MGT 520 RGC Amazon Company Employee Loyalty & Strict Supervision Discussion

User Generated

LBYB13

Business Finance

MGT 520

Rangpur Government College

MGT

Description

In today’s turbulent economic times, reward systems, in many organizations, have been revised/modified, thereby resulting in frustration, uncertainty, loss of security, etc. In fact, many organizations have cut base pay, reduced short-term incentives, eliminated long-term incentives, and more. Due to COVID-19, organizations are struggling to maintain financial stability. Unfortunately, employees often feel the brunt of the reward cutbacks.

For this week’s discussion forum, please select an organization of your choice. The organization can be based in the KSA or anywhere else in the world. No student should select the same organization as his/her classmates. In your post, address the following:

Explain what type of reward system is utilized.

Then, consider that a 20% cut needs to be made, in regard to rewards, to ensure organizational success. What types of rewards would you recommend cutting? How might you use intangible returns to make up for monetary cuts? What types of intangible returns could you use? Why?

Embed course material concepts, principles, and theories (require supporting citations) in your initial response along with at least one scholarly, peer-reviewed journal article. Keep in mind that these scholarly references can be found by conducting an advanced search specific to scholarly references. Use academic writing standards and APA style guidelines.

Be sure to support your statements with logic and argument, citing all sources referenced. Post your initial response early and check back often to continue the discussion.

