Management and Organizational Behavior Chapter 7

Job Design
The way the elements in a job are organized can act to increase or decrease effort and also what those elements are
Job Characteristics Model (JCM)
Developed by J. Richard Hackman and Greg Oldham, this model says we can describe any job in terms of five core job dimensions -Next 5 terms…
Skill Variety
The degree to which a job requires a variety of different activities so the worker can use a number of different skills and talent
Task Identity
The degree to which a job requires completion of a whole and identifiable piece of work
Task Significance
The degree to which a job has an impact on the lives or work of other people
Autonomy
The degree to which a job provides the worker freedom, independence, and discretion in scheduling the work and determining the procedures in carrying it out
Feedback
The degree to which carrying out work activities generates direct and clear information about you own performance
Job Rotation or Cross Training
The periodic shifting of an employee from one task to another with similar requirements at the same organizational level
Job Enrichment
Expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work
Flextime
Employees must work a specific number of hours per week but are free to vary their hours of work within certain limits
Job Sharing
Allows two or more individuals to split a traditional 40-hour-a-week job
Telecommuting
Refers to working at home at least two days a week on a computer linked to the employer’s office.
No commuting, flexible hours, freedom to dress as you please, and few or no interruptions from colleagues.
Employee Involvement
A participative process that uses employees’ input to increase their commitment to the organization’s success
Participative Management
The distinct common characteristic is joint decision making, in which subordinates share a significant degree of decision-making power with their immediate superiors
Representative Participation
Its goal is to redistribute power within an organization, putting labor on a more equal footing with the interests of management and stockholders by letting workers be represented by a small group of employees who actually participate
-“the most widely legislated from of employee involvement around the world.”
Variable Pay Program
Bases a portion of an employee’s pay on some individual and/or organizational measure of performance
-Piece-rate plans, merit-based pay, bonuses, profit sharing, gainsharing, and employee stock ownership plans of this
Piece-Rate Pay Plan
Pays a fixed sum for each unit of production completed
– A pure piece-rate plan provides no base salary and pays the employee only for what he or she produces
Merit-Based Pay Plan
Pays for individual performance based on performance appraisal ratings
-If they are designed correctly, merit-based plans let individuals perceive a strong relationship between their performance and the rewards they receive
Bonus
The incentive effects of performance bonuses should be higher than those of merit pay because, rather than paying for performance years ago, bonuses reward recent performance.
Skill-Based Pay
An alternative to job based pay that bases pay levels on how many skills employees have or how many jobs they can do
Profit-Sharing Plan
An organization-wide program that distributes compensation based on some established formula designed around a company’s profitability
Employee Stock Ownership Plan
A company-established benefit plan in which employees acquire stock, often at below market prices, as part of their benefits
Flexible Benefits
Benefits that individualize rewards by allowing each employee to choose the compensation package that best satisfies his or her current needs and situation.
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