Applied Performance Practices McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 6

Applied Performance Practices

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

6-2

Applied Performance Practices in Chinese Factories

Most factory workers in China’s

Pearl River Delta are paid for the

number of units they produce.

The work is usually repetitive –

some jobs require several

thousand task cycles each day.

6-3

Meaning of Money in the Workplace

Money means different things to people• symbol of success• reinforcer and motivator• reflection of performance• Source of less/more anxiety

Differences in meaning of money by gender and culture

Money is an important motivator

6-4

Membership/Seniority Based Rewards

Fixed wages, seniority increases

Advantages • Guaranteed wages may attract job applicants• Seniority-based rewards reduce turnover

Disadvantages• Doesn’t motivate job performance• Discourages poor performers from leaving• May act as golden handcuffs (tie people to the job)

6-5

Job Status-Based Rewards

Includes job evaluation and status perks

Advantages:• Job evaluation tries to maintain fairness• Motivates competition for promotions

Disadvantages:• Employees exaggerate duties, hoard resources• Reinforces status• Encourage hierarchy, might undermine cost-

efficiency and responsiveness

6-6

Competency-Based Rewards

Pay increases with competencies acquired and demonstrated

Skill-based pay• Pay increases with skill modules learned

Advantages • More flexible work force, better quality,

consistent with employability

Disadvantages• Potentially subjective, higher training costs

6-7

Organizational Rewards

Types of organizational rewards• Organizational bonuses (e.g. company trips)• Employee stock ownership plans (ESOPS)• Stock options• Profit-sharing plans

Evaluating organizational rewards• Creates an “ownership culture”• Adjusts pay with firm's prosperity• Weak link between individual effort and rewards• Rewards affected by external forces

6-8

Improving Reward Effectiveness

Link rewards to performance Ensure rewards are relevant Team rewards for interdependent jobs Ensure rewards are valued Watch out for unintended consequences

6-9

Unintended Consequences of Rewards at TransSantiago

Transit bus drivers in Santiago, Chile were paid by the number of passengers • Motivated starting work on time,

shorter breaks, efficient driving, ensuring passengers paid fares

Unintended consequences• Traffic accidents -- reckless driving to

next stop, cut off competing buses• Passenger injuries/deaths – doors

left open, buses departed before all on board

• Drove past stops with only one passenger waiting

6-10

Job Design

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

Organization's goal -- to create jobs that can be performed efficiently yet employees are motivated and engaged

6-11

Job Specialization

Dividing work into separate jobs, each with a subset of tasks required to complete the product/service

Scientific management• Frederick Winslow Taylor• Champion of job specialization• Taylor also emphasized person-job matching, training, goal

setting, work incentives

6-12

Evaluating Job Specialization

Less time changing activities

Lower training costs Job mastered quickly Better person-job

matching

Job boredom Discontentment pay Higher costs Lower quality Lower motivation

Advantages Disadvantages

6-13

Job Characteristics Model

Workmotivation

Growthsatisfaction

Generalsatisfaction

Workeffectiveness

Feedbackfrom job

Knowledgeof results

Skill varietyTask identity

Task significanceMeaningfulness

Autonomy Responsibility

Individualdifferences

CriticalPsychological

States

Core JobCharacteristics Outcomes

6-14

Improving Task Significance Through Voice of the Customer

Rolls Royce Engine Services

improved task significance

through their “Voice of the

Customer” program, in which

customers talk to production staff

about how the quality of their

engine maintenance work is

important to customers.

6-15

Job Rotation

Moving from one job to another

Benefits1. Minimizes repetitive strain

injury

2. Multiskills the workforce

3. Potentially reduces job boredom

Job ‘A’

Job ‘B’

Job ‘C’

Job ‘D’

6-16

Job Enlargement

Adding tasks to an existing job

Example: video journalist

Employee 1Operates camera

Employee 2Operates sound

Employee 3Reports story

Traditional news team

Video journalist

• Operates camera• Operates sound• Reports story

6-17

Job Enrichment

Given more responsibility for scheduling, coordinating, and planning one’s own work

1. Clustering tasks into natural groups• Stitching highly interdependent tasks into one job• e.g., video journalist, assembling entire product

2. Establishing client relationships• Directly responsible for specific clients• Communicate directly with those clients

6-18

Dimensions of Empowerment

Meaning

Competence

Employees believe their work is important

Employees have feelings of self-efficacy

ImpactEmployees feel their actions influence success

Self-determination

Employees feel they have freedom and discretion

6-19

Supporting Empowerment

Individual factors• Possess required competencies, able to perform

the work

Job design factors• Autonomy, task identity, task significance, job

feedback

Organizational factors• Resources, learning orientation, trust

6-20

Self-Leadership

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

Includes concepts/practices from goal setting, social cognitive theory, and sports psychology

Self-leadership at Bayer CropScience

6-20

6-21

Elements of Self-Leadership

Personal goal setting

Employees set their own goals

Apply effective goal setting practices

PersonalGoal Setting

ConstructiveThoughtPatterns

DesigningNatural

Rewards

Self-Monitoring

Self-Reinforce-

ment

6-22

PersonalGoal Setting

DesigningNatural

Rewards

Self-Monitoring

Self-Reinforce-

ment

ConstructiveThoughtPatterns

Elements of Self-Leadership

Positive self-talk• Talking to ourselves about thoughts/actions• Potentially increases self-efficacy

Mental imagery• Mentally practicing a task• Visualizing successful task completion

6-23

DesigningNatural

Rewards

ConstructiveThoughtPatterns

Self-Monitoring

Self-Reinforce-

ment

PersonalGoal Setting

Elements of Self-Leadership

Finding ways to make the job itself more motivating• e.g. altering the way the task is accomplished

6-24

ConstructiveThoughtPatterns

DesigningNatural

Rewards

Self-Reinforce-

ment

PersonalGoal Setting

Self-Monitoring

Elements of Self-Leadership

Keeping track of your progress toward the self-set goal• Looking for naturally-occurring feedback• Designing artificial feedback

6-25

Self-Reinforce-

ment

ConstructiveThoughtPatterns

DesigningNatural

Rewards

Self-Monitoring

PersonalGoal Setting

Elements of Self-Leadership

“Taking” a reinforcer only after completing a self-set goal• e.g. Watching a movie after writing two more sections of a report• e.g. Starting a fun task after completing a task that you don’t like

6-26

Self-Leadership Contingencies

Individual factors• Higher levels of conscientiousness and

extroversion• Positive self-evaluation (self-esteem, self-efficacy,

internal locus)

Organizational factors• Job autonomy• Participative and trustworthy leadership• Measurement-oriented culture

Chapter 6

Applied Performance Practices