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Part IV: Reward Systems, Legal Issues, and Team Performance Management ◼ ◼ Chapter 10: Performance Management, Rewards, and the Law Chapter 11: Team Performance Management Copyright © 2019 Chicago Business Press 10-1 Chapter 10 Performance Management, Rewards, and the Law Copyright © 2019 Chicago Business Press 10-2 Overview ◼ ◼ ◼ ◼ ◼ ◼ Definition of Reward Systems Traditional and Contingent Pay (CP) Plans Reasons for Introducing CP Plans Possible Problems Associated with CP Plans Selecting A CP Plan Putting Pay in Context Copyright © 2019 Chicago Business Press 10-3 Overview (Continued) ◼ ◼ ◼ Performance Management and the Law Some Legal Principles Affecting Performance Management Laws Affecting Performance Management Copyright © 2019 Chicago Business Press 10-4 Definition of Reward Systems ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ Base Pay Cost of living adjustments (COLA) and Contingent Pay Short-Term incentives Long-Term incentives Income Protection Work-Life Focus Allowances Intangible Returns Copyright © 2019 Chicago Business Press 10-5 Company Spotlight ◼ ◼ ◼ Colorado Business Group teamed up with multiple companies to develop a short-term incentive rewards program Program rewarded doctors for reducing future expensive treatments by focusing on preventative measures Overall, the program used short-term incentives as part of the performance management system to motivate physicians to focus on treatments that enhanced patient health on an ongoing basis 10-6 Copyright © 2019 Chicago Business Press Traditional Pay ◼ Salary and salary increases are based on • Position • Seniority Copyright © 2019 Chicago Business Press 10-7 Contingent Pay (CP) ◼ Salary and salary increases are based on: • Job performance ◼ ◼ Also called: Pay for Performance If not added to base pay, called: • Variable pay Copyright © 2019 Chicago Business Press 10-8 Reasons for Introducing CP (1) ◼ ◼ Performance management is more effective when rewards are tied to results. CP Plans force organizations to: • Clearly define effective performance • Determine what factors are necessary Copyright © 2019 Chicago Business Press 10-9 Reasons for Introducing CP (2) ◼ ◼ Supervisors and employees are better able to understand what really matters. CP plans enhance employee motivation to accomplish goals that match organizational needs. Copyright © 2019 Chicago Business Press 10-10 Reasons for Introducing CP (3) ◼ ◼ CP plans help to recruit and retain top performers. CP plans projects good corporate image. Copyright © 2019 Chicago Business Press 10-11 CP Plans Help Improve Motivation When: • • • Employees see clear link between their efforts and resulting performance. (Expectancy) Employees see clear link between their performance level and rewards received. (Instrumentality) Employees value the rewards available. (Valence) motivation = expectancy x instrumentality x valence Copyright © 2019 Chicago Business Press 10-12 Reasons Why CP Plans Fail Copyright © 2019 Chicago Business Press 10-13 Selecting a CP Plan: Issues to Consider ◼ ◼ Culture of organization Strategic direction of organization Copyright © 2019 Chicago Business Press 10-14 Culture of Organization: Types of Organizations ◼ Traditional • Top-down decision making • Vertical communication • Jobs that are clearly defined ◼ Involvement • Shared decision making • Lateral communications • Loosely defined roles Copyright © 2019 Chicago Business Press 10-15 CP Systems for Different Organizational Cultures ◼ Traditional organizations • Piece rate • Sales commissions • Group incentives ◼ Involvement organizations • Profit sharing • Skill-based pay Copyright © 2019 Chicago Business Press 10-16 CP Plans Recommended for Various Strategic Business Objectives Copyright © 2019 Chicago Business Press 10-17 Company Spotlight ◼ ◼ ◼ Google has long used contingent pay as part of its compensation system Emphasizes “fairness” over “equality” • Don’t pay everyone the same, but make sure that pay is commensurate with contribution Leads to cases where star performers at more junior levels make far more than average performers at more senior levels 10-18 Copyright © 2019 Chicago Business Press Putting Pay in Context A reward increases the chance that: ◼ ◼ Specific behaviors and results will be repeated, or Employee will engage in new behavior and produce better results. Copyright © 2019 Chicago Business Press 10-19 Rewards Can Include: ◼ ◼ Pay Recognition • Public • Private ◼ ◼ ◼ ◼ ◼ ◼ Status Time Sabbaticals ◼ ◼ Trust and Respect Challenge Responsibility Freedom Relationships Copyright © 2019 Chicago Business Press 10-20 Relational (Intangible Rewards) ◼ ◼ https://www.youtube.com/watch?v= zfnFanLCmp8 Which kinds of rewards does Edward Jones provide? Copyright © 2019 Chicago Business Press 10-21 How to Make Rewards Work Copyright © 2019 Chicago Business Press 10-22 Using Recognition and Relational Incentives as Rewards ◼ Non-monetary rewards can be powerful if they enhance the chances that specific results and behaviors will be repeated Copyright © 2019 Chicago Business Press 10-23 Using Recognition and Relational Incentives as Rewards (continued) ◼ ◼ ◼ ◼ ◼ Formal commendations and awards Public recognition, including praise, certificate of accomplishment, and letters of appreciation Status indicators, such as a new and enhanced job title, larger work area, improve Extra time off, with or without pay More challenging work environment, responsibility, and freedom Copyright © 2019 Chicago Business Press 10-24 Company Spotlight ◼ ◼ ◼ Graniterock uses both financial and nonfinancial rewards to reward performance Employees can earn bonuses of up to US$1,000 for performance that goes “above and beyond” normal job expectations; and supervisors often buy lunch for employees who are putting forth a strong effort Company holds “recognition days” where employees give presentations before the CEO, executive management, and coworkers; and publishes stories about special efforts in a weekly newsletter 10-25 Copyright © 2019 Chicago Business Press Legal Issues: Overview ◼ ◼ ◼ Performance Management and the Law Some Legal Principles Affecting PM Laws Affecting PM Copyright © 2019 Chicago Business Press 10-26 Performance Management and the Law ◼ Performance management