OB Chapter 6

improving reward effectiveness

1. link rewards to performance 2. ensure rewards are valued 3. ensure rewards are relevant 4. use team rewards for interdependent jobs 5. ensure that rewards are valued 6. watch out for unintended consequences 7. administer rewards consistently!

golden handcuffs

discourage employees from quitting because of deferred bonuses or generous benefits that are not available elsewhere (may potentially weaken job performance)

job specialization

dividing the job into smaller, specialized parts- efficiency increases, spend less time changing activities because they have fewer tasks to juggle

scientific management

high level of job specification and standardization of tasks to achieve maximum efficiency. However, some say overly specialized, simplified jobs tend to be boring and lack motivational potential

job enlargement

job design practice that motivates. adding more jobs to an existing task

job enrichment

job design practice that motivates. giving employees more responsibility

empowerment

job design practice that motivates. giving employees more: self determination, meaning, competence, impact in the organization

Job rotation

job design practice that motivates. the practice of moving employees from one job to another

individual rewards

motivate individual behaviour and can create competition

team rewards

motivate team behaviour and can enhance cooperation

task performance based rewards

motivates high performance, creates an "ownership" culture, payment adjustments with firm's financial success. however, may distance reward giver from receiver, discourage creativity. examples- commissions, merit pay, profit sharing

competency based rewards

organizations that reward their employees for their competencies that lead to superior performance. this improves workforce flexibility and tends to improve quality. examples- skill based pay, and pay based on competency

Hygienes (extrinsic/dissatisfiers)

pay, working conditions, job security, relations with co-workers, supervision

motivators (intrinsic/satisfiers)

recognition, growth, nature of work, responsibility, achievement

employee share ownership plans

reward system that encourages employees to buy company shares

share options

reward system that gives employees the right to purchase company shares at a future date at a predetermined price

job evaluation

systematically rating the worth of jobs within an organization based on the required skill, effort, responsibility etc...

task significance

the degree to which a job has a substantial impact on the organization or society

task identity

the degree to which a job requires completion of a whole or an unidentifiable piece of work

increase performance and productivity

use performance based rewards

increase learning, knowledge, and skills

use skill based rewards

self leadership

the process of influencing oneself to establish the self direction and motivation needed to perform a task

motivator-hygiene theory

Herzberg's theory stating that employees are primarily motivated by growth and esteem needs, not by lower-level needs

profit sharing plans

a reward system that pays bonuses to employees on the basis of the previous year's level of corporate profits

job design

assigning tasks to a job

autonomy

the degree to which a job gives employees the freedom, independence, and discretion to schedule their work and to determine the procedures used in completing it

job feedback

the degree to which employees can tell how well they're doing on the basis of direct sensory information from the job itself

skill variety

the extent to which employees must use different skills and talents to perform tasks within their job

membership/seniority based rewards

this may attract applicants, minimize stress of insecurity, and reduces turnover. However, it doesn't directly motivate performance, and it may discourage poor performers from leaving. some examples are- fixed pay, paid time off, employee discounts

job status based rewards

tries to maintain internal equity, minimize pay discrimination, and motivates employees to compete for promotions. some disadvantages are it encourages a hierarchy, reinforces status differences, and motivates job competition. examples- promotion based pay increase, status bases benefits

increase employee responsibility and autonomy

use job enrichment and empowerment