Organizational Behavior _ Chapter 8
Download
Report
Transcript Organizational Behavior _ Chapter 8
8 Pay, Careers,
and Changing Employment Relationships
Understanding and
Managing
Organizational
Behavior
Fifth Edition
Image from opening case
Jennifer M. George
Gareth R. Jones
©2007 Prentice Hall
Learning Objectives
Describe the determinants and types of
psychological contacts and what happens
when they are broken
Appreciate the two major roles of
performance appraisal
Understand the different kinds and methods
of performance appraisal
8-2
©2007 Prentice Hall
Learning Objectives
Appreciate the importance of merit pay and
the choices organizations face in using pay
to motivate employees
Understand the importance of careers,
different kinds of careers, and effective
career management
8-3
©2007 Prentice Hall
Valuing Employees at Costco
Can organizations treat their employees
very well and still remain competitive?
Competitive pay
Health insurance
401(k) retirement plan
8-4
©2007 Prentice Hall
Psychological Contract
An employee’s perception of
– his or her exchange relationship with an
organization,
– outcomes the organization has promised
to provide to the employee, and
– contributions the employee is obligated to
make to the organization
8-5
©2007 Prentice Hall
Sources of Information
Direct communication from coworkers and
supervisors
Observations of what actually transpires in
the organization
Written documents
8-6
©2007 Prentice Hall
Exhibit 8.1 Determinants of
Psychological Contracts
Direct
Communication
Observation
Written
Documents
Psychological
Contract
8-7
©2007 Prentice Hall
Exhibit 8.2 Types of
Psychological Contracts
Transactional
Contracts:
Short term
Narrow and specific
Limited promises
and obligations
8-8
Relational
Contracts:
Long term
General and evolving
Extensive and
broad promises
and obligations
©2007 Prentice Hall
Consequences of
Broken Contracts
Poor motivation and performance
Negative moods and emotions
Job dissatisfaction
Intent to quit
8-9
©2007 Prentice Hall
Performance Appraisal
Encourage high levels of employee
motivation and performance
Provide accurate information to be used in
managerial decision making
8-10
©2007 Prentice Hall
Information Provided to
Employees
Level of contribution
Accuracy of tasks and direction
Performance appraisals give
employees feedback that
contributes to intrinsic
motivation!
8-11
©2007 Prentice Hall
Information Functions
Developmental purposes
Evaluative,
decision-making purposes
8-12
©2007 Prentice Hall
Developing a Performance
Appraisal System
Choice 1: The mix of
formal and informal appraisals
Choice 2: What factors to evaluate
Choice 3: Methods of appraisal
Choice 4: Who appraises performance
8-13
©2007 Prentice Hall
Factors to Evaluate
Traits
Behaviors
8-14
Results
©2007 Prentice Hall
Methods of Appraisal
8-15
Objective:
Subjective:
numerical
counts
based on fact
perceptions
based on traits,
behaviors, and
results
©2007 Prentice Hall
Exhibit 8.4 Graphic Rating Scale
8-16
©2007 Prentice Hall
Exhibit 8.4 Behaviorally Anchored
Rating Scale
8-17
©2007 Prentice Hall
Exhibit 8.4 Behavioral
Observation Scale
8-18
©2007 Prentice Hall
Who Appraises Performance?
Supervisors
Subordinate appraisals
Self-appraisals
Customer/client
appraisals
Peer appraisals
Multiple raters
360-degree appraisal
8-19
©2007 Prentice Hall
Problems and Biases
Stereotypes
Primacy effect
Contrast effect
Halo effect
Similar-to-me
effect
8-20
Harshness,
leniency, and
average tendency
biases
Knowledge-ofpredictor bias
©2007 Prentice Hall
Merit Pay Plans
Use when
– Individual performance can be accurately
assessed
– Employees are highly independent
Distribute by
– Salary increase
– Bonuses
8-21
©2007 Prentice Hall
Individual-Based Merit Pay Plans
8-22
Piece-rate
Commission
pay
pay
©2007 Prentice Hall
Gain-Sharing
Employees receive share of profits or saved
expenses
– Encourages camaraderie and team spirit
– Discourages personal motivation
Types
– Scanlon plan
– Profit sharing
8-23
©2007 Prentice Hall
Pay Differentials and
Comparable Worth
Gender
Age
Race
Leadership level
8-24
©2007 Prentice Hall
Types of Careers
8-25
Steady-state
Spiral
Linear
Transitory
©2007 Prentice Hall
Exhibit 8.6 Career Stages
Preparation
for Work
Organizational
Entry
Early Career
Mid-Career
Late Career
8-26
©2007 Prentice Hall
Contemporary Career Challenges
Ethical Career Management
Career Management That Supports
Diversity
Career Management in an Era of DualCareer Couples
8-27
©2007 Prentice Hall