o.b. c 8 motivation - from concepts to applications

MOTIVATION – FROM CONCEPTS TO APPLICATIONS

Dr. Rajesh KamathAssistant ProfessorDepartment of Public HealthManipal University


• JOB DESIGN : The way the elements in a job are organised.• MOTIVATING BY JOB DESIGN : • THE JOB CHARACTERISTICS MODEL (JCM) proposes that

any job can be described in terms of 5 core job dimensions :

• 1. Skill variety• 2. Task identity• 3. Task significance• 4. Autonomy• 5. Feedback


• 1. Skill variety: The degree to which a job requires a variety of different activities. Eg: The work of a garage owner-operator who does electrical repairs, rebuilds engines, does bodywork, and interacts with customers scores high on skill variety. The job of a bodyshop worker who sprays paint 8 hours a day scores low on skill variety.

• 2. Task identity: The degree to which a job requires completion of a whole and identifiable piece of work. Eg.: A cabinet maker who designs a piece of furniture, selects the wood, builds the object, and finishes it to perfection – high task identity. Only making the legs of the table- low task identity.

• 3. Task significance: The degree to which a job has a substantial impact on the lives or work of other people. Eg.: A nurse in an I.C.U. score high on task significance.

• 4. Autonomy: The degree to which a job provides substantial freedom and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out.

• 5. Feedback : The degree to which carrying out the work activities required by a job results in the individual obtaining direct and clear information about the effectiveness of his or her performance.


• From a motivational standpoint, the JCM proposes that individuals obtain internal rewards when they learn (knowledge of results) that they personally (experienced responsibility) have performed well on a task that they care about (experienced meaningfulness)

• The more these 3 states are present, • the greater will be employees’ motivation, performance and

satisfaction• And the lower their absenteeism and likelihood of leaving. • Motivating Potential Score(MPS) – • ( Skill variety + Task identity + Task significance ) X Autonomy X Feedback

• 3


• To be high on motivating potential, jobs must be high on at least one of the 3 factors that lead to experienced meaningfulness and high on both autonomy and feedback.

• JCM is strongly supported by evidence.


• Put the job characteristics model diagram here….p.232


• How can jobs be redesigned?• 1. Job Rotation: The periodic shifting of an employee from one task to another, with

similar skill requirements at the same organisational level(also called cross training).• If employees suffer from overroutinisation.• Eg: At Singapore airlines, a ticket agent may take on the duties of a baggage handler.

Singapore Airlines is rated one of the best airlines in the world to work in.• Increases flexibility and avoids lay offs. • Eg: 1.If workers are trained to work on all parts of the assembly, then they can work

on the necessary part of the machine as per the incoming orders.• Pros:• 1. Reduces boredom.• 2. Increases motivation.• 3. Helps employees better understand how their work contributes to the

organisation.• 4. More flexibility in scheduling work, filling vacancies.


• Pros:• 1. Reduces boredom.• 2. Increases motivation.• 3. Helps employees better understand how their work contributes to the

organisation.• 4. More flexibility in scheduling work, filling vacancies.• Cons: • 1. Training costs increase• 2. Productivity is reduced by moving a worker into a new position.• 3. Disruptions when members of the work group have to adjust to the

new employee.• 4. Supervisors may have to spend more time answering questions and

monitoring the work of recently rotated employees.


• 2. Job enrichment : The vertical expansion of jobs, which increases the degree to which the worker controls the planning, execution and evaluation of the work.

• 5 ways to enrich a job:• 1. Combining tasks.• 2. Forming natural work units• 3. Establish client relationships (clients can be internal and external)• 4. Expanding jobs vertically gives employees responsibilities and control formerly

reserved for management.• 5. Opening feedback channels lets employees know how well they are doing and

whether their performance is improving, deteriorating, or remaining constant.• 6. Increasing the meaningfulness of work by relating employee experiences to

customer outcomes.• 6.a.By providing employees with stories from customers who benefitted from the

company’s products or services.


• Eg:1. The medical device manufacturer Medtronic invites people to describe how Medtronic products have improved, or even saved their lives and shares these stories with employees during annual meetings, providing a powerful reminder of the impact of their work.

• 2. Researchers recently found that when university fund raisers briefly interacted with the under graduates who would receive the scholarships they raised, they persisted 42% longer, and raised nearly twice as much money, as those who did not interact with the potential recepients.

• 6.b. Providing employees mutual assistance programs. – Employees who can help each other directly through their work find their jobs enriching.


• The evidence on job enrichment shows it 1.Reduces Absenteeism and turnover costs.

• 2. Increases satisfaction.


• ALTERNATIVE WORK ARRANGEMENTS:• 1. Flextime• 2. Job sharing• 3. Telecommuting


• 1. Flextime : Flexible work hours.• Aditi is the classic “morning person”.• She rises each day at 5.00 a.m. sharp and full of energy. She goes to

bed right after the 9 p.m. news.• Aditi’s office opens at 8 a.m. and closes at 9 p.m.• It’s up to her how she schedules her 8 hour day within this 13 hour

period.• Because Aditi is a morning person and has a 7 year old son who

gets out of school at 3 p.m. every day, she opts to work from 7.00 a.m. to 4.00 p.m.

