Ch07

ORGANIZATIONAL BEHAVIORS T E P H E N P. R O B B I N S

W W W . P R E N H A L L . C O M / R O B B I N S

T E N T H E D I T I O N

© 2003 Prentice Hall Inc. All rights reserved. PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie Cook

© 2003 Prentice Hall Inc. All rights reserved. 7–2

AFTER STUDYING THIS CHAPTER,YOU SHOULD BE ABLE TO:

1. Identify the four ingredients common to MBO programs.

2. Explain why managers might want to use employee involvement programs.

3. Contrast participative management with employee involvement.

4. Define quality circles.

5. Explain how ESOPs can increase employee motivation.

L E

A R

N I

N G

O

B J

E C

T I

V E

S

© 2003 Prentice Hall Inc. All rights reserved. 7–3

AFTER STUDYING THIS CHAPTER,YOU SHOULD BE ABLE TO:

6. Contrast gain-sharing and profit-sharing.

7. Describe the link between skill-based pay plans and motivation theories.

8. Explain how flexible benefits turn benefits into motivators.

9. Contrast the challenges of motivating professional employees versus low-skilled employees.

L E

A R

N I

N G

O

B J

E C

T I

V E

S (

con

t’d

)

© 2003 Prentice Hall Inc. All rights reserved. 7–4

What is MBO?What is MBO?

Key Elements

1. Goal specificity

2. Participative decision making

3. An explicit time period

4. Performance feedback

Key Elements

1. Goal specificity

2. Participative decision making

3. An explicit time period

4. Performance feedback

© 2003 Prentice Hall Inc. All rights reserved. 7–5

Why MBO’s FailWhy MBO’s Fail

Unrealistic expectations about MBO results

Lack of commitment by top management

Failure to allocate reward properly

Cultural incompatibilities

© 2003 Prentice Hall Inc. All rights reserved. 7–6

Cascading of ObjectivesCascading of Objectives

E X H I B I T 7-1

© 2003 Prentice Hall Inc. All rights reserved. 7–7

Employee Recognition ProgramsEmployee Recognition Programs

Types of programs– Personal attention– Expressing interest– Approval– Appreciation for a job well done

Benefits of programs– Fulfills employees’ desire for recognition.– Encourages repetition of desired behaviors.– Enhances group/team cohesiveness and

motivation.– Encourages employee suggestions for improving

processes and cutting costs.

© 2003 Prentice Hall Inc. All rights reserved. 7–8

What is Employee Involvement?What is Employee Involvement?

© 2003 Prentice Hall Inc. All rights reserved. 7–9

Examples of Employee Involvement ProgramsExamples of Employee Involvement Programs

© 2003 Prentice Hall Inc. All rights reserved. 7–10

Examples of Employee Involvement Programs (cont’d)

Examples of Employee Involvement Programs (cont’d)

© 2003 Prentice Hall Inc. All rights reserved. 7–11

Examples of Employee Involvement Programs (cont’d)

Examples of Employee Involvement Programs (cont’d)

© 2003 Prentice Hall Inc. All rights reserved. 7–12

How a Typical Quality Circle Operates

How a Typical Quality Circle Operates

E X H I B I T 7-4

© 2003 Prentice Hall Inc. All rights reserved. 7–13

Examples of Employee Involvement Programs (cont’d)

Examples of Employee Involvement Programs (cont’d)

© 2003 Prentice Hall Inc. All rights reserved. 7–14

Variable Pay ProgramsVariable Pay Programs

© 2003 Prentice Hall Inc. All rights reserved. 7–15

Variable Pay Programs (cont’d)Variable Pay Programs (cont’d)

© 2003 Prentice Hall Inc. All rights reserved. 7–16

Skill-Based Pay PlansSkill-Based Pay Plans

Benefits of Skill-based Pay Plans:

1. Provides staffing flexibility.

2. Facilitates communication across the organization.

3. Lessens “protection of territory” behaviors.

4. Meets the needs of employees for advancement (without promotion).

5. Leads to performance improvements.

Benefits of Skill-based Pay Plans:

1. Provides staffing flexibility.

2. Facilitates communication across the organization.

3. Lessens “protection of territory” behaviors.

4. Meets the needs of employees for advancement (without promotion).

5. Leads to performance improvements.

© 2003 Prentice Hall Inc. All rights reserved. 7–17

Skill-Based Pay Plans (cont’d)Skill-Based Pay Plans (cont’d)

Drawbacks of Skill-based Pay Plans:

1. Lack of additional learning opportunities that will increase employee pay.

2. Continuing to pay employees for skills that have become obsolete.

3. Paying for skills which are of no immediate use to the organization.

4. Paying for a skill, not for the level of employee performance for the particular skill.

Drawbacks of Skill-based Pay Plans:

1. Lack of additional learning opportunities that will increase employee pay.

2. Continuing to pay employees for skills that have become obsolete.

3. Paying for skills which are of no immediate use to the organization.

4. Paying for a skill, not for the level of employee performance for the particular skill.

© 2003 Prentice Hall Inc. All rights reserved. 7–18

Flexible BenefitsFlexible Benefits

Flexible Spending Plans: allow employees to use their tax-free benefit dollars to purchase benefits and pay service premiums.

Flexible Spending Plans: allow employees to use their tax-free benefit dollars to purchase benefits and pay service premiums.

Modular Plans: predesigned benefits packages for specific groups of employees.

Modular Plans: predesigned benefits packages for specific groups of employees.

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

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

© 2003 Prentice Hall Inc. All rights reserved. 7–19

Special Issues in MotivationSpecial Issues in Motivation

Motivating Professionals– Provide challenging projects.– Allow them the autonomy to be productive.– Reward with educational opportunities.– Reward with recognition.– Express interest in what they are doing.– Create alternative career paths.

Motivating Contingent Workers– Provide opportunity for permanent status.– Provide opportunities for training.– Provide equitable pay.

© 2003 Prentice Hall Inc. All rights reserved. 7–20

Special Issues in Motivation (cont’d)Special Issues in Motivation (cont’d)

Motivating the Diversified Workforce– Provide flexible work, leave, and pay schedules.– Provide child and elder care benefits.– Structure working relationships to account for

cultural differences and similarities. Motivating Low-Skilled Service Workers

– Recruit widely.– Increase pay and benefits.– Make jobs more appealing.

© 2003 Prentice Hall Inc. All rights reserved. 7–21

Special Issues in Motivation (cont’d)Special Issues in Motivation (cont’d)

Motivating People Doing Highly Repetitive Tasks– Recruit and select employees that fit the job.– Create a pleasant work environment.– Mechanize the most distasteful aspects of the

job.