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Core Job Critical Personal and Work
Dimensions Psychological States Outcomes

Skill Variety Experienced High Internal

Task Identity meaningfulness of work motivation
Task Significance the work
High Quality
Experienced work performance
Autonomy responsibility for
outcomes of the work High Satisfaction
with the work
Feedback Knowledge of the
actual results of the Low absenteeism
work activities and turnover

Employee Growth-
need Strength
Skill Variety
± The degree to which a job requires
variety of different activities so the
worker can use different skills and
talent
Task Identity
± The degree to which a job requires
completion of a whole and
identifiable piece of work.
Task Significance
± The degree to which a job has
substantial impact on the lives or
work of other people.
Autonomy
± The degree to which the job
provides substantial freedom and
discretion to the individual in
scheduling the work and in
determining the procedures to be
used in carrying it out.
Feedback
± The degree to which carrying out
the work activities required by a
job results in the individual
obtaining direct and clear
information about the
effectiveness of his or her
performance.
 V 
 

÷

Job Rotation
± The periodic shifting of an
employee from one job to another.
Job Enlargement
± Increasing the number and variety
of tasks that an individual
performs.

± Results in jobs with more diversity

Job Enrichment
± The vertical expansion of jobs,
which increases the degree to
which the worker controls the
planning, execution, and
evaluation of the work.
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Flexible work hours
± ÷


An arrangement that allows 2 or more
individuals to split a traditional 40-hours-a-
week job
± ð   

Working from home at least two days a week
on a computer that is linked to the employee's
office
 ° !°°
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EMPLOYEE INVOLVEMENT
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Employee Motivation
 FOUR MAJOR STRATEGIC
REWARDS DECISIONS

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 WHAT TO PAY:
ESTABLISHING A PAY STRUCTURE
± Should it be:
± INTERNAL EQUITY
± The worth of the job to the organization

± EXTERNAL EQUITY
± The external competitiveness of an organization͛s pay
relative to pay elsewhere in the industry
 HOW TO PAY:
REWARDING THROUGH VARIABLE-PAY PROGRAMS

± VARIABLE-PAY PROGRAMS
± A pay-plan that uses a portion of an employee͛s pay
on some individual and/or organizational measure of
performance
± Examples:
± Piece-rate plans
± Merit-based pay
± Bonuses
± Profit-sharing
± Gainsharing
± Employee stock ownership plans
Piece-Rate Pay Plan
± A pay plan in which workers are
paid a fixed sum for each unit of
production completed

± Examples:
 Selling peanuts
 Making native bags
Merit-Based Pay Plan
± A pay plan based on performance
appraisal ratings.

± ͚as much as we would regret our

average performers leaving, we͛d
regret more an above-target
performer leaving.͛
Bonuses
± A pay plan that rewards employees
for recent performance rather than
historical performance.

± Downside:
 Employees may view them as pay
 Employees would rather have an
additional ($5,000 , for example) than
just get a ($5,000) for a one time pay
Skill-Based Pay Plan
± A pay plan that sets pay levels on
the basis of how many skills
employees have or how many jobs
they can do.

± Also called:
 Competency-based pay
 Knowledge-based pay
Profit-Sharing Pay Plan
± An organizationwide program that
distributes compensation based on
some established formula designed
around a company͛s profitability.

± Example:
 Direct cash outlays
 Allocation of stock options
Gainsharing Pay Plan
± A formula-based group incentive
plan

± ESOP (Employee Stock Ownership

Plan)
 A company-established benefit plans
in which employees acquire stock as
part of their benefits
EVALUATION OF VARIABLE PAY
PROGRAMS
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Developing a Benefits Package
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Employee Recognition Programs
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± Rewards are intrinsic in the form of
employee recognition programs

± Financial incentives may be motivating in

the short-run BUT non financial incentives
are more motivating in the long-run
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EMPLOYEE MOTIVATION
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