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Topic 4: Workplace Motivation7-1Copyright 2015 Pearson Education Ltd.

Chapter 7: Motivational Concepts1Learning ObjectivesAfter studying this chapter, you should be able to:Describe the three key elements of motivation.Evaluate the applicability of early theories of motivation.Describe the contemporary theories of motivation of goal-setting theory, self-efficacy theory, and reinforcement theory.Demonstrate how organizational justice is a refinement of equity theory.Apply the key tenets of expectancy theory to motivating employees.

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After studying this chapter, you should be able to:Describe the three key elements of motivation.Evaluate the applicability of early theories of motivation.Apply the predictions of self-determination theory to intrinsic and extrinsic rewards.Identify the implications of employee job engagement for management.Describe goal-setting theory, self-efficacy theory, and reinforcement theory.Demonstrate how organizational justice is a refinement of equity theory.Apply the key tenets of expectancy theory to motivating employees.Compare contemporary theories of motivation.2Learning ObjectivesAfter studying this chapter, you should be able to:Compare and integrate the contemporary theories of motivation Describe the job characteristics model and the way it motivates by changing the work environment.Compare the main ways jobs can be redesigned and alternative work arrangements can motivate employees.Describe how employee involvement measures can motivate employees.

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After studying this chapter, you should be able to:Describe the three key elements of motivation.Evaluate the applicability of early theories of motivation.Apply the predictions of self-determination theory to intrinsic and extrinsic rewards.Identify the implications of employee job engagement for management.Describe goal-setting theory, self-efficacy theory, and reinforcement theory.Demonstrate how organizational justice is a refinement of equity theory.Apply the key tenets of expectancy theory to motivating employees.Compare contemporary theories of motivation.3 Key Elements of MotivationMotivation is the processes that account for an individuals intensity, direction, and persistence of effort toward attaining a goal. The level of motivation varies both between individuals and within individuals at different times.

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Motivation is the processes that account for an individuals intensity, direction, and persistence of effort toward attaining a goal. We will narrow the focus to organizational goals in order to reflect our singular interest in work-related behavior. Keep in mind that the level of motivation varies both between individuals and within individuals at different times.

4The three key elements of motivation are: Intensity: concerned with how hard a person tries.Direction: the orientation that benefits the organization. Persistence: a measure of how long a person can maintain his/her effort. LO 1 Key Elements of Motivation7-5Copyright 2015 Pearson Education Ltd.

The three key elements of our definition of motivation are intensity, direction, and persistence. Intensity is concerned with how hard a person tries to do anything. This is the element most of us focus on when we talk about motivation. Direction is the orientation that benefits the organization; it can be positive or negative. Persistence is a measure of how long a person can maintain his or her effort. Motivated individuals stay with a task long enough to achieve their goal. 5 Early Theories of MotivationMaslow Theory

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Abraham Maslows hierarchy of needs is the most well-known theory of motivation. Maslow hypothesized that within every human being there exists a hierarchy of five needs, beginning with physiological needs that include hunger, thirst, shelter, sex, and other bodily needs. The second level is safety needs that include security and protection from physical and emotional harm. The next level is social needs that include affection, belongingness, acceptance, and friendship. Reaching a higher level, we find esteem needs that include internal esteem factors such as self-respect, autonomy, and achievement, and external esteem factors such as status, recognition, and attention. At the top of the hierarchy is self-actualization needs; this is the drive to become what one is capable of becoming, and includes growth, achieving ones potential, and self-fulfillment.

Maslow separated the five needs into higher and lower orders. As a need becomes substantially satisfied, the next need becomes dominant. No need is ever fully gratified; a substantially satisfied need no longer motivates. . 6Maslows need theory has received wide recognition, particularly among practicing managers. Research does not generally validate the theory.Some researchers have attempted to revive components of the need hierarchy concept, using principles from evolutionary psychology.LO 2 Early Theories of Motivation Maslow Theory

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Maslows need theory has received wide recognition, particularly among practicing managers. However, research does not generally validate the theory. Maslow provided no empirical substantiation, and several studies that sought to validate the theory found no support for it. Some researchers have attempted to revive components of the need hierarchy concept, using principles from evolutionary psychology. Time will tell whether these revisions to Maslows hierarchy will be useful to managers.7Theory X and Theory Y Theory X assumptions are basically negative. Employees inherently dislike work and must be coerced into performing. Theory Y assumptions are basically positive. Employees can view work as being as natural as rest or play.

