Job Characteristics Model

1
Expectancy Theory
Individual Effort
Individual Performance
Organizational Rewards
1
2
3
Personal Goals
2
Expectancy Theory Performance Issues

• Effort performance relationship
• Training education
• Performance rewards relationship
• Will my performance be recognized rewarded?
• How are rewards allocated?
• Seniority versus merit
• Is the evaluation process fair?
• Rewards personal goals
• Is the reward personally desirable?
• If you perform well, we will put you in charge
  of our overseas office

3
Open Book Management

• Background at SRC
• Extreme financial difficulties
• High level of distrust
• Employees wanted more challenge
• High in growth need strength (Job characteristics)

4
Changes Implemented at SRC

• Sharing financial information
• Principle of job enrichment
• Trust
• Soliciting employee input
• Recognition
• Ideas are valued
• Bonus plans employee stock ownership plan
• Financial incentives (short-term and long-term)

5
Outcomes at SRC

• Employees
• When I first came here, I didnt realize that as
  a worker on the floor you could have a direct
  impact on the profit.
• Task significance (JCM)
• Pay attention to costs, quality, and time to
  complete work
• Responsibility (Herzberg)

6
Employee Outcomes (cont.)

• Ideas are valued
• Recognition (Herzberg)
• New product
• Reading and understanding financial information
• Skill variety (JCM)
• Growth (Herzberg)

7
SRCs Financial Performance

• Growth
• Stock price
• From 10 cents to 18.60
• Employees
• Profitability
• Accuracy
• Inventory counts