机工社 人力资源管理 英文版教材 chapter 9

Standards for Effective Pay-forPerformance Programs
Motivational Standards Effort-performance links:Employee must perceive that they can reach desired performance levels by engaging in appropriate behaviors. Performance-reward links:Rewards should be directly linked to successful job performance. Value of reward:The reward should be valued by employees. Timeliness of rewards:Rewards should follow shortly after the desired behaviors.
9-1 Gaining Competitive Advantage
9-1a Opening Case:Gaining Competitive Advantage at Lincoln Electric
The Problem:Figuring Out How to Motivate Employees When John C.Lincoln established the company in 1895,he was keenly aware of the importance of a highly motivated workforce and how the company's success, in fact, depended on it.
Chapter 9: Implementing Productivity Improvement Programs
Chapter Outline
• 9-1 Gaining Competitive Advantage • 9-2 HRM Issues and Practices • 9-3 The Manager's Guide
Expectancy Theory and Productivity Programs Successful productivity improvement programs are able to establish a clear connection between employee efforts and valued rewards.
methods to motivate employees:
extrinsic rewards------rewards given to employees by someone else(e.g.,the employer),such as pay raises and bonuses. intrinsic rewards------rewards that come from within,such as the good feeling one gets from successfully completing a challenging assignment.
9-1b Linking Productivity Improvement Programs to Competitive Advantage
An organization cannot compete successfully unless workers help to achieve the organization's mission. This means that employees must attend work on a regular basis, come to work on time, work well with others, work "smart", and work hard.
Cost-Benefit Standards Performance-organizational mission links:The performance being rewarded should be directly linked to the achievement of the organization's mission. Cost efficiency:Productivity gains from the program must more than offset the cost of rewards.
Performance-Reward Links
♦ Employees will not be motivated to perform well if their successful performance goes unrewarded or if they can receive a reward for unsuccessful performance.
achievement of organization goals
Employees will be highly motivated to the extent at which they perceive that: their efforts will lead to successful job performance their successful job performance will lead to outcomes or rewards they value The greater the perceived probabilities that efforts will lead to successful performance and that successful performance will lead to a valued reward, the greater the motivation.
Potential Problems with Pay-forPerformance Programs In some cases,pay-for-performance programs create legal problems. For example,if a bigoted employer were to deny a minority employee a well-earned pay raise, a costly discrimination charge could result.
9-2 HRM Issues and Practices
• pay- for performance programs-----Productivity improvement programs that link financial rewards to successful job performance. • employee empowerment programs-----Productivity improvemeBaidu Nhomakorabeat programs that make the work itself more rewarding.
Effort-Performance Links ♦ According to expectancy theory,employees will be motivated to perform well to the extent they believe their own individual efforts can lead to successful performance. ♦ So, the pay-for-performance system must make it clear to employees what behaviour is expected of them and must set performance standards that are perceived as being achievable.
motivation
perceived probability
performance
perceived probability
valued reward
valued extrinsic reward effort successful performance valued intrinsic reward
Enhancing Recruitment Efforts and Retention Rates Most people prefer to work in settings that allow them to earn rewards from their work. Organizations that offer rewards(either extrinsic or intrinsic)as part of productivity improvement programs thus usually attract more and better job applicants.
The Solution:Implementing an Employee Incentive System • Paying by the Piece • Providing Year-End Bonuses • Providing Stock Options
How the Incentive System Enhanced Competitive Advantage Q:Has the incentive system helped to build a competitive advantage at Lincoln Electric? ------the answer is an unqualified "yes".
One study found that the introduction of monetary incentives has a much greater impact on job performance than employee empowerment programs and concluded that "no other incentive or motivational technique comes even close to money with respect to its instrumental value."
Improving Worker Productivity
Expectancy Theory It is illustrated graphically in the figure below,states that workers make conscious decisions about how hard they are going to work to achieve organizational goals
9-2a Pay-for-Performance Programs
Rationale for Pay-for Performance Programs Linking rewards directly to performance is intuitively because most Americans believe that employees should be rewarded for good performance and that exceptional performers should therefor earn greater rewards than mediocre ones.