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93 Cards in this Set

  • Front
  • Back

Identify the three main categories of reward problems

1) failure to produce the desired behaviour


2) production of desired behaviour but with undesirable consequences


3) production of reward dissatisfaction

Identify the three types of desired employee behaviour

1) Membership behaviour


2) Task behaviour


3) Organizational Citizenship behaviour

Define Membership Behaviour

Occurs when employees decide to join and remain with a firm

Define Task Behaviour

Occurs when employees perform the tasks that have been assigned to them

Define Organizational Citizenship Behaviour

Occurs when employees voluntarily undertake special behaviours beneficial to the organization

What are the three key employee attitudes that lead to desired employee behaviour?

Job satisfaction


Work motivation


Organizational identification

Define job satisfaction

The attitude one holds toward one's job and workplace

Define work motivation

The attitude one holds toward good job performance

Define organizational identification

A sense of shared goals and belongingness, and the desire to remain a member of the organization

When the reward system encourages job satisfaction, what behaviour does it address?

Membership Behaviour

When the reward system encourages organizational identification, what behaviour does it address?

All three behaviours and all other attitudes

When the reward system encourages motivation, what behaviour does it address?

Task behaviour

What consequences occur from the attitude of job satisfaction?

Decreased Work Stress


Decreased Grievances


Decreased Absenteeism


Decreased Turnover


Positive Group Norms

What consequences occur from the attitude of organizational identification?

Decreased Grievances


Decreased Absenteeism


Decreased Turnover


Positive Group Norms


Cooperative Behaviour


Innovative Behaviour


Increased Job Effort


All consequences except Decreased Work Stress



What consequences occur from the attitude of motivation?

Increased Job Effort

Four main causes of Reward Dissatisfaction

1. Violation of the psychological contract


2. Perceived inequity


3. Relative deprivation


4. Lack of organizational justice

Define Psychological Contract

Expectations about the rewards offered by a given job and the contributions necessary to perform the job

What are the two reasons problems can occur regarding an employee's psychological contract?

1) There has not been accurate communication about the rewards that will actually be provided and/or the contributions that are required, and these turn out to be different from what the employee expects




2) The employer unilaterally changes the 'contract' in a way that the employee perceives as detrimental

Explain Equity theory

Employees' base perceptions of equity (fairness) on a comparison of their contributions/rewards ratio to the ratios of others perceived as being similar




Employee satisfaction is determined more strongly by relative pay than by absolute amount of pay

Explain Relative Deprivation

A theory by Crosby that suggests that employees experience dissatisfaction with their pay level under six conditions:




1) There is a discrepancy between the outcome they want and what they actually receive


2) They see that a comparison "other" receives more than they do


3) Past experience has led them to expect more than they now receive


4) Expectations for achieving better outcomes are low


5) They feel they are entitled to more


6) They absolve themselves of personal responsibility for the lack of better outcomes

In regards to relative deprivation, what three conditions are of particular importance?

1) Social comparisons (condition 2, based on equity theory)


2) Discrepancy between desired and actual pay (condition 1)


3) Sense of entitlement (condition 5)

2 main components of organizational justice

Distributive Justice


Procedural Justice

Define Distributive Justice

The perception that overall reward outcomes are fair

Define Procedural Justice

The perception that the process for reward determination is fair

What six conditions need to occur for the pay system to be achieved under procedural justice?

1. Consistent


2. Free of Bias


3. Flexible


4. Accurate


5. Ethical


6. Representative

What two options do employees have to redress the imbalance from reward dissatisfaction

1) Increase the rewards they receive (quit, demand higher extrinsic rewards, pad the expense account, stealing, increase work performance, seek job duty improvements)


2) Reduce the contributions they make (formally or informally: request job duties be reduced, reduced effort, increased absenteeism)

What makes predicting employee's reactions difficult?