LO 2 Early Theories of MotivationTheory X and Theory Y

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Douglas McGregors Theory X and Theory Y concluded that a managers view of the nature of human beings is based on a certain grouping of assumptions, and that he or she tends to mold his or her behavior toward employees according to these assumptions.

Theory X assumptions are basically negative employees inherently dislike work and, whenever possible, will attempt to avoid it. Theory Y assumptions are basically positive employees can view work as being as natural as rest or play.

8The implications for managers can be explained by using Maslows framework Theory X: lower-order needs dominate individuals. Theory Y: higher-order needs dominate individuals. McGregor himself believed that Theory Y assumptions were more valid than Theory X. There is no evidence to suggest that either set of assumptions is valid. LO 2 Early Theories of Motivation Theory X and Theory Y

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We can understand the implications of Theory X and Theory Y using Maslows framework. Theory X assumes that lower-order needs dominate individuals, while Theory Y assumes that higher-order needs dominate individuals. McGregor himself held to the belief that Theory Y assumptions were more valid than Theory X. However, there is no evidence to confirm that either set of assumptions is valid. 9LO 2

Evaluate the Applicability of Early Theories of Motivation

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Proposed by psychologist Frederick Herzberg when he investigated the question, What do people want from their jobs? the two-factor theory is sometimes also called motivation-hygiene theory. Herzberg asked people to describe situations in which they felt exceptionally good or bad about their jobs. These responses were then tabulated and categorized.

From the categorized responses, Herzberg concluded that intrinsic factors, such as advancement, recognition, responsibility, and achievement seem to be related to job satisfaction. Dissatisfied respondents tended to cite extrinsic factors, such as supervision, pay, company policies, and working conditions.

Moreover, the opposite of satisfaction is not dissatisfaction. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. Job satisfaction factors are separate and distinct from job dissatisfaction factors. 10LO 2

Early Theories of MotivationHerzberg Two Factor Theory

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Managers who eliminate job dissatisfaction factors may not necessarily bring about motivation. Exhibit 7-3 reveals that when hygiene factors are adequate, people will not be dissatisfied. Neither will they be satisfied. To motivate people, managers must emphasize intrinsically rewarding factors that are associated with the work itself or to outcomes directly derived from it.

11McClellands Theory of NeedsThe theory focuses on three needs: Need for achievement (nAch): drive to excel, to achieve in relation to a set of standards, to strive to succeed.Need for power (nPow): need to make others behave in a way that they would not have behaved otherwise.Need for affiliation (nAfl): desire for friendly and close interpersonal relationships.

LO 2 Early Theories of Motivation McClellands Needs Theory

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Another traditional theory is McClellands Theory of Needs. This theory focuses on three needs: achievement, power, and affiliation. Lets look at each one in more detail.

The first of this theorys variables is achievement need, abbreviated as nAch, which is the drive to excel, to achieve in relation to a set of standards, and to strive to succeed. High achievers perform best when they perceive their probability of success as 50/50. They like to set goals that require stretching themselves a little.

Need for power, the second variable, is the need to make others behave in a way that they would not have behaved otherwise. The need for power, abbreviated as nPow, is the desire to have impact, to be influential, and to control others. Individuals high in nPow enjoy being in charge. They strive for influence over others. They prefer to be placed into competitive and status-oriented situations. They also tend to be more concerned with prestige and gaining influence over others than with effective performance.

Finally, the need for affiliation, abbreviated as nAfl, is the desire for friendly and close personal relationships. This need has received the least attention from researchers. In general, individuals with high affiliation strive for friendship and prefer cooperative situations over competitive ones. They typically desire relationships involving a high degree of mutual understanding.

