OrganizationalBehaviour.pdf

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50 pt

Slide subtitle 32 pt

Organizational Behaviour

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field

customer or

partner logotypes. See Best practice for example.

40 pt Slide subtitle

24 pt

Text 24 pt 5 20 pt

1. Basics of OB

1. OB vs. Management

1. Management Roles

2.

New perspectives on managers‟ job

3. Human Behaviour in Organization

4. Human and Org Needs

2. Values

1. Values in Global Organization

3. Traits of Personality

1. Locus of Control

2. Organization & Locus of control

3. Extroversion vs Introversion

4. Org & Extroversion and Introversion

5. Machiavellian Personality

6.

Organization & “High Mach”

7. Social Needs, Psychometric Tests (16F Questionnaire, Dr. Cattell)

4. Job Satisfaction

1. Meaning of Job Satisfaction

2. Determinates and consequences

3. Job Satisfaction & Performance

4. Measuring Job Satisfaction

5. Work Attitudes

1. Organizational Commitment

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1.1 OB vs. Management



Organizational behavior describes organizational

phenomena

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20 pt

Management

Technical

Current resources utilization

Conceptual

Planning Future measures

Human

Human aspects handling

0 10 20 30 40 50 60 70 80

First Medium Top Technical Conceptual Human

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partner logotypes. See Best practice for example. 40 pt Slide subtitle 24 pt Text 24 pt 5 20 pt

First

Medium

T

op

1.1.2 New perspectives on managers‟ job



Segments, 5% of tasks > 1 hr



ALL managers do 7 things

1.

Managing individual performance (

SUPERVISING

).

2.

Instructing subordinates (

TEACHING AND TRAINING

).

3.

Presenting one‟s staff

(REPRESENTATION AND ADVOCACY

).

4.

Managing group performance (

FACILITATION

).

5.

Planning and allocating resources (

DECISION-MAKING

).

6.

Coordinating interdependent groups (

COLLABORATION

).

7.

Monitoring the business environment (

SCANNING

).

0 10 20 30 40 50 60 70 80

First Medium Top 1,2 3,4,5 6,7

Workforce changes

Customer expectations changes Organizations changes

Greater speed, Efficiency, Responsiveness and Flexibility

Command and Control Participative

OB helps in solving people issues

Understands OB development

Understand the proposed solutions in improve OB

Individuals

Intra-Groups

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1.1.3 Human Behaviour in Organization

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1.1.4 Human and Org Needs

Human Needs

Work Attitude

Org Needs

Profitability

Org Performance

Balance

IT

Preferred

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Text 24 pt 5

20 pt _Managers

X Theory

Conformance and Adherence _{Knowledge and Creativity}Y Theory

Values

Instrumental e.g. Ambition

Terminal e.g. Achievement

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1.2.1 Values in Global Organization

Persons‟ Values

Organization‟s Value System

Foreign Value System

Other Foreign Value System

Open Minded

No Prejudgment

Tolerate Differences

Honest as possible

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1.3 Traits of Personality

Behaviour

Warmth

Manipulative

Emotional Stability

Dominance

Openness

Reasoning

Privateness

Vigilance

Create

(11)

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Employees

Internalisers

Believes in him as a cause

for the effects

Externalize

Believes that external factors

are the cause of the effects

1.3.1 Locus of Control

Severe downgrade

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1.3.2 Organization & Locus of control

Self-motivated Study hard Creative Challenge taker

Helpless Unmotivated Careless

Resistant to Change

If

Sub

jec

tiv

e

Ev

aluatio

n

Lac

k

of

Challeng

es

..

etc

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1.3.3 Extroversion vs Introversion

Good among people

Social

Talkative … etc.

Prefer staying alone

Shy

Self dependent … etc.

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1.3.4 Org & Extroversion and Introversion

Social Rewards

Events Participation

Group Assignments

Avoid social intervention

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1.3.5 Machiavellian Personality

The end justifies the means

Selfish

Manipulate others

Turns others‟ effort

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1.3.6 Organization & “High Mach”

TL

CEO

Give in return of

unprofessional favours

we have done you

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1.3.7 Socially Acquired Needs (McClelland)

Social Needs

Achievements

Affiliation

Power

Social Need of Power

I believe in you as you believe in yourself

Man need of power

One man show

Who isn‟t with me is against me

Visible Positions

They should lead poor teams

Delegations

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Psychometric Tests

(16F Questionnaire, Dr. Cattell)

