Organizational Behavior – Chapter 8

Job Design
The way elements in a job are organized
The Job Characteristics Model (Hackman and Oldham)
A model that proposes that any job can be described in terms of 5 core job dimensions:
1. Skill Variety – The degree to which a job requires a variety of different activities
2. Task Identity – The degree to which a job requires completion of a whole and identifiable piece of work
3. Task Significance – The degree to which a job has substantial impact on the lives of work of other people
4. Autonomy – The degree to which a job provides substantial freedom and discretion to the individual in scheduling the work in determining the procedures to be used in carrying it out
5. Feedback – The degree to which carrying out the work activities required by a job results in the individual obtaining direct and clear information about the effectiveness of his or her performance

Skill Variety, Task Identity, Task Significance —> Experienced meaningfulness of the work
Autonomy —-> Experienced responsibility for outcomes of the work
Feedback —-> Knowledge of the actual results of the work activities
Personal and work outcomes are: High internal work motivation, high-quality work performance, high satisfaction with the work, and low absenteeism and turnover

Motivating Potential Score (MPS) = (Skill Variety + Task Identity + Task Variety) / 3 x Autonomy x Feedback

Job Rotation
The periodic shifting of an employee from one task to another
Job Enrichment
The vertical expansion of jobs, which increases the degree to which the worker controls the planning, execution, and evaluation of the work

Combining tasks —> Skill variety and task identity
Forming natural work units —> Task identity and task significance
Establishing client relationships —> Skill variety and feedback and autonomy
Expanding jobs vertically —> Autonomy
Opening feedback channels —> Feedback

Job Sharing
An arrangement that allows two or more individuals to split a traditional 40-hour-a-week job
Employee Involvement
A participative process that uses the input of employees and is intended to increase employee commitment to an organization’s success

Participative management – A process in which subordinates share a significant degree of decision-making power with their immediate superiors

Representative participation – A system in which workers participate in organizational decision making through a small group of representative employees

Variable-Pay Program
A pay plan that bases a portion of an employee’s pay on some individual and/or organizational measure of performance
Piece-Rate Pay Plan
A pay plan in which workers are paid a fixed sum for each unit of production completed
Merit-Based Pay Plan
A pay plan based on performance appraisal rating
A pay plan that rewards employees for recent performance rather than historical performance
Skill-Based Pay
A pay plan that sets pay levels on the bases of how many skills employees have or how many jobs they can do
Profit-Sharing Plans
An organization-wide program that distributes compensation based on some established formula designed around a company’s profiability
A formula-based group incentive plan
Employee Stock Ownership Plan (ESOP)
A company-established benefits plan in which employees acquire stock, often at below-market prices, as part of their benefits
Flexible Benefits
A benefits plan that allows each employee to put together a benefits package individually tailored to his or her own needs and situation

Modular plans – Predesigned packages or modules of benefits, each of which meets the needs of a specific group of employees

Core-Plus Plans – Consist of a core of essential benefits and a menulike selection of others from which employees can select

Flexible standing plans – Allow employees to set aside pretax dollars up to the dollar amount offered in the plan to pay for particular benefits

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