[Business] Organizational Behavior - Motivation (2)

Motivation

1.    Organizational justice

-      People’s perceptions of fairness in organization

-      Explain how people develop perceptions of fairness in the distribution and exchange of resources

-      Explains what people are motivated to do when they feel inequitably treated

-      Two major components of organizational justice

Ø  Distributive justice (Equity theory)

: The perceived fairness of the amount and allocation or rewards distributed among people.

Ø  Procedural justice

: The perceived fairness of the process used to determine the distribution of rewards.

Ø  Interactional justice (information/interpersonal justice) – 제일 윗분과 어떤 상호작용 있는가?

** 사회가 Hard한 사회에서 Soft해짐에 따라 점점 Procedural justice의 중요성이 높아짐.

 

2.    Equity theory (Distributive justice)

-      Distributive justice: Explains how people develop perceptions of fairness in the distribution and exchange of resources.

-      Adams(1965): People appraise rewards in terms of their equitability.

-      Argues that we calculate our outcome/input ratio, which is compared to others. Based on this comparison, we feel equity or inequity

Ø  Outcome/input ratio (=ROI)

Ø  Comparison other

Ø  Equity evaluation

** <Social comparison> à 상대적 박탈감을 야기함.

è In case of unfairness, social comparison으로 인한 상대적 박탈감 발생.

-      Consequences of Inequity

① Changing input: less effort (motivation decreases and outcome also decreases)

② Changing outcomes: ask for more desired outcome or get more unformal outcome like kickbacks (possibility of unethical activity increases)

③ Cognitively distorting perceptions of our inputs and outcomes. à 자기를 깎아내림.

④ Cognitively distorting perceptions of comparison other’s inputs and outcomes à 다른 사람에 대한 평가를 더 높게 함.

⑤ Changing comparison other à 비교 대상을 바꿈.

⑥ Leaving the field: turnover

è ①, ②, ⑥의 경우, 조직에 영향을 줄 수 있음.

-      Manager’s guideline

① Treat people fairly in the distribution of rewards à Avoid both over/underpayment

② Give people a voice in decisions affecting them

③ Explain outcomes thoroughly using a socially sensitive manner. à Give them why.

④ Be sensitive to feelings of inequity and change reward criteria if employees believe current system is unfair. à 사회가 변하면서 성과 시스템을 바꿀 필요가 있음.

** 외국의 경우, 주관적 평가 중시. 한국의 경우 객관적 평가 중시하는 경향이 있음.

3.    Procedural Justice

-      The perceived fairness of the process used to determine the distribution of rewards

-      Focuses on the manner in which the decision-making process is conducted

-      Shifts from ‘what is decided’ to ‘how decisions are made’

-      Fairness of the end result and the fairness of the determining process can be evaluated independently.

-      Distributive justice gives short term vision. On the other hands, procedural justice gives mid/long term view.

-      Effects

Ø  Satisfaction / Commitment

Ø  Citizenship behaviors (=extra-role)

Ø  Procedurally fair, but outcome unfair

→ Still satisfied because they feel that outcome was reached through a fair process. <related to long term view>

→ Remain committed / Employees are likely to view their bosses and the organization as positive.

-      Managers’ guideline

① Procedures consistent across time

② Managers should openly share information on how allocation decisions will be made.

③ Based on shared standards of the group. à Takes into account everyone’s concerns.

④ Procedure is free of bias à decision based on accurate information

⑤ Procedure should include system that allows errors to be corrected

 

4.    Expectancy theory

-      Work effort is directed toward behaviors believed to lead to desired outcomes.

-      Effort: key variable, the individual’s actual exertion of energy

-      무엇을 기대하냐에 따라 Motivation에도 변화가 있음.

-      Effort à Performance Expectancy: An individual’s perceived probability that his/her effort will result in a particular level of performance

-      Performance à Outcome Expectancy: An individual’s perceived probability that a specific behavior or performance level will lead to specific outcomes

-      Outcome valences (reward-personal goal relationship): The anticipated satisfaction or dissatisfaction that an individual feels toward an outcome

è If any of these three components weakens, motivation weakens.

