ContentsBehavior Modification TheoryGoal setting Theory

Behavior Modification TheoryBehavior modification theory owes its origin on operation conditioning which has contributed immensely towards understanding in the areas of learning and motivation. According to the Luthans & Kreitner [1985], the systematic reinforcement or strengthening of desirable behavior of employees, & the non-reinforcement or punishment of unwanted behavior exhibited by organizational member is Behavior Modification.

Identification of critical behavior.

Evidence of results.

Applicatio n of OB Mod

Recording of baseline frequency

An interventio n strategy.

Functiona l analysis.

Law of EffectsRepeat behavior Non-repetitive Favorable consequences Unfavorable consequences

Two conditions of Successful OB Mod1. Identify Consequences. 2. Connection between behavior & consequences.

Certain critics faced by OB Mod1. Too much power to the managers. 2. Insults peoples intelligence. 3. Limited applicability to complex jobs.

Reinforcement1. 2. 3. 4. 5. Attempt to develop & strengthen desirable behavior. Key role in learning process. Use to enhance behavior. Punishment & extinction. Minimize undesirable behavior.AlternativePositive reinforcement

Effects of Behavior

ConsequencesNegative reinforcement

Increase Behavior

Decrease Behavior

Encourage Maturity

Extinction.

Punishment.

Encourage immaturity

Positive Reinforcement1. 2. 3. 4. 5. 6. 7. Administration of Positive Consequences. Increase the frequency. Contingent on the occurrence. Recognition of desirable Behavior. Make the employee happy. Encourages repetition. Principal of shaping is a systematic application.

Negative Reinforcement1. 2. 3. 4. 5. Increases the frequency & strength. Making it contingent upon the avoidance. Removal of unfavorable consequences. It increase likelihood. Negative Reinforcement means Escape conditioning or Avoidance learning.

Punishment1. 2. 3. 4. 5. 6. 7. Decrease the frequency. Discourage the repetition. Use punishment with care. Creates strain in their work. Make more clear. Administration of Negative consequences. Side effect of punishment.

Extinction1. 2. 3. 4. Weakening & ultimate dimination. Process of withholding. Identifying the behavior. Identify the Reinforce.

Schedule of Reinforcement1. Determining how Reinforcement will be delivered. 2. Either continuous or partial in nature. 3. Quick learning. There are FOUR types of Partial Reinforcement Schedule : 1. Fixed Interval schedule : a. Time Interval is Fixed. b. Accelerate response rate. 2. Variable Interval schedule : a. Specified length b. Not predictable 3. Fixed ratio schedule : a. Number is Fixed. b. Specified Number. 4. Variable ratio schedule : a. Reinforcer is unpredictable.

Management by Objective Process [MBO] in relation to Goal setting theoryMBO includes management by results, work planning & review, Performance planning-evaluation, charter of accountability, individuals goal setting, group goal setting & participative goal setting. Thus, management by objective & goal setting can be used interchangeably.

Emergence1. Introduced by Peter Drucker in the year 1954. 2. Emphasis participative convert overall organization into a specific objective. 3. In U.S.A in the year 1954, the general electronic company gave the name of MBO as Work Planning & Review.

Overall Organizational Objective

Divisional Objectives

Departmental Objective

Individual Objective

Importance1. 2. 3. 4. Group activity. Planning has no meaning. Key to effective planning. MBO and Goal setting can be used Interchangeably.

Process1. 2. 3. 4. 5. Never ending. Adoption of MBO. Employee can perform better. Individual efforts contribute. Rewards.

Goal Achieved

Rewards

Growth

Money ,Recognisation, Opportunities.

GOALGrab the Opportunity to achieve Aim in Life

Goal setting TheoryThe research on Goal setting theory specifies impressively in terms of the effect with specific goals & help us to challenge & achieve feedback which we have on our performance. People are motivated to work hard & to attain goals. Goals are target and objective which are to be achieved in future. Purpose behind the goals 1. As motivational devices. 2. As a control devices.

Desire to meet the Goal

GOAL

Goal commitment

Task performance

Meeting goal

Self efficacy belief

Self Efficacy1. 2. 3. 4. Individuals belief Higher self efficacy more confidences. More sustainable effects. Different from self esteem.

Besides self efficacy, the following four elements are as follows :1. Specific Goals :

a. Employees to work hard. b. Feel competent & successful.

2. Challenge Goals : a. Prove Capability with resources available. 3. Owned Goals : a. Imposed Goals. b. Requirement must be fulfill. 4. Performance monitoring & feedback : a. Goal attainment. b. Performance feedback.

