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Organizational

VON GLINOW

BEHAVIOR

C H A P T E R

F O U R

Applied
Motivation Practices
Irwin/ McGraw-Hill

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Organizational

VON GLINOW

BEHAVIOR

Reinforcement Theory
Behaviors are functions of consequences
that they produce
If a behavior is followed by a pleasant
experience it will be repeated
In order to change behaviors the
consequences must be changed

Irwin/ McGraw-Hill

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BEHAVIOR

Types of Reinforcement
Positive Reinforcement-rewards
Punishment-Application of a negative
outcome
Negative Reinforcement-removal of negative
outcomes when behavior is performed
Extinction-absence of reinforcement
(removal of positive reinforcement)
Drawbacks
Irwin/ McGraw-Hill

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MCSHANE

Organizational
14.9

VON GLINOW

BEHAVIOR

Reinforcement Process
Stimulus
(situation)
Response
(behavior)
Consequences
(rewards and punishments)

Future Behavior
Source: From L. W. Porter and E. E. Lawler III.
Managerial Attitudes and Performance. Homewood,
Ill.: Irwin, 1968, p. 165. Used with permission

Irwin/ McGraw-Hill

Adapted from Figure

14.6
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Organizational

VON GLINOW

BEHAVIOR

Types of Organizational Rewards

Membership
and Seniority

Performance

Types of
Rewards
Competency

Irwin/ McGraw-Hill

Job Status

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MCSHANE

Organizational

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BEHAVIOR

Membership/Seniority Based Rewards

Fixed wages, seniority increases
Advantages
guaranteed wages may attract job applicants
seniority-based rewards reduce turnover

Disadvantages
doesnt motivate job performance
discourages poor performers from leaving

Irwin/ McGraw-Hill

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Organizational

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BEHAVIOR

Job Status-Based Rewards

Job evaluation and executive perks
job evaluation tries to measure job's value

Advantages:
job evaluation tries to maintain pay equity
motivates competition for promotions

Disadvantages:
employees exaggerate duties, hoard resources
motivates focus on narrowly defined tasks
creates psychological distance across hierarchy
Irwin/ McGraw-Hill

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Organizational

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BEHAVIOR

Competency-Based Rewards
Underlying characteristics that lead to
superior performance
Skill-based pay
pay increases with skill modules learned

Advantages
More flexible work force, better quality,
consistent with employability

Disadvantages
Potentially subjective, higher training costs
Irwin/ McGraw-Hill

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Organizational

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BEHAVIOR

Levels of Rewards
Individual Rewards
Piece Rate - wage per widget
Commissions - percentage of sales volume
Royalties - percentage of work ascribed to an
individual
Merit pay - based on performance appraisal
Bonuses - for accomplishing specific goals

Team & Organizational Rewards

Gainsharing - employees receive a percentage
of cost savings, can also be done on an
individual basis
Irwin/ McGraw-Hill

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Organizational

VON GLINOW

BEHAVIOR

Team Rewards (cont.)

ESOPs
Creates an atmosphere of ownership
employees will align their behavior with organizational
success

Over 10,000 companies use them

What does it mean to be vested?
Encourages long term employment

Profit Sharing
Bonuses used in competitive industries
Many other influences besides employee behavior
upon profit levels hurts the expectancy of outcomes
Irwin/ McGraw-Hill

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BEHAVIOR

Types of Performance-Based Rewards

Organizational
rewards

Profit sharing
Share ownership

Team
rewards

Gainsharing
Special bonuses

Individual
rewards

Irwin/ McGraw-Hill

Piece rate
Commissions
Merit pay
Bonuses

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MCSHANE

Organizational

VON GLINOW

BEHAVIOR

Agency Theory
Principals (company owners) have different
objectives than the agents (managers and
employees) who work for the organization
Agents will act in self-interest
The principal must monitor the behavior of agents
to ensure compliance
Gainshairing, profit sharing, and ESOPs are a way
to overcome the Agency Problem

1 Minute Paper
Explain the agency problem in your own words
using an example from the real world.
Irwin/ McGraw-Hill

12

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BEHAVIOR

The Trouble with Rewards

Rewards punish
Rewards rupture relationships
Rewards ignore reasons (quick
fix)
Rewards discourage risk-taking
Only rewarded behaviors will be
performed
Corel Corp. With permission

Irwin/ McGraw-Hill

Rewards weaken intrinsic

motivation
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BEHAVIOR

Minimizing Reward Problems

Measure performance
accurately
Ensure rewards are relevant
Team rewards for
interdependent jobs
Ensure rewards are valued
Corel Corp. With permission

Irwin/ McGraw-Hill

Beware of unintended
consequences
14

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BEHAVIOR

Job Design
Assigning tasks to a job,
including the
interdependency of
those tasks with other
jobs
Technology doesnt
determine job scope
Employees expected to
perform a variety of
work (employability)
Irwin/ McGraw-Hill

Photodisc. With permission.

