What types of work behaviors did AIG intend to encourage through its retention bonus plan, management homework help

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For this assignment, please review the Module 2 Assignment case study, and then answer questions 1, 2, 3, & 4 only.

For each question, be sure to discuss the reasoning behind your responses using the key topics from the Module 2 chapter material that you feel are relevant.

Also, please relate specific information provided in the case to the Module 2 chapter material.

Question:

1. What types of work behaviors did AIG intend to encourage through its retention bonus plan?

2. which needs seem to be important to the employees of AIG's Financial Products unit?

3. Using the model of the individual-organizational exchange relationship, explain the relationship that employees of AIG's Financial products unit believed they had with the company. How was this exchange relationship violated?

4, Which motivation theory do you think has the most relevance for understanding the responses of the Financial Product employees to the implementation and unraveling of the retention bonus plan? Explain the reasoning behind your answer.,

Chapter Topic List

Personality, Emotions, & Mood

Attitudes & Job Satisfaction

Motivation at Work

This is the outline of this chapter, you need to rely on these three related information to answer these four questions. If you need more chapter material i can give you, or you can learn from the Google.

Attention: Don't copy online information!!!

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Motivation and Work Behavior Motivation: the process of arousing and sustaining goal-directed behavior Motivational theories attempt to explain and predict observable behavior Internal Process External 1 Motivational Problems Disbelief in a relationship between performance and rewards Disbelief in a relationship between effort and performance Lack of desire for the rewards offered Motivational problems 2 Motivation Theories Internal • Give primary consideration to variables within the individual Process • Emphasize the nature of the interaction between the individual and the environment External • Focus on the elements in the environment 3 Internal Needs Max Weber • Work contributes to salvation • Protestant work ethic Sigmund Freud – Psychoanalysis • Delve into the unconscious mind to better understand a person’s motives and needs 4 External Incentives Adam Smith • Enlightened self-interest; people are motivated by self-interest for economic gain • Technology is a force multiplier for labor productivity Frederick Taylor • Founder of scientific management • Emphasized cooperation between management and labor to enlarge profits 5 Employee Recognition and Ownership • These modern management practices build on Smith’s and Taylor’s original theories: • Employee recognition programs • Flexible benefit packages • Stock ownership plans • These practices emphasize external incentives • Psychological ownership increases organizational citizenship behavior 6 Maslow’s Hierarchy of Needs • Theory of motivation based on a hierarchy of needs • Five need categories: • • • • • Physiological needs Safety and security needs Love (social) needs Esteem needs Self-actualization 7 ^ ^ 8 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Theory X and Theory Y SA Esteem Theory Y Love (Social) Safety & Security Theory X Physiological 9 ^ ^ 10 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Alderfer’s ERG Theory • Groups human needs into only three basic categories: • Existence • Relatedness • Growth • Regression hypothesis states that people regress to the next lower category 11 ERG Classifications SA Esteem Love (Social) Safety & Security Growth Relatedness Existence Physiological 12 McClelland’s Need Theory Manifest needs: learned or acquired needs Achievement Power Affiliation • Excellence, competition, challenging goals, persistence, overcoming difficulties • Make an impact, influence others, change people or events, make a difference • Establishing and maintaining warm, close, intimate relationships with others 13 ^ ^ 14 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Herzberg’s Two-Factor Theory • Examined the experiences that satisfied or dissatisfied people at work • Motivation factors: work conditions related to satisfaction of the need for psychological growth • Hygiene factors: work conditions related to dissatisfaction caused by discomfort or pain 15 Motivation-Hygiene Theory • Company policy and administration • Supervision • Interpersonal relations • Working conditions • Salary • Status • Security Hygiene factors avoid job dissatisfaction Motivation factors increase job satisfaction • Achievement • Achievement recognition • Work itself • Responsibility • Advancement • Growth • Salary? 16 Eustress, Strength, and Hope • Eustress: healthy, normal stress • Focuses on the individual’s interpretation of events rather than needs, rewards, or punishments • New, positive perspective on organizational life • • • • Invest in strengths Find positive meaning in work Display courage and principled action Draw on positive emotions 17 Social Exchange and Equity Theory • Equity theory: a social exchange process theory of motivation that focuses on individual-environment interaction • Concerned with social processes that influence motivation and behavior • Etzioni’s exchange relationships: • Committed • Calculated • Alienated 18 Adam’s Theory of Inequity • Suggests inequity or unfairness motivates people more than equity or fairness Inequity Tension Motivation to Act 19 ^ ^ 20 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Vroom’s Expectancy Theory of Motivation Instrumentality: belief that performance is related to rewards Expectancy and instrumentality concern a person’s beliefs about how effort, performance, and rewards are related Expectancy: belief that effort leads to performance Valence: value or importance placed on a reward 21 ^ ^ 22 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Expectancy