• She is at the job when she is mentally most alert, and she can be home to take care of her son after he gets out of school.


• Benefits:• 1. Reduced absenteeism.• 2. Increased productivity.• 3. Reduced overtime expenses.• 4. Reduced hostility towards management.• 5. Reduced traffic congestion around work sites.• 6. Elimination of tardiness.• 7. Increased autonomy and responsibility for employees. • 8. Increased employee job satisfaction.

• Most of the evidence is in favour of Flextime.

• The major drawback is it is not applicable for every job. • Works well for clerical tasks.


• 3.Telecommuting : Working from home at least 2 days a week on a computer that is linked to the employer’s office.

• Not much data available on it in India.• In the U.S., in 2002, 15% of the workforce worked from home atleast

one day a week.• Natural candidates are – Writers, attorneys, analysts, employees who

spend the major part of their time on the computers or the telephone – such as telemarketers, customer service representatives, reservation agents, product-support specialists.

• Putnam investments, in Boston, which offered the option of telecommuting, increased the number of applicants 20-fold. The 12 % of its employees who telecommute have substantially higher productivity than in-office staff and about 1/10th the attrition rate.


• 2. Job sharing : An arrangement that allows 2 or more individuals to split a traditional 40 hour a week job.

• Eg: 1.One person – 8 a.m. to noon. The other person 1 p.m. to 5 p.m.

• 2. The 2 could work full but alternate days.• Pros : 1. The organisation can draw on the talents of more than 1

individual in a given job.• 2. Skilled workers who might not be available on a full time basis

may be hired.

• Cons : Finding compatible pairs of employees who can successfully coordinate the intricacies of one job.


• Pros : • 1. A larger labour pool from which to select.• 2. Higher productivity.• 3. Lesser turnover.• 4. Improved morale.• 5. Reduced office-space costs.

• Cons : • 1. Less direct supervision of employees.• 2. Difficulty in coordinating teamwork.• 3. Increased feelings of isolation.• 4. “Out of sight, Out of mind” – may not be considered for raises and

promotions.


• EMPLOYEE INVOLVEMENT : A participative process that uses the input of employees and is intended to increase employee commitment to an organisation’s success.

• 1. Participative management• 2. Representative participation


• 2. Representative participation : A system in which workers participate in organisational decision making through a small group of representative employees.

• Almost every country in western europe requires companies to practice representative participation.

• “The most widely legislated form of employee involvement around the world.”• The 2 most common forms are : • 1. Works councils are groups of nominated or elected employees who must be

consulted when management makes decisions about employees.• 2. Board representatives are employees who sit on a company’s board of

directors and represent the interests of the firm’s employees.• The influence of representative participation on working employees seems to

be minimal.• It’s greatest value seems to be symbolic.


• USING REWARDS TO MOTIVATE EMPLOYEES:• 1. What to pay : Establishing a pay structure

• 2. How to pay : Rewarding individual employees through variable pay programs• 2.a. Piece-rate pay• 2.b. Merit-based pay• 2.c. Bonuses• 2.d. Skill-based pay• 2.e. Profit-sharing plans• 2.f. Gainsharing• 2.g. Employee stock ownership plans

• 3. Flexible benefits : Developing a benefits package

• 4. Intrinsic Rewards : Employee Recognition Programs


• 1. Participative management : A process in which subordinates share a significant degree of decision making power with their immediate superiors.

• For it to work,• 1. The issues in which employees are engaged must be

relevant to their interests so that they will be motivated.• 2. Employees must have the competence and knowledge to

make a useful contribution.• 3. Trust and confidence must exist among all parties.

• Dozens of studies have shown mixed results.


• 1. What to pay : Establishing a pay structure• The process of initially setting pay levels entails balancing internal equity and external

equity.• Internal equity - The worth of the job to the organisation ( established through job

evaluation )• External equity – The external competitiveness of an organisation’s pay relative to pay

elsewhere in the industry ( usually established through pay surveys )• If you pay more : • Better qualified employees,• Attrition rate is lesser• But• Higher operating cost.• If you pay below the market : • Lower operating cost,• Lesser qualified employees,• Higher attrition rate


• 2. How to pay : Rewarding individual employees through variable pay programs

• A pay plan that bases a portion of an employee’s pay on some individual and/or organisational measure of performance.

• 2.1 Piece rate pay• 2.2 Merit based pay• 2.3 Bonuses• 2.4 Skill based pay• 2.5 Profit sharing plans• 2.6 Gainsharing• 2.7 Employee stock ownership plans


• 2.1. Piece-rate pay : A pay plan in which workers are paid a fixed sum for each unit of production completed.

• Production workers.• No base salary.• Not feasible for all jobs.• Eg.: You can’t pay a hospital administrator a

salary based on the number of patients admitted in the wards.


• 2.2. Merit-based pay : A pay plan based on performance appraisal ratings.

