6: Designing a Motivating Work Environment
- Page ID
- 34445
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)- 6.1: Motivating Steel Workers Works: The Case of Nucor
- Nucor Corporation has maintained profitability for over 130 quarters in the challenging steel industry, achieving a 350% ROI for shareholders. Its decentralized structure encourages employee ownership, driving performance and innovation. A unique reward system links compensation to company performance, resulting in higher salaries and lower turnover rates.
- 6.2: Motivating Employees Through Job Design
- This page discusses the importance of job design for enhancing employee motivation, satisfaction, and productivity, tracing its historical evolution and presenting alternatives to job specialization. It introduces the Job Characteristics Model by Hackman and Oldham, which identifies five core dimensions impacting motivation. Additionally, it emphasizes feedback and empowerment strategies, distinguishing structural and felt empowerment's effects on autonomy.
- 6.3: Motivating Employees Through Goal Setting
- This page discusses goal-setting theory by Locke and Latham, highlighting the effectiveness of SMART goals in enhancing performance by 10-25%. It stresses the importance of goal commitment, influenced by accountability, support, participation, and rewards, while also noting potential downsides. Management by Objectives (MBO) aligns individual and organizational goals, despite its declining formal use.
- 6.4: Motivating Employees Through Performance Appraisals
- This page discusses performance appraisals as structured evaluations of employee performance aimed at feedback and goal-setting, highlighting the need for fairness and diverse raters to minimize bias. It covers two main types of appraisals—absolute and relative—and the importance of effective appraisal meetings that involve constructive feedback and employee participation. Strategies to reduce biases and enhance the appraisal process through planning and empathetic communication are suggested.
- 6.5: Motivating Employees Through Performance Incentives
- This page examines the role of financial and nonfinancial incentives in driving employee motivation, detailing various systems such as piece rates, merit pay, and profit sharing. It highlights the significance of aligning these incentives with company objectives and the challenges they pose, such as risk aversion.
- 6.6: The Role of Ethics and National Culture
- This page discusses the influence of job design, goal setting, and reward systems on ethical behavior in organizations. It notes that while goal setting can motivate, it may also prompt unethical practices linked to performance incentives. Cultural context is crucial for the success of these systems, as strategies effective in American firms may not be suitable elsewhere.
- 6.7: Motivation Key for Success: The Case of Xerox
- This page details the transformation of Xerox Corporation, founded in 1906, which nearly went bankrupt in 2000. CEO Anne Mulcahy, who took over in 2001, prioritized employee motivation, leading to the company's recovery. Ursula Burns became the first African American woman CEO of a major S&P company in 2009, continuing the focus on employee engagement and supportive culture for enhanced job performance.
- 6.8: Conclusion
- This page explores methods for motivating employees, such as job design and performance evaluations, while noting potential unintended consequences. Careful planning and fairness are emphasized in applying these techniques to enhance motivation effectively.
- 6.9: Exercises
- This page discusses James's ethical dilemma in assessing Maria's performance, balancing her deserved bonus against performance issues. It highlights negative behaviors stemming from individual bonus schemes in various workplaces, suggesting that changes are needed to ensure ethical practices. Additionally, it proposes a role-playing exercise for performance appraisals to enhance skills through feedback and observation.