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Class6.ApplicationsofMotivation§6.1ManagementbyObjectiveAprogramthatencompassesspecificgoals,particularlyset,foranexplicittimeperiod,withfeedbackongoalprogressMBO4ingredients:goalspecificity,participativeD-M,anexplicittimeperiod,&performancefeedback•Convertingoverallorganizationalobjectivesintospecificobjectivesfororganizationalunitsandindividualmembers•objectivescascadedownthroughtheorganization:overallorganizational,divisional,departmental,individualobjectives•LinkingMBOandGoal-settingtheory:specifichardgoals.Areaofpossibledisagreement---participation•MBOInpracticeClass6.ApplicationsofMotivation§6.2BehaviorModificationAprogramwheremanagersidentifyperformance-relatedemployeebehaviors&thenimplementaninterventionstrategytostrengthendesirableperformancebehaviors&weakenundesirableperformancebehaviorsOBModEmeryAirFrightusecontainers•5-stepproblem-solvingmodel:(1)identificationofperformance-relatedbehaviors;(2)measurementofthebehaviors;(3)identificationofbehaviorscontingencies;(4)development&implementationofaninterventionstrategy;(5)evaluationofperformanceimprovement•ReinforcementtheoryClass6.ApplicationsofMotivation§6.3EmployeeInvolvementAparticipativeprocessthatusestheentirecapacityofemployees&isdesignedtoencourageincreasedcommitmenttotheorganization’ssuccessExamplesof•participativemanagement:Aprocesswheresubordinatesshareasignificantdegreeofdecision-makingpowerwiththeirimmediatesuperior•representativeparticipation:workersparticipateinorganizationaldecisionmakingthroughasmallgroupofrepresentativeemployeesWorkscouncils:groupofnominatedorelectedemployeeswhomustbeconsultedwhenmanagementmakesdecisionsinvolvingpersonnelBoardrepresentatives:aformofrepresentativeparticipation.Employeessitonacompany’sboardofdirectors&representtheinterestsofthefirm’semployeesExamplesof•Qualitycircle:aworkgroupof8-10employeeswhomeetregularlytodiscusstheirqualityproblems,investigatecauses,recommendsolutions,&takecorrectiveactionsManagementretainscontroloverthefinaldecision;improveproductivity;asimpledevice?•Employeestockownershipplans(ESOPs):company-establishedbenefitplansinwhichemployeesacquirestockaspartoftheirbenefits•Linking:TheoryY;ERGtheory•InpracticeClass6.ApplicationsofMotivation§6.4VariablepayAportionofanemployee’spayisbasedonsomeindividual&/ororganizationalmeasurement4ofthewidelyusedmodel•Piece-ratepayplan:workersarepaidafixedsumforeachunitofproductioncompleted•Bonus•Profit-sharingplans:organization-wideprogramsthatdistributecompensationbasedonsomeestablishedformuladesignedaroundacompany’sprofitability•Gainsharing:anincentiveplanwhereimprovementingroupproductivitydeterminesthetotalamountofmoneythatisallocated•expectancytheory§6.5Skill-basedpay•Paylevelsarebasedonhowmanyskillsemployeehaveorhowmanyjobstheycando•Flexibility,Downsize,facilitatecommunication,meettheneedsofambitiousemployees,performanceimprovement.Downside:obsolete,immediateneeds,don’taddresslevelofperformance•linking:ERGtheory,Achievementneeds,reinforcrment§6.6Flexiblebenefit•Employeestailortheirbenefitprogramtomeettheirpersonalneedsbypicking&closingfromamenuofbenefitoptions.•Expectancytheory§6.7Comparableworth•Adoctrinethatholdsthatjobsequalinvaluetoanorganizationshouldbeequallycompensated,weatherornottheworkcontentofthosejobsissimilar•expandsthenotionof“equalpayforequalwork”toincludejobsthataredissimilarbutcomparablevalue•Supply-demandfactorsinmarket;publicsector;Privatesectors§6.8Specialissues•Motivatingprofessions---long-termcommittotheirfieldofexpertise;keepcurrentin;autonomy•temporaryworkers---freedom;highlycompensated;permanentstatus;skills•thediversifiedworkforce---flexibleworkschedule;jobsharing,temporaryassignmentvariedneeds;flexibleleavepolicies§6.9Summary•Individualdiffenence•goalsandfeedback•participative•rewardsandperformace•equityClass6.ApplicationsofMotivation