The document discusses various methods for motivating employees, including management by objectives (MBO) programs, employee involvement programs like quality circles and gain-sharing, and flexible benefits plans. It also covers issues in motivating different types of employees such as professionals, contingent workers, and low-skilled service workers.

1. ORGANIZATIONAL BEHAVIOR
S T E P H E N P. R O B B I N S
WWW.PRENHALL.COM/ROBBINS
T E N T H E D I T I O N
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2. O B J E C T I V E S
AFTER STUDYING THIS CHAPTER,
YOU SHOULD BE ABLE TO:
1. Identify the four ingredients common to MBO
programs.
2. Explain why managers might want to use
employee involvement programs.
L E A R N I N G
3. Contrast participative management with
employee involvement.
4. Define quality circles.
5. Explain how ESOPs can increase employee
motivation.
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3. O B J E C T I V E S (cont’d)
AFTER STUDYING THIS CHAPTER,
YOU SHOULD BE ABLE TO:
6. Contrast gain-sharing and profit-sharing.
7. Describe the link between skill-based pay
plans and motivation theories.
8. Explain how flexible benefits turn benefits into
motivators.
9. Contrast the challenges of motivating
L E A R N I N G
professional employees versus low-skilled
employees.
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4. What is MBO?
What is MBO?
Key Elements
Key Elements
1. Goal specificity
1. Goal specificity
2.
2. Participative decision making
Participative decision making
3.
3. An explicit time period
An explicit time period
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4. Inc.
4. Performance feedback
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5. Why MBO’s Fail
Why MBO’s Fail
 Unrealistic expectations about MBO results
 Lack of commitment by top management
 Failure to allocate reward properly
 Cultural incompatibilities
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6. Cascading of Objectives
Cascading of Objectives
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7. Employee Recognition Programs
Employee Recognition Programs
 Types of programs
– Personal attention
– Expressing interest
– Approval
– Appreciation for a job well done
 Benefits of programs
– Fulfills employees’ desire for recognition.
– Encourages repetition of desired behaviors.
– Enhances group/team cohesiveness and motivation.
– Encourages employee suggestions for improving
processes and cutting costs.
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8. What is Employee Involvement?
What is Employee Involvement?
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9. Examples of Employee Involvement Programs
Examples of Employee Involvement Programs
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10. Examples of Employee Involvement Programs
Examples of Employee Involvement Programs
(cont’d)
(cont’d)
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11. Examples of Employee Involvement Programs
Examples of Employee Involvement Programs
(cont’d)
(cont’d)
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12. How a Typical
How a Typical
Quality Circle
Quality Circle
Operates
Operates
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EX IBIT 7-4
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13. Examples of Employee Involvement Programs
Examples of Employee Involvement Programs
(cont’d)
(cont’d)
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14. Variable Pay Programs
Variable Pay Programs
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15. Variable Pay Programs (cont’d)
Variable Pay Programs (cont’d)
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16. Skill-Based Pay Plans
Skill-Based Pay Plans
Benefits of Skill-based Pay Plans:
Benefits of Skill-based Pay Plans:
1.
1. Provides staffing flexibility.
Provides staffing flexibility.
2.
2. Facilitates communication across the organization.
Facilitates communication across the organization.
3.
3. Lessens “protection of territory” behaviors.
Lessens “protection of territory” behaviors.
4.
4. Meets the needs of employees for advancement
Meets the needs of employees for advancement
(without promotion).
(without promotion).
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5. Leads to performance improvements.
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17. Skill-Based Pay Plans (cont’d)
Skill-Based Pay Plans (cont’d)
Drawbacks of Skill-based Pay Plans:
Drawbacks of Skill-based Pay Plans:
1. Lack of additional learning opportunities that will
1. Lack of additional learning opportunities that will
increase employee pay.
increase employee pay.
2. Continuing to pay employees for skills that have
2. Continuing to pay employees for skills that have
become obsolete.
become obsolete.
3. Paying for skills which are of no immediate use
3. Paying for skills which are of no immediate use
to the organization.
to the organization.
4. Paying for aaskill, not for the level of employee
4. Paying for skill, not for the level of employee
performance for the particular skill.
performance for the particular skill.
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18. Flexible Benefits
Flexible Benefits
Core-plus Plans:
Core-plus Plans:
aacore of essential
core of essential
benefits and aamenu-like
benefits and menu-like
selection of other benefit
selection of other benefit
options.
options.
Modular Plans: Flexible Spending Plans:
Flexible Spending Plans:
Modular Plans: allow employees to use
predesigned benefits
predesigned benefits allow employees to use
packages for specific their tax-free benefit
their tax-free benefit
packages for specific dollars to purchase
groups of employees.
groups of employees. dollars to purchase
benefits and pay service
benefits and pay service
premiums.
premiums.
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19. Special Issues in Motivation
Special Issues in Motivation
 Motivating Professionals
– Provide challenging projects.
– Allow them the autonomy to be productive.
– Reward with educational opportunities.
– Reward with recognition.
– Express interest in what they are doing.
– Create alternative career paths.
 Motivating Contingent Workers
– Provide opportunity for permanent status.
– Provide opportunities for training.
– Provide equitable pay.
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20. Special Issues in Motivation (cont’d)
Special Issues in Motivation (cont’d)
 Motivating the Diversified Workforce
– Provide flexible work, leave, and pay schedules.
– Provide child and elder care benefits.
– Structure working relationships to account for cultural
differences and similarities.
 Motivating Low-Skilled Service Workers
– Recruit widely.
– Increase pay and benefits.
– Make jobs more appealing.
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21. Special Issues in Motivation (cont’d)
Special Issues in Motivation (cont’d)
 Motivating People Doing Highly Repetitive Tasks
– Recruit and select employees that fit the job.
– Create a pleasant work environment.
– Mechanize the most distasteful aspects of the job.
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