systems are usually legally sound if… • Procedures are standardized • Same procedures are used with all employees Copyright © 2019 Chicago Business Press 10-27 Some Legal Principles Affecting PM: Overview ◼ ◼ ◼ ◼ ◼ ◼ Employment-at-will Negligence Defamation Misrepresentation Adverse Impact Illegal Discrimination Copyright © 2019 Chicago Business Press 10-28 Employment-at-Will ◼ Employment relationship can be ended at any time by: • Employer • Employee ◼ Exceptions: • Implied contract • Possible violation of legal rights Copyright © 2019 Chicago Business Press 10-29 Negligence ◼ ◼ ◼ If organization documents describe a system and It is not implemented as described, Employee can challenge evaluation, charging negligence. Copyright © 2019 Chicago Business Press 10-30 Defamation ◼ Disclosure of performance information that is •Untrue and •Unfavorable Copyright © 2019 Chicago Business Press 10-31 Misrepresentation ◼ Disclosure of performance information that is •Untrue and •Favorable Copyright © 2019 Chicago Business Press 10-32 Adverse Impact / Unintentional Discrimination ◼ ◼ PM system has unintentional impact on a protected class. Organization must demonstrate: • A specific KSA is a business requirement for the job • All affected employees are evaluated in the same way ◼ Organization should review ongoing performance score data by protected class to implement corrective action as necessary. Copyright © 2019 Chicago Business Press 10-33 Illegal Discrimination or Disparate Treatment ◼ ◼ ◼ Raters assign different scores to employees based on factors that are NOT related to performance. Employees receive different treatment as result of such ratings. Employees can claim they were intentionally and illegally treated differently due to their status. Copyright © 2019 Chicago Business Press 10-34 Employee Claim of Illegal Discrimination ◼ ◼ Direct evidence of discrimination, or Evidence regarding the following: • Membership in protected class • Adverse employment decision • Performance level deserved reward/different treatment • How others were treated (not in protected class) Copyright © 2019 Chicago Business Press 10-35 Employer Response to Claim of Illegal Discrimination ◼ ◼ Legitimate and nondiscriminatory reason for action Related to performance Note: Good performance management system and subsequent performance-related decision, used consistently with all employees, provide defense Copyright © 2019 Chicago Business Press 10-36 Difference Between Legal and Illegal Discrimination ◼ ◼ LEGAL discrimination discriminates among employees based on their level of performance. ILLEGAL discrimination is based on variables that should not usually be related to performance. Copyright © 2019 Chicago Business Press 10-37 Legal Principles Affecting Performance Management ◼ ◼ ◼ ◼ https://www.youtube.com/watch?v=l yDACfix7pA http://fortune.com/2018/02/06/uber -gender-pay-gap-study/ What legal principles does Susan Fowler allege Uber violated? From a performance management perspective, what could Uber have done to avoid this lawsuit? Copyright © 2019 Chicago Business Press 10-38 Laws Affecting PM ◼ During past few decades, several countries have passed laws prohibiting discrimination based on: • • • • • • • Race or Ethnicity Sex Religion National Origin Age Disability status Sexual orientation Copyright © 2019 Chicago Business Press 10-39 Laws in the United States of America ◼ ◼ ◼ ◼ Equal Pay Act of 1963 Civil Rights Act of 1964 Age Discrimination in Employment Act of 1967 (as amended in 1986) Americans with Disabilities Act of 1990 Copyright © 2019 Chicago Business Press 10-40 Laws in Canada ◼ ◼ ◼ ◼ Canadian Human Rights Code of 1985 Section 15 of the Charter of Rights and Freedoms (1982) Federal Employment Equity Act (2004) Federal Contractors Program Copyright © 2019 Chicago Business Press 10-41 Laws in Australia ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ The Crimes Act (1914) Racial Discrimination Act (1975) Sex Discrimination Act (1984) Human Rights and Equal Opportunity Commission Act (1986) Disability Discrimination Act (1992) Workplace Relations Act (1996) Equal Opportunity for Women in the Workplace Act (1999) Age Discrimination Act (2004) Copyright © 2019 Chicago Business Press 10-42 Characteristics of Legally Sound PM Systems Copyright © 2019 Chicago Business Press 10-43 Legal Principles Across Borders Four questions to ask: What is the work geographic location? 2.What is the employer status (e.g., U.S.based firm or not)? 3.What is the employee status (e.g., U.S. citizenship status)? 4.Are there international law defenses (i.e., international treaties)? 1. Copyright © 2019 Chicago Business Press 10-44 Legal Issues: Summary ◼ ◼ ◼ Performance Management and the Law Some Legal Principles Affecting PM Laws Affecting PM Copyright © 2019 Chicago Business Press 10-45 Quick Review ◼ ◼ ◼ ◼ ◼ ◼ Definition of Reward Systems Traditional and Contingent Pay Plans Problems with Contingent Pay Plans Selecting Contingent Pay Plans Putting Pay in Context Performance Management and the Law Copyright © 2019 Chicago Business Press 10-46 Chapter 11 Team Performance Management Copyright © 2019 Chicago Business Press 11-47 Overview ◼ ◼ ◼ ◼ ◼ Definition and Importance of Teams Types of Teams and Implications for PM Purposes and Challenges of Team PM Including Team Performance in the PM System Rewarding Team Performance Copyright © 2019 Chicago Business Press 11-48 Definition of Team Two or more people ◼ Interact • ◼ Dynamically • Independently Share common and valued • Goal, Objective, or Mission Copyright © 2019 Chicago Business Press 11-49 Importance of Teams ◼ ◼ ◼ ◼ Increased pressure, including global competition Flexibility in flatter organizations Complexity of products and services Rapidly changing business environments Copyright © 2019 Chicago Business Press 11-50 Performance Management and Teams ◼ PM systems should target: • Individual performance • Individual’s contribution to team performance • Performance of entire team Copyright © 2019 Chicago Business Press 11-51 General Principles of PM Relating to Teams ◼ ◼ Design and implement best system possible Consider dangers of poorly implemented system Copyright © 2019 Chicago Business Press 11-52 Managing for Improved Team Performance ◼ ◼ ◼ Don’t limit team processes with other