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93 Cards in this Set
- Front
- Back
Identify the three main categories of reward problems |
1) failure to produce the desired behaviour 2) production of desired behaviour but with undesirable consequences 3) production of reward dissatisfaction |
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Identify the three types of desired employee behaviour |
1) Membership behaviour 2) Task behaviour 3) Organizational Citizenship behaviour |
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Define Membership Behaviour |
Occurs when employees decide to join and remain with a firm |
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Define Task Behaviour |
Occurs when employees perform the tasks that have been assigned to them |
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Define Organizational Citizenship Behaviour |
Occurs when employees voluntarily undertake special behaviours beneficial to the organization |
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What are the three key employee attitudes that lead to desired employee behaviour? |
Job satisfaction Work motivation Organizational identification |
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Define job satisfaction |
The attitude one holds toward one's job and workplace |
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Define work motivation |
The attitude one holds toward good job performance |
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Define organizational identification |
A sense of shared goals and belongingness, and the desire to remain a member of the organization |
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When the reward system encourages job satisfaction, what behaviour does it address? |
Membership Behaviour |
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When the reward system encourages organizational identification, what behaviour does it address? |
All three behaviours and all other attitudes |
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When the reward system encourages motivation, what behaviour does it address? |
Task behaviour |
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What consequences occur from the attitude of job satisfaction? |
Decreased Work Stress Decreased Grievances Decreased Absenteeism Decreased Turnover Positive Group Norms |
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What consequences occur from the attitude of organizational identification? |
Decreased Grievances Decreased Absenteeism Decreased Turnover Positive Group Norms Cooperative Behaviour Innovative Behaviour Increased Job Effort All consequences except Decreased Work Stress |
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What consequences occur from the attitude of motivation? |
Increased Job Effort |
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Four main causes of Reward Dissatisfaction |
1. Violation of the psychological contract 2. Perceived inequity 3. Relative deprivation 4. Lack of organizational justice |
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Define Psychological Contract |
Expectations about the rewards offered by a given job and the contributions necessary to perform the job |
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What are the two reasons problems can occur regarding an employee's psychological contract? |
1) There has not been accurate communication about the rewards that will actually be provided and/or the contributions that are required, and these turn out to be different from what the employee expects 2) The employer unilaterally changes the 'contract' in a way that the employee perceives as detrimental |
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Explain Equity theory |
Employees' base perceptions of equity (fairness) on a comparison of their contributions/rewards ratio to the ratios of others perceived as being similar Employee satisfaction is determined more strongly by relative pay than by absolute amount of pay |
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Explain Relative Deprivation
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A theory by Crosby that suggests that employees experience dissatisfaction with their pay level under six conditions: 1) There is a discrepancy between the outcome they want and what they actually receive 2) They see that a comparison "other" receives more than they do 3) Past experience has led them to expect more than they now receive 4) Expectations for achieving better outcomes are low 5) They feel they are entitled to more 6) They absolve themselves of personal responsibility for the lack of better outcomes |
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In regards to relative deprivation, what three conditions are of particular importance? |
1) Social comparisons (condition 2, based on equity theory) 2) Discrepancy between desired and actual pay (condition 1) 3) Sense of entitlement (condition 5) |
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2 main components of organizational justice |
Distributive Justice Procedural Justice |
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Define Distributive Justice |
The perception that overall reward outcomes are fair |
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Define Procedural Justice |
The perception that the process for reward determination is fair |
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What six conditions need to occur for the pay system to be achieved under procedural justice? |
1. Consistent 2. Free of Bias 3. Flexible 4. Accurate 5. Ethical 6. Representative |
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What two options do employees have to redress the imbalance from reward dissatisfaction |
1) Increase the rewards they receive (quit, demand higher extrinsic rewards, pad the expense account, stealing, increase work performance, seek job duty improvements) 2) Reduce the contributions they make (formally or informally: request job duties be reduced, reduced effort, increased absenteeism) |
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What makes predicting employee's reactions difficult? |
They depend on the personal characteristics and circumstances of the employee and on the specific characteristics of the situation |
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Which managerial strategy is best for tolerating reward dissatisfaction? |
Classical organizations |
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Define Equity sensitivity |
A personality trait that entails a high predisposition toward perceiving personal inequity |