Warmth Vigilance

Warm Reserved Trusting Vigilant

Reasoning Abstractness

Literal Abstract Grounded Abstracted

Emotional Stability Privateness

Reactive Stable Forbright Private

Dominance Apprehension

Differential Dominant Self-assured Fearful

Liveliness Openness

Serious Lively Rigid Open

Rule-Consciousness Self-Reliance

Expedient Rule-conscious Group-oriented Self-oriented

Social Boldness Perfectioness

Shy Bold Tolerates disorder Perfectionist

Sensitivity Tension

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1.4 Job Satisfaction

Job satisfaction continuously

shapes all employees

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1.4.1 Meaning of Job Satisfaction

Facets of

Job Satisfaction

With

Work

With Pay

With

fellow workers

With

promotion

With

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field

customer or

partner logotypes. See Best practice for example. 40 pt Slide subtitle 24 pt Text 24 pt 5 20 pt Determinants Generic Organization Related

Year in Career Personal Traits Supervision Y: to share

Job Challenge Internalisers

Job Clarity

Y: Share Incentives

Extrinsic Pay, promotions Intrinsic Self confidence Uncertainty of Job suitability Org

•Give realistic job preview •Student internships

Employee

•Seek for respect in interview •Ask interviewers

•3rd_{part opinion} •Ask about x,y managers

1.4.2 Determinates and Consequences

Delays retirement for economic issues

My Pay to Other‟s pay

My Effort Other‟s effort

Decrease Effort (Externalisers)

Increase Effort (Internalisers)

Leave Compare with other

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1.4.3 Job Satisfaction & Performance

Performance

Extrinsic

Rewards

Intrinsic

Rewards

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1.4.4 Measuring Job Satisfaction

Measuring

Job Satisfaction

Interviewing

Observation

Questionnaire

Inexpensive

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1.5 Work Attitudes

Work Attitudes

Job Satisfaction

Déjà vu Equity

Fragile

Organizational

Commitment

Home Loyalty, stable except on front of

downsizing

Job Involvement

Job = ID + self-worth

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1.5.1 Organizational Commitment

Organizational

Commitment

Exert effort on

its behalf

Believe in its values

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1.5.2 Job Involvement

Maintain work attitudes

Keep work attitudes

Set goals for personal development

Help in achieving personal goals

Modify job to get more intrinsic rewards Theory Y

Be there for better (reward) and for worse (advise)

Be honestly close

Y Generation

Baby Boomers

X Generation

More 20 years

Lots of top vacancies

You baby Boomer: You are slow, impractical and

traditional

You Yer: You are Impatient and bad

communicator

Well Yer: You are ambitious, brand

conscious and challenge taker

I need to save more before

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2. Stress and Wellbeing

1.

Introduction

1.

Stress goes global

2.

Job Stress and its components

3.

Causes and consequences

1.

Environmental Causes

2.

Organizational Causes

3.

Individual Causes

4.

Individual Differences

5.

Consequences of stress

4.

Individual Stress management

5.

Organizations Stress Management

6.

Downsizing as Insecurity Factor

1. Domestic Goes Global 2. Merger Mania

3. Government Spending in Labour markets 4. Small is beautiful

5.

Restless Shareholders

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0

10

20

30

40

50

60

70

80

%

Bosses

Co-Workers

Job-Authority

Technical

Interruption

0 10 20 30 40 50 60 70 %

Survey on 45000 Employees

Stressed OK

More health issues

Less productivity

Outbursts on job

Turnovers

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2.1.1 Stress Goes Global



Karoshi

(Japanese: Work yourself to death)

Japan

USA

Germany

250

H

rs

/Y

ear

250

H

rs

/Y

ear

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2.2 Job Stress and its Components

Stressor

Object, Event, Situation

Respond

Distress Negative

Eustress Positive Excited to Challenge

Fear Non-Controlled

Anger Controlled

Calm now, not later

Avoid decline, by long races training

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(32)

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2.3.1 Environmental Causes

Orgs Downsizing

Unemployment

Trainings More Taxes

Competition

Political Technological Economic

Environment

H

igher

T

ec

h

Lower Profile

Adapt and accept challenge

USA 50->85 Germany 50->105

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Organisational

Causes

Task Demands Role Demands Interpersonal Demands Organisational Structure Organisational Life-cycle Organisational Leadership Tasks Conditions Isolated, Overworked, Reporting in vacuum,

Tight schedules, Poor team, lots of managers

Physical Conditions

Noise, Cleanliness Hazardous Temp, humidity

Values Conflicts

Some will become whistle-blower

De-Layering

Due to Downsizing no mid-mgmt,

leads to high load Ambiguity Poor Cooperation Affiliation most affected IF X Low participation Low JS