They depend on the personal characteristics and circumstances of the employee and on the specific characteristics of the situation

Which managerial strategy is best for tolerating reward dissatisfaction?

Classical organizations

Define Equity sensitivity

A personality trait that entails a high predisposition toward perceiving personal inequity

Percentage of people who are not currently seeking paid employment

31%

Why do people accept employment?

1) If they have unsatisfied needs


2) If they perceive employment as the best means to satisfy those needs


3) If they are able and willing to do the things the employment requires




Overall, people accept a job if the inducements or rewards associated with it exceed the costs of the contributions they must make to secure and retain it.

Two major causes of membership behaviour

Job satisfaction


Organizational identification

Five facets of job satisfaction

Pay


Promotion


Supervisors


Coworkers


The job itself

Define organizational commitment

The strength of the individual's attachment to his/her organization

Two main types of commitment

Affective commitment


Continuance commitment

Define Affective Commitment

Attachment to an organization based on positive feelings toward the organization

Define Continuance Commitment

Attachment to an organization based on perceived lack of better alternatives

What aspects generate organizational commitment?

Psychological contracts


Trust


Organizational justice (especially procedural justice)


- employee benefits, profit sharing, share plans



What needs to occur for job security to have a positive impact on affective commitment?

It needs to be seen something granted willingly by the employer

What works best for continuance commitment?

Seniority-based rewards


Benefit packages


Paying higher than competitor firms

What is directly related to task behaviour

Motivation

Define content theories of motivation

Theories that focus on understanding motivation by identifying underlying human needs

Define process theories of motivation

Theories that focus on understanding motivation by determining the processes humans use to make choices about the specific actions they will take

Types of content theories

Maslow's hierarchy of needs


Two-factor theory of motivation


Job characteristics theory of motivation


Salience of needs

Define Maslow's Hierarchy of Needs

A content theory of motivation that groups human needs into five main level and states that humans seek to satisfy the lowest order needs before satisfying higher order needs

Define Two-Factor Theory of Motivation

Argues that intrinsic factors influence work motivation, while extrinsic factors influence job satisfaction

Explain Job Characteristics Theory of Motivation

Identifies specific job characteristics that cause intrinsic motivation which is identified by five core job dimensions

5 core job dimensions of Job Characteristics Theory of Motivation

1) Task Identity


2) Task Significance


3) Skill Variety


4) Job Autonomy


5) Job Feedback

Define Task Identity

The extent to which a worker performs a complete cycle of job activities

Define Task Significance

The perceived importance or social value of a given task

Define Skill Variety

The variety of skills required for task completion

Define Job Autonomy

The degree of freedom workers have in deciding how to perform their jobs

Define Job Feedback

The extent to which the job itself provides feedback on worker performance

Define Job Enrichment

The process of redesigning jobs to incorporate more of the five core dimensions of intrinsically satisfying work

Define need salience

The degree of urgency an individual attaches to the satisfaction of a particular need

What two key factors determine the salience of a need for a given person at a given time?

The amount of need deprivation


The importance of the need

Define need deprivation

The difference between how much a person currently has and how much he/she requires to satisfy a particular need

Types of process theories

Reinforcement Theory


Expectancy Theory


Attribution Theory


Economic Theory


Money as a Motivator

Define Reinforcement Theory

A theory that states that a behaviour will be repeated if valued outcomes flow from that behaviour, or if performing the behaviour reduces undesirable outcomes

What must occur for reinforcement theory to work?

The individual must perceive a link between the behaviour and the consequence

Two types of reinforcers

Positive and negative

What rewards occur from positive reinforcement?

Rewards that are followed by valued behaviours

What rewards occur from negative reinforcement?

Undesirable consequences that occur when valued behaviour does not occur

What does reinforcement theory mean to the reward system?

Desired behaviours for each employee need to be clearly specified. Then each time that behaviour occurs, it needs to be followed by a reward of significant value to the recipient. The closer in time the reward is to the behaviour, the better.