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Percentage of people who are not currently seeking paid employment |
31% |
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Why do people accept employment? |
1) If they have unsatisfied needs 2) If they perceive employment as the best means to satisfy those needs 3) If they are able and willing to do the things the employment requires Overall, people accept a job if the inducements or rewards associated with it exceed the costs of the contributions they must make to secure and retain it. |
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Two major causes of membership behaviour |
Job satisfaction Organizational identification |
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Five facets of job satisfaction |
Pay Promotion Supervisors Coworkers The job itself |
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Define organizational commitment |
The strength of the individual's attachment to his/her organization |
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Two main types of commitment |
Affective commitment Continuance commitment |
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Define Affective Commitment |
Attachment to an organization based on positive feelings toward the organization |
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Define Continuance Commitment |
Attachment to an organization based on perceived lack of better alternatives |
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What aspects generate organizational commitment? |
Psychological contracts Trust Organizational justice (especially procedural justice) - employee benefits, profit sharing, share plans |
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What needs to occur for job security to have a positive impact on affective commitment? |
It needs to be seen something granted willingly by the employer |
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What works best for continuance commitment? |
Seniority-based rewards Benefit packages Paying higher than competitor firms |
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What is directly related to task behaviour |
Motivation |
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Define content theories of motivation |
Theories that focus on understanding motivation by identifying underlying human needs |
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Define process theories of motivation |
Theories that focus on understanding motivation by determining the processes humans use to make choices about the specific actions they will take |
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Types of content theories |
Maslow's hierarchy of needs Two-factor theory of motivation Job characteristics theory of motivation Salience of needs |
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Define Maslow's Hierarchy of Needs |
A content theory of motivation that groups human needs into five main level and states that humans seek to satisfy the lowest order needs before satisfying higher order needs |
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Define Two-Factor Theory of Motivation |
Argues that intrinsic factors influence work motivation, while extrinsic factors influence job satisfaction |
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Explain Job Characteristics Theory of Motivation |
Identifies specific job characteristics that cause intrinsic motivation which is identified by five core job dimensions |
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5 core job dimensions of Job Characteristics Theory of Motivation |
1) Task Identity 2) Task Significance 3) Skill Variety 4) Job Autonomy 5) Job Feedback |
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Define Task Identity |
The extent to which a worker performs a complete cycle of job activities |
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Define Task Significance |
The perceived importance or social value of a given task |
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Define Skill Variety |
The variety of skills required for task completion |
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Define Job Autonomy |
The degree of freedom workers have in deciding how to perform their jobs |
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Define Job Feedback |
The extent to which the job itself provides feedback on worker performance |
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Define Job Enrichment |
The process of redesigning jobs to incorporate more of the five core dimensions of intrinsically satisfying work |
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Define need salience |
The degree of urgency an individual attaches to the satisfaction of a particular need |
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What two key factors determine the salience of a need for a given person at a given time? |
The amount of need deprivation The importance of the need |
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Define need deprivation |
The difference between how much a person currently has and how much he/she requires to satisfy a particular need |
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Types of process theories |
Reinforcement Theory Expectancy Theory Attribution Theory Economic Theory Money as a Motivator |
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Define Reinforcement Theory |
A theory that states that a behaviour will be repeated if valued outcomes flow from that behaviour, or if performing the behaviour reduces undesirable outcomes |
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What must occur for reinforcement theory to work? |
The individual must perceive a link between the behaviour and the consequence |
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Two types of reinforcers |
Positive and negative |
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What rewards occur from positive reinforcement? |
Rewards that are followed by valued behaviours |
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What rewards occur from negative reinforcement? |
Undesirable consequences that occur when valued behaviour does not occur |
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What does reinforcement theory mean to the reward system? |
Desired behaviours for each employee need to be clearly specified. Then each time that behaviour occurs, it needs to be followed by a reward of significant value to the recipient. The closer in time the reward is to the behaviour, the better. |
