Applied Performance Practices

1
Chapter 6

• Applied Performance Practices

2
Chapter Outline

• The Meaning of Money in the Workplace
• Reward Practices
• Job Design Practices
• Empowerment Practices
• Practicing Self-Leadership

3
The Meaning of Money in the Workplace

• Money and Employee Needs
• Fulfills existence needs
• Ability to buy food shelter
• Fulfills growth needs
• Symbol of status, accomplishment
• High nAch
• Feedback representation of achievement
• Method of keeping score

4
The Meaning of Money in the Workplace

• Money Attitudes and Values
• Money creates strong emotions attitudes
• Cultural values influence attitudes toward money

5
The Meaning of Money in the Workplace

• Money and Social Identity
• People may define themselves in terms of
  ownership management of money
• Influences our self-worth
• Men are more likely to emphasize money in their
  self-concept

6
Reward Practices

• Membership Seniority-Based Rewards
• Job Status-Based Rewards
• Competency-Based Rewards
• Performance-Based Rewards

7
Reward Practices

• Membership Seniority-Based Rewards
• Represent largest part of most paychecks
• Pay for pulse
• Attract job applicants with security needs
• Do not directly motivate job performance
• Discourage poor performers from leaving

8
Reward Practices

• Job Status-Based Rewards
• Job evaluation used to rate worth/status
• Higher pay to jobs requiring more skill, effort,
  responsibility, etc..
• Motivate employees to compete for promotions
• May motivate employees to exaggerate job duties

9
Reward Practices

• Competency-Based Rewards
• Motivate employees to learn a variety
• of skills
• Improve workforce flexibility
• Product/service quality tends to improve
• Consistent with employability
• Greater expense (short term)

10
Reward Practices

• Performance-Based Rewards
• Individual Rewards
• Bonuses, commissions, piece rate
• Team Rewards
• Gainsharing, open-book management
• Organizational Rewards
• ESOP, profit sharing, stock options

11
Reward PracticesImproving Reward Effectiveness

• Top performing companies use performance-based
  rewards
• Link rewards to performance
• Gainsharing, ESOPs, using objective measures
• Where subjective measures are necessary, use
  multiple sources
• Apply rewards soon after performance, and in
  significant amounts

12
Reward PracticesImproving Reward Effectiveness

• Ensure rewards are relevant
• Use team rewards for interdependent jobs
• Ensure rewards are valued
• Beware of unintended consequences
• Toyota rewarded dealerships on customer
  satisfaction surveys
• Dealers increase survey scores, not customer
  satisfaction

13
Job Design Practices

• Constantly shifting due to technology changes
• Employability
• Employees no longer hired into specific jobs
  indefinitely

14
Job Design PracticesJob Specialization
Advantages
Disadvantages

• Less time changing activities
• Lower training costs
• Job mastered quickly
• Better person-job matching
• Efficiency

• Job boredom
• Higher costs
• Lower quality
• Lower motivation

15
Job Design Practices Job Characteristics Model
Critical Psychological States
Core Job Characteristics
Outcomes
Work motivation Growth satisfaction General sati
sfaction Work effectiveness
16
Job Design Practices
Job Rotation
Job 1 Operate Camera
Job 2 Operate Sound
Job 3 Report Story
Job Enlargement
Job 1 Operate Camera Operate Sound Report Story
Job 2 Operate Camera Operate Sound Report Story
Job 3 Operate Camera Operate Sound Report Story
17
Job Design Practices

• Job Enrichment more responsibility for
• scheduling, coordinating, and planning
• their own work -- autonomy
• Clustering tasks into natural groups
• Assembling entire computer modem rather than just
  one part
• Establishing client relationships

18
Empowerment Practices
Self-determination
Employees feel they have freedom discretion
Meaning
Employees believe their work is important
Competence
Employees have feelings of self-efficacy
Impact
Employees feel their actions influence companys
success
19
Practicing Self-Leadership

• Personal goal setting
• Constructive though patterns
• Positive self talk
• Mental imagery
• Designing natural rewards
• Slight changes to suit needs/preferences
• Self-monitoring
• Self-reinforcement

20
Practicing Self-Leadership

• Improves
• Self-efficacy, motivation,
• and performance
• Who practices self-leadership?
• High degree of conscientiousness
• Internal locus of control

21
WestJet Motivates Employees

• WestJet employees are highly motivated through
  profit sharing and stock options, empowerment,
  job design, and self-leadership.

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