Топик: The profile of an effective manager

This theory poses that individuals compare their job inputs (i.e. effort, experience …) and outcomes (i.e. salary, recognition …) with those of others and then respond so as to eliminate any inequities. For example a person who does the same job as another employee but gets paid less will be motivated to perform better in order to eliminate the existing inequities.

5. Expectancy Theory (V. Vroom):

This is currently one of the most accepted explanations of motivation. Most of the research evidence is supportive of this theory. Concrete, this theory says that an employee will be motivated to exert a high level of effort when he or she believes that effort will lead to a good performance appraisal; that a good performance appraisal will lead to organizational rewards such as a bonus, a salary increase, or a promotion; and that the rewards will satisfy the employee’s goals.

The major theories briefly presented, we can now look at how in reality a manager can implement these. Robbins mentions 6 applications. These are:

1. Management by objectives (MBO) (cfr. Goal-Setting Theory):

This means in realty, as a manager, you make sure that the organization’s overall objectives are translated into specific objectives for each succeeding level (divisional, departmental, and individual) in the organization. You develop a program that encompasses specific goals, participatively set with the employees, for an explicit time period, with feedback on goal progress. MBO programs are used in many business, health care, educational, government and non-profit organizations.

2. Employee Recognition Programs (cfr. Reinforcement Theory)

Consistent with reinforcement theory, rewarding a behaviour with recognition immediately following that behaviour is likely to encourage its repetition. For example: personally congratulating an employee, or sending a letter or an e-mail, having a celebration because of good achievement, or publicly recognizing, such as organizing a prize “Best Employee of the Month” (he/she then gets a plaque on the wall). These programs are widely used because it costs no money and according to research bears effective.

3. Employee Involvement Programs (cfr. Theory X and Theory Y, Two-Factor Theory, Hierarchy of Needs Theory & ERG Theory):

The idea here is that by involving workers in those decisions that affect them and by increasing their autonomy and control over their work lives, employees will become more motivated, more committed to the organization, more productive, and more satisfied with their jobs. Examples:

- participative management : subordinates share a significant degree of decision-making power with their immediate superiors.

- representative participation : rather than participate directly in decisions, workers are represented by a small group of employees who actually participate

- quality circles : a work group of 8 to 10 employees and supervisors meet regularly to discuss their quality problems, investigate causes, recommend solutions, and take corrective actions.

- employee stock ownership plans ( ESOPs): these are company-established benefit plans in which employees acquire stock as part of their benefits.

4. Variable Pay Programs (cfr. Expectancy Theory):

Here a portion of an employee’s pay is based on some individual and/or organizational measure of performance. Examples:

- Piece-rate pay plans : you are paid a fixed sum for each unit of production completed.

- Bonuses : extra payment because of certain achievement.

- Profit-sharing plans : compensations based on some established formula designed around a company’s profitability (direct cash outlays or stock options).

- gainsharing : an incentive plan in which improvements in group productivity determine the total amount of money that is allocated.

5. Skill Based Pay Plans (cfr. ERG Theory, Reinforcement Theory, Equity Theory):

These plans set pay levels on the basis of how many skills employees have or how many jobs they can do. For example, if you are a machine operator in a certain company, you earn 14$/hour, but because of the skill based pay plan, you can earn up to a 10 percent premium if you broaden your skills to for example material accounting. Several studies have confirmed that skill based pay generally leads to higher performance and satisfaction. These plans are expanding and already widely used with success.

6. Flexible Benefits (cfr. Expectancy Theory):

These allow employees to pick and choose from among a menu of benefit options that exceeds the traditional benefit programs. The options might include hearing, dental and eye coverage; life insurance; extended vacation time; …. This way the different needs of the employees can be met. The major theories and their applications were provided; we want to conclude here with some general guidelines:

Recognize Individual Differences

Use Goals and Feedback

Allow Employees to Participate in Decisions that Affect Them

Link Rewards to Performance

Check the System for Equity