Sunteți pe pagina 1din 17

Organizational Behavior: Managing

People and Organizations,


Ninth Edition
Gregory Moorhead, Ricky W. Griffin
Chapter 6

Rewarding
Individual
Performance

Goal Setting and Motivation


Purposes of Setting Goals in Organizations
To provide a useful framework for managing

motivation to enhance employee performance


To serve management as a control device for

monitoring of how well the organization is performing

Goal
A desirable objective

Self-Efficacy
The extent to which we believe we can accomplish

our goals even if we failed to do so in the past

Goal Setting and Motivation (contd)


Goal Setting Theory (Locke)
Assumes that behavior is a result of conscious goals

and intentions, therefore goals influence behavior


(performance)

Goal Characteristics
Goal difficulty

The extent to which a goal is challenging, requires


effort, and is attainable
Goal specificity
The clarity and precision of a goal

Expanded Goal Setting Theory


(Lock and Latham)
The Goal-Setting Process
Goal-directed effort is a function of goal attributes:

1. Goal difficulty
2. Goal specificity
3. Goal acceptance: the extent to which a person
accepts a goal as his/her own
4. Goal commitment: the extent to which a person
is interested in reaching a goal

Broader Perspectives on Goal Setting


Management by Objectives (MBO)
A collaborative goal-setting process through which

organizational goals cascade down throughout the


organization
Requires customizing to each organization
Can be effective for managing reward systems where

the manager has individual interactions with each


employee

Goal Setting: Evaluation and Implications


Research has shown that:
Goal difficulty and specificity are closely associated

with performance.
Goal-setting theory may focus too much on short-run

considerations.
MBO has the potential to motivate because it helps

implement goal-setting theory on a systematic basis


throughout the organization.
MBO has a tendency to overemphasize quantitative

goals to enhance verifiability.

Performance Management in Organizations


The Nature of Performance Management
Performance measurement (or appraisal) process:

1. Evaluating an employees work behaviors by


measurement and comparison with previously
established standards
2. Documenting the results
3. Communicating the results to the employee

Performance Management System


Comprises the processes and activities involved in

performance appraisals

Performance Management: The Process


The Appraiser: Alternatives
The direct supervisor
Multiple-rater systems (including self-evaluation)
360-degree feedback

A system in which people receive performance


feedback from those on all sides of them in the
organization (boss, colleagues, peers,
subordinates)

Frequency of Appraisals
Determined by convenience for administrative

purposes, cultural appropriateness, and relevance

Performance Management: The Process


(contd)
Measuring Performance
Considerations

Desired decisions to be made based on outcome


Instruments must be valid, reliable, and free of bias
Choices of measurement methods

Graphic rating scales, checklists, essays/diaries,


behaviorally anchored rating scales, forced-choice
systems
Comparative methods such as ranking, forced
distribution, paired comparisons, multiple raters

Individual Rewards in Organizations


Reward System
Consists of all organizational components involved in

allocating compensation and benefits to employees in


exchange for their contribution to the organization
including:
People
Processes
Rules
Procedures
Decision-making activities

Rewards Purposes, Roles, and Meanings


Purposes
To attract, retain, and motivate qualified employees

Roles of compensation structures


To be equitable and consistent
To be a fair reward for the individuals contribution
To be competitive in the external labor market

Meanings of rewards
Surface value: objective meaning or worth of reward
Symbolic value: subjective and personal meaning or

worth of reward

Types of Individual Rewards


Compensation Package
The total array of money (wages, salary, commission),

incentives, benefits, perquisites, and awards provided


by the organization

Base Pay
Symbolizes an employees worth
Can improve motivation and performance if part of an

effectively planned and managed pay system


Is a major cost of doing business
Can reduce turnover and increase morale when well-

designed

Types of Individual Rewards (contd)


Incentive Pay Systems
Plans in which
employees can earn
additional compensation
in return for certain types
of performance

1. Piecework programs
2. Gain-sharing
programs
3. Bonus systems
4. Long-term
compensation
5. Merit pay plans
6. Profit-sharing plans
7. Employee stock
option plans

Individual Rewards (contd)


Indirect Compensation (Employee Benefits)
1. Payment for time not worked
2. Social Security contributions
3. Unemployment compensation
4. Disability and workers compensation benefits
5. Life and health insurance programs
6. Pensions or retirement plans

Individual Rewards (contd)


Perquisites
Special privileges awarded to selected members of an

organization, usually top managers


Add to the status of their recipients and thus may

increase job satisfaction and reduce turnover

Other Awards
Rewards for seniority, perfect attendance, zero

defects (quality work), cost reduction suggestions

Managing Reward Systems


Linking Performance and Rewards
Employee perception of link between pay and

performance results in symbolic value of pay

Flexible Reward Systems


Allows employees to choose the combination of

benefits that best suits their needs


Increases both employee satisfaction with benefits

and administrative costs for the employer

Participative Pay Systems


Employees are involved in the design and/or

administration of their compensation system

Managing Reward Systems (contd)


Pay Secrecy
Employer makes no information available to

employees regarding other employees salaries,


percentage raises, salary ranges and requires
employees to not reveal their compensation

Expatriate Compensation
Compensation packages of employees on overseas

assignments must be adjusted to account for


differences in costs of living and working conditions in
working aboard versus their home base

S-ar putea să vă placă și