BUSMHR 3200 Exam 2 (Inks) (OSU)

________________ and _________________ are the engines of human performance

motivation, engagement

total rewards

the sum total of all the things in the work experience that affect an employee

motivation

psychological (and physiological) processes that underlie the direction, intensity, & persistence of behavior or thought

Fundamental "equation" regarding performance

P=AxMxO (p=performance, a=ability, m=motivation, o=opportunity)

Why so many theories of motivation?

people are motivated in different ways ; the same person can be motivated in different ways at different times ; complex challenge

needs

physiological or psychological deficiencies that arouse & drive behavior

Maslow's Hierarchy of Needs

strict hierarchy, can only work on 1 need at a time (physiological, safety, social/love, esteem, self-actualization)

Alderfer's ERG Theory

not a strict hierarchy (existence, relatedness, growth)

McClelland's Need Theory

Need for Achievement (n-Ach, accomplish something difficult) ; Need for Affiliation (n-Affil, spend time in social relationships & activities) ; Need for Power (n-Pow, influence, coach, teach, or encourage others to achieve)

Job Design Approaches to Motivation

job enlargement, enrichment (more responsibilities/promotion), rotation, crafting, simplification, characteristics

Job Characteristics Model (Hackman & Oldham)

Core Job Characteristics --> Critical Psychological States --> Outcomes

Equity Theory

has its roots in cognitive dissonance theory (Festinger) ; is perceived ; tangible & intangibles are relevant ; the "referent other" can be another person, another potential job, etc. ; equitable not equal

Adams' Equity Theory

outputs/inputs ; can be equitable or inequitable and can create dissonance & motivate behavior

when equity exists but is not perceived, help others _____________________

understand

when inequity exists, work to ______________/________________ it

reduce, eliminate

Expectancy Theory (Victor Vroom)

(Tier 1) Effort --> Performance ---> Outcomes/Rewards ; (Tier 2) (ExP) Expectancy --> (PxO) Instrumentality --> Valence/Value of Outcome/Reward ; (Tier 3) Motivation

___________ should be difficult & ambitious but achievable

goals

quantify goals with the SMART acronym

Specific, Measurable, Achievable, Relevant, Time-based

distributive justice

the perceived fairness of how resources & rewards are distributed (decision itself)

procedural justice

the perceived fairness of the processes & procedures used to make allocated decisions

interactional justice

the extent to which people feel fairly treated when decisions & procedures are implemented

job satisfaction

an affective or emotional response to one's job

_____________________ assumes satisfaction plus a level of excitement & enthusiasm about the work, energy/enthusiasm for the organization, & passion for what one does

engagement (employee engagement)

extrinsic motivation

results from the potential or actual receipt of external rewards

intrinsic motivation

occurs when an individual is inspired by "the positive internal feelings that are generated by doing well"

content theories

identify internal factors such as needs & satisfaction that energize employee motivation

process theories

explain the process by which internal factors & situational factors influence employee motivation

content theories of motivation

most are based on the idea that an employee's needs influence their motivation

McGregor's Theory X

a pessimistic view of employees: They dislike work, must be monitored, & can be motivated only with rewards & punishment ("carrots & sticks")

McGregor's Theory Y

a modern & positive set of assumptions about people at work: They're self-engaged, committed, responsible, & creative

Need Hierarchy Theory (Maslow's)

states that motivation is a function of 5 basic needs: physiological, safety, love, esteem, & self-actualization

Acquired Needs Theory

states that 3 needs-for achievement, affiliation, & power- are the key drivers of employee behavior

need for achievement (Acquired Needs Theory)

the desire to excel, overcome obstacles, solve problems, & rival & surpass others

need for affiliation (Acquired Needs Theory)

the desire to maintain social relationships, be liked, & join groups

need for power (Acquired Needs Theory)

the desire to influence, coach, teach, or encourage others to achieve

self-determination theory

assumes that 3 innate needs influence our behavior & well-being - the needs for competence, autonomy, & relatedness

motivator-hygiene theory

proposes that job satisfaction & dissatisfaction arise from 2 different sets of factors--satisfaction comes from motivating factors & dissatisfaction from hygiene factors

hygiene factors

include company policy & administration, technical supervision, salary, interpersonal relationships with supervisors, & working conditions--cause a person to move from a state of no dissatisfaction to dissatisfaction

motivating factors/motivators

include achievement, recognition, characteristics of the work, responsibility, & advancement -- cause a person to move from a state of no satisfaction to satisfaction

process theories of motivation

describes how various person factors & situation factors in the organizing framework affect motivation

equity theory

a model of motivation that explains how people strive for fairness & justice in social exchanged or give-&-take relationships

justice theory

distributive justice, procedural justice, interactional justice

voice

the discretionary or formal expression of ideas, opinions, suggestions, or alternative approaches directed to a specific target inside or outside of the organization with the intent to change an objectionable state of affairs & to improve the current functioning of the organization

voice climate

one in which employees are encouraged to freely express their opinions & feelings

expectancy theory

holds that people are motivated to behave in ways that produce desired combinations of expected outcomes

