Class 5 - Motivations Part 2 Flashcards
Equity theory is more applied to..
Those who are under-rewarded
Employees who perceive inequity will:
If not rewarded enough:
1. May not work as hard and may not encourage coworkers to work together
2. Try and change the salary
3. Self-questioning
4. Questioning that I may not be as working as hard as others
5. Other referents:Self-inside: the individual’s experience within their current organization. Self-outside: the individual’s experience with other organizations. Others-inside: others within the individual’s current organization. Others-outside: others outside of the individual organization.
6. Leave
Components of Organizational Justice
Distributive justice:
- What am I putting in and what I am getting out is fair
Procedural justice:
- The process taken to decide those outcomes
E.g. How salary decisions decided, was there an extensive review process of each employee or was it favoritism
Informational justice:
- Degree of information and transparency
- High informational transparency
Interpersonal Justice:
- perceived degree to which one is treated with dignity and respect
What is the purpose of the Expectancy Theory
It predicts the intensity of motivation toward a task
Source of Expectancies
Operant conditioning: people learn to behave to get/ avoid something they want/ don’t want
Neutral operant: responses completely unrelated to behavior -> e.g. won’t affect motivation
Reinforcers: Facilitate you engaging in the behavior
Punishers: facilitates you to not purse in the behavior. E.g. punished after talking in class -> decreases action of talking in class
Job Characteristics Model
-> Feedback (how much information received about your progress and performance, more feedback more motivating the job)
-> Skill Variety (High v Low no. of skills required to perform a job)
-> Task Identity (how much ownership of the large piece/ final product as a whole)
-> Task Significance (impact your work has on others)
-> Autonomy (control over your job and how it’s done) -> Feedback (LOOP)
What makes an Effective Feedback?
Effective feedback is:
Timely: provide feedback asap to be more helpful
Relatively frequent: gives more opportunity to improve but with sufficient time in between to allow them to improve
Relevant: so that they will care to work on it
Credible: someone who has credentials to provide feedback, Good manager and employee relationship -> more effective
3 ways of Motivating through job design
Job Rotation: periodic shifting of employees from one task to another (increases skill variety, takes time to learn -> costly)
Job Enlargement: increase no. and variety of tasks for the same job
Job Enrichment: apply Job Characteristics Model (JCM) to make job more meaningful and motivating
Relational Job Design
Design work so employees are motivated to promote the well-being of the organization’s beneficiaries. E.g. products that boost health or money going to charity
Alternative work arrangements
Job sharing:
Increase workforce, motivation
High administrative costs: maintain employee hours
Employee image costs: the image of a part-time worker
Flextime:
Not dictating when you need to do your work as long as you are doing work
(Downside: not feasible for organizations like retail/ chain stores)
Telecommuting:
Working from home or a different remote location
Not needing to associate with physical work
Coordination concerns
Using Pay to motivate: Pay transparency
What is the best way to do it?
Pro: positive link with task performance and employee retention. show fairness in pay decisions and outcome, seen to reduce pay discrimination
Cons: conflict, reduce collaboration, envious
Best way: show HOW pay is decided transparently over just revealing the numbers
Pay as a way to motivate: major strategic reward decisions
What to pay
How to pay individual employees
What to pay?
Establishing a pay structure with a balance:
- Balance between internal (worth of job to org.) and external equity (external competitiveness of org’s pay compared to anywhere else in the industry)
- A Strategic decision with trade-offs
How to pay?
Variable-Day programs: performance affects a portion of their pay -> bonuses
7 types
- Piece rate pay plan: pay based on units made. Very tied to performance.
Concern: too focused on one metric that excludes other metrics
- Merit-based pay
- Bonuses
- Skill-based pay: getting a master’s degree -> with higher pay
- Profit-sharing plans: based on company profitability. Helps tie individuals to the overall outcomes of the organization, and increases ownership. Cons: Lacks control over company profits as a WHOLE
- Gainsharing: Same con as profit-sharing
- Employee-stock ownership plan (ESOP): Gives feeling of owning a stake. Cons: lack control of company profit as a whole
Improving reward effectiveness
CLOSER the link to performance -> MORE motivating effect
