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Motivation:FromConceptstoApplicationsChapterFIVE
1.GoalSettinginAction:MBOProgramsManagementByObjectivesProgramsCompanywidegoals&objectivesGoalsalignedatalllevelsBasedonGoalSettingTheory
WhatisMBO?KeyElementsGoalspecificityParticipativedecisionmakingAnexplicittimeperiodPerformancefeedbackManagementbyObjectives(MBO)Aprogramthatencompassesspecificgoals,participativelyset,foranexplicittimeperiod,withfeedbackongoalprogress.
CascadingofObjectives
LinkingMBOandGoal-SettingTheoryMBOGoal-SettingTheoryGoalSpecificityYesYesGoalDifficultyYesYesFeedbackYesYesParticipationYesNo(qualified)
WhyMBOsFailUnrealisticexpectationsaboutMBOresultsLackofcommitmentbytopmanagementFailuretoallocaterewardproperlyCulturalincompatibilities
Self-EfficacySelfEsteem,whichis….Individuals’degreeoflikingordislikingthemselves.Anindividual’sfeelingthats/hecancompleteatask(e.g.“IknowIcan!〞)EnhancesprobabilitythatgoalswillbeachievedNottobeconfusedwith:
Self-EfficacyandGoalSetting
FourWaysofIncreasingSelfEfficacy(Bandura)EnactiveMasteryVicariousModelingVerbalPersuasionArousalNote:BasicPremise/MechanismofPygmalionEffects
2.EmployeeInvolvementProgramWhatisEmployeeInvolvement?Aparticipativeprocessthatusestheentirecapacityofemployeesandisdesignedtoencourageincreasedcommitmenttotheorganization’ssuccess.
ExamplesofEmployeeInvolvementProgramsParticipativeManagementAprocessinwhichsubordinatesshareasignificantdegreeofdecision-makingpowerwiththeirimmediatesuperiors.
ExamplesofEmployeeInvolvementPrograms(cont’d)QualityCircleAworkgroupofemployeeswhomeetregularlytodiscusstheirqualityproblems,investigatecauses,recommendsolutions,andtakecorrectiveactions.
ProblemselectionDecisionProblemidentificationProblemreviewSolutionsrecommendedSolutionreview
EmployeeStockOwnershipPlans(ESOPs)Company-establishedbenefitplansinwhichemployeesacquirestockaspartoftheirbenefits.
LinkingEIProgramsandMotivationTheoriesEmployeeInvolvementProgramsTheoryY(Believingemployeeswanttobeinvolved)Two-FactorTheory(IntrinsicMotivation)ERGTheory(EmployeeNeeds)
RewardingEmployees:FourAspectsWhattoPay(Internalvs.externalequity)HowtoPay(e.gPiecerate,meritbased,bonuses,profitsharing,gainsharing,ESOPs,skill-basedpay)WhatBenefitstoOffer(e.g.,Flexiblebenefits)HowtoRecognizeEmployees
RewardingEmployees:VariablePayProgramsVariablePayProgramsAportionofanemployee’spayisbasedonsomeindividualand/ororganizationmeasureofperformance.PieceratepayplansProfitsharingplansGainsharingplans
VariablePayPrograms(cont’d)Profit-SharingPlansOrganizationwideprogramsthatdistributecompensationbasedonsomeestablishedformuladesignedaroundacompany’sprofitability.GainSharingAnincentiveplaninwhichimprovementsingroupproductivitydeterminethetotalamountofmoneythatisallocated.Piece-ratePayPlansWorkersarepaidafixedsumforeachunitofproductioncompleted.
Skill-BasedPayPlansBenefitsofSkill-basedPayPlans:Providesstaffingflexibility.Facilitatescommunicationacrosstheorganization.Lessens“protectionofterritory〞behaviors.Meetstheneedsofemployeesforadvancement(withoutpromotion).Leadstoperformanceimprovements.Paylevelsarebasedonhowmanyskillsemployeeshaveorhowmanyjobstheycando.
Skill-BasedPayPlans(cont’d)DrawbacksofSkill-basedPayPlans:Lackofadditionallearningopportunitiesthatwillincreaseemployeepay.Continuingtopayemployeesforskillsthathavebecomeobsolete.Payingforskillswhichareofnoimmediateusetotheorganization.Payingforaskill,notforthelevelofemployeeperformancefortheparticularskill.
LinkingSkill-basedPlansandMotivationTheoriesSkillBasedPayPlansReinforcementTheoryEquityTheoryERGTheory(Growth)McClelland’sNeedforAchievement
FlexibleBenefitsFlexibleSpendingPlans:allowemployeestousetheirtax-freebenefitdollarstopurchasebenefitsandpayservicepremiums.ModularPlans:predesignedbenefitspackagesforspecificgroupsofemployees.Core-PlusPlans:acoreofessentialbenefitsandamenu-likeselectionofotherbenefitoptions.Employeestailortheirbenefitprogramtomeettheirpersonalneedbypickingandchoosingfromamenuofbenefitoptions.
EmployeeRecognitionProgramsIntrinsicrewards:stimulateintrinsicmotivationPersonalattentiongiventoemployeeApproval&appreciationforajobwelldoneGrowinginpopularityandusageBenefitsofprogramsFulfillemployees’desireforrecognitionInexpensivetoimplementEncouragesrepetitionofdesiredbehaviorsDrawbacksofprogramsSusceptibletomanipulationbymanagement
ImplicationsforManagersInOrdertoMotivateEmployeesRecognizeindividualdifferences.Usegoalsandfeedback.Allowemployeestoparticipateindecisionsthataffectthem.Linkrewardstoperformance.Checkthesystemforequity.