• Pros:• 1. Performers can be given bigger raises, motivated and retained.• If designed correctly, merit based plans let individuals perceive a strong

relationship between their performance and the rewards they receive.• Cons: • 1. They are typically based on an annual performance appraisal, and

thus are only as valid as the performance ratings.• 2. The pay-raise pool fluctuates on economic or other conditions that

have very little to do with individual performance.• 3. Unions typically resist merit-based pay plans.


• 2.3. Bonuses : A pay plan that rewards employees for recent performance rather than historical performance.

• Pros : • 1. The incentive effects of performance bonuses should be

higher than those of merit pay because, rather than paying for performance years ago(that was rolled into base pay), bonuses reward recent performance.

• Cons : • 1. Pay is more vulnerable to cuts when bonuses are a large

percentage of total pay or when employees come to take bonuses for granted.


• 2.4. Skill-based pay : A pay plan that sets pay levels on the basis of how many skills employees have or how many jobs they can do.

• Pros : • 1. The increase the flexibility of the workforce.• 2. Facilitates communication across the organisation as people gain a

better understanding of each others’ jobs.• Cons : • 1. People can “top out” – i.e they can learn all the skills the program

offers and can then get frustrated with nothing new to learn.• 2. The skills may not be monetizable but the company may be shelling

out extra to the employees who have acquired the new skills.• 3. Level of productivity is not addressed. They deal only with whether

someone can perform the skill.


• 2.5. Profit-sharing plans : An organisationwide program that distributes compensation based on some established formula designed around a company’s profitability.

• Can be direct cash outlays or for top managers – ESOPs.

• Greater psychological ownership.


• 2.6. Gainsharing : A formula based group incentive plan.• Popular among large manufacturing companies.• How is Gain sharing different from profit sharing?• It ties rewards to productivity gains rather than profits.• Employees in a gainsharing plan can receive incentive

rewards even when the organisation isn’t profitable.• Because the benefits accrue to groups of workers, high

performing workers pressure weaker performers to work harder, improving performance for the group as a whole.


• 2.7. Employee stock ownership plans (ESOP) : A company established benefits plan in which employees acquire stock, often at below market prices, as part of their benefits.

• Research on ESOPs indicates they increase employee satisfaction.

• But their impact on performance is less clear.


• 3. Flexible benefits : A benefits plan that allows each employee to put together a benefits package individually tailored to his or her own needs and situation

RAJ ANJALIMarried Married3 children No children yet

Spouse at home full time Spouse in a government job

Wants a good Medical plan Spouse has Medical insurance for the entire family

Wants Life Insurance Life insurance is a low priority

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Extra vacation time and long term financial benefits like a tax-deferred savings plan.


• A standardised benefits package would be unlikely to meet the needs of both them.

• 3 popular types are:• 1. Modular plans.• 2. Core-plus plans.• 3. Flexible spending accounts.


• 1. Modular plans are predesigned packages or modules of benefits, each of which meets the needs of a specific groups of employees.

• A module designed for single employees with no dependents might include only essential benefits.

• A module designed for single parents might have additional life insurance, disability insurance and expanded health coverage.


• 2. Core-plus plans consist of a CORE of essential benefits and a menulike selection of others from which employees can select.

• Typically, each employee is given benefit credits, which allow the “purchase” of additional benefits that uniquely meet his or her needs.


• 3. Flexible spending plans : allow employees to set aside pretaxmoney upto the amount offered in the plan to pay for particular benefits, such as healthcare premiums.

• Take home pay is increased as taxes are not levied on the money spent on these heads.


• 4. Intrinsic Rewards : Employee Recognition Programs.• Arnab Goswami makes only Rs.6,000 a month working at a fast

food joint in Noida.• The job is not very interesting or challenging.• Yet John talks enthusiastically about the job, his boss, and the

company that employs him.• “What I like about the job is the fact that Mr. Anthony Gonzalves

(his supervisor) appreciates the effort I make. He compliments me regularly in front of the other people on my shift, and I have been chosen Employee of the Month twice in the past 6 months. Did you see my picture on that plaque on the wall?”


• Organisations are increasingly recognising what John knows, inportant work rewards can be both intrinsic and extrinsic.

• Intrinsic : Employee recognition programs.• Extrinsic : Compensation systems. • Can range from a spontaneous Thank You to widely publicised formal programs in which

specific types of behaviour are encouraged and the procedures for attaining recognition are clearly identified.

• Some research suggests financial incentives may be more motivating in the short term but in the long run it is non-financial incentives.

• Advantage : • Inexpensive since praise is free.• Can be applied to jobs for which performance factors are relatively objective, such as sales.• Disadvantage : • Susceptible to abuse.• In most jobs, the criteria for good performance aren’t self-evident, which allows managers

to manipulate the system and recognise their favourites.

• References : • ORGANISATIONAL BEHAVIOUR - STEPHEN

ROBBINS – 14TH EDITION

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o.b. c 8 motivation - from concepts to applications

Business

employee recognition

rewarding

representative

flexible benefits

module designed

based pay

based pay

modular plans