Chapter 6 Applied Performance Practices Canadian OB 7e: McShane/Steen 1 © 2009 The McGraw-Hill...
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Transcript of Chapter 6 Applied Performance Practices Canadian OB 7e: McShane/Steen 1 © 2009 The McGraw-Hill...
Chapter 6
Chapter 6
Applied Performance
Practices
Canadian OB 7e: McShane/Steen 1 © 2009 The McGraw-Hill Companies, Inc. All rights reserved
Applied Performance Practices at Nucor
Nucor has survived and thrived in the turbulent steel
industry through the benefits of performance-based
rewards, job design, and empowerment.
Courtesy Nucor
Financial rewards -- fundamental part of employment relationship
Pay has multiple meanings• symbol of success• reinforcer and motivator• reflection of performance• can reduce anxiety
Men value money more than women Cultural values influence the meaning
and value of money
Financial Reward Practices
© Corel Corp. With permission.
Types of Rewards in the Workplace
Membership and seniority
Job status
Competencies
Performance-based
© Corel Corp. With permission.
Membership/Seniority Based Rewards
Fixed wages, seniority increases Advantages
• Guaranteed wages may attract job applicants• Seniority-based rewards reduce turnover
Disadvantages• Doesn’t motivate job performance• Discourages poor performers from leaving• May act as golden handcuffs (tie people to the job)
Job Status-Based Rewards
Includes job evaluation and status perks Advantages:
• Job evaluation tries to maintain pay equity• Motivates competition for promotions
Disadvantages:• Employees exaggerate duties, hoard resources• Reinforces status, hierarchy• Inconsistent with workplace flexibility
Competency-Based Rewards
Pay increases with competencies acquired and demonstrated
Skill-based pay• Pay increases with skill modules learned
Advantages • More flexible work force, better quality,
consistent with employability
Disadvantages• Potentially subjective, higher training costs
Performance Pay at Spruceland Millworks
Spruceland Millworks, an Alberta-based remanufacturer of mouldings, decking, and other niche lumber products, is a high-performance workplace that rewards individual, team, organization-level performance.“
OrganizationalOrganizationalrewardsrewards
• Profit sharing Profit sharing • Share ownershipShare ownership• Share optionsShare options• Balanced scorecardBalanced scorecard
Teamrewards
• BonusesBonuses• GainsharingGainsharing
IndividualIndividualrewardsrewards
• BonusesBonuses• CommissionsCommissions• Piece ratePiece rate
Performance-Based Rewards
Evaluating Organizational Rewards
Positive effects• Creates an “ownership culture”• Adjusts pay with firm's prosperity• Scorecards align rewards with several specific organizational
outcomes
Concerns with performance pay• Weak connection between individual effort and rewards• Reward amounts affected by external forces
Improving Reward Effectiveness
Link rewards to performance
Ensure rewards are relevant
Team rewards for interdependent jobs
Ensure rewards are valued
Watch out for unintended consequences
© Corel Corp. With permission.