task or organizational requirements Provide good team design and organizational support Give feedback only on processes that the team members can control Copyright © 2019 Chicago Business Press 11-53 Types of Teams ◼ Classified by • Complexity of task • Membership configuration Copyright © 2019 Chicago Business Press 11-54 Complexity of Task Ranges From: ◼ Routine • Well-defined • Few deviations in how work is done • Outcomes are easily assessed ◼ - to Non-Routine • Not defined well • No clear specifications on how to do the work • Outcomes are long term and difficult to assess Copyright © 2019 Chicago Business Press 11-55 Membership Configuration Includes ◼ ◼ Length of time team expects to work together Stability of team membership Static Dynamic Copyright © 2019 Chicago Business Press 11-56 Types of Teams Based on Membership Configuration and Task Complexity Copyright © 2019 Chicago Business Press 11-57 Types of Teams ◼ ◼ ◼ Work or Service Teams Project Teams Network Teams Copyright © 2019 Chicago Business Press 11-58 Work or Service Teams ◼ ◼ ◼ Intact Routine tasks Share similar skill sets Copyright © 2019 Chicago Business Press 11-59 Project Teams ◼ ◼ ◼ Assembled for specific purpose Tasks outside core product or service Members from different functional areas Copyright © 2019 Chicago Business Press 11-60 Network Teams ◼ Membership not constrained by: • Time or space • Organizational boundaries ◼ Teams may include: • Temporary or full-time workers • Customers • Vendors • Consultants ◼ Work is extremely non-routine Copyright © 2019 Chicago Business Press 11-61 Examples of PM Approaches by Type of Team Type of Team Type of PM Approach Work and Service Team Peer ratings Project team Ongoing measurements Network Team Development of competencies Copyright © 2019 Chicago Business Press 11-62 Company Spotlight ◼ ◼ A multinational aerospace firm had to manage the performance of 17 expatriate teams Systems had to be devised to accommodate a multi-stakeholder perspective: • Local client • Home company • Other on-site teams Copyright © 2019 Chicago Business Press 11-63 Benefits of Virtual Teams ◼ ◼ ◼ ◼ Reduce expenditure on travel Minimizes personal and professional disruptions due to travel Minimizes commuting time by allowing employees to telecommute Reduces the need for large brick-andmortar office space Copyright © 2019 Chicago Business Press 11-64 Challenges of Virtual Teams ◼ ◼ ◼ May lack clear performance standards and team identity Lack of training on how to improve performance within virtual teams Difficult for team members to keep up with group developments Copyright © 2019 Chicago Business Press 11-65 Virtual Teams ◼ ◼ ◼ Managing Virtual Teams How does virtuality affect team performance? What can managers do to increase the effectiveness of virtual teams? Copyright © 2019 Chicago Business Press 11-66 Company Spotlight ◼ ◼ MySQL adapted their performance management system to manage their many virtual teams Changes include: • Internet Relay Chat for virtual meetings • Software to mark off completed tasks • Focus on outputs and results • Reduced emphasis on chain-of-command structure • Weekly reviews of performance and accomplishments Copyright © 2019 Chicago Business Press 11-67 Purposes of Team PM ◼ ◼ Traditional goals of any PM system Specific to team performance: • Make all team members accountable • Motivate all team members to have a stake in team performance Copyright © 2019 Chicago Business Press 11-68 Challenges of Team PM ◼ ◼ ◼ How do we assess relative individual contribution? How do we balance individual and team performance? How do we identify individual and team measures of performance? Copyright © 2019 Chicago Business Press 11-69 Six Basic Principles for Designing a PM System That Includes Team Performance ◼ ◼ ◼ ◼ ◼ ◼ Make sure your team is really a team Make the investment to measure Define measurement goals clearly Use a multi-method approach to measurement Focus on process as well as outcomes Measure long-term changes Copyright © 2019 Chicago Business Press 11-70 Performance Management Process Copyright © 2019 Chicago Business Press 11-71 Prerequisites ◼ Knowledge of mission • Organization • Team ◼ Knowledge of job to be performed by the team, including KSAs Copyright © 2019 Chicago Business Press 11-72 Prerequisites Team Charters ◼ ◼ Summarize job duties, needed KSAs, and working conditions for a team Similar to individual job descriptions, but also include information on withinteam processes such as communication Copyright © 2019 Chicago Business Press 11-73 Prerequisites Team Charters: Components ◼ ◼ ◼ ◼ ◼ ◼ ◼ Strategic alignment Team purpose Team objectives, goals, and priorities Key stakeholders Team customers Team leader and sponsor Team member roles and responsibilities ◼ ◼ ◼ ◼ ◼ ◼ Team member time commitments Team communication plan Team ground rules In/out of scope elements Key deliverables Performance analytics Copyright © 2019 Chicago Business Press 11-74 Prerequisites KSAs conducive to high teamperformance: ◼ ◼ ◼ ◼ ◼ Communication Decision-making Collaboration Team leadership Self-control Copyright © 2019 Chicago Business Press 11-75 Performance Planning ◼ ◼ ◼ Results expected of the team Behaviors expected of team members Developmental objectives to be achieved by team and its members Copyright © 2019 Chicago Business Press 11-76 Performance Planning ◼ ◼ ◼ Facilitate adaptive learning • Encourage new behaviors Facilitate generative learning • Provide best practices recommendations Facilitate transformative learning • Deep learning by, for example, bringing in members of other teams into the team to work temporarily → Innovation and change Copyright © 2019 Chicago Business Press 11-77 Performance Execution Team Responsibilities ◼ ◼ Commit to goal achievement Seek feedback from • • ◼ ◼ One another Supervisor Communicate openly and regularly Conduct regular and realistic peer appraisals Copyright © 2019 Chicago Business Press 11-78 Performance Execution Supervisor Responsibilities ◼ Observe and document • Team performance • Relative contribution of team members ◼ ◼ Update team on any changes in goals of the organization Provide resources and reinforcement Copyright © 2019 Chicago Business Press 11-79 Performance Assessment Types of Assessments ◼ ◼ ◼ ◼ Self-appraisals Peer evaluations