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Chapter 14 Managing and Enhancing Performance: The Big Picture Closing Case: Creating Humane Work Schedules Case Summary Sixty-hour workweeks used to be the norm in the United States; now 80-hours is not uncommon. But working longer hours does not always increase productivity. One recent study showed that U.S. workers were less productive per hour worked than those from countries with shorter workweeks, including France and Germany. Experts hypothesize that overworked employees become tired, stressed, and less motivated. Some companies are now actively seeking ways to offer a more reasonable work-life balance. Part-time work is another increasingly popular option. In many cases, it is not hard to implement these new working arrangements. It is accepted wisdom that willing workers are plentiful, no matter how demanding the schedule, but most companies note that there is often a shortage of qualified managers. Increasingly, people want time off, and are willing to give up money and career advancement to get it. Alternate, flexible work arrangements are more acceptable to workers, and they can also create a more motivated, productive, and loyal workforce. Case Questions 1. Do you think working hours will get longer or shorter in the future? Why? The future of working hours is a complex issue that can vary based on factors like industry, region, and societal trends. Here are a few perspectives: 1. Shorter working hours: Some argue that advancements in technology and automation could lead to shorter working hours. Increased efficiency and productivity could mean that people can accomplish the same amount of work in less time, leading to shorter workdays or workweeks. 2. Longer working hours: On the other hand, some believe that the pressure to remain competitive in a global economy might lead to longer working hours. With the ability to work remotely and across time zones, there might be an expectation to be available around the clock, blurring the lines between work and personal time. 3. Flexible working arrangements: Another possibility is that working hours could become more flexible. Instead of adhering to a traditional 9-to-5 schedule, workers might have more control over when and where they work, which could lead to a more balanced approach. 4. Societal and cultural factors: Societal values and cultural norms also play a role. Some countries are known for their shorter workweeks and longer vacations, while others have cultures that prioritize long hours and dedication to work. Ultimately, the future of working hours will likely depend on a combination of these factors and how they evolve over time. 2. Would you be willing to trade off scheduling flexibility and balance for slightly reduced compensation? What factors would be important to you in such an arrangement? In considering a trade-off between scheduling flexibility and reduced compensation, several factors would be important to me: 1. Overall Quality of Life: I would consider how the trade-off impacts my overall quality of life. Scheduling flexibility can contribute significantly to a better work-life balance, which can positively impact mental health and well-being. 2. Financial Stability: While reduced compensation may be acceptable, it's important that the level of compensation still provides financial stability and meets my basic needs. 3. Career Advancement: I would consider how the trade-off might impact my long-term career goals. If the arrangement allows for continued growth and advancement opportunities, I may be more inclined to accept a reduction in compensation. 4. Job Satisfaction: Scheduling flexibility and work-life balance can greatly impact job satisfaction. I would consider how the trade-off would affect my overall satisfaction with my job and whether it aligns with my values and priorities. 5. Health and Wellness Benefits: I would consider if the arrangement includes any additional health and wellness benefits, such as flexible healthcare options or access to wellness programs, which could offset the reduction in compensation. 6. Company Culture and Values: I would consider if the company's culture and values align with my own, particularly in terms of how they prioritize work-life balance and employee well-being. Ultimately, the decision would depend on how these factors align with my personal values, priorities, and long-term goals. The following items appear on the in-text Instructor Prep Cards. These notes and suggested talking points should help instructors conduct these exercises with the students. Discussion Questions 1. Discuss how individual level performance might or might not influence firm level performance. Individual level performance can impact the effectiveness of the overall firm performance. For instance, if an employee is not performing at or above necessary standards, the firm’s effectiveness will suffer. The degree this will affect the firm depends upon the level of importance of this employee’s work. For example, the level of performance of a janitor may not be as vital to the firm’s effectiveness as the level of one of its engineers. In addition, other workers may begin to decrease their level of performance if they perceive unfairness when one is allowed to perform at a lower level than is expected from them. 2. Identify and summarize the five basic approaches to job redesign. The five basic approaches to job redesign are as follows: • Job rotation occurs when employees are systematically moved from one job to another. Thus an employee might spend one day filing records, the second day