IF X CEO

More effort less resources >>>

burnout

Each Phase has its own stress

Est Growth Maturity Decline

2.3.2 Organizational Causes

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2.3.3 Individual Factors

Individual Factors

Family

Aging Parents, misbehaved

kids, divorce … etc

Economic

(35)

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2.3.4 Individual Differences

Individual Differences

Perception

Reflex sometimes is bigger than the event

Job experience

Experience↑ Stress↓

Locus of Control

Internalisers +ve Externalisers -ve

Type-A Behaviour

Achieve more in less time Feel misunderstood

Restless

Extremely they are hostile and suffer from intermittent explosive

disorder

1. is suspicious of other people‟s motives,

2. instigates of arguments with others (agitators),

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2.3.5 Consequences of Stress

Consequences

Physiological

Back trouble, migraine headaches, insomnia, heart disease, hypertension, diabetes

and even cancer

Psychological

Anger, anxiety, depression, nervousness, irritability, aggressiveness, passiveness

and boredom accompany high stress

Behavioural

absenteeism,

hopping from job to job, altered eating habits, exercise patterns, cigarette smoking, use of alcohol and drugs, rapid speech pattern,

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2.4 Individual Stress Management

How people manage stress

Exercise

Mitigates the intermittent explosive disorder

Relaxation

Prayer Mediating Distancing Short vacations

Diet

Fats & Sugar + Stress is killer

combinations

Guilt ≠ Shame

Guilt is OK, shame is blocking feeling

Stress Resistance

Type A should Measure signs of

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2.5 Organizations Stress Management

Orgs

Methods

Reward Productivity

Focus on results not

attendance sheets

Respect Others’

values

Live your own an

encourage other to live

theirs

Built respect

Use trust and respect

to build trust, this is

useful in hard times

(39)

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2.6 Downsizing as Insecurity Factor

Industrial nations

Low cost labour

nations

Factori

es

Imm

(40)

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2.6.1 Domestic Goes Global



Toyota is building cars in USA

(41)

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2.6.2 Merger Mania

MERGER

Consolidation

Loser was over expending

Acquisition

Conglomerate

X & Y in the different

industry (old fashion)

Acquisition

X & Y in the same

industry (most common)

Winner

Loser

Y X

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2.6.3 Government spending and

Labour market involvement

Old ORG

TRAIN

GOV

(43)

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2.6.4 Small is beautiful



Entrepreneurship makes you think like;

– Share credit

– Ask for forgiveness than permission

– Willing to be fired every day (be brave)

– Follow intuition in building teams

– Ask for advice before resources

– Only bet on your races

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2.6.5 Restless Shareholders

ORG

Management

Shareholders

High costs

Downsizing

Short Sighted

Costs ↓

Profits↑

More strategic

(45)

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2.7 Semi-Last word on Downsizing



Although it is the NO.1 cost cutter as seen by

executives, 68% of downsized were not back to

profitability



Do it considering;

– Give good release package

– Encourage outsourcing

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1.

Introduction

1. What Stimulates Human Behaviour 2. Motivation vs. Performance

3. Different types of motivation theories

2.

Content theories of motivations

1. Maslow‟s Hierarchy

2. Applying the need hierarchy

3. Herzberg Two factors motivation theories 4. Maslows vs. Herzberg

3.

Process theories of motivation

1. Equity Theory

2. New research lights on equity theory 3. Concept of Expectancy theory

4. Applying Expectancy theory

5. Expectancy theory to individual and organizations

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5.

Cultural Differences in Motivations

1. Behaviour Modification [BMod] 1. Positive Reinforcement 2. Negative Reinforcement 3. Extinction

4. Punishment

5. Behavioural Shaping and Employees 2. Making Sense of Schedules of Reinforcement

1. How Partial Reinforcement Schedules Influence Employee Behaviour 2. Characteristics of Partial Reinforcement Schedules

3. Stretching the Ratio and Interval of Reinforcement

4. Is Stretching Ratios or Intervals a Way to Use Fewer Rewards? 3. BMod in Perspective

4. Understanding the Role of Punishment in Management Practices

1. Why Punishment Receives so Little Attention in Management Circles 2. What Has Happened in this Episode?

3. Why Is Punishment so Common?

4. The Positive Side of Punishment in Organisations 5. How Can Punishment Be Used Effectively?

5. Setting up a BMod Programme

1. Some Reminders about Initiating a Behaviour Modification Programme

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3.1 Introduction

Motivation

Behaviour

ORG

Stimulate

Sustain

Daily achieve

Goals Support

Short sighted managers

(49)

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3.1.1 What Stimulate Human Behaviour

directs, pushes and persists on

To satisfy

Motivation

Behaviour

Needs

(50)

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3.1.2 Is there a Distinction between Motivation and

Performance?