Supervisor evaluation Outsider appraisals (if appropriate) Copyright © 2019 Chicago Business Press 11-80 Performance Assessment Kinds of Performance to be Assessed ◼ ◼ ◼ Individual task performance Individual contextual performance Team performance Copyright © 2019 Chicago Business Press 11-81 Performance Assessment Dimensions ◼ ◼ ◼ ◼ Effectiveness Efficiency Learning and growth Team member satisfaction Copyright © 2019 Chicago Business Press 11-82 Performance Review ◼ Two meetings with supervisor or review board • Team meeting • Individual meeting ◼ Emphasis on past, present, and future Copyright © 2019 Chicago Business Press 11-83 Team Meeting ◼ Discuss overall team • Performance • Results ◼ Information comes from: • Team members • Other teams/outsiders • Supervisor’s evaluation Copyright © 2019 Chicago Business Press 11-84 Individual Meeting ◼ ◼ Discuss how individual behavior contributed to team performance Information comes from: • Self-appraisal • Peer ratings • Supervisor’s evaluation Copyright © 2019 Chicago Business Press 11-85 Company Spotlight ◼ Wikipedia is an example of how to manage the performance of a large, virtual, and volunteer community: • Volunteers monitor one another • Policies governing team interactions, along with clearly spelled out consequences • Established escalation and disputeresolution process Copyright © 2019 Chicago Business Press 11-86 Rewarding Team Performance ◼ ◼ Consider team rewards and individual rewards together Variable Pay System • Individual is eligible for a bonus if team achieves specific results Copyright © 2019 Chicago Business Press 11-87 Rewarding Team Performance ◼ ◼ All employees should be eligible Rewards should be: • Visible • Contingent • Reversible ◼ Avoid factors which cause reward systems to fail Copyright © 2019 Chicago Business Press 11-88 Rewarding Team Performance ◼ ◼ ◼ Rewarding Team Performance How does cooperation vs. competition affect team performance rewards? What does the “folly of rewarding A, while hoping for B” refer to in terms of rewarding team performance? Copyright © 2019 Chicago Business Press 11-89 Quick Review ◼ ◼ ◼ ◼ ◼ Definition and Importance of Teams Types of Teams and Implications for PM Purposes and Challenges of Team PM Including Team Performance in the PM System Rewarding Team Performance Copyright © 2019 Chicago Business Press 11-90 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2019 Chicago Business Press Copyright © 2019 Chicago Business Press 1-91 Part IV: Reward Systems, Legal Issues, and Team Performance Management ◼ ◼ Chapter 10: Performance Management, Rewards, and the Law Chapter 11: Team Performance Management Copyright © 2019 Chicago Business Press 10-1 Chapter 10 Performance Management, Rewards, and the Law Copyright © 2019 Chicago Business Press 10-2 Overview ◼ ◼ ◼ ◼ ◼ ◼ Definition of Reward Systems Traditional and Contingent Pay (CP) Plans Reasons for Introducing CP Plans Possible Problems Associated with CP Plans Selecting A CP Plan Putting Pay in Context Copyright © 2019 Chicago Business Press 10-3 Overview (Continued) ◼ ◼ ◼ Performance Management and the Law Some Legal Principles Affecting Performance Management Laws Affecting Performance Management Copyright © 2019 Chicago Business Press 10-4 Definition of Reward Systems ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ Base Pay Cost of living adjustments (COLA) and Contingent Pay Short-Term incentives Long-Term incentives Income Protection Work-Life Focus Allowances Intangible Returns Copyright © 2019 Chicago Business Press 10-5 Company Spotlight ◼ ◼ ◼ Colorado Business Group teamed up with multiple companies to develop a short-term incentive rewards program Program rewarded doctors for reducing future expensive treatments by focusing on preventative measures Overall, the program used short-term incentives as part of the performance management system to motivate physicians to focus on treatments that enhanced patient health on an ongoing basis 10-6 Copyright © 2019 Chicago Business Press Traditional Pay ◼ Salary and salary increases are based on • Position • Seniority Copyright © 2019 Chicago Business Press 10-7 Contingent Pay (CP) ◼ Salary and salary increases are based on: • Job performance ◼ ◼ Also called: Pay for Performance If not added to base pay, called: • Variable pay Copyright © 2019 Chicago Business Press 10-8 Reasons for Introducing CP (1) ◼ ◼ Performance management is more effective when rewards are tied to results. CP Plans force organizations to: • Clearly define effective performance • Determine what factors are necessary Copyright © 2019 Chicago Business Press 10-9 Reasons for Introducing CP (2) ◼ ◼ Supervisors and employees are better able to understand what really matters. CP plans enhance employee motivation to accomplish goals that match organizational needs. Copyright © 2019 Chicago Business Press 10-10 Reasons for Introducing CP (3) ◼ ◼ CP plans help to recruit and retain top performers. CP plans projects good corporate image. Copyright © 2019 Chicago Business Press 10-11 CP Plans Help Improve Motivation When: • • • Employees see clear link between their efforts and resulting performance. (Expectancy) Employees see clear link between their performance level and rewards received. (Instrumentality) Employees value the rewards available. (Valence) motivation = expectancy x instrumentality x valence Copyright © 2019 Chicago Business Press 10-12 Reasons Why CP Plans Fail Copyright © 2019 Chicago Business Press 10-13 Selecting a CP Plan: Issues to Consider ◼ ◼ Culture of organization Strategic direction of organization Copyright © 2019 Chicago Business Press 10-14 Culture of Organization: Types of Organizations ◼ Traditional • Top-down decision making • Vertical communication • Jobs that are clearly defined ◼ Involvement • Shared decision making • Lateral communications • Loosely defined roles Copyright © 2019 Chicago Business Press 10-15 CP Systems for Different Organizational Cultures ◼ Traditional organizations • Piece rate • Sales commissions • Group incentives ◼ Involvement organizations • Profit sharing • Skill-based pay Copyright © 2019 Chicago Business Press 10-16 CP Plans Recommended for Various Strategic Business Objectives Copyright © 2019 Chicago Business Press 10-17 Company Spotlight ◼ ◼ ◼ Google has long used