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Chapter 7: Applications of Motivation

Chapter 7: Applications of Motivation. Management By Objectives (MBO) is a program that encompasses: specific goals (goal setting theory) participatively set (this is emphasized in MBO systems) for an explicit time period with feedback on goal progress

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Chapter 7: Applications of Motivation

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  1. Chapter 7: Applications of Motivation Management By Objectives (MBO) is a program that encompasses: • specific goals (goal setting theory) • participatively set (this is emphasized in MBO systems) • for an explicit time period • with feedback on goal progress • For the individual employee, MBO provides specific personal performance objectives.

  2. MBO MBO operationalizes the concept of objectives by devising a process by which objectives cascade down through the organization. • The result is a hierarchy of objectives that links objectives at one level to those at the next level.

  3. Cascading of Objectives

  4. What Are Employee Recognition Programs? • Programs that use multiple sources and recognizes both individual and group accomplishments. • Rewarding a behavior with recognition immediately following that behavior is likely to encourage its repetition (Reinforcement Theory) • In contrast to most other motivators, recognizing an employee’s superior performance often costs little or no money, making them highly attractive to industry.

  5. What are Employee Involvement Programs? • A participative process that uses the entire capacity of employees and is designed to encourage increased commitment to the organization’s success.

  6. Employee Involvement • Examples of Employee Involvement • Participative Management • Representative Participation • Work Councils • Board Representatives • Quality Circles • Employee Stock Ownership Plans (ESOPs) *Note: these strategies use concepts found in Theory X and Y, the two-factor theory, and needs (i.e. N achievement) and ERG. These approaches are popular around the world.

  7. Variable Pay Programs • Programs where a portion of an employee’s pay is based on some individual and/or organizational measure of performance. • piece-rate pay plans • profit-sharing plans • gainsharing plans (note – “profit” is not necessary)

  8. Linking Variable-Pay Plans and Expectancy Theory • Evidence supports the importance of this linkage, especially for operative employees working under piece-rate systems. • Group and organization wide incentives reinforce and encourage employees to sublimate personal goals for the best interests of their department or organization. • Many of these plans are used in organizations around the world. Again, be careful – some involve risk (and not all employees nor employers are risk takers!)

  9. Flexible Benefits

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