CHAP 6

• Person-job fit


  The link between motivation, performance, and rewards
• Intrinsic rewards


  Positively valued work outcomes that an individual receives directly as a result of task performance
• Extrinsic rewards


  Positively valued work outcomes that are given to an individual or group by some other person or source in the work setting
• Pay for performance


  When pay functions well it can help organizations attract and retain highly capable workers, and help satisfy and motivate workers to work hard to achieve high performance. When something goes wrong with pay, negative effects on motivation performance may occur.
• Merit pay


  Compensation system that directly ties an individual's salary or wage increase to measures of performance accomplishments during a specific time period, seeking to create a belief among employees that the way to achieve high pay is to perform at high levels
• Bonus


  Extra pay for performance that meets certain benchmarks or is above expectations
• Gain sharing


  Gives workers the opportunity to earn more by receiving shares of any productivity gains that they help to create
• Profit-sharing plans


  Reward employees for increased organizational profits, but are criticized as organizational profit increases and decreases are not always a direct result of employees' efforts
• Stock Options


  Provide employees with an opportunity to buy shares of stock at a future date at a fixed price
• Employee stock ownership plans (ESOPs)


  Companies may give stock to employees, or allow stock to be purchased by them at a price below market value
• Skill-based pay


  Rewards people for acquiring and developing job relevant skills
• Figure 6.2 Performance management cycle
• Performance management


  Involves two purposes: an evaluation purpose when it lets people know where their actual performance stands relative to objectives and standards, and a developmental purpose when it provides insights into individual strengths and weaknesses
• Output measures


  Assess actual work results
• Activity measures


  Assess work inputs in respect to activities tried and efforts expended
• Performance appraisal


  Formal procedure for measuring and documenting a person's work performance
• Graphic rating scales


  Lists a variety of performance dimensions that an individual is expected to exhibit
• Behavioral rating scales


  Adds more sophistication by linking ratings to specific and observable job-related behaviors
• Critical incident diaries


  Written records that give examples of a person's work behavior that leads to either unusual performance success or failure
• 360° Evaluation


  Uses a combination of evaluations from a person's bosses, peers, and subordinates, as well as internal and external customers and self-ratings
• Reliability


  An appraisal system must provide consistent results each time it is used for the same person and situation
• Validity


  An appraisal system must actually measure dimensions with direct relevance to job performance
• Job design


  The process through which managers plan and specify job tasks and the work arrangements that allow them to be accomplished
• Figure 6.5 Job Design Strategies
• Scientific management


  Sought to create management and organizational practices that would increase people's efficiency at work
• Job simplification


  A scientific management approach that standardizes work procedures and employs people in clearly defined and highly specialized tasks, with the intent to increase efficiency, but it may be decreased due to the motivational impact of unappealing jobs
• Job enlargement


  Increases task variety by combining into one job two or more tasks that were previously assigned to separate workers
• Job rotation


  Increases task variety by periodically shifting workers among jobs involving different tasks
• Job enrichment


  The practice of enhancing job content by building high content jobs full of motivating factors such as responsibility, achievement, recognition, and personal growth
• Job characteristics model


  Provides a data-based approach for creating job designs with good person-job fits that maximize the potential for motivation and performance
• Figure 6.6 Job Characteristic Model
• Experienced meaningfulness of work

  One of three critical psychological states positively influenced when core job characteristics are highly enriched
• Experienced responsibility for work outcomes

  One of three critical psychological states positively influenced when core job characteristics are highly enriched
• Knowledge of actual results of work activities

  One of three critical psychological states positively influenced when core job characteristics are highly enriched
• Moderators


  Factors that influence the degree of positive outcomes of enriched jobs: employee growth-need strength, required knowledge and skills, and satisfaction with the work context
• Alternative work arrangements


  New work arrangements reshaping the traditional 40-hour week, designed to provide work-life balance and more "family friendly"
• Compressed work weeks


  Any scheduling of work that allows a full time job to be completed in fewer than the standard five days, with advantages and disadvantages for both workers and organizations
• Flexible working hours


  Gives individuals a daily choice in the timing of their work commitments, with advantages for both workers and organizations
• Job sharing


  One full-time job is assigned to two or more persons who then divide the work according to agreed-upon hours, with advantages for both workers and organizations
• Work sharing


  Workers agree to cut back on the number of hours they work in order to protect against layoffs, or employers may mandate a cutback due to economic necessity