12 Contemporary Theories of Motivation Goal-Setting Theory Goal-Setting Theory Goals tell an employee what needs to be done and how much effort is needed. Evidence suggests: Specific goals increase performance.Difficult goals, when accepted, result in higher performance than do easy goals. Feedback leads to higher performance than does non-feedback.

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In the late 1960s, Edwin Lockes goal-setting theory proposed that intentions to work toward a goal are a major source of work motivation. Goals tell an employee what needs to be done and how much effort is needed. Evidence strongly suggests that specific goals increase performance, and that difficult goals, when accepted, result in higher performance than do easy goals. Also, people will do better when they get feedback on how well they are progressing toward their goals. Self-generated feedback is more powerful a motivator than externally generated feedback.

13Three other factors influencing the goals-performance relationship: Goal commitmentTask characteristicsNational culture

LO 3 Contemporary Theories of Motivation Goal-Setting Theory7-14Copyright 2015 Pearson Education Ltd.

There are contingencies in goal-setting theory. In addition to goal acceptance, difficulty level, and feedback, three other factors influence the goals-performance relationship: goal commitment, task characteristics, and national culture.

Goal-setting theory presupposes that an individual is committed to the goal, believes it can be achieved, and wants to achieve it. Goal commitment is most likely to occur when goals are made public, when the individual has an internal locus of control, and when the goals are self-set rather than assigned.

Goals themselves seem to affect performance more strongly when task characteristics are: simple rather than complex; well-learned rather than novel; and independent rather than interdependent. On interdependent tasks, group goals are preferable.

Setting specific, difficult individual goals may have different effects in different cultures. Goal-setting theory is culture bound and it is well adapted to North American cultures, where individual achievement and performance are most highly valued. Research has not shown that group-based goals are more effective in collectivists than in individualist cultures. In collectivist and high-power-distance cultures, achievable moderate goals can be more highly motivating than difficult ones. Finally, assigned goals appear to generate greater goal commitment in high than in low power-distance cultures. More research is needed to assess how goal constructs might differ across cultures.

14People differ in the way they regulate their thoughts and behaviors.Those with a promotion focus strive for advancement and accomplishment and approach conditions that move them closer toward desired goals. Those with a prevention focus strive to fulfill duties and obligations and avoid conditions that pull them away from desired goals. Its probably best to be both promotion and prevention oriented. LO 3 Contemporary Theories of Motivation Goal-Setting Theory7-15Copyright 2015 Pearson Education Ltd.

Research has also found that people differ in the way they regulate their thoughts and behaviors during goal pursuit. Generally, people fall into one of two categories, though they could belong to both. Those with a promotion focus strive for advancement and accomplishment and approach conditions that move them closer toward desired goals. Those with a prevention focus strive to fulfill duties and obligations and avoid conditions that pull them away from desired goals. Which is the better strategy? Ideally, its probably best to be both promotion and prevention oriented.15LO 3

Contemporary Theories of Motivation Goal-Setting Theory7-16Copyright 2015 Pearson Education Ltd.

How do you put goal-setting operations into practice? Management by Objectives (MBO) allows employees to participatively set goals that are tangible, verifiable, and measurable. An organizations overall objectives are translated into specific objectives for each succeeding level. Four ingredients common to MBO programs are: goal specificity; participation in decision making; explicit time period; and performance feedback. MBO programs are common in many business, healthcare, educational, government, and nonprofit organizations.

16Self-efficacy theory is an individuals belief that he or she is capable of performing a task.Enactive masteryVicarious modelingVerbal persuasionArousalAlso known as social cognitive theory and social learning theory.

LO 3 Contemporary Theories of Motivation Self-Efficacy Theory7-17Copyright 2015 Pearson Education Ltd.

Self-efficacy theory, also as social cognitive theory and social learning theory, is a new theory gaining much attention. Albert Bandura, the developer of self-efficacy theory, defined four characteristics: enactive mastery, or gaining relevant experience with the task or job; vicarious modeling, or becoming more confident because you see someone else doing the task; verbal persuasion, occurring when a person is more confident because someone convinces him that he has the skills; and arousal, which leads to an energized state, driving a person to complete the task.17LO 3

Contemporary Theories of Motivation Self-Efficacy Theory7-18Copyright 2015 Pearson Education Ltd.

