Essentials of Organizational Behavior, 9/e

Stephen P. Robbins/Timothy A. Judge

Chapter 6

Motivation:
From Concepts to
Applications
6-1

After studying this chapter, you

should be able to:
1. Discuss the ways in which employees can be
motivated by changing the work environment
2. Explain why managers might want to use
employee involvement programs
3. Discuss how the different types of variable-pay
programs can increase employee motivation
4. Describe the link between skill-based pay plans
and motivation theories
5. Explain how employee recognition programs
affect motivation
6-2

The Job Characteristics Model

Proposes that any job can be described in
terms of five core job dimensions:

Skill variety
Task identity
Task significance
Autonomy
Feedback
6-3

The Job Characteristics Model

6-4

Motivating Potential Score (MPS)

MPS =

Skill variety + Task Identity + Task significance

3
x Autonomy
x Feedback

6-5

How can jobs be Redesigned?

Job Rotation or Cross-training the
periodic shifting of an employee from one
task to another
Job Enlargement increasing the number
and variety of tasks
Job Enrichment increasing the degree to
which the worker controls the planning,
execution and evaluation of the work
6-6

Guidelines for Enriching a Job

6-7

Alternate Work Arrangements

Flextime allows some discretion over
when worker starts and leaves
Job Sharing two or more individuals split
a traditional job
Telecommuting work remotely at least
two days per week

6-8

Employee Involvement
A participative process that uses the input
of employees to increase their commitment
to the organizations success

6-9

Employee Involvement Programs

Participative Management subordinates
share a significant degree of decisionmaking power with their immediate
superiors
Representative Participation workers are
represented by a small group of employees
who participate in decisions affecting
personnel
6-10

Rewarding Employees
Major strategic rewards decisions:

What to pay employees

How to pay individual employees
What benefits to offer
How to construct employee
recognition programs

6-11

What to pay
Need to establish a pay structure
Balance between:
Internal equity the worth of the job to the
organization
External equity the external competitiveness
of an organizations pay relative to pay
elsewhere in its industry

A strategic decision with trade-offs

6-12

How to pay: Variable-Pay

Programs
Bases a portion of the pay on some individual
and/or organizational measure of performance
Piece-Rate Pay workers are paid a fixed sum
for each unit of production completed
Merit-Based Pay pay is based on individual
performance appraisal ratings
Bonuses rewards employees for recent
performance
6-13

Variable Pay Programs (cont.)

Profit-Sharing Plans organization-wide
programs that distribute compensation based on
an established formula designed around
profitability
Gain Sharing compensation based on sharing
of gains from improved productivity
Employee Stock Ownership Plans (ESOPs)
plans in which employees acquire stock, often at
below-market prices
6-14

How to pay: Skill-Based Pay Plans

Pay is based on skills acquired instead of
job title or rank
Doesnt address the level of performance,
only ability to perform skill

6-15

Flexible Benefits
Allows each employee to put together a benefit
package tailored to their own needs and situation
Modular plans predesigned packages to meet
the needs of a specific group
Core-plus plans core of essential benefits and
menu of options to choose from
Flexible spending plans full choice from menu
of options
6-16

Employee Recognition Programs

Are in addition to extrinsic compensation
systems
Are intrinsic rewards
Can be as simple as a spontaneous comment
Can be formalized in a program

Recognition is the most powerful

workplace motivator
6-17

Implications for Managers

Recognize individual differences
Use goals and feedback
Allow employees to participate in decisions
that affect them
Link rewards to performance
Check the system for equity

6-18

Summary
1. Discussed the ways in which employees can be
motivated by changing the work environment
2. Explained why managers might want to use
employee involvement programs
3. Discussed how the different types of variable-pay
programs can increase employee motivation
4. Described the link between skill-based pay plans
and motivation theories
5. Explained how employee recognition programs
affect motivation
6-19