organizing and tidying the workspace, the third day making copies of records, the fourth day making phone calls to request records, and the fifth day stuffing envelopes for mailing records. The nature of the work itself does not change; only the assignment of personnel to jobs is altered. • Job enlargement increases the tasks that a worker performs. For example, a worker who previously sat behind a restaurant cash register might have his or her job enlarged to take and package orders, restock condiments, greet customers, and also work the cash register. The assignment does not change, but the number of tasks given to each worker is now increased. • Job enrichment increases the tasks but also increases the autonomy of the worker about how the work is accomplished. For example, the job of the workers doing filing mentioned in the job rotation situation above could be enriched by allowing the workers to decide how to manage the work. If the clerical workers were in the medical industry, for example, perhaps the workers would choose to do all the tasks related to one set of patients. Another aspect of job enrichment would be to continually offer new and challenging tasks. In this case, perhaps the clerical worker in the medical industry could have more patient contact, or undertake to voluntarily do some tasks currently performed in another department. • The job characteristics model identifies different facets of the job that can be enhanced to increase workers’ interest in the work itself. For example, a manager might instill more feedback and autonomy in a job to make employees respond more favorably to the work environment. • Work teams can be used to motivate employees through greater social interaction. 3. Among the various alternate work scheduling options, which would you prefer to follow? 1. Flexible Hours: This allows employees to choose their start and end times within a certain range, offering more control over their daily schedule. 2. Compressed Workweek: This involves working longer hours over fewer days, such as working four 10-hour days instead of five 8-hour days. 3. Remote Work: Working from home or another location outside the office, which can provide more flexibility and eliminate commute time. 4. Part-Time Work: Working fewer hours per week than a full-time schedule, which can allow for more time for personal activities or pursuits. 5. Job Sharing: Sharing a full-time position with another employee, dividing the responsibilities and workload between two people. 6. Flextime: Similar to flexible hours, but with set core hours when employees are expected to be at work, allowing flexibility outside of those core hours. 7. Shift Work: Working in shifts that cover 24 hours, which can allow for flexibility in scheduling around personal obligations. The preferred option can vary depending on individual circumstances, job requirements, and personal preferences for work-life balance. Some may prefer the structure of a compressed workweek, while others may value the flexibility of remote work or flexible hours. 4. How strong is your interest in having an alternate work site, such as working from home? Why? Benefits of Working from Home: 1. Flexibility: Working from home allows for greater flexibility in setting your schedule and managing personal responsibilities. 2. No Commute: Eliminating the commute can save time and reduce stress. 3. Cost Savings: Working from home can lead to savings on commuting costs, work attire, and dining out. 4. Improved Work-Life Balance: With the ability to set your schedule, you may find it easier to balance work with personal and family life. Challenges of Working from Home: 1. Isolation: Working from home can be isolating, leading to feelings of loneliness or disconnect from colleagues. 2. Distractions: Home environments can be filled with distractions that may impact productivity. 3. Work-Life Boundaries: It can be challenging to maintain clear boundaries between work and personal life when working from home. 4. Technology and Connectivity Issues: Dependence on technology for communication and collaboration can lead to challenges if there are connectivity or equipment issues. Ultimately, whether working from home is desirable depends on individual preferences and circumstances. Some may thrive in a home office environment, while others may prefer the structure and social interaction of a traditional office setting. 5. Identify the most common forms of individual incentive pay plans. Merit pay is awarded to employees on the basis of the relative value of their contributions to the organization. Merit-pay plans base at least some meaningful portion of compensation on merit. The most general form of merit pay is annual salary increases to individuals based on their relative performance or contributions to the organization. The organization ties merit rewards to its performance appraisal system. Merit pay increases become a permanent part of employees’ base pay for the rest of their careers with the organization. Therefore, merit pay can accumulate over time to very substantial amounts of money. Incentive compensation systems reward performance on a real-time basis for meeting a goal or hitting a target. Individual incentive plans are most likely to be used when performance can objectively be assessed in terms of number of units of output or similar measures. Piece-rate incentive plans and sales commissions are examples of incentive plans. Nonmonetary incentives may include additional time off or trips to exotic locations. A major advantage of incentives relative to merit systems is that incentives are typically a one-shot reward and do not accumulate by becoming a part of the individual’s base salary. It is also easier for the organization to change the focus of the incentive pay, while merit-pay plans are typically less flexible. However, incentive systems are practical only when performance can be easily and objectively measured, and they are often administratively burdensome. Incentive systems may also focus employee attention on a narrow set of behaviors, perhaps at the expense of other behaviors. 