Chapter 8
Chapter 8
Chapter 8
17th Edition
8-0
Chapter Learning Objectives
After studying this chapter, you should be able to:
– Describe the job characteristics model and evaluate the way
it motivates by changing the work environment.
– Compare and contrast the main ways jobs can be redesigned.
– Identify three alternative work arrangements and show how
they might motivate employees.
– Give examples of employee involvement measures and show
how
they 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.
8-1
The Job Characteristics Model
Five Core Job Dimensions
1. Skill Variety: degree to which the job
incorporates a number of different skills and talents
2. Task Identity: degree to which the job
requires the completion of a whole and identifiable
piece of work
3. Task Significance: how the job impacts the
lives of
others
4. Autonomy: identifies how much
freedom and independence the worker has
over the job
5. Feedback: how much the job
generates direct and clear
information about the worker’s performance 8-2
The Job Characteristics Model
8-3
How Can Jobs be Redesigned?
Job Rotation
The shifting of an employee from one task to another with
similar skill requirements.
Relational Job Design
Relational job design, shifts the spotlight from the employee to
those whose lives are affected by the job that employee
performs.
Job Enrichment
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Strengths of Job Rotation
Helps
Reduces
managers in
scheduling boredom
Increases
Increased understanding
skills of work
contribution
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Alternative Work Arrangements
Flextime
– Flextime allows employees to choose the hours they work
within a defined period of time.
Job Sharing
– Job sharing allows two or more individuals to split a
traditional 40-hour-a-week job.
Telecommuting
– Telecommuting allows workers to work from home at least 2
days a week on a computer linked to the employer’s office.
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Employee Involvement and Participation
Employee involvement is a participative process
that uses employees’ input to increase their
commitment to the organization’s success.
8-7
Using Rewards to Motivate Employees
Although pay is not the primary factor driving job
satisfaction, it is a motivator.
– Establish a pay structure
– Variable-pay programs
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Establishing a Pay Structure
Internal External
Pay Equity Pay Equity
8-9
How to Pay
Variable-Pay Programs
– Piece-Rate Pay
– Merit-Based Pay
– Bonuses
– Skill-Based Pay
– Profit-Sharing Plans
– Gainsharing
– Employee Stock Ownership Plans
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Types of Variable-Pay Programs
Piece-Rate Pay
– Pays a fixed sum of money for each unit of production
completed. For example: Workers selling peanuts
and soda get Rs.10 for each bag of peanuts sold.
Merit-Based Pay
– Pays for individual performance based on performance
appraisal results. If appraisals are designed
correctly, workers performing at a high level will get
more pay.
Bonuses
– Pay a lump sum at the end of a designated period of time
based on individual and/or organizational performance.
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More Types of Variable-Pay Programs
Skill-Based Pay
– Pays based on the number of skills employees have or the
number of jobs they can do.
Profit-Sharing Plans
– Pays out a portion of the organization’s profitability. It is an
organization-wide program and is based on a
predetermined formula.
Gainsharing
– Pays for improvements in group productivity from one
period to another. It is a group incentive plan.
Employee Stock Ownership Plans (ESOP)
– Provides each employee with the opportunity to acquire
stock as part of their benefit package.
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Flexible Benefits
Flexible benefits give individual rewards by allowing
each employee to choose the compensation package
that best satisfies his or her current needs and
situations.
8-13
Employee Recognition Programs
Employee rewards need to be intrinsic and extrinsic.
Employee recognition programs are a good method
of intrinsic rewards.
– The rewards can range from a simple thank-you to more
widely publicized formal programs.
– Advantages of recognition programs are that they are
inexpensive and effective.
– Some critics say they can be politically
motivated and if they are perceived to be
applied unfairly, they can cause more harm
than good.
8-14
Global Implications
Job Characteristics and Job Enrichment
– Studies do not yield consistent results about applicability to
other cultures
Telecommuting
– Most common in the United States
Variable Pay
– Most believe variable pay systems work best in
individualistic cultures such as the United States.
– Fairness is an important factor
Flexible Benefits
– Popular in all cultures
Employee Involvement
– Differ among countries
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