Bài giảng Principles of Management - Chapter 13 Motivating and Rewarding Employee Performance

Chapter 13Motivating and Rewarding Employee PerformanceMcGraw-Hill/IrwinPrinciples of Management © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.Learning ObjectivesDiagram and summarize the MARS model.Describe four-drive theory and explain how these drives influence motivation and behavior.Describe the characteristics of effective goal setting and feedback.Diagram the expectancy theory model and discuss its practical implications for motivating employees.Discuss the advantages and disadvantages of the four reward objectives.Discuss ways to measure employee performance more accurately.Summarize the equity theory model, including how people try to reduce feelings of inequity.Diagram the job characteristics model of job design.Define empowerment and identify strategies to support empowerment.Employee EngagementEmployees emotional and rational motivationTheir perceived ability to perform the jobTheir clear understanding of the organization’s visionTheir belief that they have been given the resources to get the job doneIt encompasses the four main factors that contribute to employee performanceMotivation: True or False?I can motivate peopleFear is a damn good motivatorI know what motivates me, so I know what motivates my employeesIncreased job satisfaction means increased job performanceSource: Managementhelp.orgMARS ModelAbilityEmployee behavior and resultsMotivation (effort)*Direction *Intensity *PersistenceRole PerceptionsSituational factorsAbility & Role PerceptionsAbility – consists of both the natural aptitudes and learned capabilities required to successfully complete a taskImportant factor of employee developmentRole perceptions – they understand the specifics, importance, and preferred behaviors of the tasks. Ways to improve is through job description and ongoing coachingManaging Employee Motivation1. Drives and needs Employee behavior and resultsMotivation (effort)*Direction *Intensity *Persistence2. Goals, expectations, and feedback3. Extrinsic and intrinsic rewardsMaslow’s Needs HierarchySelf-actualizationEsteemBelongingnessSafetyPhysiologicalChallenging tasks, freedom to try new ideasJob status, recognition, mastering the jobHuman interaction, being accepted as a team memberJob security, employee benefits, safe workplaceWork hours, nourishments, air quality, temperatureCalled in Sick?Source: USA Today SnapshotsQuestion Money is a powerful motivator. If an organization wants to be motivate employees, all its managers need to do is give them more money. Do you agree? Explain.Management Implications of Maslow’s TheoryEmployees have different needs at different timesEmployees have several interdependent needs, not just one dominant needAt some point, most employees want to achieve their full potential (self-actualization)Employee needs are influenced by values and normsLearned Needs TheoryNeed for Achievement (nAch)Need for Affiliation (nAff)Need for Power (nPow)Four-Drive Theory MotivationDrive to acquireDrive to bondDrive to learnDrive to defendMental skill set resolves competing drive demandsGoal-directing choice and effortSocial normsPersonal valuesPast experienceGoal Setting The process of motivating employees and clarifying their role perceptions by establishing performance objectivesA goal is a desirable future state that an organization or person attempts to realizeGoal setting improves role perceptions and consequently clarifies the direction of employee effortQuestion Raj, a new manager at Telcom International, in his first meeting at the company told his employees that the sales goals were significantly enhanced for this year and he expects all of his employees to buckle down and work hard to meet the goals. Raj’s instructions violates which of the aspects of effective goal-setting?Precise and measurableEquitableExpectancy-orientedTimelyExpectancy Theory of MotivationEffortOutcome 1 + or -Outcome 1 + or -Outcome 1 + or -PerformanceE-to-P expectancy (probability that effort will result in a specific level of performance)P-to-O expectancy (probability that performance will result in specific outcomes)Outcome valence (the outcome’s positive or negative value to the employee)RewardsExtrinsic Rewards – anything received from another person that the recipient values and is contingent on his or her behavior or resultsPaychecks, performance bonuses, praise, and other forms of recognitionIntrinsic Rewards – a positive emotional experience resulting directly and naturally from the individual’s behavior or resultsLearning a new task, feeling of accomplishment, etc.Motivation Through Extrinsic RewardsMembership & seniority-based rewardsNonfinancial rewardsJob status-based rewardsImproving performance appraisalsCompetency-based rewardsRewards employees equitablyPerformance-based rewardsHow to Accurately Evaluate Employee Performance?Use more objective measures of performanceUse anchored performance appraisal instrumentsUse multiple sources of performance informationUse performance appraisal trainingBest Practices at NucorPay for performance – On average two-thirds of a Nucor steelworker’s pay is based on a production bonusListen to the frontline – According to the Execs, almost all of the best ideas come from the factory floorPush-down authority – minimizing layers of managementProtect your culture –compatibility of culture with its egalitarian philosophy and team spirit is a big focus of its acquisition research Source: Business Week, May 1, 2006Correcting Inequity FeelingsChange InputsChange OutcomesChange PerceptionsLeave the Situation Job Characteristics ModelCritical psychological statesMeaningfulnessResponsibilityKnowledge of resultsIndividual differences *Knowledge and skill *Context satisfaction *Growth need strengthCore job characteristicsSkill variety Task identity Task significanceAutonomyFeedback from jobOutcomesWork motivationGrowth satisfactionGeneral SatisfactionWork effectivenessCore Job CharacteristicsSkill variety – the use of different skills and talents to complete a variety of work activitiesTask identity – the degree to which a job requires completion of a whole or identifiable piece of workTask significance – the degree to which the job affects the organization and societyAutonomy – provide freedom, independence, and discretion in scheduling work and proceduresJob feedback – the degree to which employees can tell how well they are doing Job enrichment A job design practice in which employees are given more responsibility for scheduling, coordinating, and planning their own workCombine highly interdependent tasks into one jobEstablishing client relationshipsGive employees more autonomy over their workLoyal vs. Trapped?Source: CIO, October 1, 2003Empowerment A psychological concept represented by four dimensions:Self-determination – they have freedom, interdependence, and discretion over their work activitiesMeaning – they care about their work and believe that what they do is importantCompetence – their ability to perform the work well and have a capability to grow with new challengesImpact – Active participants in the organization; that is, their decisions and actions influence the company’s successInspiring EmployeesDon’t ask for worker input – use it.Tell your people you care about them.Show employees what they are learningSupport people when they make a mistake.Set clear goals and celebrate accomplishments. Source: Business Week, May 1, 2006