6. Identify the most common forms of team and group incentive plans. Team- or group-based incentives are designed to reward groups or teams of employees for particular performance outcomes. For example, gainsharing plans are designed to share with employees the cost savings from productivity improvements. The Scanlon plan is one type of gainsharing plan in which employees receive more of the gain and the reward is distributed across the entire organization. Some companies use true incentives at the team or group level, tying rewards directly to performance increases at the group level. Some companies also use nonmonetary rewards at the team or group level, commonly in the form of prizes and awards. Profit sharing is an incentive system in which, at the end of the year, some portion of the company’s profits is paid into a profit-sharing pool, which is then distributed to all employees. Employee stock ownership plans (ESOPs) are a group-level reward system in which employees are gradually given a major stake in ownership of a corporation. 7. Many managers do a poor job of providing performance feedback to their employees. Why do you think this is true? Managers might not provide feedback on a regular basis. They might also not encourage employees to appraise their own performance in advance of an appraisal interview. Additionally, managers don’t always encourage participation and two-way communication during performance feedback interviews, or they might dwell on negative aspects of performance. Managers might not adopt a developmental and problem-solving orientation, instead of focusing on employee shortcomings. Finally, managers might forget to conclude with a future-oriented discussion of what will happen next, including setting goals, discussing potential rewards, establishing probationary periods, or developing training strategies. 8. Summarize ProMES. The Productivity Measurement and Evaluation System (ProMES) includes elements from goal setting to feedback, and it covers various incentives for improvement. The process includes a way to link performance at the individual and small group levels with overall organizational effectiveness. The model is based on connections between effort, performance, outcomes, and the satisfaction of needs. 9. Describe as precisely as you can the kind of performance enhancement system that would be most likely to motivate you. For a performance enhancement system to motivate me, it would need to be structured, transparent, and aligned with my personal and professional goals. It should include regular feedback mechanisms that provide specific, actionable insights into my performance. The system should also offer opportunities for growth and development, such as training programs or mentorship opportunities. Additionally, the system should recognize and reward achievements fairly and consistently. This could include both intrinsic rewards, like recognition and meaningful work, and extrinsic rewards, such as bonuses or promotions. Importantly, the criteria for rewards should be clear and tied to measurable outcomes. Overall, a motivating performance enhancement system for me would be one that fosters a sense of progress, provides opportunities for learning and development, and recognizes and rewards achievements in a transparent and fair manner. 10. Discuss how current events, such as the “Arab Spring” and events in the high tech sector affect the way we manage and think about human resources. Current events such as the "Arab Spring" and developments in the high-tech sector have significant implications for the way we manage and think about human resources (HR). Here are some key ways in which these events have impacted HR practices: 1. Global Talent Management: The "Arab Spring" and high-tech sector developments have highlighted the need for organizations to have a global perspective on talent management. HR professionals must be adept at attracting, developing, and retaining talent from diverse cultural backgrounds and regions. 2. Flexibility and Agility: Both events have underscored the importance of organizational flexibility and agility. HR practices need to be adaptable to changing circumstances, such as political upheavals or rapid technological advancements. 3. Digital Transformation: The high-tech sector's developments, in particular, have accelerated the digital transformation of HR processes. This includes the use of data analytics for decision-making, automation of routine tasks, and the adoption of remote work technologies. 4. Employee Well-being: The "Arab Spring" and high-tech sector events have raised awareness about the importance of employee well-being. HR policies now often include provisions for mental health support, work-life balance, and flexible work arrangements. 5. Diversity and Inclusion: Both events have highlighted the importance of diversity and inclusion in the workplace. HR practices now often focus on creating inclusive environments where employees from diverse backgrounds feel valued and respected. 