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50 Cards in this Set

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Based on initiatives to improve the quality of working life and the strong influence of Japanese management practices
Human Resource Model of Motivation (HRMM)
Introduces a high lefel of employee responsibility for and participation in decision s in the work environment
Human Resource Model of Motivation (HRMM)
Serves as the basis for the presentation of the four behavioral considerations in MACS design
Human Resource Model of Motivation (HRMM)
Organiations operate under a system of beliefs about the values, purpose, and direction of their organization
Central Assumptions of the HRMM
Should incorporate the principles of an organization's code of ethical conduct
A well-designed MACS
Pressures affecting a MACS:
-managers are often subject to intense pressures from their job
Five categories that capture the broad array of ethical considerations:
-Legal rules
-Societal norms
-Professional memberships
-Organizational/group norms
-Personal norms
It provides general guidelines for understanding and dealing with ethical problems that arise
Ethical Hierarchy
A critical variable that can reduce eithical conflicts
The way that the chief executive and other senior managers behave and conduct business
Conflict with stated values:
-Make sure that the facts are correct
-Determine whether this conflict is institutional or reflects the decision s and actions of only a small minority of employees
When faced with a true conflict, exports recommend:
That the employee work with respected leaders in the organization to change the discrepancy between practiced and stated ethics
If point out the discrepancy to a superior and refuse to act unethically
this may lead to dismissa, the need to resign from the organization, or the experience of suffering hidden organization sanctions
If point out the discrepancy to a superior and act unethically
the rationale for this choice is that the employee believes, incorrectly, this affords protection from legal sanctions
Other ways to deal with an ethical conflict:
-Take the discrepancy to a mediator in the organization, if one exists
-Go outside the organization to publically resolve the issue
-Go outside the orgnaization to anonymously resolve the issue
-Resign and go public to resolve the issue
-Resign and remain silent
-Do nothing, hoping that the problem vanishes
Three dimensions of motivation:
direction, intensity, persistence
The tasks on which an employee focusses attention
The level of effort the employee expends
The duration of time that an employee will stay with a task or job
Careful attention to motivationis a key step for the organization and its employees to align their respective goals
Achieving goal congruence
The alignment of goals occurs as employees:
-Perform their jobs well and are helping to achieve organizational objectives
-Are attaining individual goals at the same time
Systems that managers do not have to monitor on a regular basis; hope is that if these systems are well designed then the manager has much more time to attnd to other concerns
Disgnostic control systems
Force a dialogue among all organizational participants about the data that is coming out of the system and what to do about it
Interactive control systems
At the core of both systems are two common methods of control:
Task and results control
the process of finding ways to control behavior so that a job is completed in a pre-specified manner
Task Control
Two categories of task control:
Preventitive control; Monitoring
Preventive control
Much if not all of the discretion is taken out of performing a task
Inspecting the work or behavior of employees while they are performing a task
Methods focus on measuring employee performance against stated objectives; must have clearly defined objectives, communicated them to appropriate organization members, and designed performance measures consistent with the objectives
Results control
Altering actions specifically in an attempt to manipulate a performance indicator through job-related acts
Gaming the performance indicator
knowingly altering records
Data falsification
Accelerating or delaying the flow of data without altering the organization's activities
Smoothing (a form of earnings management)
Empowering employees in MACS design requires two essential elements:
-allowing employees to participate in decision making
-ensuring that employees understand the information they are using and generating
second critical element of empowering employees
ensure that they understand the information they use and on which they are evaluated
Reward systems to further motivate employees
intrinsic rewards, extrinsic rewards, organizations use many systems of financial rewards
Different theories of motivation:
expectancy theory, agency theory, goal setting theory
These come from within and individual and reflect satisfaction from doing the job and growth opportunities the job provides
Intrinsic Rewards
Any reward that one person provides another to recognize a job well done: based on assessed performance
Extrinsic Rewards
Base rewards on acheieving or exceeding some measured performance
Pay-for-performance systems
The number of acceptable quality untis produced, The organization's results, the organization's share price performance are:
Measures of absolute performance
Paying a manager for accomplishing his/her goals under budget,or paying a production group a bonus for beating a benchmark performance level
the ability to exceed a performance target level
Sharing in a pool defined as the organization's reported profits less a stipulated return to shareholders
The amount of a bonus pool
Must focus primarily on outcomes that the employee controls or influences
Incentive compensation system
Ex's cash bonuses, profit sharing, gainsharing, stock options, performance shares stock, etc.
Incentive compensation plans
Pays cash based on some measured performance
Cash bonus plan
A cash bonus calculated as a percentage of an organization unit's reported profit
Profit sharing
All profit-sharing plans define:
-What portion of the organization's reported profits is available for sharing
-The sharing formula
-The employees who are eligible to participate int he plan
-The formula for each employee's share
A system for distributing cash bonuses from a pool when the total amount available is a function of performance relative to some target
Gainsharing is a group incentive that usually:
-Provides for the sharing of financial gains in organizational performance
-Applies to a group of employees within an organization unit, such as a department or a store
The right to purchase a unit of the organization's stock at a specified price, called the option price
Stock option plans
Designed to motivate employees to act in the long-term interests of the organization by acting so as to increase its market (stock) value
Stock Related Plans