide the rewards that employees desire • Maximizing Valences (rewards -> goals) o Understand what employees value o Think beyond monetary; recognize individual differences

What Contributes to Employee Engagement?

• Personal Factors • Personality • Situation Factors • Performance feedback • Leadership

Idiosyncratic Deals Approach

• The employment deals individuals negotiate for themselves, taking myriad forms from flexible schedules to career development • Drives employee intrinsic motivation

External locus of control

•Outcomes are attributed to external factors (e.g., good/bad luck, other people, economy) •Belief that one has little control over future outcomes •"Things happen to me"

Internal locus of control

•Past outcomes are attributed to internal factors (e.g., effort, talent) •Belief that one has high control over future outcomes •"I make things happen"