motivation : from concepts to applications

Copyright © 2015 Pearson Education, Inc.

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Chapter 8: Motivation: From Concepts to Applications

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Learning ObjectivesAfter studying this chapter, you should be able to:Describe the job characteristics model and the way it

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.Identify the motivational benefits of intrinsic rewards.

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LO 1

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Describe the Job Characteristics Model and the Way It Motivates by

Changing the Work Environment


Describe the Job Characteristics Model and the Way It Motivates by

Changing the Work Environment

The core dimensions of the job characteristics model (JCM) can be combined into a single predictive index called the motivating potential score (MPS).

Evidence supports the JCM concept that the presence of a set of job characteristics does generate higher and more satisfying job performance.

A few studies have tested the JCM in different cultures, but the results aren’t very consistent.

LO 1

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Compare the Main Ways Jobs Can Be Redesigned

Repetitive jobs provide little variety, autonomy, or motivation.

Job Rotation Referred to as cross-training. Periodic shifting from one task to another. Strengths: reduces boredom, increases motivation,

and helps employees better understand their work contributions.

Weaknesses: creates disruptions, requires extra time for supervisors addressing questions and training time, and reduced efficiencies.

LO 2

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LO 2

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Relational Job Design To make jobs more prosocially motivating:

Connect employees with the beneficiaries of their work.Relate stories from customers who have found the

company’s products or services to be helpful.Meet beneficiaries firsthand.

Employees see that their actions affect a real person, and that their jobs have tangible consequences.

Connections make customers or clients more accessible in memory and more emotionally vivid.

Leads employees to consider the effects of their actions more.

Fosters higher levels of commitment.

LO 2

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Explain How Specific Alternative Work Arrangements Can Motivate Employees

LO 3

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Job Sharing Two or more people split a 40-hour-a-week job.

Declining in use.Can be difficult to find compatible pairs of

employees who can successfully coordinate the intricacies of one job.

Increases flexibility and can increase motivation and satisfaction when a 40-hour-a-week job is just not practical.

LO 3

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Telecommuting Employees who do their work at home at least

two days a week on a computer that is linked to their office. Virtual officeWell-known organizations actively

encourage telecommuting

LO 3

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Telecommuting Advantages Larger labor pool Higher productivity Less turnover Improved morale Reduced office-space costs

LO 3

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Telecommuting Disadvantages Employer

Less direct supervision of employees.Difficult to coordinate teamwork.Difficult to evaluate non-quantitative

performance. Employee

May not be noticed for his or her efforts.

LO 3

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The Social and Physical Context Of Work The job characteristics model shows most

employees are more motivated and satisfied when their intrinsic work tasks are engaging.

Research demonstrates that social aspects and work context are as important as other job design features.

LO 3

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Describe How Employee Involvement Measures Can Motivate Employees

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 Representative participation

LO 4

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Participative management Joint decision making. Acts as a panacea for poor morale and low

productivity. Trust and confidence in leaders is essential. Studies of the participation-performance have

yielded mixed results.

LO 4

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Representative participation Workers are represented by a small group of

employees who actually participate in decision making. Almost every country in Western Europe

requires representative participation.The two most common forms:

Works councils Board representatives

LO 4

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Linking Employee Involvement Programs and Motivation Theories Theory Y is consistent with participative management. Theory X aligns with autocratic style. Two-factor theory aligns with employee involvement

programs in providing intrinsic motivation. Extensive employee involvement programs clearly

have the potential to increase employee intrinsic motivation in work tasks.

LO 4

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Demonstrate How the Different Types of Variable-Pay Programs Can

Increase Employee MotivationWhat to Pay: Establishing a Pay Structure

Complex process that entails balancing internal equity and external equity.

Some organizations prefer to pay leaders by paying above market.

Paying more may net better-qualified and more highly motivated employees who may stay with the firm longer.

