Bus 272 D1 - Week 8 Slides

Bus 272 D1 - Week 8 Slides - Bus 272 D100 B us Week 8...

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Unformatted text preview: Bus 272 D100 B us Week 8 Chapter 6 – Motivation in Practice Chapte r 6 – Mo tivatio n in Prac tic e P rac • The importance of $$$$$$ • Pay is a good motivator: – To satisfy lower level needs Needs pay in order to fulfill lowest needs: water, shelter, food Already wealthy, not looking for more money, but bigger goals (eg. politics) ‘Alig ne d’ Pay • Wages/salary shouldn’t just be handed Wages/salary out for coming to work out • Should be ‘aligned’ – Aligned = tied to performance The better the sports agent can negotiate, the more money they receive as a % commission P ay-fo r-Pe rfo rmanc e & Financ ial Inc e ntive s Financ • • • Lowers turnover Increases job performance Attracts & retains top talent • “Piece Rate” - $x for X widgets produced Wag e Inc e ntive Plans Wag • Overall compensation plan for Overall employees employees • Goal: to increase throughput or Goal: productivity productivity • Problem: quality can suffer! Wag e Inc e ntive Plans Wag • Other problems: – Not all workers have ‘best’ or ‘newest’ equipment (aka differential opportunity) • So, cannot produce as much – Cooperation can go down • Protect my ‘trade secret’ to earn more! – Incompatible job design • How do we know how much they contribute? – Restriction on Productivity • Limiting productivity / performance because: – Fear of wage cuts – Fear of job cuts – Incentives watered down after time Re s tric ting Pro duc tivity Re If management/labour trust is high, or good labour relations exist, this won’t happen! Me rit Pay: Inc e ntive s fo r White Co llar Jo bs Co • Major problems: – Low discrimination • Managers can’t/won’t differentiate between ‘good’ and ‘bad’ performers – Small Increases • Pay change is so small = bad motivator • Companies tend to pool increases into one big lump sum bonus – Pay Secrecy • Company policy to not disclose salaries • Difficult to compare merit pay then Pay to Mo tivate Te amwo rk P ay • Profit Sharing – % or set level of company profits given to all employees – However, employees often can’t control profitability (eg. gas prices, credit crisis) • ESOP’s – Employee Stock Ownership Plans – Employees become part company owners by receiving shares – Ties them into the company by being a part of their success Pay to Mo tivate Te amwo rk P ay • Gainsharing – Employees try to cut costs or raise revenue (so, things within their control) – In exchange, they receive a % of the gains Factory workers cut costs and link company up to new sales opportunities, boost bottom line by $10 million Gainsharing plan 25% of gains paid out to employees $10 million * 25% / 140 employees = $17,857 each Pay to Mo tivate Te amwo rk P ay • Skill based pay – Pay is not for jobs, but skills acquired or possessed upon hire • J et Engine Manufacturer – $9 / hr for sheet metal skill – $14 / hr for wiring skills – $17 / hr for turbine installation – Total wage = $40 / hr, or $80,000 / yr Jo b De s ig n fo r Mo tivatio n Jo • ‘Broad’ jobs – Lots of different tasks • ‘Deep’ jobs – Ability to plan how do to work • J ob Scope =breadth +depth Jo b S c o pe Jo Jo b Charac te ris tic s Mo de l Jo • 5 core job characteristics that increase core motivation: motivation: – Skill variety • Opportunity to do a variety of jobs – Task identity • Job involves a complete piece of work, from start to finish – Task significance • Impact job has on others – Autonomy • Freedom to schedule work activities, and decide how to complete work – Job feedback • Information on effectiveness of one’s job performance Jo b Diag no s tic S urve y (JDS ) Jo • Measures the 5 core job characteristics Skill Task Task Skill Task Task MPS = variety + identity + significance x Autonomy x Feedback 3 Critic al Ps yc ho lo g ic al S tate s Critic • J obs with high MPS scores are instrinsically motivating because of their instrinsically effect on three psychological states: effect – Experienced meaningfulness of the work – Experienced responsibility for the outcomes of the work – Knowledge of the actual results of the work activities Jo b Enric hme nt Jo • Designing jobs to enhance intrinsic motivation, Designing quality of work life, and job involvement quality – Job Involvement = identifying with your job and knowing its importance • J ob enrichment is achieved by: – Combining tasks – Establishing external client relationships – Establishing internal client relationships – Reducing supervision or reliance on others – Forming work teams – Making feedback more direct Pro ble ms with Jo b Enric hme nt P ro – Poor diagnosis • # of tasks goes up, but motivation doesn’t! • Job enlargement adding more tasks but little else changes – Lack of desire or skill • Some employees don’t want more skills, or don’t want enriched jobs! – Demand for rewards • If I’m doing more, pay me more! – Union resistance • View enrichment as adding work, or ‘saving’ on jobs – Supervisory resistance • If supervision is decreased for enriched jobs, what do the supervisors do? MBO – Manag e me nt by Obje c tive s Obje • Systematic goal setting system for all Systematic employees employees 1. Manager and employee meet at start of year to set goals, timeframes, measures, etc 2. Periodic meetings to check on progress/make adjustments 3. Appraisal at end of year to look at goals and results 4. Repeat! Alte rnative s fo r a Dive rs e Wo rkfo rc e Wo • Demographic groups in different life Demographic stages (raising kids, empty nesters, recent graduate with crushing debt) recent • Flex Time – Schedules not set in stone, meet family/home needs and work needs • Compressed Work Week – Four 10 hour days….every Friday off! Co mpre s s e d We e ks fo r S tude nts • Monday – 10 hour day • Tuesday – 10 hour day, Bus 303 at Tuesday 6:30pm 6:30pm • Wednesday – 1.5 hour day, 3 classes Wednesday until 10:30 pm until • Thursday – 8.5 hour day, Bus 312 in Thursday evening evening • Friday – 9.5 hour day Alte rnative s fo r a Dive rs e Wo rkfo rc e Wo • J ob Sharing – 2 employees, both part time = 1 full time job • Telecommuting – Do I need to be in my office to do the work? NO!!! Gro up As s ig nme nt As Breaking Cases S WOT Analys is • Inte rnal S tre ng ths – What is this company currently good at doing? • Manufacturing, HR policies, strategy, sales, marketing • Inte rnal We akne s s e s – What is this company currently bad at doing? • Poor managers, communicating with employees, labour relations • Exte rnal Oppo rtunitie s – What can the organization pursue to be more successful? • New markets, new products, merger, foreign investment • Exte rnal Thre ats – What could threaten the future success of this company? • Competitors, government, unions, technology, globalization S WOT Example “…following 2001, the US tariffs on Canadian following softwood lumber hit sawmills like Canfor particularly hard. However, the imposition of this tariff produced an unexpected benefit. Where Canfor thought itself as ‘reasonably efficient’ in the past, the tariff made the company that much more efficient, and as such, they could still outcompete US producers on cost and price. The presence of unions required heated negotiations, but once that was finished, it was smooth sailing. Canfor thus continued sales in US markets, but also looked elsewhere to sell its products…” also Is s ue s / Pro ble ms and S ympto ms • S tated Symptoms – explicitly mentioned in the case, Stated these are your ‘clues’ as to what real problems the company has company • S tated Causes of Symptoms – explicitly stated Stated issues/problems in the company, some causing stated symptoms symptoms • P ossible Causes – YOUR theories on what is causing Possible symptoms and problems at the company symptoms – There are root causes, and secondary causes, leading up to explicitly stated symptoms Root Cause (your theory) Secondary Cause (your theory) Explicit Problem Minor Issue (your theory) Explicit Symptoms Is s ue s /Pro ble ms Example Is • “ it was during the s e vis its he s tarte d to notice … it e m ploye e dis conte nt. It was true Lightco was re fe rre d to as a cons truction com pany, rathe r than a utility com pany. Em ploye e s we re als o s pre ad acros s s ix the rm al powe r plants , two h ydro plants , and four re gional office s . As s uch, the divis ions ope rate d as a num be r of s e parate com panie s , with little inte raction.” c om • Stated Sympton: “employee discontent” • P ossible causes: no organizational identity Possible (social ID theory), little employee recognition, role ambiguity, poor corporate communications ambiguity, S o lutio ns • Recommend anything you believe will fix Recommend the problems/issues you’ve identified the • Textbook concepts/theories/models • Keep it relevant! • Use textbook case examples “Vancity Use did this…” did • J ustify why your solution would solve the problem/issue you identified problem/issue S o lutio n to Pro ble ms with Lig htc o Lig • Stated sympton: “employee discontent” • P ossible causes: no organizational identity Possible (social ID theory), little employee recognition, role ambiguity, poor corporate communications communications • P ossible solutions – better internal Possible communications, more employee recognition, better employer branding, performance incentives, better internal transfer/promotion opportunities transfer/promotion Time line Time • Prio ritize yo ur re c o mme ndatio ns • Example: – “Immediate” – now to 6 months from now • Change/start internal communications • Start researching performance incentives, employee recognition and policies on internal transfers/promotions – “Short term” – 6 months from now to 2 years from now • Implement new performance incentives, better employee recognition – “Long term” – after 2 years from now • Implement new policies and HR supports to facilitate internal transfers and promotions ...
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