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Problems with reinforcement theory |
It assumes that all desired behaviours are measurable and that it is practical to identify and respond to every instance of the behaviour It only considers rewards that the organization can control It must be continuously reward to maintain the behaviour |
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How does reinforcement theory work best? |
For simple behaviours and for short-term behavioural change |
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Define expectancy theory |
A theory stating that individuals are more likely to exert effort to perform a particular behaviour if they believe that behaviour will lead to valued consequences and if they expect they can perform the behaviour |
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Under Expectancy theory, the likelihood of one performing behaviour depends on... |
1) the net value (valence) of the consequences of that behaviour 2) the perceived likelihood that the behaviour will actually lead to those consequences (instrumentality) 3) the perceived likelihood of actually being able to accomplish those behaviours (expectancy) |
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According to Expectancy theory, what three questions do individuals ask before acting? |
1) Is the task worth doing (is net valence positive) 2) Will I actually receive the rewards (is the instrumentality clear) 3) Will I actually be able to accomplish the task if I exert the effort (is my expectancy strong) |
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Define Attribution Theory |
Theory of motivation arguing that humans often act without understanding their motives for their behaviour and afterward attempt to attribute motives for their actions |
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__________ rewards add to ____________ rewards to create greater task behaviour. A recent study of actual companies also found that ______________ ____________ pay seemed to increase _____________ motivation |
Extrinsic Intrinsic Individual pay Intrinsic |
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What is the main theory connected with the economic theory of motivation? |
Agency Theory |
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Define agency theory |
Agents (employees) will pursuer their own self-interests rather than the interests of their principals (employers) unless they are closely monitored or their interests are aligned with the interests of their principals Economic theory is useful only if the employees of the organization actually match these assumptions |
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State 3 factors of money as a motivator |
Money gives recipient control over how their needs will be satisfied Represents status and accomplishment Money can also be a basis of social comparison |
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Define non cash employee recognition program |
A program that provides non-cash rewards to employees in recognition of employee accomplishments or actions that are valued by the organization |
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Five dimensions of organizational citizenship
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Altruism General compliance Courtesy Sportsmanship Civic Virtue |
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Define altruism |
The willingness to offer help to a coworker, supervisor, or client without any expectation of personal reward for so doing, and without any repercussions if the help has been withheld |
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Two causes of organizational identification |
1) Shared organizational goals 2) Feelings of membership (belongingness) |
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Define organizational integration |
The interests of the individual and the organization are congruent |
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Preconditions for creating citizenship behaviour |
Providing employment security Trust Showing genuine concern for needs of employees A sense of distributive/procedural justice |
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Ways to create organizational identification? |
Develop reward system which both the organization and its employees benefit when goals are met Attracting and retaining employees who already process compatible values Participation in decision making Anything that fosters employee participation |
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6 implications for Effective Reward Systems |
1. Define the behaviour needed 2. Determine attributes and qualifications needed to perform behaviour 3. Identify needs (needs salience) 4. Provide rewards that ensure positive valence 5. Make it clear that needed behaviour will lead to reward 6. Provide conditions that outline how effort will lead to desired behaviour |
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What is the necessary behaviour for classical firms? |
Task behaviour |
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What behaviours are necessary for human relations firms |
Task and membership behaviour |
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What behaviours are necessary for high-involvement firms? |
Task, membership, and organizational citizenship behaviour |
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Define personal competencies |
A person's physical, verbal, and mental skills |
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Define personal values |
A person's core beliefs about appropriate and inappropriate behaviour |
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Define personality characteristics |
A person's behavioural and emotional tendencies |
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Define demographic characteristics |
A person's age, gender, ethnicity, education, marital status, and similar characteristics |
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What determines the necessary employee attributes? |
Personal competencies, values, and personalities |
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What identifies salient employee needs? |
Personal values and demographic characteristics |
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How can one ensure a positive reward valence? |
Reduce costs of performing the desired behaviour |
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What are the 4 main types of costs for performing the desired behaviour? |
Tangible costs Physical costs Psychological costs Opportunity costs |