17–1 c h a p t e r 17 managing productivity: contemporary approaches jon l. pierce & donald g....

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17– 17–1 C H A P T E R 17 Managing Productivit y: Contemporar y Approaches Jon L. Pierce & Donald G. Gardner with Randall B. Dunham Management Organizational Behavior PowerPoint Presentation by Charlie Cook An Integrated Perspective Copyright © 2002 by South- Western

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Page 1: 17–1 C H A P T E R 17 Managing Productivity: Contemporary Approaches Jon L. Pierce & Donald G. Gardner with Randall B. Dunham Management Organizational

17–17–11

C H A P T E R 17

Managing Productivity: Contemporary ApproachesJon L. Pierce &

Donald G. Gardnerwith Randall B. Dunham

Management

OrganizationalBehavior

PowerPoint Presentationby Charlie Cook

An Integrated Perspective

Copyright © 2002 by South-Western

Page 2: 17–1 C H A P T E R 17 Managing Productivity: Contemporary Approaches Jon L. Pierce & Donald G. Gardner with Randall B. Dunham Management Organizational

Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 17–17–22

Learning ObjectivesLearning Objectives

1.1. Describe the different approaches to work scheduling: Describe the different approaches to work scheduling: compressed workweek, discretionary-time systems, and compressed workweek, discretionary-time systems, and shift-work scheduling.shift-work scheduling.

2.2. Identify the conditions under which different work Identify the conditions under which different work schedules are most effective.schedules are most effective.

3.3. Summarize employee reaction to the compressed Summarize employee reaction to the compressed workweek, discretionary-time systems, and shift-work workweek, discretionary-time systems, and shift-work scheduling.scheduling.

4.4. Discuss the meaning of and approaches to employee Discuss the meaning of and approaches to employee ownership.ownership.

5.5. Explain how employee ownership produces its intended Explain how employee ownership produces its intended effects.effects.

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Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 17–17–33

Learning Objectives (cont’d)Learning Objectives (cont’d)

6.6. Discuss employee attitudinal, motivational, and Discuss employee attitudinal, motivational, and behavioral reactions to employee ownership.behavioral reactions to employee ownership.

7.7. Describe the nature and purpose of the quality control Describe the nature and purpose of the quality control (QC) circle.(QC) circle.

8.8. Summarize the employee effects associated with Total Summarize the employee effects associated with Total Quality Management and QC circles.Quality Management and QC circles.

9.9. Summarize the essence of the high-involvement Summarize the essence of the high-involvement organization and its overall effects.organization and its overall effects.

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Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 17–17–44

Alternative Work SchedulesAlternative Work Schedules

• Scheduling workScheduling work Compressed workweeksCompressed workweeks

Fewer days per week, total hours remain constantFewer days per week, total hours remain constant– 4/40 week4/40 week—4 days, 10 hours per day —4 days, 10 hours per day

Fewer hours per week, total days remain constantFewer hours per week, total days remain constant– 5/35—5 days, 7 hours per day5/35—5 days, 7 hours per day

Fewer days and fewer hours per weekFewer days and fewer hours per week– 4/36—4 days, 9 hours per day4/36—4 days, 9 hours per day

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Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 17–17–55

Alternative Work Schedules (cont’d)Alternative Work Schedules (cont’d)

• Scheduling work (cont’d)Scheduling work (cont’d) Discretionary work (time) schedulesDiscretionary work (time) schedules

Staggered start systemStaggered start system—provides employees with —provides employees with flexibility in scheduling when their work day will flexibility in scheduling when their work day will begin.begin.

Flexible working hours—enables employees to vary Flexible working hours—enables employees to vary (within “band width” limits) the starting and ending (within “band width” limits) the starting and ending times of their work days outside of the core hours times of their work days outside of the core hours designated by the firm as when designated by the firm as when the employees must be at work.the employees must be at work.

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Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 17–17–66

Flexible Working Hour ArrangementFlexible Working Hour Arrangement

Flex hours(1 hour lunch break)

Core hoursCore hours Flex hoursFlex hours

7:00 a.m. 9:00 a.m. 11:00 a.m. 1:00 p.m. 3:00 p.m. 5:00 p.m.

Core hours Flex hoursFlex hours

7:00 a.m. 9:00 a.m. 3:00 p.m. 5:00 p.m.

FIGURE 17FIGURE 17–1–1

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Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 17–17–77

The Effects of FlextimeThe Effects of Flextime

Discretion Used

Employee:Attitude

MotivationBehavior

PerceivedDiscretions

FlexibleWorking

Hours

Source: Adapted from Pierce and Newstrom. 1983. FIGURE 17FIGURE 17–2–2

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Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 17–17–88

Alternative Work Schedules (cont’d)Alternative Work Schedules (cont’d)

• Scheduling work (cont’d)Scheduling work (cont’d) Variable hour arrangement—employees “contract” for a Variable hour arrangement—employees “contract” for a

specified amount of time to be worked on a daily, specified amount of time to be worked on a daily, weekly, or monthly basis.weekly, or monthly basis.

