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Applied

Motivation
Practices

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6ewarding Employees at IKEA

IKEA held a special bonus in


which the Scandinavian home
furnishings company pledged
an entire day¶s sales revenue
to employees. The day
doubled previous sales
records and awarded each
employee $1,800. | $ %&'

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O e Meaning of Money
`oney and employee needs
ï affects several needs, not just
existence needs
`oney and attitudes
ï `oney ethic -- not evil, represents
success, should be budgeted
carefully
`oney and self-identity
ï Influences our self-perceptions
ï Evidence that men more than
women identify with money
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Oypes of 6ewards in t e Workplace

`embership and seniority


Job status
Competencies
Performance

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Members ip/Seniority Based 6ewards

Gixed wages, seniority increases

Advantages
ï guaranteed wages may attract job applicants
ï seniority-based rewards reduce turnover

Disadvantages
ï doesn¶t motivate job performance
ï discourages poor performers from leaving
ï may act as golden handcuffs

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wob Status-
Status-Based 6ewards

Includes job evaluation and status perks


Advantages:
ï job evaluation tries to maintain pay equity
ï motivates competition for promotions
Disadvantages:
ï employees exaggerate duties, hoard resources
ï creates psychological distance across hierarchy
ï Inconsistent with flatter organizations

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|ompetency--Based 6ewards
|ompetency

Pay increases with competencies acquired or


demonstrated
Skill-based pay
ï Pay increases with skill modules learned
Advantages
ï `ore flexible work force, better quality, consistent
with employability
Disadvantages
ï Potentially subjective, higher training costs

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Performance--Based 6ewards
Performance

‡ Stock ownership
0rganizational ‡ Stock options
rewards ‡ Profit sharing

Team ‡ Gainsharing
rewards ‡ Bonuses

‡ Piece rate
Individual ‡ Commissions
rewards ‡ Royalties
‡ `erit pay

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6ewards at Steel Dynamics

Steel Dynamics remains


competitive by applying team
and organizational rewards.
Along with handing out profit
sharing bonuses, the company
rewards production staff for
achieving production targets
and reducing input costs | $ %!(

(gainsharing).

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Oeam and Organizational 6ewards

Gainsharing plans
ï based on cost reductions and
increased labor efficiency
ES0Ps
ï employees own company stock
Stock options
ï right to purchase company
shares at a future date at a
predetermined price
Profit sharing | $ %!(

ï employees receive share of


profits

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Problems wit Performance 6ewards

Shift attention away from motivation job itself


to extrinsic rewards
Create a psychological distance with reward
giver
Discourage risk taking
Used as quick fixes

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Improving 6eward Effectiveness

ÿink rewards to
performance
Ensure rewards are
relevant
Team rewards for
interdependent jobs
Ensure rewards are valued
Beware of unintended
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consequences

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wob Design

Assigning tasks to a job,


including the
interdependency of those
tasks with other jobs

Technology influences,
but does not determine,
job design
)  * 

Employability affects job


design
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Evaluating wob Specialization

Advantages Disadvantages
ÿess time changing Job boredom
tasks Discontentment pay
ÿower training costs ÿower quality
Job mastered quickly ÿower motivation
Better person-job
matching

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wob | aracteristics Model
|ore wob |ritical
| aracteristics Psyc ological Outcomes
States

Skill variety ork


motivation
Task identity `eaningfulness
Task significance Growth
satisfaction

Autonomy Responsibility General


satisfaction
Geedback Knowledge ork
from job of results effectiveness

Individual
differences

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wob 6otation vs. wob Enlargement
wob 6otation
wob 1 wob 2 wob 3
0perate Camera 0perate Sound Report Story

wob Enlargement

wob 1 wob 2 wob 3

0perate Camera 0perate Camera 0perate Camera


0perate Sound 0perate Sound 0perate Sound
Report Story Report Story Report Story

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wob Enric ment Strategies

Empowering employees
ï giving employees more autonomy
ï feeling of control and self-efficacy

Gorming natural work units


ï completing an entire task
ï assigning employees to specific
clients

Establishing client relationships


ï employees put in direct contact with )  * 

clients

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Obstacles to wob Design

Difficult to accurately measure job


characteristics
Resistance to change
ï skilled workers
ï labor union leaders
ï supervisors
Problem finding optimal level of enrichment
and specialization

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Self--Leaders ip
Self

The process of influencing oneself to


establish the self-direction and self-motivation
needed to performance task
Includes concepts/practices from:
ï Goal setting
ï Social learning theory
ï Sports psychology

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Elements of Self-
Self-Leaders ip
Constr ti e esigning Self-
Self-
Personal Self-
Self-
T o g t Nat ral Reinfor e-
e-
Goal Setting Patterns Re ards Monitoring ment

Personal goal setting


ï Employees set their own goals
ï Apply effective goal setting practices

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Elements of Self-
Self-Leaders ip
|onstr tive esigning Self-
Self-
Personal Self-
Self-
O o g t Nat ral Reinfor e-
e-
Goal Setting Patterns Re ards Monitoring ment

Positive self-talk
ï Talking to ourselves about thoughts/actions
ï Potentially increases self-efficacy
`ental imagery
ï `entally practicing a task
ï Visualizing successful task completion

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Elements of Self-
Self-Leaders ip
Constru ti e Designing Self-
Self-
Personal Self-
Self-
T oug t atural 6einfor e-
e-
Goal Setting atterns 6ewards Monitoring ment

Ginding ways to make the job itself more


motivating
ï eg. altering the way the task is accomplished

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Elements of Self-
Self-Leaders ip
Constr ti e esi nin Self-
Self-
ersonal Self-
Self-
T o t Nat ral Reinfor e-
e-
Goal Settin Monitorin
atterns Re ards ment

Keeping track of your progress toward


the self-set goal
ï ÿooking for naturally-occurring feedback
ï Designing artificial feedback

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Elements of Self-
Self-Leaders ip
Constr cti e esi nin Self-
Self-
Personal Self-
Self-
T o t Nat ral 6einforce--
6einforce
Goal Setting atterns 6e ards Monitorin ment

DTaking´ a reinforcer only after


completing a self-set goal
ï eg. atching a movie after writing two more
sections of a report
ï eg. Starting a fun task after completing a task
that you don¶t like

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