Environment

Competence

Complexity

Personality (Type A)

ORG Commitment

Job Involvement

Only one factor, no direct relation

Measurable

(51)

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3.1.3 Are there Different Types of Motivation

Theory?

Motivation

Contents

Process

(52)

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(53)

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3.2.1 A Question of Needs: Maslow‟s Hierarchy

OK: forget about

NOK: SHOULD be OK again

Never fully satisfied

Y firms are better satisfying and motivating

ANTICIPATION NATURE

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3.2.2 Applying the Need Hierarchy

Normally fulfilled Early Years (5 or so)

Secure position, learn ORG values … etc Some fulfilled

And some along career

Profession ID Individual and firm,

also promotions and picking assignments Along Career, firstly individual

Then firm if became executive Senior become mentors

Self-determination is important

Ca

(55)

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3.2.3 Herzberg‟s Two-Factor Theory of Motivation

Contextual, should

be restored ASAP

job-centered

characteristics

Content factors

(56)

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3.2.4 Comparing Maslow‟s and

Herzberg‟s Models

Special Application

They performed retrospective researches and

oversimplified motives

(57)

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3.3 Process Theories of Motivation

(58)

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3.3.1 Equity Theory: Social

Comparisons in the Work Setting

Ne

gativ

e

Posi

tiv

e

Increase input

Reduce input

Leave

Consider other scale

Advise others reducing inputs

Measure later (its is temp)

(59)

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3.3.2 New Research Light on Equity

Theory Applications

Ne

gativ

e

Posi

tiv

e

Benevolent

High need for affiliation

Entitled, Slacker

No guilt

Equity Sensitive

No Change please

Managers should expect the three responses

Pay ranges and increases opportunities are unhidden

(60)

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3.3.3 Understanding the Basics of

Expectancy Theory

Tolman, Behavior is purposeful

and probability defines it

Vroom, Expectancy Theory

(61)

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3.3.4 Applying Expectancy Theory

Hey, will you give me a hand?

OK, just fyi I will promote you for a TL

Thanks man, what you want me to do?

Sure I know you will be helpful for us

Really

Sorry I am busy doing my job

(62)

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3.3.5 Extending Expectancy Theory to the

Individual and the Organisation

Mr. Achiever

Mr. Competitor

Expectancy

Instrumentality

Line of sight

Cla

rity

Fai

rne

s

Con

(63)

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3.4 Cultural Differences in Motivation

McClelland‟s

Socially Acquired

Needs

Herzberg‟s two

levels needs

theory

Maslow‟s

hierarchy needs

theory

Vroom‟s

Expectancy

Theory

(64)

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3.4.1 Behaviour Modification

(BMod, Prof. Skinner)

Behaviour: Hard work

Consequence: Bonus

Behaviour: Interrupt

Consequence: Attention

Behaviour: Come Late

Consequence: Penalty

Behaviour: Come Early

Consequence: Penalty

(65)

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3.4.1 Behaviour Modification

(66)

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3.4.2 Making Sense of Schedules of

Reinforcement

Produces a very high behaviour response rate

Produces extremely durable and persistent behaviours once they are well learned.

(67)

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Stretching the Ratio and Interval of

Reinforcement

Level 1

Ratio Reinforcement

Level Three

The required target

Level 2

Interval Reinforcement

(68)

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3.4.3 BMod in Perspective

You are so naïve; manipulations happen anyway

So manipulative, ratomorphism,

It measures real behaviour not just expectancies, also it

improves instrumentality and LOS

And come here; if the employee is involved

where is the manipulation you claim is here

Like this you just simplify human

behaviour and erodes creativity

It helps in designing effective reward systems, and

stimulates higher performance by improving instrumentality

I know people are different than rats, but you know

Where is the respect and dignity in this theory, it works for simple routine

jobs, not for creative when initiatives are needed nor machine-paced

(69)

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3.4.4 Understanding the Role of

Punishment in Management Practices

Okay, if I punished him they will say that

my team is misbehaving, I treat

them badly or I couldn‟t hire right in

the first place

Punishment requires type x, It makes them fearful, reject

responsibilities, and nervous, and after all it will never eliminate bad

behaviour instead weaken it for a while

You can just ignore till they give up, reengineer the workplace, or

reward the good behaviour that contradicts with the bad one

Sorry punishment is needed when there is no other alternative, just make

it rapid, intense, focused, informative, equitable across people and

infraction, private and don‟t feel that guilty to the extent of following it with

(70)

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3.4.5 Setting up a BMod Programme

