Organizational

Behavior, 14e
Chapter 6
Motivating Behavior
with Work and Rewards

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 Figure 6.1 Enhancing Performance in Organizations
Managers can use a variety of methods
to enhance performance in organizations.
The need- and process-based
perspectives on motivation explain some
of the factors involved in increasing the
potential for motivated behavior directed
at enhanced performance. Managers can
then use such means as goal setting, job
design, flexible work arrangements,
performance management, rewards, and
organizational behavior motivation to help
translate this potential into actual
enhanced performance.

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 6-1
Creating Sustainable Performance

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 Human Dimension of Sustainability
• A sustainable organization is one that is able to endure, be creative,
and be efficient over time.
− Requires protecting the safety, health, and welfare of a most vital
resource: workers
• Thriving at work – a positive psychological state of vitality and learning
− Healthy behaviors
− Enabling and encouraging employees to get help for stress, anxiety,
and other mental health concerns
− Letting workers craft their jobs to be more meaningful to them

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 Polling Activity
In your opinion, which portion of the triple bottom line that an organization
must balance is the most important?

a. People
b. Planet
c. Profit

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 6-2
Job Design in Organizations

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 Job Design and Specialization
• Job design – how organizations define and structure jobs
− An important method to enhance employee performance
• Job specialization – breaking jobs down into small component tasks and
standardizing them across all workers doing those jobs
− Frederick Taylor believed jobs should be scientifically studied.
− Follows Adam Smith’s concept of the division of labor
− Jobs designed for efficiency can become boring and monotonous, resulting
in job dissatisfaction.
− Alternatives to specialization include job rotation and job enlargement.

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Job Rotation, Enlargement, and Enrichment
• Job rotation – systematically moving workers from one job to another in
an attempt to minimize monotony and boredom
− Can be an effective training technique
− Does not entirely address issues of monotony and boredom
• Job enlargement – involves giving workers more tasks to perform
• Job enrichment – entails giving workers more tasks to perform and more
control over how to perform them
− Some companies found it to be cost ineffective, and in others, it did not
produce the expected results.

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Job enlargement vs Job enrichment

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 Figure 6.2 The Job Characteristics Theory
The job characteristics theory is
an important contemporary model
of how to design jobs. By using
five core job characteristics,
managers can enhance three
critical psychological states. These
states, in turn, can improve a
variety of personal and work
outcomes. Individual differences
also affect how the job
characteristics affect people.

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 Group Activity
Form groups of three to five participants. Each group should refer to the
core dimensions of the job characteristics theory as shown in Figure 6.2 as
they design the “perfect job.”
After 10–15 minutes, have each group report to the class about the job they
designed.

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 6-3
Employee Participation and Empowerment

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 Areas of Employee Participation
• Participation – giving employees a voice in making decisions about their
own work
− Personal job-related decisions
− Administrative matters (e.g., work schedules)
− Product quality decisions
• Empowerment – enabling workers to set their own work goals, make
decisions, and solve problems within their sphere of responsibility and
authority
− Empowerment through work teams (quality circles)
− Decentralization of decision making and increased delegation

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Approaches to Participation and Involvement
• Practical ways to empower others:
− Articulate a clear vision and goal
− Foster personal mastery experiences
− Model successful behaviors
− Send positive messages, arouse positive emotions
− Give effective feedback
− Display competency, honesty, fairness

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 Discussion Activity 1

What is the value of employee participation, and how is it increased by

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 Discussion Activity 1 Debrief
What is the value of employee participation, and how is it increased by
empowerment? Give examples from your own experiences.
• Participation is effective in increasing motivation. Empowerment, a
somewhat broader concept than participation, is the process of enabling
workers to set their own work goals, make decisions, and solve problems
within their spheres of responsibility and authority. Employees who are
empowered to make decisions are likely to be more committed to
executing those decisions. Furthermore, successfully making a decision,
executing it, and then reaping the positive consequences can help satisfy
one’s need for achievement, provide recognition and responsibility, and
enhance self-esteem. In addition, participation should help clarify
expectancies.
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 6-4
Flexible Work Arrangements

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 Variable Work Schedules
• Variable work schedules can enhance employee motivation and
performance.
− Compressed work schedule – employees work a full 40-hour week
in fewer than the traditional five days
− Job sharing – two or more part-time employees share one full-time
job
− Extended work schedule – work schedule that requires relatively
long periods of work followed by relatively long periods of paid time off
− Flexible work schedule (flextime) – gives employees more personal
control over the hours they work each day

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 Figure 6.3 Flexible Work Schedules
Flexible work schedules are an important new work arrangement used in some
organizations today. All employees must be at work during “core time.” In the
hypothetical example shown here, core time is from 9 to 11 a.m. and 1 to 3 p.m.
The other time, then, is flexible—employees can come and go as they please
during this time, as long as the total time spent at work meets organizational
expectations.

