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Share information about prize distribution

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- Stock options for all employees
- Personalize the reward system

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Employees participate in deciding rewards

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10-6e New Approaches to Performance-Based Rewards

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10-6e New Approaches to Performance-Based Rewards

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The amount of compensation is too large.
Compensation is not tied to overall performance.
Income gap between salaries for executives and salaries for employees.

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–Stock option plans
–Executive perks

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Standard Forms of Executive Compensation

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Standard Forms of Executive Compensation

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Base salary

Incentive pay

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Provide annual bonus based on corporate profits.

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Like gainsharing , but profit distribution is more inclined towards employees

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Cost savings + improved employee productivity

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10-6c Team and Group Incentive Reward Systems

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10-6c Team and Group Incentive Reward Systems

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Immediate, and one-time rewards:
•Days off, additional paid vacation time, and special perks

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Pay a percentage of sales to sell products

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Reward system + certain amount they produce

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At least in part makes sense based on achievement

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Compensation to employees on a relative value basis

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- Motivate employees to work harder
- Employee interests with organizational goals.
- Increased retention+ citizenship.

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Formal + informal mechanisms-> employee performance is determined, evaluated and rewarded

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- All levels are not always present
- Ordering, importance of needs are not always the same
- Cultural differences can impact the ordering and slience of needs

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- Identified, categorized individual needs
- Emphasized importance of needs to motivation

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Self-actualization:realizing one's potential for personal growth and development

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Esteem: positive self-image/respect, recognition, respect from others

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Belongingness: experiencing love and affection

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Security: safe physical, emotional environment

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Physiological: basic survival, biological function

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suggest people must statisfy five group of needs in order

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approach to motivation that answer " what factors motivate people?"

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- Motivation
- Ability
_ Work environment

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Set of forces causes people to behave in certain ways

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–people are motivated to seek equity in the rewards they receive for performance

–Inputs to the job include:

•Time, experience, effort, education, and loyalty

–Outcomes from a job include:

•Pay, recognition, promotions, social relationships, and intrinsic rewards

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The Porter-Lawler Extension of Expectancy Theory

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The Porter-Lawler Extension of Expectancy Theory

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•Extrinsic rewards = outcomes set + awarded by external parties

•Intrinsic rewards = outcomes that are internal to the individual

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• performance -> equitable and fair rewards -> people will be more satisfied.

- High performance -> rewards and high satisfaction

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* Assumptions
* Types of Rewards

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–Attractive outcomes -> positive valences and unattractive outcomes -> negative valences.

–Outcomes = an individual is indifferent have zero valences.

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– index of how much an individual values a particular outcome= attractiveness of the outcome to the individual.

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–The individual’s perception of the probability that performance -> a specific outcome, or consequence or reward in an organizational setting.

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– perception of the probability + effort -> a high level of performance.

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The Expectancy Model of Motivation                                              

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The Expectancy Model of Motivation                                              

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–Behavior = personal + environmental forces.

–People -> their own behavior.

–Different people = different (needs, desires, and goals)

–People + among alternatives of behaviors in selecting one
-> a desired outcome.

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–depends on:
we want something
how likely we think we are to get it

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–Expectancy Theory

–Porter-Lawler Extension of Expectancy Theory

–Equity Theory

- Goal-Setting Theory

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Allowing employees to spend part of their time working offsite, usually at home

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When two part-time employees share one full-time job

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Allow employees to select, within broad parameters, the hours they work

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Working one full week (five days) and one compressed week (four days), yielding one off-work day every other week

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Working a full 40-hour week in fewer than the traditional five days

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10-5b Alternative Forms of Working Arrangements 

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10-5b Alternative Forms of Working Arrangements 

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Giving employees a voice in making decisions about their own work

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Enabling workers to set their own work goals, make decisions, and solve problems.

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the use of compliments by a supervisor on an irregular basis

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a bonus for every fifth sale

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occasional visits by the supervisor

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regular weekly paychecks

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10-4b Providing Reinforcement in Organizations 

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10-4b Providing Reinforcement in Organizations 

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•Need for achievement: accomplish a goal or task more effectively than in the past

•Need for affiliation: human companionship and acceptance

•Need for power: influential in a group and to control one’s environment

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•Two-factor theory of motivation

people’s satisfaction and dissatisfaction + sets of factors–motivation factors and hygiene factors

•Theory assumptions

- Motivational factors (work content)  satisfaction to no satisfaction.

- Hygiene factors (work environment) dissatisfaction to no dissatisfaction.

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•Motivation becomes a two-stage process

– Deficient hygiene factors are not blocking motivation.

–Using job enrichment and redesign of jobs

•Criticisms of the Two-Factor Theory

–Interview findings are subject to different explanations.

–Sample population was not representative.

–Subsequent research has not upheld theory.

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•Process perspectives

why people choose certain behavioral options + satisfy their needs + how they evaluate their satisfaction

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10-6 Using Reward Systems to Motivate Performance

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10-6 Using Reward Systems to Motivate Performance

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10-4 Reinforcement Perspectives on Motivation

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10-4 Reinforcement Perspectives on Motivation

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Chap 10: Managing Employee Motivation and Performance

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Chap 10: Managing Employee Motivation and Performance