1、LEARNING OBJECTIVESExplain what productivity improvement programs are and how they contribute to competitive advantage.Define the standards for effective productivity programs developed within the framework of expectancy theory.Understand the rationale behind pay-for-performance programs.Describe th
2、e different types of pay-for-performance programs.Opening Case:Gaining Competitive Advantage at Lincoln ElectricProblem:Figuring out how to motivate employeesSolution:Implementing an employee incentive systemPaying by the pieceProviding year-end bonusesProviding stock options How it enhanced competi
3、tive advantageLow turnover rate Productivity rate two to three times greater than any of its competitors Maintained a stable price structure despite high salaries2.Linking Productivity Improvement Programs to Competitive AdvantageProductivity improvement programs have various way but share the commo
4、n goal of trying to improve productivity by increasing employee motivation.Extrinsic rewardsRewards given to employees by someone else(e.g.,the employer)Examplespay raises and bonusesIntrinsic rewardsRewards that come from withinExamplesa good feeling one gets from successfully completing an assignm
5、ent(1)Improving worker productivityProductivity improvement programs motivate employees to engage in appropriate job behaviors to improve quantity,quality,and efficiency.Successful Productivity improvement programs are able to establish a clear connection between employee efforts and valued rewards.
6、Make employees believe that they can gain valued rewards by working hard.Expectancy theoryStates that workers make conscious decisions about how hard they are going to work to achieve organizational goals.Employees will be highly motivated when they perceive:Their efforts will lead to successful job
7、 performance.Their successful job performance will lead to outcomes or rewards they value.(2)Enhancing recruitment efforts and retention rates most people do prefer to work in settings that allow them to earn rewards from their work.usually attract more and better job applicantsproduce higher retent
8、ion rates.2.HRM Issues and PracticesProductivity improvement programs that link financial rewards to successful job performance Provide extrinsic rewards2.1 Pay-for-performance programs(1)Rationale Linking rewards directly to performance is intuitively appealing,because most Americans believe that:E
9、mployees should be rewarded for good performance.Exceptional performers should earn greater rewardsAccording to expectancy theory,workers have little incentive for performing well if their efforts are unrewarded.On the other hand,when pay is linked to performance,overall performance should improve.I
10、f the overall job performance improvement yields financial returns that exceed the cost of the rewards,a companys competitive advantage will improve.(2)Potential problems May create legal problemsWhen administered unfairly,a pay-for-performance system could violate Title VII of the Civil Rights Act.
11、They also fail if they violate the standards for effective pay-for-performance programs.(3)standards for effective pay-for-performance programsEffort-performance linksPerformance-reward linksValue of rewardTimeliness of rewardsPerformance-organizational mission linksCost efficiency(4)Merit pay plans
12、A pay-for-performance program that grants employees annual pay raises based on their levels of job performance.Job performance is usually measured on an appraisal instrument completed by the supervisor.The size of the pay raise is directly linked to performance and is specified in advance in a merit
13、 pay guidechart.An example of a merit pay planPerformance Rating Merit Increase(Percent of Salary)5810%457%324%2No increase1No increaseMerit pay plans:strengths and weaknessesEstablish effort-performance linkEstablish performance-reward link when publicizedPerformance appraisal system may impede the
14、 effort-performance linkSometimes fail to establish a clear performance-reward linkFail when employees do not value the rewardsPerformance-reward link is hindered when supervisors fail to distinguish between employeesTime lag between behavior and rewardNot very cost-effectiveCan hinder productivity
15、if wrong behaviors are rewardedstrengthsweaknessesRecommendations for starting a merit pay planThink bigMake pay increases publicDont deliver rewards as a salary increase;use bonusesDeliver rewards as soon as possibleMake sure individual performance can be measured accurately Get employees input in
16、developing the system(5)Piece rate plansPay-for-performance programs that base an individuals wages on the number of“pieces”or product units he or she produces.Used mainly in production settingsJobs are simple and highly structuredAchievement of performance goals is within employee controlPiece rate
17、 plans:strengths and weaknessesCost efficientEmployees know what to do to earn rewardPerformance standards are objective and cannot be influenced by supervisorsRewards are tied directly to performancehigher outputs result in higher pay.Pressure placed on employees to produceemployees feel uncomforta