6. Skills Development: The high-tech sector's rapid advancements have created a demand for new skills. HR professionals must be proactive in identifying skills gaps and implementing training programs to upskill or reskill employees. In summary, current events such as the "Arab Spring" and developments in the high-tech sector have reshaped the way we manage and think about human resources. HR practices now emphasize global talent management, flexibility, digital transformation, employee well-being, diversity and inclusion, and skills development. Ethical Dilemmas in HR Management Scenario Summary The student is to assume that he or she is a manager for a manufacturing company. The firm’s specialized jobs increase efficiency but leave workers bored. Through a tour of another firm, the manager discovers that jobs within his or her company could be changed to become more challenging and stimulating, with a relatively small loss of efficiency or risk of increasing salaries. Should the company keep the standardized jobs or should the jobs be improved? Questions 1. What are the ethical issues in this situation? The situation you've described involves several potential ethical issues: 1. Privacy: Tracking employees' locations and activities raises concerns about invasion of privacy. Employees may feel that their personal space is being infringed upon, especially if they are unaware of or uncomfortable with the extent of the monitoring. 2. Trust: Constant monitoring can erode trust between employees and management. Employees may feel that they are not trusted to perform their jobs without constant supervision, leading to decreased morale and job satisfaction. 3. Fairness: There may be concerns about the fairness of monitoring, particularly if it is not applied consistently across all employees or if the criteria for monitoring are arbitrary or biased. 4. Transparency: Employees have a right to know if they are being monitored and the purpose of the monitoring. Lack of transparency can lead to feelings of distrust and resentment. 5. Data Security: There are risks associated with collecting and storing employee data, including the potential for data breaches or misuse of data. 6. Legal Compliance: Depending on the jurisdiction, there may be legal requirements regarding employee monitoring that need to be considered and complied with. 7. Impact on Work-Life Balance: Constant monitoring can blur the line between work and personal life, potentially leading to increased stress and burnout. Overall, it's important for organizations to consider these ethical issues and implement monitoring practices that respect employees' privacy, maintain trust, and comply with legal requirements. Communication and transparency are key in addressing these concerns and ensuring that monitoring is conducted ethically. 2. What are the basic arguments for each course of action? On the one hand, the current system is very cost-efficient, with easy-to-replace workers who are paid little. The current system also has a known result—fairly good productivity and financial performance. On the other hand, the proposed changes would be less cost-efficient in the short run, although the motivated workers might be more productive in the long run. Also, the proposed changes are risky; they may or may not improve productivity and financial performance. 3. What do you think most managers would do? What would you do? Most managers facing this situation would likely weigh the benefits of monitoring (e.g., increased productivity, improved safety) against the ethical concerns and potential negative impact on employee morale and trust. They may also consider legal requirements and company policies regarding employee monitoring. Many managers would likely choose to implement monitoring but with certain safeguards in place to address ethical concerns. This could include being transparent with employees about the monitoring, ensuring that it is applied fairly and consistently, and providing clear guidelines on how the data will be used and protected. As for what I would do, I would also consider the ethical implications of monitoring employees and the potential impact on trust and morale. I would prioritize open communication with employees, explaining the reasons for the monitoring and how it will be conducted. I would also seek feedback from employees and be open to adjusting the monitoring practices based on their concerns. Additionally, I would ensure that the monitoring is conducted in compliance with legal requirements and company policies, with a focus on balancing the need for monitoring with respect for employee privacy and autonomy. Assignment This exercise gives students the opportunity to think about the process of job redesign. The exercise may be assigned in class, or may be assigned as a homework exercise. The exercise can be conducted individually or in groups. If this is an in-class activity, the exercise should take approximately 30 to 60 minutes. Step 1 (5 minutes): The individual students or student teams choose a familiar job with low enrichment, one with moderate enrichment, and one with high enrichment. Step 2 (10 minutes): Students should evaluate each of the jobs on the basis of the factors presented in job characteristics theory. Step 3 (10 minutes): Students should determine how jobs can be improved using job characteristics theory as a conceptual lens. Step 4 (10 minutes): Meet with students and compare results. Step 5 (10 minutes): Cover the following questions individually or as a class. If the exercise is conducted in class, the students will need an additional 5 to 15 minutes to answer the discussion questions either individually or in groups. Alternatively, instructors may use these questions to generate class discussion. 