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Understanding What People Do 3

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					Satisfaction, Commitment, and
          Motivation
         Is This System Fair?
• Evaluate whether this method for
  compensation is fair:
  – A chain of nursing homes has supervisors write one
    paragraph descriptions of employee performance
    each year
  – Employees do not see the supervisor reports
  – The head office interprets the narrative reports
    and assigns points based on their brief read
  – These points are used to assign wage amounts
• How would you change this system?
       Distributive Justice
• According to Equity Theory, distributive
  justice is high when an employee’s ratio
  of ―outcomes‖ to ―inputs‖ matches those
  of some ―comparison other‖
• Thus equity theory acknowledges that
  motivation also depends on the rewards
  received by other employees
Distributive Justice Concepts
• Inputs – what you bring to the job; your
  effort; your contribution
• Outcomes – the results of your work;
  your compensation, your recognition
• Referents – the focus of your
  comparison; similar co-workers or your
  previous input/output ratio
 Distributive justice concepts
• Equity: a person’s perceptions that they are paid comparable
  to individuals in other similar jobs
   – OS/IS:OO/IO
   – Example: dollars per hour worked
• This is robust across species:
   – Monkey study at Emory University
       • Taught monkeys to exchange granite tokens for cucumbers
       • Then gave other monkeys grapes (a preferred food) for the same
         tokens
       • The ones who got the cucumbers then refused to play anymore and
         threw their cucumbers away
  Interdependence and Justice:
   Social Norms for Exchange
• Distributive justice
  – Determine if actual outcomes are fair
  – Simple comparison process:
     • If Os/Is=Oo/Io, feeling of satisfaction
     • If Os/Is<Oo/Io, feel mistreated; work less
     • If Os/Is>Oo/Io, maybe feel guilty?
  – Complexity of comparison process
     • Outputs and inputs are hard to quantify sometimes
     • Sources of comparison (who are the o’s?)
    Distributive Justice Concepts:
        Conceptual Difficulties

                   Simplest Case                                        Relatively Simple Case
        Hours        Pay    Ratio         Result                Hours     Pay    Ratio             Result
Chris       8       $80     1:1            Fair         Chris    8        $80      1:2     Underpaid; reduce
                                                                                                hours
Gene        8       $80     1:1            Fair
                                                        Gene     4        $80      2:1      Overpaid; change
                                                                                              comparitor


                                            Complicated Case # 1
                    Hours           Pay      Production              Ratio                       Result
    Chris               8          $80            50 units       6 : 8 (hours)                   Unfair
    Gene                6          $80            50 units      50 : 50 (output)                  Fair
                                            Complicated Case # 2
                Educ.        Pay                      Ratio                           Result
   Chris        12 yrs.     $12/hr            12 : 16 (money)                            Fair?
   Gene         16 yrs.     $16/hr          1 : 1 (money & educ.)                        Fair
 A Picture of Internal and
External Equity Comparisons
         General hospital                                 Bigville Hospital


                                                              Dr. Bold
             Director Jones
                                              external

                       internal

 Dr. Young                        Dr. Smith              Louisville Hospital
                internal
                                              external
                       internal                             Dr. Beautiful

             Nurse Restless
    Distributive justice and
     compensation systems
• External equity: employee perceptions
  that they are paid comparable to
  individuals in other similar jobs
  – Results of underpayment inequity?
  – Results of overpayment inequity?
     Distributive justice and
      compensation systems
• Internal equity: employee perceptions that
  they are paid comparable to individuals in
  other jobs in the same organization
  – Results of underpayment inequity?
  – Results of overpayment inequity?
      Procedural Justice and
      Organizational Support
• Methods for making decisions
  – Consistency
  – Information accuracy
  – Bias suppression
• Taking employees into account
  – Representativeness
  – Communication
  – Correctability
Interdependence and Justice:
     Interactive Effects
                     High
                                         Low procedural
                  procedural
                                             justice
                    justice
    High                                 Satisfaction without
                Both satisfaction and        outcomes, but
distributive   motivation are obtained   distrustful of future
   justice                                     outcomes