Self Efficacy

Owned Goals

Specific goals

GoalChallenging Goals

Performance, Monitoring & Feedback

Linking MBO and Goal Setting TheoryGoal-setting theory demonstrate that hard goals results in a higher level of a Individual performance than do easy goals, that specific hard goals result in higher level of performance than to know goal at all or the generalize goal of do your best, and that feedback on ones performance leads to higher performance compare these findings with MBO. 1. Advocate Specific Goals and feedback. 2. Consistence.

ContentsJob Enlargement Enrichment Model of Oldham & hackmen Empowerment Employee ownership plan Profit sharing Gain sharing Skill based pay

JOB ENRICHMENTTHE THEORY WAS FIRST COINED BY HERZBERG IN FAMOUS RESEARCH OF MOTIVATORS. IT SIMPLY IS BASED ON THE 4 BASIC CHARACTERISTIC. 1. DIRECT FEEDBACK:EMPLOYEES SHOULD BE ABLE TO GET A PROPER FEED BACK TO GET A IDEA ABOUT THEIR ACHIVEMENTS. 2. CLIENT RELATIONS:AN EMPLOYEE SHOULD SERVE HIS CLIENT directly. E.g. as amechanic serves a car owner. 3. New learning:It deals in gathering new information in ones job in order to grow mentally. 4. Unique Experience :Have a different experience regarding other sources in your job .e.g. an HR department head visiting as ales department.

Cautions about job enrichment:. Not a substitute for good managementIt is not a perfect tool for good management when the other clauses do not support them. Assume responsibility It creates problem to the employees who are overloaded by the work . Snow ball effect An enrichment may cause transfer of authority from one to another.

JOB ENLARGEMENT: It is closely related to job enrichment is enlargement. Job enlargement refers to adding a few more task element

horizontally. Task variety : increasing the number of task to be performed can be reduce the level of boredom. Meaningful work module : increase in major portion of work thus tends to increase their contribution to the job. Work paced control : moving a worker from machine paced production to ware house department.

JOB CHARACTERISTICS MODELS OF OLDHAM & HACKMAN: Richard Hackman & Greg Oldham this are the two people who

developed the job characteristics model as a specific method of job enrichment. Job enrichment was the concept given by Fredrick Herzberg. According to them to motivate people internally, the employer should pay attention to five core (central) job dimension/aspects of job & they are as follows:1. 2. 3. 4. 5.

Skill variety Task identity Task significance Autonomy Feedback

1. Skill variety:- This is the 1st dimension which means that the

employee should be required to perform different duties requiring different abilities & different skills. Skill variety means performing number of duties. For e.g.:- A personal secretary 2. Task identity:- This dimension means giving an employee a complete job & not a highly specialized part of job. The employee is requested to do everything connected with the job from the beginning to the end. For e.g.:- A Tailor 3. Task significance:- It means the degree to which people are affected by ones work directly or indirectly ,inside or outside the organization. When a large number of people are affected by what one does then the task significance is very high. For e.g.:- Medical researcher

According to Hackman & Oldham, when any job includes

previous mentioned levels then the person will experience meaningfulness of the job. A job is said to be meaningful when it is important, valuable & worthwhile. This is an additive value which means even if only 1 or 2 dimensions are present on job they will motivate the employee 4. Autonomy:- It is an 4th dimension which means more freedom to do scheduling of job to make decisions & decide the procedure of how to work. A high level of autonomy in job will lead to the employee feeling personal responsibility for the work they perform. 5. Feedback:-It is the degree to employee which gets direct knowledge of how well he is doing the job. Knowledge of results is a requirement for working well. Feedback improves the effectiveness of job performance.

According to Hackman & Oldham, any job which incorporates all the core dimensions to high degree will result in five types of personal & organizational outcomes. Thus then the employees will enjoy the following points :1. A high level of internal motivation 2. A high level of job satisfaction 3. They will give a high level performance 4. They will rarely remain absent

5. They will not leave the company

The job characteristic model doesnt benefit to every employee as

every employee is not benefit from job enrichment. Employees who are ambitious, career conscious & have strong growth needs would be benefited from job characteristic model. Employees who have mechanical, repetitive jobs would not be benefited from job characteristic model. Hackman & Oldham have developed a questionnaire known as job

Diagnostic Survey(JDS),to measure the degree to which the various job characteristics are present in a particular job. Based on the responses to the JDS, one can predict the degree to which a particular job will motivate the people who perform it. The motivating potential score(MPS) is calculated using the formula:-

MPS= SV+TI+TS 3

A

F

Introduction to Empowerment In many organization employees believe that they are dependent on

others & their efforts will have little impact on performance. this feeling of powerlessness is the cause of low self-efficacy. Low self-efficacy is the strong belief among people that they cannot

successfully perform their jobs &make meaningful contributions. 1. 2. 3. 4. 5.