LO 5

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How to Pay: Rewarding Individual Employees Through Variable-Pay Programs Many organizations are moving away from paying solely on

credentials or length of service. Piece-rate plansMerit-based payBonusesProfit sharingGain sharingEmployee stock ownership plans

Earnings therefore fluctuate up and down.

LO 5

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Increase Employee Motivation


Piece-Rate Pay 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.Although incentives are motivating and relevant

for some jobs, it is unrealistic to think they can constitute the only piece of employees’ pay.

LO 5

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Merit-Based Pay 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 appraisal; merit pool fluctuations based on economic conditions; unions typically resist merit-based pay plans.

LO 5

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Bonuses An annual bonus is a significant component of

total compensation for many jobs. 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.

LO 5

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Skill-Based Pay Bases pay levels on how many skills employees

have or how many jobs they can do. Increases the flexibility of the workforce. Facilitates communication across the organization

because people gain a better understanding of each other’s jobs.

Limitations: People can “top-out” and learn all the skills.Don’t address performance.

LO 5

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Profit-Sharing Plans Organization-wide programs that distribute

compensation based on some established formula centered around a company’s profitability.

Appear to have positive effects on employee attitudes at the organizational level.Employees have a feeling of psychological

ownership.

LO 5

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Gainsharing Uses improvements in group productivity from one period

to the next to determine the total amount of money allocated.

Common among large manufacturing companies and in some healthcare organizations.

Ties rewards to productivity gains rather than profits.Employees can receive incentive awards even when the

organization isn’t profitable. Because the benefits accrue to groups of workers, high

performers pressure weaker ones to work harder, improving performance for the group as a whole.

LO 5

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Employee Stock Ownership Plan (ESOP) A company-established benefit 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.

LO 5

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Evaluation of Variable Pay Do variable-pay programs increase motivation and

productivity? The answer is a qualified yes.Studies generally support the idea that

organizations with profit-sharing plans have higher levels of profitability than those without them.

Are there cultural differences?Maybe, but more research is needed.

LO 5

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Show How Flexible Benefits Turn Benefits Into Motivators

Flexible Benefits: Developing a Benefits Package Flexible benefits individualize rewards.

Allow each employee to choose the compensation package that best satisfies his or her current needs and situation. Replaces the “one-benefit-plan-fits-all”

programs designed for a male with a wife and two children at home that dominated organizations for more than 50 years.

LO 6

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There are three basic types of programs: 1. Modular plans: pre-designed with each module

put together to meet the needs of a specific group of employees.

2. Core-plus plans: a core of essential benefits and a menu-like selection of other benefit options.

3. Flexible spending plans: employees set aside pretax dollars up to the amount offered in the plan to pay for particular benefits, such as healthcare and dental premiums.

LO 6

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Show How Flexible Benefits Turn Benefits Into Motivators


Identify the Motivational Benefits of Intrinsic Rewards

Intrinsic Rewards: Employee Recognition Programs Organizations are increasingly recognizing that

important work rewards can be both intrinsic and extrinsic.

Rewards are intrinsic in the form of employee recognition programs and extrinsic in the form of compensation systems. Financial incentives might be more motivating

in the short-term, but nonfinancial rewards are more important in the long-term.

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Identify the Motivational Benefits of Intrinsic Rewards

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Implications for Managers

Recognize individual differences. Spend the time necessary to understand what’s

important to each employee. Design jobs to align with individual needs and

maximize their motivation potential. Use goals and feedback.

You should give employees firm, specific goals, and they should get feedback on how well they are faring in pursuit of those goals.

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Implications for Managers Allow employees to participate in decisions that affect

them. Employees can contribute to setting work goals, choosing

their own benefits packages, and solving productivity and quality problems.

Link rewards to performance. Rewards should be contingent on performance, and

employees must perceive the link between the two. Check the system for equity.

Employees should perceive that experience, skills, abilities, effort, and other obvious inputs explain differences in performance and hence in pay, job assignments, and other obvious rewards.

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