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 Alternative Workplaces
• Telecommuting – work arrangement in which employees spend part of
their time working off-site
• Benefits to organizations
− Reduced absenteeism and turnover
− Reduction in indirect expenses for facilities
• Downside considerations
− Employees miss the workplace social interaction.
− Employees lack self-control/discipline.
− Difficulties arise in coordinating face-to-face meetings

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 Discussion Activity 2
Taylor works in a large dental practice and does the billing and reminder
calls/emails to patients. Consider the various flexible work arrangements.
How might each be used for Taylor’s job? What are its benefits or
disadvantages?

a. Compressed or extended work schedule

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 Discussion Activity 2 Debrief
How might each be used for Taylor’s job? What are its benefits or disadvantages?
a. Compressed or extended work schedule
− A compressed schedule might work, depending on busy office days/hours. An
extended schedule doesn’t seem consistent with what Taylor needs to accomplish
at the job.
b. Job sharing
− Depending on time needed to complete the work and amount of time Taylor wants
to work, this option might benefit both employees and employer.
c. Flexible work schedule
− Along with telecommuting, this option seems most in keeping with Taylor’s tasks.
d. Telecommuting
− The potential downside here is lack of social contact with coworkers.

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 6-5
Goal Setting and Motivation

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 Goal Setting
• Goal – a desirable objective
• Purposes of setting goals in organizations:
− To provide a useful framework for managing motivation to enhance
employee performance
− To serve management as a control device for monitoring how well the
organization is performing
− Social learning theory: feelings of pride or shame about performance
are largely related to how well people achieve their goals

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 Goal-Setting Theory
• Goal-setting theory (Locke and Latham)
− Assumes that behavior is a result of conscious goals and intentions,
therefore goals influence behavior (performance)
• Goal difficulty – extent to which a goal is challenging and requires effort
• Goal specificity – clarity and precision of a goal
• Goal acceptance – extent to which a person accepts a goal as their own
• Goal commitment – extent to which a person is personally interested in
reaching a goal

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Figure 6.4 The Goal-Setting Theory of Motivation
The goal-setting theory of motivation provides an important means of enhancing
the motivation of employees. As illustrated here, appropriate goal difficulty,
specificity, acceptance, and commitment contribute to goal-directed effort. This
effort, in turn, has a direct impact on performance.

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 Broader Perspectives on Goal Setting
• Management by objectives (MBO) – collaborative goal-setting process
through which organizational goals cascade down throughout the
organization
− Top managers establish overall goals for the organization.
− Managers and employees collaborate to set subsidiary goals.
− Managers and employees ensure that the employees have the resources
needed to reach the goals.
− Process flows downward as each subordinate manager repeats the steps
with their own subordinates.
− Manager periodically meets with subordinates to check progress and make
adjustments as needed.
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 Written Assignment Activity

Briefly (100–300 words) describe a goal you are working toward or would
like to work toward. Be sure to articulate the goal difficulty and goal
specificity, as well as your goal acceptance and goal commitment.

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 6-6
Performance Management

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 Performance Management
• Performance appraisal – process by which a supervisor:
− measures and evaluates an employee’s work behaviors by
measurement and comparison with previously established standards
− documents the results
− communicates the results to the employee
• Performance management – ongoing process that includes the
processes and activities involved in performance appraisal as well as
recognizing, coaching, and training the employees

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Figure 6.5 Purposes of Performance Management
Performance
measurement plays a
variety of roles in most
organizations. This figure
illustrates how these
roles can help managers
judge an employee’s past
performance and help
managers and
employees improve
future performance.

