Lecture Organizational behavior - Chap 6: Introducing organizational behavior
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Chapter 6
Motivation and
Performance
It’s about the person
job fit
Chapter 6 Study
Questions
What is the link between motivation,
rewards, and performance?
What are the essentials of performance
management?
How do job designs influence motivation and
performance?
What are the motivational opportunities of
alternative work arrangements?
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Figure 6.1: An integrated
model of individual
motivation to work.
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What is the link between
motivation, performance, and
rewards?
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6-4
What is 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.
Copyright © 2014 John Wiley & Sons, Inc.
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What is the link between
motivation, performance, and
rewards?
Pay for performance
•
When pay functions well it can help organizations attract
and retain highly capable workers.
•
Pay can also 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.
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What is the link between
motivation, performance, and
rewards?
Merit pay
• Compensation system that directly ties an
individual’s salary or wage increase to measures
of performance accomplishments during a
specific time period.
• Seeks 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.
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What is the link between
motivation, performance, and
rewards?
Gain sharing
• Gives workers the opportunity to earn more
by receiving shares of any productivity
gains that they help to create.
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What is the link between
motivation, performance, and
rewards?
Profitsharing plans
• Reward employees for increased
organizational profits.
Criticism: organizational profit increases and
decreases are not always a direct result of
employees’ efforts.
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What is the link between
motivation, performance, and
rewards?
Stock Options
• Provide employees with an opportunity
to buy shares of stock at a future date at
a fixed price.
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What is the link between
motivation, performance, and
rewards?
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.
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What is the link between
motivation, performance, and
rewards?
Skillbased pay
• Rewards people for acquiring and
developing job relevant skills.
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Figure 6.2:
Performance management cycle
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What are the essentials
of performance
Performance management involves two
management?
purposes:
• It serves an evaluation purpose when it lets
people know where their actual performance
stands relative to objectives and standards.
• It serves a developmental purpose when it
provides insights into individual strengths
and weaknesses.
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What are the essentials
of performance
Performance Measurement
management?
• Output measures
Assess actual work results.
• Activity measures
Assess work inputs in respect to activities
tried and efforts expended.
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What are the essentials
of performance
Performance appraisal
management?
Formal procedure for measuring
and documenting a
•
person’s work performance.
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What are the essentials
of performance
appraisal?
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What are the essentials
of performance
• Rating scales
appraisal?
Graphic – Lists a variety of performance
dimensions that an individual is expected to
exhibit.
Behavioral – 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.
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Figure 6.3: A sample BARS for a
customer service representative
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What are the essentials
of performance
360° Evaluation
appraisal ?
• Uses a combination of evaluations from a
person’s bosses, peers, and subordinates, as
well as internal and external customers and
self-ratings.
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What are the essentials
of performance
To be meaningful, an appraisal system
management?
must be:
• Reliable - provide consistent results each time
it is used for the same person and situation.
• Valid - actually measure dimensions with direct
relevance to job performance.
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What are the essentials of
performance
Measurement errors that can reduce the
management?
reliability or validity
of a performance
measure:
• Halo error
• Leniency error
• Central tendency error
• Recency error
• Personal bias error
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How do job designs
influence motivation and
performance?
Job design
• Process through which managers plan and
specify job tasks and the work
arrangements that allow them to be
accomplished.
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Figure 6.4: A continuum of
job design strategies
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How do job designs influence
motivation and performance?
Scientific management
• Sought to create management and organizational
practices that would increase people’s efficiency at
work.
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