Lesson 3

Course : MGT2209 / MGT2210 / MGT3202 / MGT3218

Organisational Behaviour
Lecturer : Dr Tee Mcxin

Main Text for the Course:

Robbins, S. P. & Judge, T. A. (2019) Organizational Behavior (18th ed.). Pearson.
 ❑ Describe how the job characteristics model
motivates by changing the work
environment.
❑ Compare the main ways jobs can be
redesigned.
❑ Explain how specific alternative work
arrangements can motivate employees.
❑ Describe how employee involvement
measures can motivate employees.
❑ Demonstrate how the different types of
variable-pay programs can increase
employee motivation.
❑ Show how flexible benefits turn benefits
into motivators.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
 Motivation
▪ the processes that account for an
individual’s intensity, direction,
and persistence of effort toward
3 KEYS attaining a goal.

ELEMENTS ▪ The three key elements of motivation

are:
OF 1. Intensity: concerned with how
hard a person tries.
MOTIVATION 2. Direction: the orientation that
benefits the organization.
3. Persistence: a measure of how
long a person can maintain
his/her effort.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
▪ Job design
▪ The way the elements in a job are
organised.

▪ Job Characteristics Model (JCM)

▪ A model proposing that any job can be
described in terms of five core job
dimensions: skill variety, task identity, task
significance, autonomy and feedback.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
 1. Skill variety: degree to which a job
requires a variety of different activities.
2. Task identity: degree to which the job
requires completion of a whole and
identifiable piece of work.
MOTIVATING BY 3. Task significance: degree to which the
JOB DESIGN: job has a substantial impact on the lives
or work of other people.

THE JOB 4. Autonomy: degree to which the job

provides substantial freedom,
independence, and discretion to the
CHARACTERISTICS individual in scheduling the work and
determining the procedures to be used
MODEL in carrying it out.
5. Feedback: degree to which carrying
out the work activities required by the
job results in the individual obtaining
direct and clear information about the
effectiveness of his or her performance.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
 Job
Enlargement

Job
Design

Job Job
Enrichment Rotation
 Job Job Job
Rotation Enrichment Enlargement
The periodic shifting of Adding high-level Combining a series of
an employee from one responsibilities to a job tasks into one
task to another. to increase intrinsic challenging and
motivation. interesting assignment.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
 Job enrichment
• By adding responsibilities to the job positions.
• Vertical expansion.
• E.g. entire responsibilities from researching, producing, marketing, until
selling process.

Job enlargement
• Horizontal expansion.
• tasks related to a single job are increased.
• E.g. in production process, workers can assemble a whole machine instead
of just adding a single part.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
 ▪ Relational Job Design:
▪ Constructing jobs so employees
see the positive difference they
can make in the lives of others
directly through their work.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
 Flextime Job sharing Telecommuting
Flexible work hours. An arrangement that allows Working from home at least
two or more individuals to 2 days a week through
split a traditional 40-hour-a- virtual devices that are
week job. linked to the employer’s
office.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
 Employee Involvement: a participative
process that uses employees’ input to
increase their commitment to the
organization’s success.

▪ Examples of Employee Involvement

Programs
▪ Participative management: A process
in which subordinates share a significant
degree of decision-making power with
their immediate superior.

▪ Representative participation: A system

in which workers participate in
organizational decision making through
a small group of representative
employees.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
 ▪ What to Pay: Establishing a Pay
Structure
▪ Complex process that entails
balancing:
▪ internal equity (the worth of the job
to the organization, through job
evaluation), and
▪ external equity (competitiveness of
an organization’s pay relative to pay in
this industry, through pay surveys).
▪ Some organizations prefer to pay above
the market.
▪ Paying more may get better-qualified
and more highly motivated employees
who may stay with the firm longer.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
 ▪ How to Pay: Rewarding Individual
Employees through Variable-Pay
Programs
▪ Variable-pay program: A pay plan that
bases a portion or all of an employee’s
pay on some individual and/or
organizational measure of performance.
1. Piece-rate plans
2. Merit-based pay
3. Bonuses
4. Profit sharing
5. Employee stock ownership
plans
▪ Earnings therefore fluctuate up and
down.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
 ▪ Piece-Rate Pay Plan: A pay plan in which
workers are paid a fixed sum for each unit of
production completed.

▪ A pure piece-rate plan provides no base salary

and pays the employee only for what he or she
produces.
▪ Limitation: not a feasible approach for many jobs.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
 ▪ Merit-Based Pay Plan: A pay plan
based on performance appraisal ratings.

▪ Allows employers to differentiate pay based

on performance.
▪ Creates perceptions of relationships
between performance and rewards.
▪ Limitations:
▪ Based on annual performance appraisals.
▪ Merit pool fluctuates.
▪ Union resistance.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
 ▪ Bonuses: A pay plan that rewards
employees for recent performance
rather than historical performance.

▪ Increasingly include lower-ranking

employees.
▪ Many companies now routinely
reward production employees with
bonuses when profits improve.
▪ Downside: employees’ pay is more
vulnerable to cuts.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
 ▪ Profit-Sharing Plans: Organization-wide
programs that distribute compensation
based on some established formula
designed around a company’s profitability.

▪ Appear to have positive effects on employee

attitudes at the organizational level.
▪ Employees have a feeling of psychological
ownership.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
 ▪ Employee Stock Ownership Plan (ESOP): A
company-established benefits plan in which
employees acquire stock, often at below-
market prices, as part of their benefits.

▪ Increases employee satisfaction and innovation.

▪ Employees need to psychologically experience
ownership.
▪ Can reduce unethical behavior.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
▪ Flexible benefits: A benefits
plan that allows each employee
to put together a benefits
package tailored to his or her
own needs and situation.

▪ individualize rewards.
➢ Today, almost all major
corporations in the United
States offer flexible
benefits.
➢ However, it may be
surprising that their usage
is not yet global.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
 ▪ Employee Recognition
Programs: A plan to encourage
specific employee behaviors by
formally appreciating specific
employee contributions.

▪ Organizations are increasingly

recognizing that important work
rewards can be both intrinsic and
extrinsic.
▪ E.g. Employee of the Month; Praise.

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Main Text: Robbins, S.P. & Judge, T.A (2019), Organizational Behavior, 18th Edition, Pearson International Education
 THE END OF
LESSON 3.

Main Text for the Course: 22

Robbins, S. P. & Judge, T. A. (2019) Organizational Behavior (18th ed.). Pearson.