Conduct Job Analysis

Set Goals

Baselines

Use continuous

reinforcers

Behaviour shaping

Rewards

Select reinforcers

Stretch Ratio and

intervals

8 Steps

Mutual Trust

No Machine-paced

Employee can measure ed behaviours

Instantaneous feedback

Employee is no source of issues

Trained supervisors

(71)

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(72)

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4.1 Why Organisations Need to Assess

Employees‟ performance

PA

Understand job requirement

Know relation between my performance and org goals

Where I am from the org performance standards

Now I know that the system is fair and objective

I will be rewarded fairly and objectively

(73)

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4.1.1 Performance Appraisal Issues and Practices

Logical Relation between measure and aspects Stats

Bound to Theory

Many Measures >> One aspect -> Same result

(74)

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4.1.2 Overcoming Reliability Errors in PA

Use multiple criteria

The complex the job is the more behaviour criteria it needs to assess

Emphasise behaviours rather than traits

Even we are talking about loyalty, commitment, seniority … etc.

They have little bearing to performance and might be subjective

Use several raters

Distribute possible errors, like the 360 degrees where

employees assess themselves, their peers, their managers, and managers

asses their staff

Train the raters

(75)

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4.1.3 Improving Performance Measures with Job Analysis

Isolate key performance behaviour

State Duties (JD)

Define required skills, knowledge and education

Common skills to do the job

Common tasks in time and place as per technological coordinated

Use professional definitions, union demands, and licensing examinations

Use Firm‟s organisational culture

(76)

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4.1.4 PA Methods

Absolute Standards

Very high probability of strictness/ leniency error

Graphic Scales Rating System

Still tendency of strictness/ leniency error

Behaviour Anchored Rating Scale (BARS)

They provide concrete, observable examples of behaviours related to a performance dimension

(77)

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4.2 Goal-Setting and Management by

Objectives (MBO)

Specified difficult goals stimulate better performance than generic ones

Increases work motivation

Improve validity of used PA systems

Reduce the stress resulted by confusion and misunderstanding

Y style

X Style I don‟t care!

(78)

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4.2.1 How Does Goal-Setting Work from the Employee‟s

Perspective?

MBO is an organizational application of goal setting theory

Performance is better with clearer LOS ensured by MBO

MBO secures self determination which is higher order needs fulfilment

MBO improve equity

MBO feedbacks is considered as intrinsic reward by itself

To match firm‟s strategy MBO blueprint

ORG: avoid double efforts

Employee: how goals interlock SMART application

MBO rules Flexibility

(79)

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4.2.2 Observing Caution in the Use of

MBO Systems

Top management is involved, committed and interested

MBO is a routine management activities, supported by organizational assets

Blend in personal goals

Train to keep MBO on track

MBO should be customized per department

80-20 rule: 20% of goals require 80%of work

Feedback is in discussion besides evaluation for no manipulation (avoid x type)

(80)

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4.3 Rewards and Reward Systems

Perceived equity

The way rewards are perceived overweighs the rewards themselves

LOS

(81)

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4.3.1 Classifying Rewards in the Work

Setting

Intrinsic

The reward in the job/task itself

Local and ephemeral

Extrinsic

Doesn‟t occur as the work unfolds

Should be clear

Direct Compensation

Related to performance, salary, bonuses, stock …

Indirect Compensation

Not related to performance, given to specific levels

(loans, medical … etc.)

Non financial

Creative executives‟ solutions for their own sake

The firm needs to be clear about

extrinsic rewards and managers

must consider the implications of

their decisions and behaviour

regarding the distribution of intrinsic

rewards

(82)

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4.3.1 Classifying Rewards in the Work

(83)

field

customer or

4.3.2 Distributing Rewards in Organisations

Rewards based on

Performance Best way Effort “Wishful” Seniority Seniors are immune against layoffs, and have

higher rates NO good now

outsourcing eroding this

concept

Equity

In mid to long terms performance

degrades

Power

Fat cats are deciding handsome packages for

(84)

field

customer or

4.3.2 Distributing Rewards,

Jobs Classifications

Job Classification Compensatable factors Skill Requirements Training, intellectual level, education … etc

Mental Requirements Emotional control extent Physical Requirements Stamina, height, weight .. Etc.

Responsibilities

Budget, resources controlled … etc.

Working Conditions

Temperature, noise level … etc.