Goal-setting theory and self-efficacy theory dont compete with one another; they complement each other, as shown in Exhibit 75.

18Reinforcement theory: behavior is a function of its consequences.Takes a behavioristic view, arguing that reinforcement conditions behavior.Behavior is environmentally caused. Goal-setting is a cognitive approach: an individuals purposes direct his or her action. Operant conditioning theory: people learn to behave to get something they want or to avoid something they dont want. B.F. Skinners behaviorism

LO 3 Contemporary Theories of Motivation Reinforcement Theory7-19Copyright 2015 Pearson Education Ltd.

Lets look at reinforcement theory. While goal-setting is a cognitive approach proposing that an individuals purposes direct his or her action, reinforcement theory, by contrast, takes a behavioristic view, arguing that reinforcement conditions behavior. The two theories are clearly at odds, philosophically. Reinforcement theorists see behavior as environmentally caused, ignoring the inner state of the individual and concentrating solely on what happens when he or she takes some action. Because it does not concern itself with what initiates behavior, it is not, strictly speaking, a theory of motivation. But it does provide a powerful means of analyzing what controls behavior, and this is why we typically consider it in discussions of motivation.

Operant conditioning theory argues that people learn to behave to get something they want or to avoid something they dont want. Unlike reflexive or unlearned behavior, operant behavior is influenced by the reinforcement or lack of reinforcement brought about by its consequences. Reinforcement strengthens a behavior and increases the likelihood it will be repeated. B. F. Skinner, one of the most prominent advocates of operant conditioning, argued that creating pleasing consequences to follow specific forms of behavior would increase the frequency of that behavior a theory known as behaviorism. He demonstrated that people will most likely engage in desired behaviors if they are positively reinforced for doing so, that rewards are most effective if they immediately follow the desired response, and that behavior that is not rewarded or is punished is less likely to be repeated.

19Equity TheoryLO 4

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What role does equity play in motivation? Equity theory argues that individuals make comparisons of their job inputs and outcomes relative to those of others and then respond to any inequities. If we perceive our ratio to be equal to that of the relevant others with whom we compare ourselves, a state of equity is said to exist. We perceive our situation as fair. When we see the ratio as unequal, we experience equity tension.

20Equity TheoryWhen employees perceive an inequity, they can be predicted to make one of six choices:Change their inputs. Change their outcomes. Distort perceptions of self. Distort perceptions of others. Choose a different referent. Leave the field. LO 47-21Copyright 2015 Pearson Education Ltd.

When employees perceive an inequity, they can be predicted to make one of six choices: they can change their inputs; change their outcomes; distort perceptions of self; distort perceptions of others; choose a different referent; or they can leave the field.

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Organizational Justice Refinement of Equity Theory7-22Copyright 2015 Pearson Education Ltd.

However, organizational justice draws a bigger picture. Organizational justice is concerned with how employees feel they are treated by authorities and decisions-makers at work. For the most part, employees make their evaluations along four dimensions, as shown in this exhibit.

Distributive justice is concerned with the fairness of the outcomes, such as pay and recognition that employees receive. Although employees care a lot about what outcomes are distributed (distributive justice), they also care a lot about how outcomes are distributed. While distributive justice looks at what outcomes are allocated, procedural justice examines how outcomes are allocated. Having direct influence over how decisions or made, or at the very least being able to present your opinion to decision makers, creates a sense of control and makes us feel empowered. Employees also perceive that procedures are fairer when decision makers follow several rules. It turns out that procedural and distributive justice combine to influence peoples perceptions of fairness. If outcomes are favorable and individuals get what they want, they care less about the process, so procedural justice doesnt matter as much when distributions are perceived to be fair.

Research has shown that employees care about two other types of fairness that have to do with the way they are treated during interactions with others. The first type is informational justice, which reflects whether managers provide employees with explanations for key decisions and keep them informed of important organizational matters. The second type of justice relevant to interactions between managers and employees is interpersonal justice, which reflects whether employees are treated with dignity and respect.22Expectancy Theory Expectancy theory argues that a tendency to act in a certain way depends on an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. An employee will be motivated to exert a high level of effort when he or she believes that: Effort will lead to a good performance appraisal. A good appraisal will lead to rewards. The rewards will satisfy his or her personal goals. LO 57-23Copyright 2015 Pearson Education Ltd.