18、ble.May have negative side effects for the organization.Especially performance-organizational mission link.StrengthsWeaknesses(6)Gainsharing plans Pay-for-performance plans that offer employees a cash award for meeting or exceeding team-based goals.Most gainsharing plans feature the following:Organi
19、zation has productivity goals that can be achieved through effective teamwork.Employees receive cash bonuses if those goals are met.Productivity is measured by an explicit formula with objective measures.Employees are encouraged to submit suggestions for cutting production costs or increasing produc
20、tivity.The Scanlon planAims to cut production costs,relative to output Calculate the ratio of production cost/sales value of production that would be expected in a typical yearDecide how production costs are to be cutFormal suggestion systems elicit employee opinions Allocates bonuses in the followi
21、ng manner:75 percent is paid out25 percent is held in reserve for lean periods in which there are no bonusesOf the money paid out,25%goes to the company;75%is distributed among employees.Gainsharing plans:strengths and weaknessesEffort-performance and performance-reward links are strong.Link perform
22、ance with the organizations mission.Promote teamwork.Cost-effective.StrengthsWeaknessesEmployees may perceive rewards as being unfairly distributed.Employee suggestions for improving efficiency may dwindle over timeMay suffer if payout formulas are inflexibleRecommendations Company culture must be o
23、ne of respect,cooperation,and open communication.Management must demonstrate its willingness to:Listen to and support employee suggestionsGo out and talk with employeesCommunicate honestly with employeesThe plan must be designed so that the payout is dependent on factors the employee can control.Mee
24、t regularly with employees to share information and ideas and gather suggestions.Gainsharing programs are most likely to succeed under the following conditions:Profit-sharing plansSimilar to gainsharing in the sense that they reward group,rather than individual,performance.The payout is based on pro
25、fits rather than gains.A portion of the companys profits are contributed to individual employee accounts.Three types of profit-sharing plans:Deferred plans:An individuals profit-sharing earnings are distributed at retirement.Distribution plans:The company fully distributes each periods earnings as s
26、oon as the profit-sharing pool is calculated.Combination plans:Employees receive a portion of each periods earnings immediately;the remainder awaits future distribution.Profit-sharing plans:strengths and weaknessesImproves productivity by making employees interests compatible with employers goalsEmp
27、loyees may gain a greater sense of ownership.Only marginally address effort-performance-rewards linksNot always cost efficientRewards are not timelyStrengthsWeaknesses3.The Managers Guide Employee motivationStrengthen the effortperformance linkStrengthen the performancereward linkProvide rewards tha
28、t are valued and perceived as being fairInformal participative decision-making programsThe level of participation granted should be commensurate with each employees desire for challenge,responsibility,and opportunity to have a voice in work unit decisions.Employees must believe they have the right t
29、o share work decisions with the manager.3.1 Productivity Improvement Programs and the Managers Job3.2 How the HRM Department Can HelpDesign and evaluate the productivity improvement programs.Must see to it that the corporate culture is compatible with productivity improvement programs.Must also trai
30、n managers and employees to ensure the programs are implemented successfully.3.3 HRM Skill-Building for ManagersSteps to increase the motivational levels of subordinates:1.Determine the specific behaviors in which you want your employees to engage 2.Establish a baseline measure for this behavior by
31、measuring current performance levels3.Analyze performance consequences 4.Change the consequences.5.Monitor and evaluate the effectiveness of the program by keeping records of the employees behavior and comparing them with baseline figures.6.Once performance has improved,it will not be practical to r
32、einforce it each time the behavior occurs.(1)Using extrinsic rewards to motivate employees(2)Using intrinsic rewards to motivate employeesProvide them with stimulating job assignments According to McClellands need-achievement theory,all individuals are primarily motivated by one of three needs.1.Nee
33、d for affiliation2.Need for achievement3.Need for powerTo motivate employees,one should try to assign work activities that help employees satisfy their most important need.1-9章作业参考答案章作业参考答案第第1章:章:b、c、a、c、a、d、a、b、a第第2章:章:c、c、a、b、c、d、d、c第第3章:章:d、a、d、a第第4章:章:d、c、a、d、c第第5章:章:b、d、a、d第第6章:章:b、c第第7章:章:c、b、a、c、b、d 第第8章:章:b、b、d、c、b、b、b第第9章:章:d、a、c、c、a、b、c、d、d、a