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 Elements of Performance Management
• The appraiser: alternatives
− Direct supervisor
− Multiple-rater systems (including self-evaluation)
− 360-degree feedback – performance appraisal method in which employees
receive performance feedback from those on all sides of them in the
organization
• Frequency of appraisals
− Often done annually
− Determined by convenience for administrative purposes, cultural
appropriateness, and relevance

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 Measuring Performance Management
• Measurement methods are meant to provide information for decisions to
be made based on job-related criteria.
• Instruments must be valid, reliable, and free of bias (EEOC regulations)
− Methods include graphic rating scales, checklists, essays/diaries,
behaviorally anchored rating scales, forced-choice systems
− Comparative methods include ranking, forced distribution, paired
comparisons, multiple raters
• Balanced scorecard (BSC) – a relatively structured performance management
technique that identifies financial and nonfinancial performance measures and
organizes them into a single model

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 Figure 6.6
The Balanced Scorecard
The balanced scorecard is a structured
performance management technique. In
its most basic form, managers establish
both goals and measures for how they
want to assess customer perceptions,
financial performance, internal business
process, and innovation and learning.
Each of these sets of goals and measures
needs to be consistent with each other as
well as with the organization’s overall
vision and strategy.

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 Knowledge Check 6.1
Your workplace uses 360-degree feedback as the basis of its performance
appraisals. Who among the following would be least likely to be a part of
your annual review under this system?

a. Your manager
b. Your coworkers
c. Your company CEO
d. Yourself

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 6-7
Individual Rewards in Organizations

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 Roles, Purposes, and Meanings of Rewards
• Reward system – all organizational components, including people,
processes, rules and procedures, and decision-making activities, involved
in allocating compensation and benefits to employees in exchange for
their contribution to the organization
− Purpose: To attract, retain, and motivate qualified employees
− Roles of compensation structures:
▪ To be equitable and consistent
▪ To be a fair reward for the individual’s contribution
▪ To be competitive in the external labor market
• Surface value – objective meaning or worth of a reward
• Symbolic value – subjective and personal meaning or worth of a reward

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 Types of Rewards
• Compensation package – the total array of money (wages, salary,
commission), incentives, benefits, perquisites, and awards provided by the
organization to an individual
− Incentive systems – plans in which employees can earn additional
compensation in return for certain types of performance
− Indirect compensation – employee benefits provided as a form of
compensation
− Perquisites – special privileges awarded to selected members of an
organization, usually top managers
• Employee recognition – explicit, financial or nonfinancial acknowledgment
and praise for desired employee behaviors and outcomes
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 Knowledge Check 6.2
Which of these would be the most effective types of compensation
packages?

a. Those based on incentive systems

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 6-8
Related Issues in Rewarding Performance

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 Issue Important Examples
Table 6.1 PAY SECRECY • Open, closed, partial
• Link with performance appraisal
Issues • Equity perceptions
•
to Consider EMPLOYEE PARTICIPATION
•
By human resource department
By joint employee/management
in Developing committee
FLEXIBLE SYSTEM • Cafeteria-style benefits
Reward Systems • Annual lump sum or monthly bonus
• Salary versus benefits
Employee perception ABILITY TO PAY • Organization’s financial performance
of link between pay • Expected future earnings
and performance ECONOMIC AND LABOR • Inflation rate
results in symbolic MARKET FACTORS • Industry pay standards
• Unemployment rate
value of pay. IMPACT ON ORGANIZATIONAL • Increase in costs
PERFORMANCE • Impact on performance
EXPATRIATE COMPENSATION • Cost-of-living differentials
• Managing related equity issue

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 Flexible Reward Systems
• Flexible reward systems – allow employees to choose the combination of
benefits that best suits their needs
− Increases both employee satisfaction with benefits and administrative costs
for the employer
• Participative pay systems
− Employees are involved in the design and/or administration of their
compensation system.
• Pay transparency
− With a policy of open salary information, exact salary amounts for employees
are public knowledge.
− A secrecy policy means employers make no information available to
employees regarding other employees’ compensation.

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 Figure 6.7
The Expatriate Compensation
Balance Sheet
Organizations that ask employees to
accept assignments in foreign locations
usually must adjust their compensation
levels to account for differences in cost
of living and similar factors. Domestic
base salary is divided into categories.
Then adjustments are made by adding
compensation to the categories on the
right until an appropriate, equitable level
of compensation is achieved.

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 Table 6.2 Motivation Methods and Techniques
Job Participation & Flexible Goal Performance
Managerial Challenges Rewards
Design Empowerment Work Setting Management
Firm has low-cost business strategy
but needs to motivate employees x x x x x
An employee feels they cannot meet
their performance goals x x x x
An employee feels underpaid relative
to their coworkers x x x x
An employee engages in
inappropriate behavior (bullying, etc.) x x x x
A talented employee is not feeling
challenged at work x x x x x
Because work is repetitive, some
employees find it boring and hard to x x x x
stay motivated

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