Expectancy theory is one of the most widely accepted explanations of motivation. Victor Vrooms expectancy theory has its critics, but most of the research is supported. Expectancy theory argues that the strength of ones tendency to act in a certain way depends on the strength of the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. It says that an employee will be motivated to exert a high level of effort when he or she believes that effort will lead to a good performance appraisal, that a good appraisal will lead to organizational rewards, and that the rewards will satisfy his or her personal goals.

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Expectancy Theory 7-24Copyright 2015 Pearson Education Ltd.

Expectancy theory, therefore, focuses on three key relationships: the effort-performance relationship, which is the probability perceived by the individual that exerting a given amount of effort will lead to performance; the performance-reward relationship, which is the degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome; and the rewards-personal goals relationship, which is the degree to which organizational rewards satisfy an individuals personal goals or needs and the attractiveness of those potential rewards for the individual.

24Expectancy theory helps explain why a lot of workers arent motivated on their jobs and do only the minimum necessary to get by. Three questions employees need to answer in the affirmative if their motivation is to be maximized:If I give maximum effort, will it be recognized in my performance appraisal?If I get a good performance appraisal, will it lead to organizational rewards?If Im rewarded, are the rewards attractive to me?

LO 5Expectancy Theory 7-25Copyright 2015 Pearson Education Ltd.

Expectancy theory helps explain why a lot of workers arent motivated on their jobs and do only the minimum necessary to get by. We can look at the theorys three relationships by asking three questions that employees would need to answer affirmatively if they are to be motivated. First, if I give maximum effort, will it be recognized in my performance appraisal? Second, if I get a good performance appraisal, will it lead to organizational rewards? Third, if Im rewarded, are the rewards attractive to me?

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8-26Job Characteristics Model (JCM)Copyright 2015 Pearson Education Ltd.

The Job Characteristics Model (JCM) proposes that any job may be described by five core job dimensions:Skill variety is the degree to which the job requires a variety of different activities, so the worker can use a number of different skills and talent. Task identity is he degree to which the job requires completion of a whole and identifiable piece of work. Task significance is the degree to which the job has a substantial impact on the lives or work of other people. Autonomy is the degree to which the job provides substantial freedom, independence, and discretion to the individual in scheduling the work and determining the procedures to be used in carrying it out. Feedback is the degree to which carrying out the work activities required by the job results in the individual obtaining direct and clear information about the effectiveness of his or her performance.

The first three dimensionsskill variety, task identity, and task significancecombine to create meaningful work the incumbent will view as important, valuable, and worthwhile. 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 they care about (experienced meaningfulness). Individuals with a high growth need are more likely to experience the critical psychological states when their jobs are enrichedand respond to them more positivelythan are their counterparts with low growth need.

26Job Characteristics Model (JCM)The core dimensions of the job characteristics model (JCM) can be combined into a single predictive index called the motivating potential score (MPS).Evidence supports the JCM concept that the presence of a set of job characteristics does generate higher and more satisfying job performance. A few studies have tested the JCM in different cultures, but the results arent very consistent.

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The core dimensions of the JCM can be combined into a single predictive index called the motivating potential score (MPS). To be high on motivating potential, jobs must be high on at least one of the three factors that lead to experienced meaningfulness, and high on both autonomy and feedback. If jobs score high on motivating potential, the model predicts that motivation, performance, and satisfaction will improve and absence and turnover will be reduced.

Much evidence supports the JCM concept that the presence of a set of job characteristicsvariety, identity, significance, autonomy, and feedbackdoes generate higher and more satisfying job performance. But apparently we can better calculate motivating potential by simply adding the characteristics rather than using the formula.