Shift work schedules—employees work different blocks Shift work schedules—employees work different blocks of time on a regular basis to maintain the continuous of time on a regular basis to maintain the continuous operations of organizations and firms.operations of organizations and firms.

Three shift arrangementThree shift arrangement—three groups of employees —three groups of employees each work 8-hour periods each dayeach work 8-hour periods each day– Employees may be permanently on one shift or may rotate Employees may be permanently on one shift or may rotate

across shifts on a weekly or monthly basis.across shifts on a weekly or monthly basis.

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Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 17–17–99

Alternative Work Schedules (cont’d)Alternative Work Schedules (cont’d)

• Employee responses to alternative work Employee responses to alternative work schedulesschedules Compressed work weeks—viewed positively by Compressed work weeks—viewed positively by

employees; studies of organizational benefits (i.e., employees; studies of organizational benefits (i.e., increased performance) are mixed.increased performance) are mixed.

Discretionary time systems—readily accepted by Discretionary time systems—readily accepted by employees; create difficulties in coordinating activities employees; create difficulties in coordinating activities during core times.during core times.

Shift work—creates problems with employees’ circadian Shift work—creates problems with employees’ circadian rhythms and in meeting the obligations of their social rhythms and in meeting the obligations of their social and family life.and family life.

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Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 17–17–1010

Employee OwnershipEmployee Ownership

• Social ownershipSocial ownership People in a society or community, including employees, People in a society or community, including employees,

have an ownership stake in an organization.have an ownership stake in an organization.

• Worker (producer) cooperativesWorker (producer) cooperatives Employees are the exclusive owners of the enterprise.Employees are the exclusive owners of the enterprise.

• Employee stock ownership plans (ESOPS)Employee stock ownership plans (ESOPS) Employees hold an equity stake in the organization as Employees hold an equity stake in the organization as

the result of an employee ownership trust.the result of an employee ownership trust.

• Direct ownershipDirect ownership Employees purchase and hold stock in the organization Employees purchase and hold stock in the organization

that employs them.that employs them.

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Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 17–17–1111

How Employee Ownership Affects How Employee Ownership Affects Psychological OwnershipPsychological Ownership

Integration of Employee Owner into the Ownership Experience(e.g., organizational identification, commitment)

Psychological Ownership

Individual Outcomes(motivation, satisfaction,

performance)

Group Outcomes(cooperative behavior, work group

norms, peer pressure)

Ownership Form: Equity Information,Influence (e.g., ESOP, cooperative)

FIGURE 17FIGURE 17–3–3Source: Adapted from Pierce, Rubenfeld, and Morgan. 1991.

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Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 17–17–1212

The Ownership-Performance The Ownership-Performance RelationshipRelationship

Organization-basedself-esteem

Ownership

Motivation PerformanceEquityInformationInfluence

FIGURE 17FIGURE 17–4–4

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Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 17–17–1313

Quality Control CirclesQuality Control Circles

• Total Quality Management (TQM)Total Quality Management (TQM) An approach to management that has as its primary An approach to management that has as its primary

focus the achievement of quality through focus the achievement of quality through continuous continuous improvementimprovement of the processes employed to of the processes employed to manufacture a product or deliver a service.manufacture a product or deliver a service.

The four pillars of TQM:The four pillars of TQM: Customer focusCustomer focus

Measurement and evaluationMeasurement and evaluation Employee involvementEmployee involvement Continuous improvementContinuous improvement

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Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 17–17–1414

Quality Control Circles (cont’d)Quality Control Circles (cont’d)

• The quality control circleThe quality control circle An employee involvement tool that generally consists of An employee involvement tool that generally consists of

a small group (5-15) of individuals who meet on a a small group (5-15) of individuals who meet on a regular basis (usually once a week) to discuss issues regular basis (usually once a week) to discuss issues pertaining to quality and related problems.pertaining to quality and related problems.

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Copyright © 2002 by South-WesternCopyright © 2002 by South-Western 17–17–1515

Quality Control Circles (cont’d)Quality Control Circles (cont’d)

• Employees responses to TQM and QC circlesEmployees responses to TQM and QC circles Employees view TQM and QC circles positively.Employees view TQM and QC circles positively. Organizations fail to empower QC circles to make things Organizations fail to empower QC circles to make things

happen.happen. QC circles, given the limited amount of time employees QC circles, given the limited amount of time employees

are involved, do little to motivate employees.are involved, do little to motivate employees. TQM and QC circles appear to have a significant effect TQM and QC circles appear to have a significant effect

on increased organizational performance and on increased organizational performance and profitability.profitability.

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The High Involvement Organization The High Involvement Organization and Managementand Management

• High involvement organizationsHigh involvement organizations Characterized by employees who are self-starters, Characterized by employees who are self-starters,

motivated by intrinsic rewards, and who have feelings motivated by intrinsic rewards, and who have feelings of competence and self-efficacy.of competence and self-efficacy.

• Involvement strategiesInvolvement strategies Work design, job enrichment, work teamsWork design, job enrichment, work teams

• Effects of high involvementEffects of high involvement Productivity increasesProductivity increases Employee satisfactionEmployee satisfaction