Problems with reinforcement theory

It assumes that all desired behaviours are measurable and that it is practical to identify and respond to every instance of the behaviour


It only considers rewards that the organization can control


It must be continuously reward to maintain the behaviour

How does reinforcement theory work best?

For simple behaviours and for short-term behavioural change

Define expectancy theory

A theory stating that individuals are more likely to exert effort to perform a particular behaviour if they believe that behaviour will lead to valued consequences and if they expect they can perform the behaviour

Under Expectancy theory, the likelihood of one performing behaviour depends on...

1) the net value (valence) of the consequences of that behaviour


2) the perceived likelihood that the behaviour will actually lead to those consequences (instrumentality)


3) the perceived likelihood of actually being able to accomplish those behaviours (expectancy)

According to Expectancy theory, what three questions do individuals ask before acting?

1) Is the task worth doing (is net valence positive)


2) Will I actually receive the rewards (is the instrumentality clear)


3) Will I actually be able to accomplish the task if I exert the effort (is my expectancy strong)

Define Attribution Theory

Theory of motivation arguing that humans often act without understanding their motives for their behaviour and afterward attempt to attribute motives for their actions

__________ rewards add to ____________ rewards to create greater task behaviour. A recent study of actual companies also found that ______________ ____________ pay seemed to increase _____________ motivation

Extrinsic


Intrinsic


Individual pay


Intrinsic

What is the main theory connected with the economic theory of motivation?

Agency Theory

Define agency theory

Agents (employees) will pursuer their own self-interests rather than the interests of their principals (employers) unless they are closely monitored or their interests are aligned with the interests of their principals




Economic theory is useful only if the employees of the organization actually match these assumptions

State 3 factors of money as a motivator

Money gives recipient control over how their needs will be satisfied




Represents status and accomplishment




Money can also be a basis of social comparison

Define non cash employee recognition program

A program that provides non-cash rewards to employees in recognition of employee accomplishments or actions that are valued by the organization

Five dimensions of organizational citizenship

Altruism


General compliance


Courtesy


Sportsmanship


Civic Virtue

Define altruism

The willingness to offer help to a coworker, supervisor, or client without any expectation of personal reward for so doing, and without any repercussions if the help has been withheld

Two causes of organizational identification

1) Shared organizational goals


2) Feelings of membership (belongingness)

Define organizational integration

The interests of the individual and the organization are congruent

Preconditions for creating citizenship behaviour

Providing employment security


Trust


Showing genuine concern for needs of employees


A sense of distributive/procedural justice



Ways to create organizational identification?

Develop reward system which both the organization and its employees benefit when goals are met


Attracting and retaining employees who already process compatible values


Participation in decision making


Anything that fosters employee participation

6 implications for Effective Reward Systems

1. Define the behaviour needed


2. Determine attributes and qualifications needed to perform behaviour


3. Identify needs (needs salience)


4. Provide rewards that ensure positive valence


5. Make it clear that needed behaviour will lead to reward


6. Provide conditions that outline how effort will lead to desired behaviour

What is the necessary behaviour for classical firms?

Task behaviour

What behaviours are necessary for human relations firms

Task and membership behaviour

What behaviours are necessary for high-involvement firms?

Task, membership, and organizational citizenship behaviour

Define personal competencies

A person's physical, verbal, and mental skills

Define personal values

A person's core beliefs about appropriate and inappropriate behaviour

Define personality characteristics

A person's behavioural and emotional tendencies

Define demographic characteristics

A person's age, gender, ethnicity, education, marital status, and similar characteristics

What determines the necessary employee attributes?

Personal competencies, values, and personalities

What identifies salient employee needs?

Personal values and demographic characteristics

How can one ensure a positive reward valence?

Reduce costs of performing the desired behaviour

What are the 4 main types of costs for performing the desired behaviour?

Tangible costs


Physical costs


Psychological costs


Opportunity costs