A few studies have tested the job characteristics model in different cultures, but the results arent very consistent. One study suggested that when employees are other oriented (i.e., concerned with the welfare of others at work), the relationship between intrinsic job characteristics and job satisfaction was weaker. The fact that the job characteristics model is relatively individualistic (i.e., considering the relationship between the employee and his or her work) suggests job enrichment strategies may not have the same effects in collectivistic cultures as in individualistic cultures (such as the United States). Another study suggested the degree to which jobs had intrinsic job characteristics predicted job satisfaction and job involvement equally well for American, Japanese, and Hungarian employees.

27Jobs RedesignedRepetitive jobs provide little variety, autonomy, or motivation. Job RotationReferred to as cross-training. Periodic shifting from one task to another. Strengths: reduces boredom, increases motivation, and helps employees better understand their work contributions. Weaknesses: creates disruptions, requires extra time for supervisors addressing questions and training time, and reduced efficiencies.

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People generally seek out jobs that are challenging and stimulating, but repetitive jobs provide little variety, autonomy, or motivation. One way to make repetitive jobs more interesting is job rotation, which is also known as cross-training. It involves periodic shifting of an employee from one task to another. When activity is no longer challenging, the employee is shifted to a different task.

Strengths of job rotation are that it reduces boredom, increases motivation, and helps employees better understand their work contributions. Indirect benefits include employees with wider ranges of skills that give management more flexibility in scheduling, adapting to changes, and filling vacancies. Some weaknesses of job rotation include disruptions, a need for extra time for supervisors addressing questions and training time, and reduced efficiencies.

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8-29 Job Enrichment-the vertical expansion of jobs, which increases the degree to which the worker controls the planning, execution, and evaluation of the workCopyright 2015 Pearson Education Ltd.

Exhibit 82 shows guidelines for job enrichment. Job enrichment expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work.

The first guideline is combining tasks that puts fractionalized tasks back together to form a new and larger module of work. Second is forming natural work units that make an employees tasks create an identifiable and meaningful whole. Third, establishing client relationships increases the direct relationships between workers and their clients. (Clients can be internal as well as outside the organization.) Fourth, expanding jobs vertically gives employees responsibilities and control formerly reserved for management. Finally, opening feedback channels lets employees know how well they are doing and whether their performance is improving, deteriorating, or remaining constant.

29Relational Job DesignTo make jobs more prosocially motivating:Connect employees with the beneficiaries of their work.Relate stories from customers who have found the companys products or services to be helpful.Meet beneficiaries firsthand. Employees see that their actions affect a real person, and that their jobs have tangible consequences. Connections make customers or clients more accessible in memory and more emotionally vivid.Leads employees to consider the effects of their actions more. Fosters higher levels of commitment.

LO 88-30Jobs RedesignedCopyright 2015 Pearson Education Ltd.

While redesigning jobs on the basis of job characteristics theory is likely to make work more intrinsically motivating to people, more contemporary research is focusing on how to make jobs more prosocially motivating to people. One way to make jobs more prosocially motivating is to better connect employees with the beneficiaries of their work, for example, by relating stories from customers who have found the companys products or services to be helpful. Beneficiaries of organizations might include customers, clients, patients, and users of products or services. Meeting beneficiaries firsthand allows employees to see that their actions affect a real, live person, and that their jobs have tangible consequences. In addition, connections with beneficiaries make customers or clients more accessible in memory and more emotionally vivid, which leads employees to consider the effects of their actions more. Finally, connections allow employees to easily take the perspective of beneficiaries, which fosters higher levels of commitment.30

Alternative Work Arrangements

Flexitime

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Alternative work arrangements are also used to boost motivation. They include flextime, defined as flexible work hours like those shown in Exhibit 8-3. This allows employees some discretion over when they arrive at and leave work. Benefits include reduced absenteeism, increased productivity, reduced overtime expense, reduced hostility toward management, and increased autonomy and responsibility for employees. A major drawback is that its not applicable to all jobs or all workers. 31Alternative Work ArrangementsJob Sharing Two or more people split a 40-hour-a-week job.Declining in use.Can be difficult to find compatible pairs of employees who can successfully coordinate the intricacies of one job. Increases flexibility and can increase motivation and satisfaction when a 40-hour-a-week job is just not practical. LO 88-32Copyright 2015 Pearson Education Ltd.

