Organisational

Organisational
Behaviour
Behaviour
Motivation: from concept to
applications

Symbiosis International (Deemed

University)
 Session
Session Objectives
Objectives

By the end of this session, you will be able to:

1.Identify the four ingredients common to MBO programs.
2.Explain why managers might want to use employee
involvement programs.
3.Contrast participative management with employee
involvement.
4.Define quality circles.
5.Explain how ESOPs can increase employee motivation.
What
What is
is MBO?
MBO?

Key
KeyElements
Elements
1.
1. Goal
Goalspecificity
specificity
2.
2. Participative
Participativedecision
decisionmaking
making
3.
3. An
Anexplicit
explicittime
timeperiod
period
4.
4. Performance
Performancefeedback
feedback
7–3
MBO
MBO
 Management by objectives (MBO) is a process in
which a manager and an employee agree on specific
performance goals and then develop a plan to reach
them.
 It is designed to align objectives throughout an
organization and boost employee participation and
commitment.
 There are five steps: Define objectives, share them
with employees, encourage employees to
participate, monitor progress, and finally, evaluate
performance and reward achievements.
 Critics of MBO argue that it leads to employees trying
to achieve the set goals by any means necessary,
often at the cost of the company.
7–4
Why
Why MBO’s
MBO’s Fail
Fail

 Unrealistic expectations about MBO results

 Lack of commitment by top management
 Failure to allocate reward properly
 Cultural incompatibilities

7–5
Cascading
Cascading of
of Objectives
Objectives

EXHIBIT 7-1

7–6
 Job
Job characteristic
characteristic theory
theory

© 2003 Prentice Hall Inc. All rights reserved. 7–7

Employee
Employee Recognition
Recognition Programs
Programs
 Types of programs
– Personal attention
– Expressing interest
– Approval
– Appreciation for a job well done
 Benefits of programs
– Fulfills employees’ desire for recognition.
– Encourages repetition of desired behaviors.
– Enhances group/team cohesiveness and
motivation.
– Encourages employee suggestions for improving
processes and cutting costs.

7–8
What
What is
is Employee
Employee Involvement?
Involvement?

7–9
Examples
Examples of
of Employee
Employee Involvement
Involvement Programs
Programs

7–10
Examples
Examples of
of Employee
Employee Involvement
Involvement Programs
Programs
(cont’d)
(cont’d)

7–11
Examples
Examples of
of Employee
Employee Involvement
Involvement Programs
Programs
(cont’d)
(cont’d)

7–12
How
HowaaTypical
Typical
Quality
QualityCircle
Circle
Operates
Operates

EXHIBIT 7-4

7–13
Examples
Examples of
of Employee
Employee Involvement
Involvement Programs
Programs
(cont’d)
(cont’d)

7–14
Variable
Variable Pay
Pay Programs
Programs

7–15
Variable
Variable Pay
Pay Programs
Programs (cont’d)
(cont’d)

7–16
Skill-Based
Skill-Based Pay
Pay Plans
Plans

Benefits
Benefitsof
ofSkill-based
Skill-basedPay
PayPlans:
Plans:
1.1. Provides
Providesstaffing
staffingflexibility.
flexibility.
2.2. Facilitates
Facilitatescommunication
communicationacross acrossthe
theorganization.
organization.
3.3. Lessens
Lessens“protection
“protectionof
ofterritory”
territory”behaviors.
behaviors.
4.4. Meets
Meetsthe
theneeds
needsofofemployees
employeesforforadvancement
advancement
(without
(withoutpromotion).
promotion).
5.5. Leads
Leadsto
toperformance
performanceimprovements.
improvements.
7–17
Skill-Based
Skill-Based Pay
Pay Plans
Plans (cont’d)
(cont’d)

Drawbacks
Drawbacksof
ofSkill-based
Skill-basedPay
PayPlans:
Plans:
1.1. Lack
Lackof
ofadditional
additionallearning
learningopportunities
opportunitiesthat
thatwill
will
increase
increaseemployee
employeepay.
pay.
2.2. Continuing
Continuingto
topay
payemployees
employeesfor
forskills
skillsthat
thathave
have
become
becomeobsolete.
obsolete.
3.3. Paying
Payingfor
forskills
skillswhich
whichare
areof
ofno
noimmediate
immediateuse
use
to
tothe
theorganization.
organization.
4.4. Paying
Payingfor
foraaskill,
skill,not
notfor
forthe
thelevel
levelof
ofemployee
employee
performance
performancefor forthe
theparticular
particularskill.
skill.

7–18
Flexible
Flexible Benefits
Benefits

Core-plus
Core-plusPlans:
Plans:
aacore
coreof
ofessential
essential
benefits
benefitsand
andaamenu-like
menu-like
selection
selectionof
ofother
otherbenefit
benefit
options.
options.

Modular Flexible
FlexibleSpending
SpendingPlans:
Plans:
ModularPlans:
Plans: allow
predesigned
predesignedbenefits
benefits allowemployees
employeestotouse
use
packages their
theirtax-free
tax-freebenefit
benefit
packagesfor
forspecific
specific dollars
groups
groupsof
ofemployees.
employees. dollarsto
topurchase
purchase
benefits
benefitsand
andpay
payservice
service
premiums.
premiums.

7–19
Special
Special Issues
Issues in
in Motivation
Motivation
 Motivating Professionals
– Provide challenging projects.
– Allow them the autonomy to be productive.
– Reward with educational opportunities.
– Reward with recognition.
– Express interest in what they are doing.
– Create alternative career paths.
 Motivating Contingent Workers
– Provide opportunity for permanent status.
– Provide opportunities for training.
– Provide equitable pay.

7–20
Special
Special Issues
Issues in
in Motivation
Motivation (cont’d)
(cont’d)
 Motivating the Diversified Workforce
– Provide flexible work, leave, and pay schedules.
– Provide child and elder care benefits.
– Structure working relationships to account for
cultural differences and similarities.
 Motivating Low-Skilled Service Workers
– Recruit widely.
– Increase pay and benefits.
– Make jobs more appealing.

7–21
Special
Special Issues
Issues in
in Motivation
Motivation (cont’d)
(cont’d)
 Motivating People Doing Highly Repetitive Tasks
– Recruit and select employees that fit the job.
– Create a pleasant work environment.
– Mechanize the most distasteful aspects of the
job.

7–22