15

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BEHAVIOR

How jobs are designed

Job Analysis - breakdown of the tasks for a
specific job and the personal characteristics
necessary for their successful performance
Job Description - outline of a positions
essential tasks and responsibilities
Job Specification - list of personal
characteristics, competencies, and experience
a worker needs to carry out a jobs tasks and
assume its responsibilities to identify the right
person for the job
Irwin/ McGraw-Hill

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BEHAVIOR

Scientific Management
Fred Taylor
Time and Motion studies
Proposed One most efficient way for
completing a task
Assumed that employees were
economically motivated
Foremen to monitor behavior of employees

Irwin/ McGraw-Hill

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Organizational

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BEHAVIOR

Gilbreths and Therbligs

Frank and Lillian
Broke tasks down by each motion called
therbligs
Used motion video
Lillian later played an instrumental role in
behavioral movement

Irwin/ McGraw-Hill

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BEHAVIOR

Evaluation of Job Specialization

Advantages

Disadvantages

Less time changing

tasks

Job boredom

Lower training costs

Lower quality

Discontentment pay

Job mastered quickly

Lower motivation

Better person-job
matching

Irwin/ McGraw-Hill

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Organizational

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BEHAVIOR

Hackman and Oldham & the JCM

Identified five core job characteristics that
lead to 3 psychological states.
Experiencing these psychological states will
lead to higher levels of work motivation
Psychological States
experienced meaningfulness - your job matters
experienced responsibility - given autonomy to
do a job the way you see fit
knowledge of results - receipt of feedback
Irwin/ McGraw-Hill

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Organizational

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BEHAVIOR

Moderators of the JCM

Context Satisfaction - situations differ
Knowledge and Skill - can increase stress if
one feels incapable
Growth Strength Need
Need level for personal challenges that
determines the amount of influence job
enrichment will have on motivation
The people have moved through the lower level
needs and are in need of challenges and
fulfillment from work
Irwin/ McGraw-Hill

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Organizational

VON GLINOW

BEHAVIOR

Job Characteristics Model

Core Job
Characteristics

Critical
Psychological
States

Outcomes

Work
motivation

Skill variety
Task identity
Task significance

Meaningfulness

Autonomy

Responsibility

General
satisfaction

Feedback
from job

Knowledge
of results

Work
effectiveness

Growth
satisfaction

Individual
differences
Irwin/ McGraw-Hill

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Organizational

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BEHAVIOR

Job Rotation
Increases motivation through skill variety
Fewer repetitive strain injuries
Creates multi-skilled work force

Irwin/ McGraw-Hill

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Organizational

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BEHAVIOR

Comparing Job Rotation and Enlargement

Job Rotation
Job 1
Prepare letter

Job 2
Negotiate payment

Job 3
Process account

Job 1

Job 2

Job 3

Prepare letter
Negotiate payment
Process account

Prepare letter
Negotiate payment
Process account

Prepare letter
Negotiate payment
Process account

Job Enlargement

Irwin/ McGraw-Hill

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Organizational

VON GLINOW

BEHAVIOR

Job Enrichment Strategies

Empowering employees
giving employees more autonomy
feeling of control and self-efficacy

Forming natural work units

completing an entire task
assigning employees to specific clients

Establishing client relationships

employees put in direct contact with clients
Irwin/ McGraw-Hill

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Organizational

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BEHAVIOR

Obstacles to Job Design

Difficult to accurately measure job
characteristics
More team than individual job design
Resistance to change
Problem finding optimal level of
enrichment and specialization

Irwin/ McGraw-Hill

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Organizational

VON GLINOW

BEHAVIOR

Elements of Self-Leadership
SelfReinforcement
SelfMonitoring
Designing
Natural Rewards
Constructive
Thought Patterns
Personal
Goal Setting
Irwin/ McGraw-Hill

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