Areas of participation for employeesmaking decisions

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Areas of participation for employees:Making decisions about their jobs.Decisions about administrative matters (e.g., work schedules).Participating in decision making about broader issues of product quality.Techniques and Issues in EmpowermentUsing work teamsCollections of employees empowered to plan, organize, direct, and control their work.Decentralization Changing the overall method of organizing the firm Conditions necessary for empowerment: Power spread to lower organizational levels, Commitment to empowering workers.Systematic and patient efforts to empower workers.Increased commitment to training.Using Reward Systems to Motivate PerformanceReward SystemThe formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded.Effects of Organizational RewardsHigher-level performance-based rewards motivate employees to work harder.Rewards help align employee self-interest with organizational goals.Rewards foster increased retention and citizenshipMerit Reward SystemsBase a meaningful portion of individual compensation on merit—the relative value of an individual’s contributions to the organization.Employees who make greater contributions are given higher pay than those who make lesser contributions.Incentive Reward SystemsConcept: employee pay is based on employee output.Assume that:Performance is under the control of the individual worker.The employee work at a single task continuously.Pay is tightly tied to performance (i.e., pay varies with output).Incentive pay plansPiece-rate systems, Sales commissions Other forms of incentives Non-monetary incentives (perks) Team and Group Incentive Reward SystemsGainsharing programs,Scanlon Plan,Employee stock ownership plans (ESOPs)Executive CompensationStandard forms of executive compensation Base salary,Incentive pay (bonuses)Special forms of executive compensation Stock option plans,Executive perksCriticism of executive compensationExcessively large compensation amounts,Compensation not tied to overall performance of the organization,Earnings gap between executive pay and typical employee payNew Approaches to Performance-Based Rewards Leveraging the value of incentives-Allowing individuals and groups in the organization to have a say in how rewards are distributed. Getting increasingly innovative in incentive programs:Offering stock options to all employees,Individualizing the rewards available to individuals in reward systemsChapter 17:Managing Leadership and Influence ProcessesNature of LeadershipMeaning of LeadershipProcess: what leaders actually do.Using noncoercive influence to shape the group’s or organization’s goals.Motivating others’ behavior toward goals.Helping to define organizational culture. Property: who leaders are.Characteristics attributed to individuals perceived to be leaders.LeadersPeople who can influence the behaviors of others without having to rely on force.People who are accepted as leaders by others.

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