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A skills crisis: what skills?A skills crisis: what skills?

1. We have a high level of unemployment We have an ageing population We have a falling birth rate We have a ‘brain-drain’ Our competitors e.g. Australia seem to be

doing much better. Why would skilled immigrants want to come

here? Do we need them?

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 22

Attracting skilled migrantsAttracting skilled migrants

How as a nation are we seen? What do we offer have to offer? What could they bring (do we need them

anyway?) Do we make them welcome? What do we do in terms of immigration

policies to attract skilled immigrants?

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 33

The value of an international studentThe value of an international student

Comes from Asia for 3-4 years Flies here and back on Air New Zealand ($$$) Comes down to Hamilton by shuttle ($$$) Moves into a ‘home-stay’ – soon leaves to go into a flat in

Silverdale with other Asian students ($$$) Pays 3X fees of Kiwi student($$) Buys a car($$$) Buys petrol ($$$$$$$$$$$$$$$) Eats out at mostly Asian restaurant ($) Uses electricity, gas, phone, etc, etc, etc, ($$$$) The ‘multiplier’ effect How much does this student INVEST in Aotearoa New

Zealand? Many want to stay after graduation. What do they then face?

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 44

The $64,000 question: what do people want from The $64,000 question: what do people want from work work todaytoday??

No simple answer e.g. money

‘Contingent’ upon:

Age e.g. ‘older worker’ Circumstances e.g. current needs Values e.g. to do ‘good’ Social needs e.g. acceptance Cultural influences e.g. ‘golden generation’

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 55

Intrinsic or extrinsic rewards?

Recognition vs $$$$

Membership and seniority

Status

Opportunity to acquire skills

Growth and development

What types of rewards do What types of rewards do organisations offer?organisations offer?

© Corel Corp

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 66

Organisationalrewards

• Share ownership • Share options• Profit sharing

Teamrewards

• Gainsharing• Bonuses

Performance-based rewardsPerformance-based rewards

IndividualIndividualrewardsrewards

• Piece ratePiece rate• CommissionsCommissions• Royalties Royalties • Merit payMerit pay

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 77

Skill-based rewardsSkill-based rewards

Pay increases with skill or competencies acquired or demonstrated

Skill-based paypay increases with skill modules learned

Advantages more flexible work force, better quality, consistent with employability

Disadvantagespotentially subjective, higher training costs

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 88

So we want individuals to reach So we want individuals to reach ‘high’ levels of performance?‘high’ levels of performance?

What does performance depend on? How do we define and measure performance?

Performance is a function of Motivation x Ability x Opportunity

P = (f) M X A X O

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 99

Improving performance?Improving performance?

Performance is a {f} of Motivation x Ability x Opportunity

What do we mean by the performance of waiter or waitress?

What do we mean by a high performing retail sales assistant?

How can a geriatric nurse improve her or his performance?

Do organisations really want ‘high performance’ or ‘adequate performance’?

Do many jobs have within them the scope to ‘improve ‘ performance?

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Expectancy-theory; effort, performance Expectancy-theory; effort, performance and reward must be seen to be connectedand reward must be seen to be connected

Makes sense but . . we have to:

1. Identify and agree on what we mean by performance e.g. for a child-minder

2. Agree how we will assess individual performance

3. Agree on how we are going to reward individual performance

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 1111

Focus on rewardsFocus on rewards

Effort, performance and reward must be perceived to be linked

Ensure rewards must be relevant to the employee

Rewards must be valued by the individual

Rewards must be of sufficient magnitude to motivate

Use team rewards for interdependent jobs

Beware of unintended consequences e.g. Hovey & Beard case

© Corel Corp

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But …contradictions…we reward But …contradictions…we reward individualsindividuals while talking while talking teamsteams

Performance assessment invariably individually-based

On which individuals are rewarded But organisations stress team work!So why not more team-based rewards?Difficult to assess e.g. equityDifficult to administerCost

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 1313

Types of team and organisational Types of team and organisational rewardsrewards

Gainsharing plans based on cost reductions and increased labour

efficiency

Employee Share Ownership Programme e.g. The Warehouse employees own company shares

Share options e.g. senior management right to purchase company shares at a future

date at a predetermined price

Profit sharing e.g. Mainfreight employees receive share of profits

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Job re-design: can we ‘enrich’ make jobs Job re-design: can we ‘enrich’ make jobs to make them more interesting?to make them more interesting?

Assigning tasks to a job, including the interdependency of those tasks with other jobs

Technology has a great influence on the design of jobs (technological determinism)

Taylorist/Fordist design

Employability affects job design

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AdvantagesAdvantages DisadvantagesDisadvantages

Job specialisationJob specialisation

Basically greater efficiency

Less time changing tasks

Lower training costs

Job mastered quickly

Better person-job matching

Lower costs

Greater control over quality

Job boredom

Discontentment pay

Lower quality?

Lower motivation

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 1616

WorkWorkmotivationmotivation

GrowthGrowthsatisfactionsatisfaction

GeneralGeneralsatisfactionsatisfaction

WorkWorkeffectivenesseffectiveness

The Job characteristics model (Hackman & The Job characteristics model (Hackman & Lawler)Lawler)

FeedbackFeedbackfrom jobfrom job

KnowledgeKnowledgeof resultsof results

Skill varietySkill variety

Task identityTask identity

Task significanceTask significanceMeaningfulnessMeaningfulness

AutonomyAutonomy ResponsibilityResponsibility

IndividualIndividualdifferencesdifferences

CriticalCriticalpsychologicalpsychological

statesstatesCore jobCore job

characteristicscharacteristics OutcomesOutcomes

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 1717

Job enlargementJob enlargement

Job rotationJob rotation

Job 1Job 1Operate cameraOperate camera

Job 2Job 2Operate soundOperate sound

Job 3Job 3Report storyReport story

Job 1Job 1

Operate cameraOperate cameraOperate soundOperate sound

Report storyReport story

Job 2Job 2

Operate cameraOperate cameraOperate soundOperate sound

Report storyReport story

Job 3Job 3

Operate cameraOperate cameraOperate soundOperate sound

Report storyReport story

Job rotation vs job enlargementJob rotation vs job enlargement

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 1818

Job enrichment strategies – based on Job enrichment strategies – based on Lawler & Hackman and HerzbergLawler & Hackman and Herzberg

Empowering employees gives employees more autonomy feeling of control and self-efficacy actual control? over what?

Forming natural work units (autonomous work groups) completing an entire task assigning employees to specific

clients

Establishing client relationships employees put in direct contact

with clients limited by the nature of the

business e.g. production workers

© Marlborough Express (NZ)

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 1919

Major obstacles to job designMajor obstacles to job design

Difficult to accurately measure job characteristics

Cost effectiveness

Resistance to change skilled workers union supervisors

Problem finding optimal level of enrichment and specialisation

Maintaining ‘enrichment’

Concerns about the validity of the theoretical base

Over-taken by speed of technological change

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 2020

ConclusionConclusion

Has proved difficult to apply motivational theories in practice

Lots of failures e.g. Volvos JE programmes Selective use of profit sharing, P-f-P, skill-

based reward systems The question of size and resources How do NZ SME go about motivating and

rewarding their employees? ‘Family-feel’ ‘culture’ Informal