Low self-efficacy in employees is a result of conditions such as:Lack of control over organizational changes. Lack of variety on the job. Working under authoritarian leaders. A reward system that fails to recognize competence & novelty. Lack of role clarity. The problems of low self-efficacy can be overcome through empowerment. Empowerment removes conditions that cause employees to feel powerless & increases their feeling &self-efficacy.

Empowerment is defined in various ways . We r going to explain you 2 definitions out of it n they are given by :-

1.John Newsroom & Keith Davis:Any process that provides greater autonomy to employees through sharing of relevant information & the provision of control over factors affecting job performance

2.Greenberg & Baron:The passing of responsibility & authority from managers to employees.

The other definition given by references is: Empowerment refers to increasing the spiritual political social or economic strength of individuals & communities. It often involves the empowered developing confidence in their own capacities. Empowerment is the process of increasing the capacity of individuals or groups to make choices and to transform those choices into desired actions and outcomes. Central to this process are actions which both build individual and collective assets, and improve the efficiency and fairness of the organizational and institutional context which govern the use of these assets.

Employees can be empowerment in the following 5 ways:Job mastery:- employees are helped to achieve job mastery through proper training, coaching 7 experience that will result in initial success. 2. Control:- employees are given more freedom & flexibility in doing their job but they are held accountable for the outcomes. 3. Role model:- successful peers who are already performing their jobs well serve as effective role models. 4. Social reinforcement & persuasion:- generous doses of praise encouragement & verbal feedback will raise employees confidence. Emotional support:- employee stress & anxiety at work can be reduced by giving assistance & defining the job clearly. Reference to :Vipul prakashan1.

The process which enables one to gain power, authority and influence over others, institutions or society. Empowerment is probably the totality of the following or similar capabilities: Having decision-making power of one's own Having access to information and resources for taking proper decision Having a range of options from which you can make choices (not just

yes/no, either/or.) Ability to exercise assertiveness in collective decision making Having positive thinking on the ability to make change Ability to learn skills for improving one's personal or group power. Ability to change others perceptions by democratic means. Involving in the growth process and changes that is never ending and self-initiated Increasing one's positive self-image and overcoming stigma Increasing ones ability in discreet thinking to sort out right and wrong

In the typical ESOP, an employee stock ownership trust is created.

Companies contribute either stock or cash to buy stock for the trust & allocate the stock to employees. While employees hold stock in their company, they usually cannot take physical possession of their share or sell them as long as they are still employees at the company. The research on ESOPS indicates that they increase employee satisfaction. But for this their impact on performance is less clear. For instance one study compared 45 ESOPS against 238 conventional companies. The other studies have shown disappointing results. ESOPS have the potential to increase employee job satisfaction & work motivation. But for this potential to be realized employees need to psychologically experience ownership that is in addition to merely having a financial state in the company. The employee need to be kept regularly informed on the status of the business and also have an opportunity to exercise influence over the business. The evidence consistently indicates that it takes ownership and a participative style of management to achieve significant improvement in an organization performance.

EMPLOYEE OWNERSHIP PLANS Employee ownership can mean any number of things

from employees owning some stock in the company in which they work to the individuals working in the company owning and personally operating the firm. Employee stock ownership plans are company established benefits plans in which employees acquire stock as part of their benefits. Approximately 20% of Polaroid, for e.g., is owned by its employees.40% of Canadian based spruce falls is owned by its employees. They own 71% of avis corporation & united airlines & Weirton steel are 100% owned by them.

Research has found that the gain sharing system is more

successful in small and stable units where it is possible to determine standards of performance and standard cost. Management and union attitudes towards gain sharing will ultimately decide the success of this program. Believe that employee must share both gain as well as losses. Under this system a part of employees salary is designated as at- risk pay. At-risk pay is a part of employees total salary which is cut if the employees which is cut if the employees do not achieve their objectives. However if they are successful then the employees are rewarded with double of their atrisk pay. Thus the employees truly participate in the fortunes of the organization.

Employee ownership could range form employees owning stock in the company where they work to the individuals owning and personally operating the firm. Employee ownership is the highest degree of the decision making as employees take control. The result is greater satisfaction moral and improve productivity

PROFIT SHARINGDEFINITION:Profit sharing is an incentive system in which some portion of the organizations profits is distributed among the employees. The profit sharing system is based on the idea of mutual interests. The profits may be distributed immediately or at later date. The distribution may be in form of cash or stock option. Employees take greater interest in the economic benefits of employers when they realize that their own rewards are linked to it.

The profit sharing can also be defined as:An arrangement in which an employer shares some of its profits with its employees. The compensation can be stocks ,bonds or cash & can be immediate or deferred until retirement. Profit-sharing allows for changing contributions each year.