     Low         Satisfaction with
                                         Neither satisfaction
               outcomes is moderate,
distributive      and motivation is
                                          nor motivation is
                                              observed
   justice           maintained
Managing the Climate for Justice
• Ford buyout of Volvo
  – Wages and benefits much higher in Sweden
  – Must do something to achieve equity, but neither
    solution is attractive
     • Raise American wages?
     • Lower Swedish wages?
  – What are the problems with each solution
     • Think operating costs
     • Think justice effects
  – Develop methods for addressing this situation that
    will address both procedural and distributive
    justice
Work Design and Satisfaction
•   In order that people may be happy in their
    work, these three things are needed:
    1. they must be fit for it;
    2. they must not do too much of it;
    3. and they must have a sense of success in it--not a
       doubtful sense, such as needs some testimony of
       other people for its confirmation, but a sure
       sense, or rather knowledge, that so much work
       has been done well, and fruitfully done, whatever
       the world may say or think about it.
    – John Ruskin
          Problems of Routine
• I stand in one spot, about two- or three-feet area, all
  night. The only time a person stops is when the line
  stops. We do about thirty-two jobs per car, per unit.
  Forty-eight units an hour, eight hours a day. Thirty-
  two times forty-eight times eight. That’s how many
  times I push that button. Repetition is such that if
  you were to think about the job itself, you’d slowly go
  out of your mind. You’d let your problems build up,
  you’d get to a point where you’d be at the fellow next
  to you—his throat.
   – Spot welder, Working, p. 159
           Work Design:
       Industrial Engineering
• Methods studies-Taylor
  – Ergonomic studies
  – Process studies
• Time & motion-Gilbreth
  – Motion analysis
  – Time analysis
• Advantages?
• Disadvantages?
    Work Design:
Industrial Engineering
       Factors that Improve
           Satisfaction
• Enhance satisfaction via job characteristics
  – Design jobs to be enjoyable
     • Increase autonomy, task significance, feedback,
       meaningfulness, and variety
     • Provide opportunities for positive social
       interactions and social support
  – Role ambiguity should be reduced
     • Well-defined work roles
     • Provide good socialization into role duties
 Thinking About Work Design
        and Redesign
• Break into groups
• Each member describes the best and
  worst things about a job he/she has had
• Describe the way that decisions were
  made in the organization
• Describe the characteristics of the
  actual tasks
     Improving Job Satisfaction
• Job enrichment
     – Creating jobs that are more inherently satisfying
       to employees
     – Greatly increases satisfaction over time


     variety
Skill

Task identity        Meaningfulness   of work   Internal motivation
                                                  Quality job
Task significance
                                                  performance
Autonomy             Responsibility             Satisfaction with

Feedback             Knowledge   of results     work
Work Design and Satisfaction:
     Empirical Support

  0.6
  0.5
  0.4
  0.3
                                                      Satisfaction
  0.2
                                                      Motivation
  0.1
   0
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        Methods for Enhancing Job
             Characteristics

  Original job     Job enlargement             Job rotation

                   Job 1                       Job 1         Task
Job 1       Task
                                                              1
             1
                                   Task
                                    1
                   Job 2                       Job 2         Task
Job 2       Task                   Task                       2
             2                      2
                   Job 3           Task
                                               Job 3         Task
                                    3
                                                               3
Job 3       Task   Each job does all the   People switch from job to
             3       major tasks now         job every few months
     Examples of Job Enlargement
               Efforts
•   Bank One’s international trade banking department produced
    commercial letters of credit indicating that the bank would stand
    behind a loan taken out by a company.
•   Traditionally, each individual claim processor handled a single piece of
    each document, and then handed this off to the next person
•   Because each person was focused on their own specific piece of the
    task, they were bored and made mistakes
•   Turnover was astronomical
•   Jobs were enlarged, so that each individual had responsibility for one
    entire case at a time
•   Increased skill variety (doing numerous subtasks), task identity (a
    whole case is completed), task significance (could have contact with the
    person whose final case they were handling), autonomy (less need to
    check with others on the process), and feedback (saw how the job was
    progressing and would speak with individual client about how things
    were going)
  Examples of Job Enlargement
            Efforts
• Many companies engage in managerial job
  rotation
  – For example, most financial division employees at
    Eli Lilly have held at least one non-financial
    position during their careers and these
    assignments last over a year
  – Toyota (which has outstanding quality) has
    employees rotate around factory jobs, including
    giving assembly workers managerial rotations,
    electrical engineers design rotations, and so on
Thinking About Work Redesign
• Return to your groups
• Determine how the jobs you described
  could be redesigned to increase
  motivating potential
• Do the benefits of redesign in this case
  exceed the costs?