Job Design
Assigning tasks to a job, including the interdependency of those tasks with other jobs
Organization's goal -- to create jobs that allow work to be performed efficiently yet employees are motivated and engaged
Job Specialization
Dividing work into separate jobs that include a subset of the tasks required to complete the product or service
Scientific management• Frederick Winslow Taylor• advocates job specialization• Taylor also emphasized person-job matching,
training, goal setting, work incentives
AdvantagesAdvantages DisadvantagesDisadvantages
Evaluating Job Specialization
Less time changing activities
Lower training costs Job mastered quickly Better person-job
matching
Job boredom Discontentment pay Higher costs Lower quality Lower motivation
WorkWorkmotivationmotivation
GrowthGrowthsatisfactionsatisfaction
GeneralGeneralsatisfactionsatisfaction
WorkWorkeffectivenesseffectiveness
Job Characteristics Model
FeedbackFeedbackfrom jobfrom job
KnowledgeKnowledgeof resultsof results
Skill varietySkill variety
Task identityTask identity
Task significanceTask significanceMeaningfulnessMeaningfulness
AutonomyAutonomy ResponsibilityResponsibility
IndividualIndividualdifferencesdifferences
CriticalCriticalPsychologicalPsychological
StatesStates
Core JobCharacteristics OutcomesOutcomes
Job Rotation
Moving from one job to another
Benefits• Minimizes repetitive strain
injury• Multiskills the workforce• Potentially reduces job
boredom
Job ‘A’
Job ‘B’
Job ‘C’
Job ‘D’
Job Enlargement
Adding tasks to an existing job Example: video journalist
Employee 1Employee 1Operates cameraOperates camera
Employee 2Employee 2Operates soundOperates sound
Employee 3Employee 3Reports storyReports story
Traditional news team
Video journalist
• Operates camera• Operates sound• Reports story
Job Enrichment
Given more responsibility for scheduling, coordinating, and planning one’s own work
1. Clustering tasks into natural groups• Stitching highly interdependent tasks into one job• e.g., video journalist, assembling entire product
2. Establishing client relationships• Directly responsible for specific clients• Communicate directly with those clients
Kambuku Empowerment
Pretoria Portland Cement introduced “Kambuku”, a companywide initiative that made the South African company more performance-oriented through employee empowerment.
Courtesy Pretoria Portland Cement
Dimensions of Empowerment
MeaningMeaning
CompetenceCompetence
Employees believe their work is important
Employees have feelings of self-efficacy
ImpactImpactEmployees feel their actions influence success
Self-Self-determinationdetermination
Employees feel they have freedom and discretion
Supporting Empowerment
Individual factors• Possess required
competencies, able to perform the work
Job design factors• Autonomy, task identity,
task significance, job feedback
Organizational factors• Resources, learning
orientation, trust Courtesy Pretoria Portland Cement
Self-Leadership
The process of influencing oneself to establish the self-direction and self-motivation needed to perform a task
Includes concepts/practices from:• Goal setting• Social learning theory• Sports psychology
Elements of Self-Leadership
PersonalGoal Setting
ConstructiveConstructiveThoughtThoughtPatternsPatterns
DesigningDesigningNaturalNatural
RewardsRewards
Self-Self-MonitoringMonitoring
Self-Self-Reinforce-Reinforce-
mentment
Personal goal setting• Employees set their own goals• Apply effective goal setting practices
PersonalGoal Setting
DesigningDesigningNaturalNatural
RewardsRewards
Self-Self-MonitoringMonitoring
Self-Self-Reinforce-Reinforce-
mentment
ConstructiveConstructiveThoughtThoughtPatternsPatterns
Elements of Self-Leadership
Positive self-talk• Talking to ourselves about thoughts/actions• Potentially increases self-efficacy
Mental imagery• Mentally practicing a task• Visualizing successful task completion
DesigningDesigningNaturalNatural
RewardsRewards
ConstructiveConstructiveThoughtThoughtPatternsPatterns
Self-Self-MonitoringMonitoring
Self-Self-Reinforce-Reinforce-
mentment
PersonalGoal Setting
Elements of Self-Leadership
Finding ways to make the job itself more motivating• eg. altering the way the task is accomplished
ConstructiveConstructiveThoughtThoughtPatternsPatterns
DesigningDesigningNaturalNatural
RewardsRewards
Self-Self-Reinforce-Reinforce-
mentment
PersonalGoal Setting
Self-Self-MonitoringMonitoring
Elements of Self-Leadership
Keeping track of your progress toward the self-set goal• Looking for naturally-occurring feedback• Designing artificial feedback
Self-Self-Reinforce-Reinforce-
mentment
ConstructiveConstructiveThoughtThoughtPatternsPatterns
DesigningDesigningNaturalNatural
RewardsRewards
Self-Self-MonitoringMonitoring
PersonalGoal Setting
Elements of Self-Leadership
“Taking” a reinforcer only after completing a self-set goal• eg. Watching a movie after writing two more sections
of a report• eg. Starting a fun task after completing a task that
you don’t like