Prepared by Joseph B. Mosca, Monmouth University and
© 2012 South-Western, Cengage Learning, Inc.
All rights reserved.
Marla M. Kameny, Baton Rouge Community College
PowerPoint Presentation Design by Charlie Cook
The University of West Alabama
Learning Objectives
After studying this chapter, you should be able to:
1. Describe the relationships among performance measured at different
levels within an organization and discuss how training, development,
and job redesign can help improve performance
2. Discuss the role of alternate work arrangements in motivating and
enhancing performance
3. Describe the role of incentive pay and identify different programs for
individual-based and team-based incentive plans
4. Discuss the best ways to deliver performance feedback and the
issues involved with feedback and describe the basic operation of
the ProMES system
5. Discuss how organizations evaluate performance-enhancement
programs
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
14–2
Enhancing Performance
• Firm-Level Performance
Is an indication of the likelihood of long-term
survival of the firm.
Generates profits for potential profit sharing
and determines the firm’s stock price.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
14–3
Enhancing Performance
• Training
Is a planned attempt by an organization to
facilitate employee learning of job-related
knowledge, skills, and behaviors
• Development
Involves teaching managers and
professionals the skills needed for both
present and future jobs.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
14–4
Assessing Training and Development Needs
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
14–5
Enhancing Job Performance
Motivating
Motivating
Performance
Performance
Job
Job
rotation
rotation
Job
Job
enlargement
enlargement
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
Job
Job
enrichment
enrichment
14–6
Enhancing Performance
• The Job Characteristics Approach
Takes into account the work system and
employee preferences
Suggests that jobs can be diagnosed and
improved along five core dimensions:
Skill variety
Task variety
Task significance
Autonomy
Feedback
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
14–7
The Job Characteristics Model of Job Design
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
14–8
Alternative Work Arrangements
• At Work
Work teams
Flexible work hours
Compressed workweeks
• Away from Work
Home work programs
Telecommuting
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
14–9
Flexible Work Schedules
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
14–10
Employed Workers with Alternative Work Arrangements
by Occupation and Industry (Percentage Distribution for
2009)
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
14–11
Beyond the Book:
Successful Telecommuting
Identify jobs best suited for telecommuting
Select responsible employees
Establish procedures
Establish a training program
Keep telecommuters informed
Recognize when telecommuting does not work
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
14–12
Incentives and Performance-Based
Rewards
• Merit Pay
Is awarded individuals on the basis of the
relative value of their individual contributions
to the organization.
• Merit Pay Plans
Base a portion of compensation on individual
merit.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
14–13
Individual Incentive Plans
Incentive
Incentive Plans
Plans
Base
Base Salary
Salary
Sales
Sales
commission
commission
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
Nonmonetary
Nonmonetary
Awards
Awards
14–14
Team
Team and
and Group
Group
Incentive
Incentive Plans
Plans
Gainsharing
Gainsharing
Plans
Plans
(Scanlon)
(Scanlon)
Profit
Profit
sharing
sharing
plans
plans
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
Stock
Stock
options
options
plans
plans
Employee
Employee
stock
stock
ownership
ownership
(ESOPS)
(ESOPS)
14–15
Performance Management
and Feedback
• Productivity Measurement and Evaluation
System (ProMES)
Is used to improve group- or firm-level productivity
• Evaluating Performance Enhancement
Programs
Determining whether or not strategic goals were met
Using multiple performance indicators
(e.g. human and financial goals)
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
14–16
A Sample ProMES Curve
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
14–17