Vroom's Theory

expectancy, instrumentality, valence, goal specificity, job design

expectancy

represents an individual's belief that a particular degree of effort will be followed by a particular level of performance

instrumentality

perceived relationship between performance & outcomes

valence

describes the positive or negative value people place on outcomes

goal specificity

whether a goal has been quantified

job design

a.k.a. job redesign or work design, refers to any set of activities that alter jobs to improve the quality of employee experience & level of productivity

top-down approaches (4)

scientific management, job enlargement, job rotation, job enrichment

scientific management

"the kind of management which conducts a business or affairs by standards established by facts or truths gained through systematic observation, experiment, or reasoning"

job enlargement

puts more variety into a worker's job by combining specialized tasks of comparable difficulty

job rotation

calls for moving employees from one specialized job to another

job enrichment

modifies a job such that an employee has the opportunity to experience achievement, recognition, stimulating work, responsibility, & advancement

job characteristics model

promote high intrinsic motivation by designing jobs that possess the 5 core job characteristics: 1. skill variety, 2. task identity, 3. task significance, 4. autonomy, 5. feedback

job crafting

represents employees' attempts to proactively shape their work characteristics

idiosyncratic deals (i-deals)

represent "employment terms individuals negotiate for themselves, taking myriad forms from flexible schedules to career development"

compensation

relates to an organization's ability to attract, select & hire the best possible employees/organization members ; strongly related to individual motivation, engagement, & retention

compensation

the rewards, usually monetary in nature (either short- and/or long-term) that reinforce behavior, organizational membership, performance, & retention

merit pay

think 'salary'

incentive pay

variable pay as primary or secondary income source, bonuses, commission income, etc.

ESOPs

Employee Stock Ownership Plans ("equity")

Profit Sharing

to a monetary point, the organization isn't even profitable yet but after that point, the excess profit is shared equally among all employees

skill-based pay

certificates, achievements

merit pay programs

link performance-appraisal ratings to annual pay increases ; effective means of reinforcing performance

merit increase grid

combines an employee's performance rating with the employee's position in a pay range (the "comp-ratio") to determine the size & frequency of his or her pay increase ; help bring about perceived pay equity (especially over time)

Employee Stock Ownership Plans (ESOPs)

employee ownership plans that give employers certain tax & financial advantages when stock is granted to employees

Stock Options

typically used at higher levels of an organization ; option to purchase stock at a later date (strike price @ strike date) ; seen as a long-term incentive (LTI) ; have a vesting period until they can actually be exercised

vesting period

time you cannot do anything with the stock

value of option grant / strike price =

number of shares in grant

exercising

when __________________ the stock, you are buying it

straight piecework rates

set rate per acceptable piece produced, regardless of amount

differential piecework rates

rate per piece increases above target number/goal

standard hour plan

if work finished sooner than projected, still get the full time's pay (mechanic will get full 3hrs. of pay, even if they finish early)

gainsharing

gains in productivity, etc. are distributed among employees

restricted shares

an alternative/complement to stock options ; rather than option to buy, after vesting the recipient receives actual shares

balanced scorecard

a "___________________ _________________" approach to compensation uses a combination of different types of compensation strategies (e.g. merit pay, incentive pay, stock options, etc.)

benchmarking

important for best possible programs (program development & ongoing pay competitiveness)

non-exempt jobs

NOT exempted from Fair Labor Standards Act (FLSA) (e.g. >40 hrs/week = overtime)

exempt jobs

"exempted" from Fair Labor Standards Act (FLSA) (e.g. salary)

incentive pay

forms of pay linked to an employee's performance as an individual, group member, or organization member

piecework rate

wage based on the amount they produce

straight piecework plan

incentive pay in which the employer pays the same rate per price, no matter how much the worker produces

differential piece rates

(a.k.a rising & falling differentials) the piece rate depends on the amount produced

standard hour plan

an incentive plan that pays workers extra for work done in less than a preset "standard time"

merit pay

a system of linking pay increases to rating on performance appraisals

commissions

pay calculated as a percentage of sales

gainsharing

measures increases in productivity & effectiveness & distributes a portion of each gain to employers

Scanion plan

a gainsharing program in which employers receive a bonus if the ratio of labor costs to the sales value of production is below a set standard

profit sharing

payments are a percentage of the organization's profits & don't become part of the employees' base salary

stock options

the right to buy a certain number of shares of stock at a specified price

balanced scorecard

a combination of performance measures directed toward the company's long- & short-term goals & used as the basis for awarding incentive pay

legally-required benefits

social security, unemployment compensation, workers' compensation, family & medical leave act (FMLA)

Affordable Care Act

goal is to expand coverage, control health care costs, & improve the systems used to deliver health care ; requires U.S. citizens & legal residents to have health coverage, with those not purchasing coverage to pay an escalating penalty ; requires organizations with 50 or more full-time employees to offer health care coverage or pay a penalty based on number of employees

health maintenance organizations (HMOs)

networks

Preferred Provider Organizations (PPOs)

networks, can go outside the network but you will pay a little more

different approaches to health insurance

health maintenance organizations (HMOs) ; preferred provider organizations (PPOs) ; consumer-driven health plan (CDHP) ; high deductible health plan (HDHP) ; state-specific exchanges (via the Affordable Care Act) ; Consolidated Omnibus Budget Reconciliation Act (COBRA) ; other coverage (dental, vision, etc.)

high deductible health plan (HDHP)

catestrophic care