-      Expectancy theory in practice

Ø  Expectancy theory provides clear guidelines for increasing employee motivation

Ø  Increasing the E to P expectancy: Training, selection, resources, clarify roles, provide coaching and feedback.

Ø  Increasing the P to O expectancy: Measure performance accurately, explains how rewards are based on performance.

Ø  Increasing Outcome Valence: Use valued rewards, individualize rewards, minimize counter-valent outcomes

5.    Applied motivation practices

-      Job design

Ø  Motivation can be enhanced by making jobs more appealing to people

Ø  Assigning tasks to a job, including the interdependency of those tasks with other jobs

Ø  Employees expected to perform a variety of work à To organization, Flexibility ↑ / To individual, employability ↑

Ø  Technology doesn’t determine job scope. à Corporate leaders can influence the way jobs are designed.

Ø  Job specialization: The degree to which tasks in the organization are subdivided into separate jobs.

ü  Scientific management

à Systematically determining how to partition work into smallest elements and how to standardize tasks for maximum efficiency.

à Methods-time measurement: systematically observe/measure physical job behavior for work efficiency.

ü  Advantage: less time changing tasks / lower training cost / job mastered quickly / Better person-job matching / create specialist / efficient use of the diversity of skills

ü  Disadvantages: job boredom / discontentment pay / lower quality / lower motivation

Ø  Job redesign (Job rotation, job enlargement, job enrichment)

ü  Job rotation & job enlargement(일의 수평적 확산) à limited autonomy

ü  Job enrichment strategies(일의 수직적 확산)

à Empowering employees <giving more autonomy, feeling of control and self-efficacy>

à Form natural work units by completing an entire task.

ü  Job characteristics model

à An approach to job enrichment (Hackman and Oldham)

à Jobs can be designed to help people get enjoyment out of their job and to care about the work they do

à How jobs can be designed to help people feel that they are doing meaningful and valuable work

à 5 core job dimensions <Skill variety, Task identity, Task significance, autonomy, and feedback>

à Three critical psychological states (outcome을 위해 필요한 마음가짐): Experienced meaningfulness, experienced responsibility, and knowledge of results

à MPS(Motivating Potential Score): summary index of job’s potential for motivating people

= (Task significance + Task Identity + Skill Variety)/3 * Autonomy * Feedback

**의욕적인 사람들에게만 적용될 수 있다는 한계가 있음.

-      Management by Objectives(MBO) (àkey performance indicator)

Ø  Means of using goals to motivate people

Ø  Emphasizes converting overall organizational objectives into specific objectives for organizational unit and individual members

Ø  4 common componets

à Participation: mutually set – both top-down and bottom-up

à Goal specificity <specific objectives to meet / specific time period>

à Feedback: feedback on progress during goal period

Ø  Evaluation based on success in meeting the goals which were set

Ø  Goal setting theory를 적용시켜 만든 것이 MBO. 다만 Goal setting theory에서는 participation is not mandatory. However in MBO, participation is mandatory.

-      Employee recognition program

Ø  Basic philosophy: Recognition! Praise in public and criticize in private

Ø  Often not associated with money

Ø  Recognition is intangible reward <Source of feedback of performance and rewards for performance / Most powerful motivator à increase both satisfaction and commitment>

Ø  Tangible reward(금전적 보상) à short term / Intangible reward(Recognition) à long

-      Employee involvement plans.

Ø  A participative process that uses the entire capacity of employees

Ø  Designed to increase satisfaction and commitment to the organization

Ø  Source of information/knowledge sharing à allows those above to make better decisions

Ø  Ex) participative management, representative participation, quality circle 

-      Variable pay systems (고정급 + 변동급여)

Ø  A portion of individual pay is based on some measure of performance

Ø  Pay becomes more at risk

Ø  Pay becomes variable with the performance of individual, group or organization

Ø  Organization can reduce fixed cost

Ø  Ex) piece-rate plan, profit sharing, gain sharing

-      Skill based pay plan

Ø  Pay levels are based on how many skills the employee has

Ø  Completely based pay

Ø  Encourage employees to continue to learn and grow / work cooperatively with others / be more flexible.

-      Flexible Benefits

Ø  Workforce diversity: Be aware that employees have different needs

Ø  Allow employees to pick from a menu of benefit options (Cafeteria method)