1. What job qualities make some jobs easier to enrich than others? Some job qualities that make it easier to enrich a job include: 1. Task Variety: Jobs that offer a range of different tasks and activities are easier to enrich. This allows for more opportunities to add complexity and challenge to the job. 2. Autonomy: Jobs that allow employees to have a degree of control and autonomy over how they perform their tasks are easier to enrich. This autonomy allows employees to make decisions and take ownership of their work. 3. Feedback: Jobs that provide clear and timely feedback on performance make it easier to enrich the job. Feedback helps employees understand how they are performing and allows them to improve and grow in their roles. 4. Task Identity: Jobs where employees can see the outcome of their work from start to finish are easier to enrich. This sense of completion and accomplishment can be motivating and rewarding. 5. Skill Variety: Jobs that require employees to use a variety of different skills and abilities are easier to enrich. This allows employees to develop and apply a range of skills, keeping the job interesting and challenging. 6. Task Significance: Jobs that have a clear and meaningful impact on others or the organization are easier to enrich. Knowing that their work is important and valued can be a powerful motivator for employees. 7. Social Interaction: Jobs that involve regular interaction with others are easier to enrich. This social interaction can provide support, feedback, and a sense of belonging, which are important for job satisfaction. 8. Opportunities for Growth: Jobs that offer opportunities for growth and advancement are easier to enrich. This could include opportunities for training, development, and advancement within the organization. Overall, jobs that offer a combination of task variety, autonomy, feedback, task identity, skill variety, task significance, social interaction, and opportunities for growth are easier to enrich and can lead to higher levels of job satisfaction and performance. 2. Can all jobs be enriched? Students’ answers will vary. However, most jobs can be enriched with greater autonomy, feedback, skill variety, job identity, and task significance. 3. Even if a particular job can be enriched, does that always mean that it should be enriched? Not necessarily. While enriching a job can lead to increased job satisfaction, motivation, and performance, it is not always the best approach for every job or every employee. There are several factors to consider when deciding whether or not to enrich a job: 1. Employee Preferences: Some employees may prefer a simpler, more routine job that allows them to focus on specific tasks without the added complexity of job enrichment. It's important to consider individual preferences and work styles when deciding whether to enrich a job. 2. Organizational Needs: The decision to enrich a job should align with the organization's goals and priorities. If job enrichment does not contribute to the organization's overall objectives or if it is not feasible given resource constraints, it may not be the best course of action. 3. Job Requirements: Some jobs may require a high level of specialization or focus, making job enrichment less practical. In these cases, it may be more effective to focus on other ways to motivate and engage employees. 4. Impact on Workload: Enriching a job can sometimes increase the workload or complexity of tasks, which may not be feasible or desirable depending on the employee's capacity and the organization's needs. 5. Costs and Benefits: Job enrichment can require investment in training, resources, and restructuring, so it's important to weigh the costs and benefits before making a decision. In summary, while job enrichment can be beneficial in many cases, it is not a one-size-fits-all solution. It's important to consider individual preferences, organizational needs, job requirements, workload implications, and costs and benefits when deciding whether or not to enrich a job. 4. Under what circumstances might an individual prefer to have a routine and unenriched job? There are several circumstances under which an individual might prefer to have a routine and unenriched job: 1. Stability: Some people prioritize stability and predictability in their work. A routine job with clear tasks and expectations can provide a sense of security. 2. Low Stress: Jobs that are routine and unenriched may be less stressful for some individuals. They may prefer the simplicity of their tasks and the lack of complex decision-making. 3. Work-Life Balance: For individuals who prioritize their personal life over their career, a routine job with predictable hours allows them to maintain a better work-life balance. 4. Comfort Zone: Some people are simply more comfortable with what is familiar to them. They may prefer routine tasks because they feel more confident in their ability to perform them. 5. Limited Career Aspirations: Individuals who are not interested in advancing their careers or taking on additional responsibilities may be satisfied with a routine job that meets their basic needs. 6. Health Reasons: Some individuals, due to health reasons or disabilities, may prefer a job that is routine and unenriched because it is more manageable for them. It's important to note that preferences for job characteristics can vary widely among individuals, and what one person finds fulfilling, another may find unappealing. Solution Manual for Human Resources Angelo Denisi, Ricky Griffin 9781285867571