∑ Points (Job value to firm strategy)

+ Salary survey =

pay brackets

Rare skilled people

Gets more than pay bracket

Layoff times

Gets Less than pay bracket

(85)

field

customer or

24 pt

Text 24 pt 5 20 pt

4.3.3 Employees‟ Perceptions of Pay Rises

(86)

field

customer or

24 pt

Text 24 pt 5 20 pt

4.4 Components of Executive Compensation

Myth

Merit-base

Sin

Complex pay package

Profits are opaque to

shareholders

Board Justification

They are good for economy, we should

attract the best

Our man should have no less than theirs

Base Salary Benefits and perks

e.g. office staff

Long term incentives

ISO (Individual Stock Option)

Annual Bonuses

(87)

field

customer or

4.4.1 What Are the Current Trends in Executive

Compensation?

Trend 1

Debunking the myth

Acquisition, ephemeral market value

Accepted Drain

Better than peers

Profitability predicts in case CEO is the owner

Trend 2

Expanding Slice

In One decade top 1500 executive had 122b$

Twice as previous decade

CXO = 414x employees

In 60s it was only 44x

Trend 3 GB US Gap

English CEO = ½ American one

USA: $6.0m, Britain: $4.9m, Germany: $1.6m, France: 1.3m and Italy: $1.0m.

Europe has better restrictions

Trend 4 Net Income

Trend 5

ISO and backdating

(88)

field

customer or

24 pt

Text 24 pt 5 20 pt

4.4.2 How are Compensation Plans

Changing for Non-executive Employees?

In effect, merit-pay for performance is being replaced by bonus-pay for performance.

Permanent

Ephemeral

Merit-Base

•Becomes Part of the base salary •So it influence the Pension plan

•COLs undermines the freedom of rewarding excellent services workers •For this downsized firms prefer

Bonus Pays

•Not part of the base salary •No future cost

•Performance bound

(89)

field

customer or

24 pt

Text 24 pt 5 20 pt

4.5 A Comparison of Company Pay Practices

Cafeteria-Style Fringe Benefits

Free style, Young employee prefer money, older prefers health insurance extended privileges

Lump-Sum

Take it one shot in cash (weekly Yearly)

Accumulating Time-off

Turns money into extra days off, this is attractive to employees with more family duties

Skill-Based

New acquired business related skill  direct or indirect compensation (might be in the form of tuition reimbursement

All-Salaries Team

All who is working to the firm is paid the same way (salaries, no more hourly wages)

It improves loyalty and commitment, BUT might decrease the creativity and initiatives especially for the covered employees

Open salary information

Be aware of perceived equity, mangers can broadcast policies, grades, ranges, and LOS

(90)

field

customer or

24 pt

Text 24 pt 5 20 pt

4.5.1 Making Intelligent Choices about Company Pay Plans

Captures the attention of employees

Employees should understand it

The plan should improve the communication,

understand how their effort influence the firm‟s competitive advantage

The plan should be implement whenever needed by the employee

The plan should improve the firm‟s performance

(91)

field

customer or

24 pt

Text 24 pt 5 20 pt

4.5.1 Making Intelligent Choices about Company Pay Plans

Line of sight, rewards are tied to performance

Customised to meet personal needs of employee

Aligned to the firm‟s methods and structure

(e.g. team based, products rate … etc.)

The pay system should match the firm‟s culture

(92)

field

customer or

24 pt

Text 24 pt 5 20 pt

4.6 Group-Based Reward Systems

Profit Share Plans

Cost Saving Plans

Individual (Merit-based)

Stimulate individual performance and initiatives

Group-based

Stimulate team work and cooperation

Payments Systems

(93)

field

customer or

24 pt

Text 24 pt 5 20 pt

4.6.1 Cost-Savings Plans,

Scanlon

Objective to Save K$100

K$30 As reserve

K$25 As declared profit

K$45 As Team Bonus

Prerequisites

1.

Documented Solid history

2.

Seasonal products are out of equation

3.

Ensure that the extra output is convertible to profit margin

4.

Proved Y style

(94)

field

customer or

24 pt

Text 24 pt 5 20 pt

4.6.2 The Rucker Plan: an Incentive System that

Works in the Self-Directed Team Environment

Labour

Sales

Material

Total expected Costs of producing X units

Labour

Sales

Material

Total real Costs of producing X units, NOW

Declared Bonus, 75% Now and 25% end of year

Benefits

•Increase productivity

•Improve participation (I am not the free broader) •Less Formal

•Has shorter life-cycle

Features

•Excellent for firms that have just finished downsizing •Lots of innovations are required in

(95)

field

customer or

24 pt

Text 24 pt 5 20 pt

4.6.3 Design and Timing Issues for the Installation of a Rucker Plan in

a Delayered Firm Using Self-directed Teams

(96)

field

customer or

24 pt

Text 24 pt 5 20 pt

4.6.3 Design and Timing Issues for the Installation of a Rucker Plan in

a Delayered Firm Using Self-directed Teams

After downsizing the following should be met before Rucker plan could be implemented:

1. The firm has become profitable and pay freezes are lifted; 2. The management team is stable;

3. Self-directed teams are working and members are cross-trained;

(97)

field

customer or

24 pt

Text 24 pt 5 20 pt

4.6.4 Profit-Sharing Plans

•Flat org, all sitting: eating and thinking TQM together

•New engineers work on assembly lines for 6 months

•Welders sign their initials on their pieces

(98)

field

customer or

4.6.5 Strengthening Competitive Advantage

by Using Team-based Rewards

ORG

D o w n s iz in g D el ay er in g

Self

Directed

Team

Self

Directed

Team

Self

Directed

Team

After

Enhanced Customer satisfaction

Short turn cycles

Empower and train employees

Attraction and retention

Motivation and Performance

Skill Development

Organizational Culture

(99)

field

customer or

24 pt

Text 24 pt 5 20 pt

5. Job Design and Employee

Reactions to Work

1.

Understanding Job Design

2.

Making Use of Job Design for Individual employees

(100)

field

customer or

24 pt

Text 24 pt 5 20 pt

5.1 Understanding Job Design

Equipment

Participation in decision making

Techniques

Procedures

Behaviour

(101)

field

customer or

24 pt

Text 24 pt 5 20 pt

5.1.1 How Jobs Were Designed before QWL,

SM

Task 1

Task 5

Task 4

Task 3

Task 2

Not necessary

Minimise time and motion

Prominent X type (mass production)

Repetitive

Piece Rate

Low competence (minimum training required)

High specialization

Pre-Packed processes

Formal and slow decision making

Rigid control

(102)

field

customer or

24 pt

Text 24 pt 5 20 pt

5.1.2 Is SM Declining as a Job Design Philosophy?

Yes

No compliance to demands of driving forces of:

Services

Customer satisfaction Product Quality Trends

Employee involvement in decision making SDTs

(103)

field

customer or

24 pt

Text 24 pt 5 20 pt

5.1.3 Horizontal Increases: The Roles of Job

Enlargement, Job Rotation and Cross-Training

SM Causes Boredom and Monotony

•Job enlargement (Adding more tasks)

•Job Rotation (change for a while)

•Cross-training (all are interchangeable)

?

(104)

field

customer or

24 pt

Text 24 pt 5 20 pt

5.1.4 Job Design and Herzberg‟s Two-Factor Theory

Higher order needs ignored



Apathy and cessation of job involvement

?

Use Herzberg techniques

(105)

field

customer or

24 pt

Text 24 pt 5 20 pt

5.1.4 Job Design and Herzberg‟s Two-Factor Theory

(Authority to select ways of working)

(N

u

mb

er

o

f

tasks)

It has no objective data, people tend to blame external factors and to acquire the credit

It shall turn to the sake of elite, as only the management have the right to enrich the job

(106)

field

customer or

24 pt

Text 24 pt 5 20 pt

5.1.5 The Psychology of Employee–Job Interactions

SM

Improve by: Job Enlargement, Rotation and cross training

Herzberg Job enrichment

For employees with high need of growth USE ENRICHMENT

(107)

field

customer or

24 pt

Text 24 pt 5 20 pt

5.1.5 The Psychology of Employee–Job Interactions

Higher order needs the influence the JCM

Power

Independence Achievement Control

H-Loading

Enlargement

(108)

field

customer or

24 pt

Text 24 pt 5 20 pt

5.2 Making Use of Job Design for Individual Employees

JCM



Critical for Psychological state

Meaningfulness

Responsibilities

Knowledge of the work itself

Vertical loading

Enrich

For higher order demanding

No change

(109)

field

customer or

24 pt

Text 24 pt 5 20 pt

5.2.1 Job Design Principles

Horizontal Loading

If added tasks are not related, this is temporary, and some people might just see it as more work for the same pay

Vertical job loading, Enrichment, Deeper is better

Approaches:

Feedback improves and motivates Chance to learn new skills

Schedule freedom satisfies self-esteem needs Let employees show his personality on his work Use MBO for better results

Four-Day work week, even better time flexibility

Job-Sharing; help mothers, and firm gets better outputs and may less fringe benefits Work from Home

Flexi-time

Enlargement

(110)

field

customer or

24 pt

Text 24 pt 5 20 pt

5.2.2 Assessing Managers‟ Interests in Job Design

Good job design makes reflects eventually on market share,

customer services, cost control and of course work-force satisfaction

Alter the relation between people and their jobs

It targets performance behaviour

Making good JD improves the atmosphere in general (trust, initiatives … etc.)