contingent pay as part of its compensation system Emphasizes “fairness” over “equality” • Don’t pay everyone the same, but make sure that pay is commensurate with contribution Leads to cases where star performers at more junior levels make far more than average performers at more senior levels 10-18 Copyright © 2019 Chicago Business Press Putting Pay in Context A reward increases the chance that: ◼ ◼ Specific behaviors and results will be repeated, or Employee will engage in new behavior and produce better results. Copyright © 2019 Chicago Business Press 10-19 Rewards Can Include: ◼ ◼ Pay Recognition • Public • Private ◼ ◼ ◼ ◼ ◼ ◼ Status Time Sabbaticals ◼ ◼ Trust and Respect Challenge Responsibility Freedom Relationships Copyright © 2019 Chicago Business Press 10-20 Relational (Intangible Rewards) ◼ ◼ https://www.youtube.com/watch?v= zfnFanLCmp8 Which kinds of rewards does Edward Jones provide? Copyright © 2019 Chicago Business Press 10-21 How to Make Rewards Work Copyright © 2019 Chicago Business Press 10-22 Using Recognition and Relational Incentives as Rewards ◼ Non-monetary rewards can be powerful if they enhance the chances that specific results and behaviors will be repeated Copyright © 2019 Chicago Business Press 10-23 Using Recognition and Relational Incentives as Rewards (continued) ◼ ◼ ◼ ◼ ◼ Formal commendations and awards Public recognition, including praise, certificate of accomplishment, and letters of appreciation Status indicators, such as a new and enhanced job title, larger work area, improve Extra time off, with or without pay More challenging work environment, responsibility, and freedom Copyright © 2019 Chicago Business Press 10-24 Company Spotlight ◼ ◼ ◼ Graniterock uses both financial and nonfinancial rewards to reward performance Employees can earn bonuses of up to US$1,000 for performance that goes “above and beyond” normal job expectations; and supervisors often buy lunch for employees who are putting forth a strong effort Company holds “recognition days” where employees give presentations before the CEO, executive management, and coworkers; and publishes stories about special efforts in a weekly newsletter 10-25 Copyright © 2019 Chicago Business Press Legal Issues: Overview ◼ ◼ ◼ Performance Management and the Law Some Legal Principles Affecting PM Laws Affecting PM Copyright © 2019 Chicago Business Press 10-26 Performance Management and the Law ◼ Performance management systems are usually legally sound if… • Procedures are standardized • Same procedures are used with all employees Copyright © 2019 Chicago Business Press 10-27 Some Legal Principles Affecting PM: Overview ◼ ◼ ◼ ◼ ◼ ◼ Employment-at-will Negligence Defamation Misrepresentation Adverse Impact Illegal Discrimination Copyright © 2019 Chicago Business Press 10-28 Employment-at-Will ◼ Employment relationship can be ended at any time by: • Employer • Employee ◼ Exceptions: • Implied contract • Possible violation of legal rights Copyright © 2019 Chicago Business Press 10-29 Negligence ◼ ◼ ◼ If organization documents describe a system and It is not implemented as described, Employee can challenge evaluation, charging negligence. Copyright © 2019 Chicago Business Press 10-30 Defamation ◼ Disclosure of performance information that is •Untrue and •Unfavorable Copyright © 2019 Chicago Business Press 10-31 Misrepresentation ◼ Disclosure of performance information that is •Untrue and •Favorable Copyright © 2019 Chicago Business Press 10-32 Adverse Impact / Unintentional Discrimination ◼ ◼ PM system has unintentional impact on a protected class. Organization must demonstrate: • A specific KSA is a business requirement for the job • All affected employees are evaluated in the same way ◼ Organization should review ongoing performance score data by protected class to implement corrective action as necessary. Copyright © 2019 Chicago Business Press 10-33 Illegal Discrimination or Disparate Treatment ◼ ◼ ◼ Raters assign different scores to employees based on factors that are NOT related to performance. Employees receive different treatment as result of such ratings. Employees can claim they were intentionally and illegally treated differently due to their status. Copyright © 2019 Chicago Business Press 10-34 Employee Claim of Illegal Discrimination ◼ ◼ Direct evidence of discrimination, or Evidence regarding the following: • Membership in protected class • Adverse employment decision • Performance level deserved reward/different treatment • How others were treated (not in protected class) Copyright © 2019 Chicago Business Press 10-35 Employer Response to Claim of Illegal Discrimination ◼ ◼ Legitimate and nondiscriminatory reason for action Related to performance Note: Good performance management system and subsequent performance-related decision, used consistently with all employees, provide defense Copyright © 2019 Chicago Business Press 10-36 Difference Between Legal and Illegal Discrimination ◼ ◼ LEGAL discrimination discriminates among employees based on their level of performance. ILLEGAL discrimination is based on variables that should not usually be related to performance. Copyright © 2019 Chicago Business Press 10-37 Legal Principles Affecting Performance Management ◼ ◼ ◼ ◼ https://www.youtube.com/watch?v=l yDACfix7pA http://fortune.com/2018/02/06/uber -gender-pay-gap-study/ What legal principles does Susan Fowler allege Uber violated? From a performance management perspective, what could Uber have done to avoid this lawsuit? Copyright © 2019 Chicago Business Press 10-38 Laws Affecting PM ◼ During past few decades, several countries have passed laws prohibiting discrimination based on: • • • • • • • Race or Ethnicity Sex Religion National Origin Age Disability status Sexual orientation Copyright © 2019 Chicago Business Press 10-39 Laws in the United States of America ◼ ◼ ◼ ◼ Equal Pay Act of 1963 Civil Rights Act of 1964 Age Discrimination in Employment Act of 1967 (as amended in 1986) Americans with Disabilities Act of 1990 Copyright © 2019 Chicago Business Press 10-40 Laws in Canada ◼ ◼ ◼ ◼ Canadian Human Rights Code of 1985 Section 15 of the Charter of Rights and Freedoms (1982) Federal Employment Equity Act (2004) Federal Contractors Program Copyright © 2019 Chicago Business Press 10-41 Laws in Australia ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ The Crimes Act (1914) Racial Discrimination Act (1975) Sex Discrimination Act (1984) Human Rights and Equal Opportunity Commission Act (1986) Disability Discrimination Act (1992) Workplace Relations Act (1996) Equal Opportunity for Women in the Workplace Act (1999) Age Discrimination Act (2004) Copyright © 2019 Chicago Business Press 10-42 Characteristics of Legally Sound PM Systems Copyright © 2019 Chicago Business Press 10-43 Legal Principles Across Borders Four questions to ask: What is the work geographic location? 