Job sharing allows two or more individuals to split a traditional 40-hour-a-week job. Only 12 percent of larger organizations now offer job sharing, a decline from 18 percent in 2008. Reasons it is not more widely adopted are likely the difficulty of finding compatible partners to share a job and the historically negative perceptions of individuals not completely committed to their job and employer. The major drawback is finding compatible pairs of employees who can successfully coordinate the intricacies of one job.

However, job sharing allows an organization to draw on the talents of more than one individual in a given job. From the employees perspective, job sharing increases flexibility and can increase motivation and satisfaction when a 40-hour-a-week job is just not practical. 32Telecommuting Employees who do their work at home at least two days a week on a computer that is linked to their office. Virtual officeWell-known organizations actively encourage telecommuting

LO 88-33Alternative Work ArrangementsCopyright 2015 Pearson Education Ltd.

Telecommuting refers to employees who do their work at home at least two days a week on a computer that is linked to their office.

The U.S. Department of the Census estimated there had been a 25% increase in self-employed, home-based workers from 1999 to 2005, and a 20% increase in employed workers who work exclusively from home. One recent survey of nearly 500 organizations found that 57% of organizations offered telecommuting, with 36% allowing employees to telecommute at least part of the time and 20% allowing employees to telecommute full time those percentages have remained relatively stable since 2008.

Well-known organizations that actively encourage telecommuting include AT&T, IBM, American Express, Sun Microsystems, and a number of U.S. government agencies. 33Telecommuting AdvantagesLarger labor poolHigher productivityLess turnoverImproved moraleReduced office-space costsLO 88-34Alternative Work ArrangementsCopyright 2015 Pearson Education Ltd.

There are reasons for and against telecommuting. The advantages include a larger labor pool of workers, higher productivity, less turnover, improved morale, and reduced office-space costs. 34Telecommuting DisadvantagesEmployerLess direct supervision of employees.Difficult to coordinate teamwork.Difficult to evaluate non-quantitative performance.Employee May not be noticed for his or her efforts.

LO 88-35Alternative Work ArrangementsCopyright 2015 Pearson Education Ltd.

Disadvantages of telecommuting for the employer include less direct supervision of employees, difficulty coordinating teamwork, and difficulty evaluating non-quantitative performance. Disadvantages for the employee include that he or she may not be as noticed for his or her efforts.35Employee Involvement Employee Involvement: a participative process that uses employees input to increase their commitment to the organizations success. Examples of Employee Involvement ProgramsParticipative managementRepresentative participation

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Employee involvement refers to a participative process that uses employees input to increase their commitment to the organizations success. Two examples of such programs are participative management and representative participation.

36Employee Involvement Participative managementJoint decision making.Trust and confidence in leaders is essential.

Representative participationWorkers are represented by a small group of employees who actually participate in decision makingLO 98-37Copyright 2015 Pearson Education Ltd.

Participative management is the first of the options for employee involvement programs. Common to all participative management programs is joint decision making, wherein subordinates share a significant degree of decision making power with their immediate superiors. Participative management has, at times, been promoted as a panacea for poor morale and low productivity. But for it to work, employees must be engaged in issues relevant to their interests so theyll be motivated, they must have the competence and knowledge to make a useful contribution, and trust and confidence must exist among all parties.

Studies of the participationperformance relationship have yielded mixed findings. Organizations that institute participative management do have higher stock returns, lower turnover rates, and higher estimated labor productivity, although these effects are typically not large. A careful review of research at the individual level shows participation typically has only a modest influence on employee productivity, motivation, and job satisfaction. Of course, this doesnt mean participative management cant be beneficial under the right conditions. But it is not a sure means for improving performance.37Implications for Managers ?7-38Copyright 2015 Pearson Education Ltd.

In addition, managers should consider reinforcement theory regarding quality and quantity of work, persistence of effort, absenteeism, tardiness, and accident rates. Managers should also consult equity theory to help understand productivity, satisfaction, absence, and turnover variables. Finally, managers need to recognize that expectancy theory also offers a powerful explanation of performance variables such as employee productivity, absenteeism, and turnover.

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