It targets higher needs of employees

YES

BUT

For machine paced, just outsource to compete globally

Costs might cancel such programmes

(111)

field

customer or

24 pt

Text 24 pt 5 20 pt

5.3 The Team Approach to Job Design

STS: Socio Technical System

Productivity Needs of support and consideration

Work System

Technical

≈

Social

Interdependent

Building Blocks

Autonomous Work Group

End to end assignments (enlargement applied)

All members had cross-training

Free to set time, resources and training

(112)

field

customer or

24 pt

Text 24 pt 5 20 pt

5.3.1 How Managers Design Self-Directed Teams

are teams that are formed by members who shares

leadership

goal accomplishment

SDTs

are teams that have performance norms, efficient conflict

resolution, good interpersonal relations and STS

SDTs

Are applicable when

1. Small teams

2. Concentrated training to the required skills, or cross-training 3. Two tiered pay (Bonus +Merit-based)

4. Supervisor is horizontal integrator with other teams

(113)

field

customer or

24 pt

Text 24 pt 5 20 pt

5.3.2 Companies which Have Used the

Self-Managed Work Team Concept

PAST

Mid manager and supervisor used to:

1. Select and hire

2. Train and develop

3. Control the quality

4. Control the work schedules

5. Handle control and discipline

NOW

SDT members are doing these

As they are all leaders and achievers TQM is massively applied

(114)

field

customer or

24 pt

Text 24 pt 5 20 pt

5.3.3 Merging Self-Directed Team and

Empowerment (Engagement) Concepts

Who

needs this X hierarchy when he has effective SDTs?

This is more like modern organization where the decision making centres is

besides the customer

Externlisers are no use here

All SDTs are internalisers

(115)

field

customer or

5.3.4 Employee Engagement Spreads

Participative Decision-Making in the Organisation

Psychological involvement

Not just looking busy to evade control

Motivation to contribute

Like socialization needs, not as in X firm they instructed

Accept to receive authority

Integral part of SDTs 3

f a ce ts o f p a rtici p a tio n

!

Don‟t train to set SDTs at turmoil time

Make paradigm shift, to convince yourself that you are NOT the omniscient and

Employees want to grow like you

Teach them that participation is core for business

(116)

field

customer or

24 pt

Text 24 pt 5 20 pt

5.3.5 Limits to Participation in Organisations

Placid Environment

Monopoly

Strong patent No competition Loyal customers

Gain

Specialisation still required High productivity

Employees are comfortabe with standards ad procedures

Low Growth Needs

(117)

field

customer or

24 pt

Text 24 pt 5 20 pt

6. Understanding Work Group Dynamics

and Group-Based Problem-Solving

1.

Describing Work Groups and their Characteristics

2.

Work Group Composition, Cohesiveness and

Norms

3.

Significant Aspects of Work Group Structure

4.

From Statics to Dynamics: Work Group

Development and Decision-Making

5.

Practical Guidelines for Managing Groups

6.

Decision-Making in Teams: Deciding on the Extent

of Participation

(118)

field

customer or

24 pt

Text 24 pt 5 20 pt

6.1 Describing Work Groups and their Characteristics

Complains

Unfinished jobs

Petty bickering

……….

No, I have to find a way to

use these SDTs

(119)

field

customer or

24 pt

Text 24 pt 5 20 pt

6.1.1 Types of Groups in Organisations

What

is a group?

Two or more members who

Share same features

Share same goals

Interact with each others

Share same firm mission

What

is a formal group?

Two or more members who

Prescribed way (mission statement)

Brought to accomplish definitive objectives

They share responsibilities

Task Group (Just like PM)

Command Group (Just like a board of directors in a public company)

Project Teams

Limited life span

Matrix, they retain their positions in the functional units

Quick formation

Swift and direct links with management

Wide network inside the firm

(120)

field

customer or

24 pt

Text 24 pt 5 20 pt

6.1.2 Why Individuals Are Attracted to and Join Groups

Birds of a feather flock together

You are my saver

(121)

field

customer or

24 pt

Text 24 pt 5 20 pt

6.2 Work Group Composition, Cohesiveness and Norms

Groups are involving and interesting

They are barren and alienating

Homogenous

Heterogeneous

BUT

Better problem attacks

More versatile and creative

Lower gains

(122)

field

customer or

24 pt

Text 24 pt 5 20 pt

6.2.1 Cohesiveness: The Social Adhesive in Work Groups

Attraction to the group Resistance to leave it High morale

Strong effort coordination

Tasks demands Qualification

Task Clarity

Matched

Group Size Ground Rules Timely feedback

Formal disturbance handler

Team acceptance

Common enemy perception

(123)

field

customer or

partner logotypes. See Bes