2.What is the employer status (e.g., U.S.based firm or not)? 3.What is the employee status (e.g., U.S. citizenship status)? 4.Are there international law defenses (i.e., international treaties)? 1. Copyright © 2019 Chicago Business Press 10-44 Legal Issues: Summary ◼ ◼ ◼ Performance Management and the Law Some Legal Principles Affecting PM Laws Affecting PM Copyright © 2019 Chicago Business Press 10-45 Quick Review ◼ ◼ ◼ ◼ ◼ ◼ Definition of Reward Systems Traditional and Contingent Pay Plans Problems with Contingent Pay Plans Selecting Contingent Pay Plans Putting Pay in Context Performance Management and the Law Copyright © 2019 Chicago Business Press 10-46 Chapter 11 Team Performance Management Copyright © 2019 Chicago Business Press 11-47 Overview ◼ ◼ ◼ ◼ ◼ Definition and Importance of Teams Types of Teams and Implications for PM Purposes and Challenges of Team PM Including Team Performance in the PM System Rewarding Team Performance Copyright © 2019 Chicago Business Press 11-48 Definition of Team Two or more people ◼ Interact • ◼ Dynamically • Independently Share common and valued • Goal, Objective, or Mission Copyright © 2019 Chicago Business Press 11-49 Importance of Teams ◼ ◼ ◼ ◼ Increased pressure, including global competition Flexibility in flatter organizations Complexity of products and services Rapidly changing business environments Copyright © 2019 Chicago Business Press 11-50 Performance Management and Teams ◼ PM systems should target: • Individual performance • Individual’s contribution to team performance • Performance of entire team Copyright © 2019 Chicago Business Press 11-51 General Principles of PM Relating to Teams ◼ ◼ Design and implement best system possible Consider dangers of poorly implemented system Copyright © 2019 Chicago Business Press 11-52 Managing for Improved Team Performance ◼ ◼ ◼ Don’t limit team processes with other task or organizational requirements Provide good team design and organizational support Give feedback only on processes that the team members can control Copyright © 2019 Chicago Business Press 11-53 Types of Teams ◼ Classified by • Complexity of task • Membership configuration Copyright © 2019 Chicago Business Press 11-54 Complexity of Task Ranges From: ◼ Routine • Well-defined • Few deviations in how work is done • Outcomes are easily assessed ◼ - to Non-Routine • Not defined well • No clear specifications on how to do the work • Outcomes are long term and difficult to assess Copyright © 2019 Chicago Business Press 11-55 Membership Configuration Includes ◼ ◼ Length of time team expects to work together Stability of team membership Static Dynamic Copyright © 2019 Chicago Business Press 11-56 Types of Teams Based on Membership Configuration and Task Complexity Copyright © 2019 Chicago Business Press 11-57 Types of Teams ◼ ◼ ◼ Work or Service Teams Project Teams Network Teams Copyright © 2019 Chicago Business Press 11-58 Work or Service Teams ◼ ◼ ◼ Intact Routine tasks Share similar skill sets Copyright © 2019 Chicago Business Press 11-59 Project Teams ◼ ◼ ◼ Assembled for specific purpose Tasks outside core product or service Members from different functional areas Copyright © 2019 Chicago Business Press 11-60 Network Teams ◼ Membership not constrained by: • Time or space • Organizational boundaries ◼ Teams may include: • Temporary or full-time workers • Customers • Vendors • Consultants ◼ Work is extremely non-routine Copyright © 2019 Chicago Business Press 11-61 Examples of PM Approaches by Type of Team Type of Team Type of PM Approach Work and Service Team Peer ratings Project team Ongoing measurements Network Team Development of competencies Copyright © 2019 Chicago Business Press 11-62 Company Spotlight ◼ ◼ A multinational aerospace firm had to manage the performance of 17 expatriate teams Systems had to be devised to accommodate a multi-stakeholder perspective: • Local client • Home company • Other on-site teams Copyright © 2019 Chicago Business Press 11-63 Benefits of Virtual Teams ◼ ◼ ◼ ◼ Reduce expenditure on travel Minimizes personal and professional disruptions due to travel Minimizes commuting time by allowing employees to telecommute Reduces the need for large brick-andmortar office space Copyright © 2019 Chicago Business Press 11-64 Challenges of Virtual Teams ◼ ◼ ◼ May lack clear performance standards and team identity Lack of training on how to improve performance within virtual teams Difficult for team members to keep up with group developments Copyright © 2019 Chicago Business Press 11-65 Virtual Teams ◼ ◼ ◼ Managing Virtual Teams How does virtuality affect team performance? What can managers do to increase the effectiveness of virtual teams? Copyright © 2019 Chicago Business Press 11-66 Company Spotlight ◼ ◼ MySQL adapted their performance management system to manage their many virtual teams Changes include: • Internet Relay Chat for virtual meetings • Software to mark off completed tasks • Focus on outputs and results • Reduced emphasis on chain-of-command structure • Weekly reviews of performance and accomplishments Copyright © 2019 Chicago Business Press 11-67 Purposes of Team PM ◼ ◼ Traditional goals of any PM system Specific to team performance: • Make all team members accountable • Motivate all team members to have a stake in team performance Copyright © 2019 Chicago Business Press 11-68 Challenges of Team PM ◼ ◼ ◼ How do we assess relative individual contribution? How do we balance individual and team performance? How do we identify individual and team measures of performance? Copyright © 2019 Chicago Business Press 11-69 Six Basic Principles for Designing a PM System That Includes Team Performance ◼ ◼ ◼ ◼ ◼ ◼ Make sure your team is really a team Make the investment to measure Define measurement goals