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BA105-1: Organizational Behavior


BA105-1: Organizational Behavior Professor Jim Lincoln Week 8: Lecture Motivation and Job Design Agenda Today Business Slides on website Readings: Robbins, Adler, PE ... – PowerPoint PPT presentation

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Title: BA105-1: Organizational Behavior

BA105-1 Organizational Behavior
  • Professor Jim Lincoln
  • Week 8 Lecture
  • Motivation and Job Design

  • Today
  • Business
  • Slides on website
  • Readings Robbins, Adler, PEthen Pfeffer,
    Brainard case
  • Theories of motivation
  • Job design for motivation
  • Thursday
  • Lecture windup questions
  • Discuss NUMMI
  • Adler paper
  • NUMMI video
  • Discuss motivation issues in People Express
  • Go over exam

An experiment
Rank-order (1-8) the following as to their
importance to you as motivators in your job
Benefits Worthwhile Praise Pay
Learning Security Feels good Skills
An experiment
Now rank-order (1-8) the following as to their
importance for others motivations (imagine you
were being paid for the accuracy of your
Learning Security Feels good Skills
Benefits Worthwhile Praise Pay
The importance of intrinsic extrinsic rewards
Actual rank-order (1-8) of these factors
based on a study by Heath (2000)
Others Rating
  1. Learning
  2. Skills
  3. Feel Good
  4. Pay
  5. Worthwhile
  6. Praise
  7. Benefits
  8. Security

1 Pay 2 Skills 3 Security 4
Benefits 5 Feel Good 6 Learning 7
Worthwhile 8 Praise
What are the implications of these differences?
How important is money?
Predicted who Prefer A Actual who Prefer A Sample Size
United States 68 38 1713
Canada 54 33 2253
Sweden 42 8 1100
Finland 43 24 678
MBAs 62 45 140
Choose Between Job A A moderately
interest- ing and enjoyable job with high
pay Job B An extremely interes- ting and
enjoyable job with only average pay
Theories of extrinsic motivation(What are the
managerial implications?)
  • Homo economicus (Theory X, Taylor,
    principal/agent) Mf(R)
  • People are rational but selfish, opportunistic,
    risk- and effort-averse. They need strong
    incentives close monitoring
  • Expectancy/path-goal (Vroom) M E(Ri) S(pi)Ri
  • People are rational and goal-directed. They map
    paths to the attainment of rewards. Extrinsic
    rewards motivate only when the perceived
    probability of attainment is high
  • Learning theory (Skinner)
  • People are not rational or goal-directed. Random
    behavior that is rewarded is reinforced. Behavior
    that is punished is extinguished
  • Equity theory M f(Rs/Es - Ro/Eo)
  • People benchmark the value of their extrinsic
    rewards on those of others. Perceived inequity
    may be motivating or demotivating

Theory X and Theory YDouglas MacGregor The
Human Side of Enterprise, 1960
  • Theory X
  • 1. People are motivated only by economic gain
  • 2. People resist effort tend to soldier on the
  • 3. People need clear, simple tasks and strong
  • 4. People are selfish, individualistic, look out
    for number one
  • Theory Y
  • 1. People are motivated by many nonfinancial
  • 2. People need challenge, variety, feedback,
    closure in work
  • 3. People attach meaning and value to work and
  • 4. People are highly social and sensitive to
    group norms

(No Transcript)
The pain of inequity
Sitting on his back porch, with a view of a
lake, his black Mercedes parked in the driveway,
John Mariotti ponders the unfairness of life.
"I see people I know couldn't carry my briefcase
walking away with failure packages bigger than my
net worth," says Mr. Mariotti, 57 years old, a
former executive and now a Knoxville, Tenn.,
consultant who made more than 150,000 last
year. Most people don't begrudge Bill Gates
his billions. What seems to be more unnerving to
high-wage earners is the belief that many of the
new super-rich have stumbled into their wealth by
being at the right place at the right time -- or,
even more infuriatingly, have succeeded after
failing at careers in law, medicine or big
corporations. WSJ 8/3/1998
Theories of intrinsic motivation(What are the
managerial implications?)
  • Theory Y (McGregor, Marx)
  • People find meaning fulfillment through work
    (intrinsic rewards)
  • Motivation/hygiene (Herzberg)
  • Extrinsic rewards reduce dissatisfaction
    intrinsic rewards motivate
  • Hierarchy of needs (Maslow)
  • People have needs that both intrinsic and
    extrinsic rewards fulfill. Intrinsic rewards
    motivate only after a sufficient level of
    extrinsic reward is attained
  • Cognitive dissonance (Festinger)
  • People as rationalizers need consistency in
    cognitions behavior
  • Too much extrinsic reward makes work less
    intrinsically rewarding
  • Too little extrinsic reward makes work more
    intrinsically rewarding

Herzberg motivation - hygiene
Challenging work
Recognition, respect
Friends at work
Job security
What exactly is motivating about money?
  • Status is of great importance in all human
    relationships. The greatest incentive that money
    has, usually, is that it is a symbol of
    success... The resulting status is the real
    incentive. Money can be an incentive to the miser
  • John F. Lincoln,
  • CEO Lincoln Electric

Dilbert on cognitive dissonance
What makes a job intrinsically rewarding?
  • Leadership
  • inspiring vision and charisma
  • Culture and community
  • identification, commitment, respect
  • Job tasks

What attributes of job tasks are intrinsically
  • Variety
  • Identity
  • Challenge risk
  • Significance
  • Feedback
  • Contextual information (other processes company
  • Discretion
  • Responsibility
  • Personal growth
  • Social integration

Classical job design (Taylorism)Efficiency
reliability through standardization and control
  • Narrow scope
  • Simple, repetitive tasks
  • Rigid rules specs
  • Close, top-down supervision
  • Low autonomy
  • Low skill
  • Fixed pay (by job or time) or individual
    incentive pay
  • Long job ladders
  • Efficiency at the expense of motivation!

Job redesign for motivation
  • Classical (Taylorist) job design
  • Job rotation
  • cross-train pay for job skills
  • Job enlargement (horizontal loading). Pull in
  • support tasks
  • upstream and downstream production tasks
  • Job enrichment (vertical loading). Pull down
  • Authority, accountability, responsibility
  • Switch to teams
  • Off-line problem-solving
  • On-line self-managing
  • Industrial democracy
  • European supervisory boards works councils
    Saturn People Express

Low- Scope and Empowerment-High
What does the NUMMI case say about job redesign?
  • Managers ignore at their peril our tendency to
    seek intrinsic rationales for work activities.
  • Human motivation has complex causes that may work
    in contradictory ways
  • Managers need to think about those channels in
    designing job and reward systems
  • Be clear about your own motivational assumptions
    before you begin designing job and reward
  • The theories of motivation managers carry in
    their heads can become self-fulfilling prophecies
  • Efficiency and motivation are not contradictory
    goals in job design
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