The impact of profit sharing has revealed as:1.

2. 3. 4. 5.

Profit sharing works better in organizations that require high levels of employee commitment. In organizations that have to continuously develop new products or market products faster than others to retain their completive edge, profit sharing leads to strong motivation among employees. Profit sharing works better in organization that are growing fast & whose profits are increasing. The idea of profit sharing is less effective in organizations where profits are declining & which are facing intense competition. Profit sharing work better when the overall economic climate is favorable. The profit sharing system is welcomed & appreciate more by mangers & professionals holding high positions. These people are usually decision makers & they realize the impact of their decision & action on organizational profits.

DIFFICULTIES ASSOCIATED WITH PROFIT SHARING ARE:No guarantee:- There is often no direct connection between the efforts an employee puts & the organizations profits. even if all the employees work hard there is no guarantee that the organization will make profits if the market conditions are bad. Long wait:-As rewards are distributed only at the end of financial year, employees have to wait for a long time to get their rewards. Insecurity:- As the profits of the organization are not predictable, the income of the employees also change every year. This creates insecurity among the workers & they prefer a wages system that offers greater stability. Suspicious unions:- Unions have traditionally opposed the profit sharing system as they feel it reduces their importance & reduces worker loyalty to the unions.

Isnt GAIN SHARING is same as PROFIT SHARING?They are similar but not the same thing. By focusing on productivity gains rather then profits, gain Sharing rewards specific behavior that are less influenced by external factors. Employees in gain sharing plan can receive incentive awards even when the organization isnt profitable. An incentive plan in which improvements in group productivity determine the total amount of money that is allocated.

GAIN SHARING Newsroom and Davis describe a gain sharing plan as a program that establishes a historical base period of organization's performance, measures improvement, and shares the gain with employees on some formula basis.

The criteria for determining performance usually the factors that are under the control of the employee such as inventory levels, quality of products, utilization of raw materials etc. Gain sharing focuses on productivity gains where as profit sharing focuses on profit. Gain sharing rewards specific behaviors that are less influenced by external factors. In Gain sharing employees receive incentives if the organization does not make profit.

The advantages of GAIN SHARING are: CO-OPERATION:- It leads to greater cooperation and team work employees. It improves communication an encourages the employees to come out within suggestions. EMBRACE TECHNOLOGY:- Employees welcome changes in technology as better technology means higher efficiency

and productivity, which in turn means more bonuses for the workers. UNION ACCEPTANCE:- Gain sharing programs are more likely to be accepted by the unions as they take credit for the benefits and as it improves their image with the workers. BROADER PERSPECTIVE:- Employees get a better understanding of the working of the organization.

SKILL BASED PAY It is known as knowledge based pay or multiskill pay. In skill based pay ,the employees pay level is based on the number

of skill that he has &the number is jobs that he can do. Under this program, employees are rewarded for the variety, depth &types of skill that they have.

IN A TYPICAL SKILL BASED PAY PROGRAM: Employee starts on a fixed hourly rate The employees earnings increase as he develops new skills or demonstrates the ability to perform other jobs. Organizations provide training facilities for enhancing the skill.

ADVANTAGES TO SKILL BASED PAY ARE AS:1. Higher motivation:- It motivates the employee to learn new work2. 3. 4. 5. 6.

related skills. Increased self-esteem:- Learning new skills increases self-esteem employees & sets them on the path of self actualization. Flexibility:- The organization develops a highly flexible ,where employees can do multiple job. Reduction of boredom:- Job relation is possible which in turn reduces employee boredom. Higher satisfaction:- Employee satisfaction with their pay is higher as they feel that their skills are being acknowledged. Equity:- Employees experience equity as they feel that people with same skills earn the same.

DISADVANTAGES TO SKILL BASED PAY ARE AS:Expensive :- As employee learn new skills & get more skilled, the average hourly pay rate for the organization increases. organization also have to invest in training of employees which further increases cost. 2. Wasteful:- often employees learn skills that they may not use but yet the organization has to pay them for it. 3. Loss of time:- Supervisor have spend their time in training subordinate. this is no beneficial to him but to the subordinate. 4. Dissatisfaction:- Same employees may not have the desire to move up the skill ladder such employees will get dissatisfied as their income will not increase in such a system & they may quit the organization.1.

CERTAIN CONDITIONS WHICH SHOULD BE FOLLOWED FOR EFFECTIVE RESULTS:Organizational culture must be supportive of the system. 2. Employees must understand the system & their expectation of higher pay must be realistic. 3. The organization must provide the employees with the facility to learn new skills n should keep them motivating for doing something new which would be beneficial to both organization employee.1.