clearly Use a multi-method approach to measurement Focus on process as well as outcomes Measure long-term changes Copyright © 2019 Chicago Business Press 11-70 Performance Management Process Copyright © 2019 Chicago Business Press 11-71 Prerequisites ◼ Knowledge of mission • Organization • Team ◼ Knowledge of job to be performed by the team, including KSAs Copyright © 2019 Chicago Business Press 11-72 Prerequisites Team Charters ◼ ◼ Summarize job duties, needed KSAs, and working conditions for a team Similar to individual job descriptions, but also include information on withinteam processes such as communication Copyright © 2019 Chicago Business Press 11-73 Prerequisites Team Charters: Components ◼ ◼ ◼ ◼ ◼ ◼ ◼ Strategic alignment Team purpose Team objectives, goals, and priorities Key stakeholders Team customers Team leader and sponsor Team member roles and responsibilities ◼ ◼ ◼ ◼ ◼ ◼ Team member time commitments Team communication plan Team ground rules In/out of scope elements Key deliverables Performance analytics Copyright © 2019 Chicago Business Press 11-74 Prerequisites KSAs conducive to high teamperformance: ◼ ◼ ◼ ◼ ◼ Communication Decision-making Collaboration Team leadership Self-control Copyright © 2019 Chicago Business Press 11-75 Performance Planning ◼ ◼ ◼ Results expected of the team Behaviors expected of team members Developmental objectives to be achieved by team and its members Copyright © 2019 Chicago Business Press 11-76 Performance Planning ◼ ◼ ◼ Facilitate adaptive learning • Encourage new behaviors Facilitate generative learning • Provide best practices recommendations Facilitate transformative learning • Deep learning by, for example, bringing in members of other teams into the team to work temporarily → Innovation and change Copyright © 2019 Chicago Business Press 11-77 Performance Execution Team Responsibilities ◼ ◼ Commit to goal achievement Seek feedback from • • ◼ ◼ One another Supervisor Communicate openly and regularly Conduct regular and realistic peer appraisals Copyright © 2019 Chicago Business Press 11-78 Performance Execution Supervisor Responsibilities ◼ Observe and document • Team performance • Relative contribution of team members ◼ ◼ Update team on any changes in goals of the organization Provide resources and reinforcement Copyright © 2019 Chicago Business Press 11-79 Performance Assessment Types of Assessments ◼ ◼ ◼ ◼ Self-appraisals Peer evaluations Supervisor evaluation Outsider appraisals (if appropriate) Copyright © 2019 Chicago Business Press 11-80 Performance Assessment Kinds of Performance to be Assessed ◼ ◼ ◼ Individual task performance Individual contextual performance Team performance Copyright © 2019 Chicago Business Press 11-81 Performance Assessment Dimensions ◼ ◼ ◼ ◼ Effectiveness Efficiency Learning and growth Team member satisfaction Copyright © 2019 Chicago Business Press 11-82 Performance Review ◼ Two meetings with supervisor or review board • Team meeting • Individual meeting ◼ Emphasis on past, present, and future Copyright © 2019 Chicago Business Press 11-83 Team Meeting ◼ Discuss overall team • Performance • Results ◼ Information comes from: • Team members • Other teams/outsiders • Supervisor’s evaluation Copyright © 2019 Chicago Business Press 11-84 Individual Meeting ◼ ◼ Discuss how individual behavior contributed to team performance Information comes from: • Self-appraisal • Peer ratings • Supervisor’s evaluation Copyright © 2019 Chicago Business Press 11-85 Company Spotlight ◼ Wikipedia is an example of how to manage the performance of a large, virtual, and volunteer community: • Volunteers monitor one another • Policies governing team interactions, along with clearly spelled out consequences • Established escalation and disputeresolution process Copyright © 2019 Chicago Business Press 11-86 Rewarding Team Performance ◼ ◼ Consider team rewards and individual rewards together Variable Pay System • Individual is eligible for a bonus if team achieves specific results Copyright © 2019 Chicago Business Press 11-87 Rewarding Team Performance ◼ ◼ All employees should be eligible Rewards should be: • Visible • Contingent • Reversible ◼ Avoid factors which cause reward systems to fail Copyright © 2019 Chicago Business Press 11-88 Rewarding Team Performance ◼ ◼ ◼ Rewarding Team Performance How does cooperation vs. competition affect team performance rewards? What does the “folly of rewarding A, while hoping for B” refer to in terms of rewarding team performance? Copyright © 2019 Chicago Business Press 11-89 Quick Review ◼ ◼ ◼ ◼ ◼ Definition and Importance of Teams Types of Teams and Implications for PM Purposes and Challenges of Team PM Including Team Performance in the PM System Rewarding Team Performance Copyright © 2019 Chicago Business Press 11-90 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2019 Chicago Business Press Copyright © 2019 Chicago Business Press 1-91
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Outline
Title: Amazon
Thesis: Various organizations use different motivational tools and practices to ensure that
employees maximize their output, creating customer satisfaction and loyalty. Amazon brand
employs both intrinsic and extrinsic motivation as its reward system for competent employees.
I.

Introduction

A. Importance of employee motivation
1. Maximized output
2. Increased customer satisfaction
B. Thesis
II.

Amazon motivation of employees

A. Both intrinsic and extrinsic
1. Rewards in stocks for working for two years
2. Reduced prices for Amazon purchases
3. Scholarships for learning skills
B. 20% percent cuts and where they may apply
1. Reducing amount of stock awarded
2. Increasing time period for getting stock awards
3. Reduction in monetary scholarship funds
4. Scholarships given to skill acquisition related to one’s career
III.

Intangible rewards
A. List of alternative options
1. Employee appreciation week

2. Verbal compliments
3. Working from home
4. More days off
Conclusion
A. Summary of key points


Running head: AMAZON COMPANY

1
s

Amazon Company
Student's Name
Institutional Affiliation

AMAZON COMPANY

2
Amazon Company

Amazon company, one of the big five organizations recognized globally, alongside
Apple, Facebook, Google, and Microsoft, is an int...


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