Theory and Moral Maturity Expectancy theory would predict that people work to maximize their personal outcomes Expectancy theory could not explain or predict altruistic behavior for the benefit of others Therefore, it may be necessary to consider an individual’s moral maturity in order to better understand altruistic, fair, and equitable behavior 23 Cultural Differences • Most motivation theories in use today have been developed by, practiced by, and tested among Americans • Motivational theories are culturally bound • Research results differ across cultures 24 Many Ways to Motivate People • Training • Coaching • Task assignments • Rewards contingent on good performance • Valued rewards offered • Sensitivity to inequities 25 3 Personality, Perception, and Attribution ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ 2 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Individual Differences • Individuals are unique in terms of their • • • • • • • Skills Abilities Personalities Perceptions Attitudes Emotions Ethics • No two people are completely alike 3 Skills and Abilities • General mental ability or GMA is an individual’s innate cognitive intelligence • Evidence indicates that GMA is the single best predictor of work performance across many occupations • GMA also relates to economic, physical, and subjective well-being 4 Propositions of Interactional Psychology • Behavior is a function of a continuous, multidirectional interaction between the person and the situation • The person is active in this process, and both changes and is changed by situations • People vary in many characteristics, including cognitive, affective, motivational, and ability factors • Two interpretations of situations are important: the objective situation and the person’s subjective view of the situation 5 Personality Personality : a relatively stable set of characteristics that influence an individual’s behavior Trait theory Integrative approach 6 Trait Theory • To understand individuals we must break down behavior patterns into a series of observable traits • The Big Five traits: • • • • • Extraversion Agreeableness Conscientiousness Emotional stability Openness to experience 7 ^ ^ 8 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ^ ^ 9 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Integrative Approach • Personality is described as a composite of the individual’s psychological processes • Personality dispositions include • • • • • Emotions Cognitions Attitudes Expectancies Fantasies • Considers both the person and situational variables as combined predictors of behavior 10 Personality Characteristics in Organizations • Core Self Evaluations (CSE), is a broad set of personality traits that refers to self-concept • Self-monitoring is the extent to which people base their behavior on cues from other people and situations • Positive/negative effect describes the extent to which individuals focus on the positive or negative aspects of themselves, other people, and the world in general 11 Core Self-Evaluation Locus of control Self-esteem Generalized self-efficacy Emotional stability 12 Locus of Control • Locus of control: an individual’s generalized belief about internal versus external control Internal • Believe they control what happens to them External • Believe circumstances or others control their fate 13 Self-Efficacy • General self-efficacy: a person’s overall view of himself/herself as being able to perform effectively in many situations High self-efficacy results in more confidence Low self-efficacy results in selfdoubt 14 Self- Esteem • Self-esteem: a person’s general feeling of self worth Positive view of self Negative view of self 15 Self-Monitoring • Self-monitoring: the extent to which people base their behavior on cues from other people and situations High selfmonitors • Act less consistently based on situational cues Low selfmonitors • Act more consistently based on internal cues 16 Positive/Negative Affect • Positive affect: an individual’s tendency to accentuate the positive aspects of himself/herself, other people, and the world • Negative affect: an individual’s tendency to accentuate the negative aspects of himself/herself, other people, and the world 17 Measuring Personality • Self-report questionnaire: a series of questions designed to assess individual personality • Projective test: a personality test that involves responses to abstract stimuli • Behavioral measures: personality assessments that involve observing behavior in a controlled situation 18 The MBTI Instrument • Human similarities and differences can be understood by combining preferences • • • • Extraverted/Introverted Sensing/Intuition Thinking/Feeling Perceiving/Judging • Briggs & Myers developed the MBTI to understand individual differences by analyzing the combinations of preferences 19 ^ ^ 20 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Social Perception • Perception involves the way we view the world around us • Social perception is the process of interpreting information about another person • Our perception of another person is influenced by • Characteristics of ourselves as perceivers • Characteristics of the target person • Characteristics of the situation 22 ^ ^ 23 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Barriers to Social Perception • Selective perception • Stereotyping • First-impression error • Projection • Self-fulfilling prophecies 24 Impression Management • Impression management: the process by which people attempt to control the impressions others have of them • Self-enhancing techniques: name dropping, looking the part, self-descriptions • Other-enhancing techniques: flattery, favors, agreement with opinions • Social identify-based impression management: managing others’ impressions of some basic aspect of an individuals’ identity 25 Attribution in Organizations • Attribution theory explains how we pinpoint the causes of our own behavior and those of other people • Internal attributions are made to something within the individual’s control • External attributions are made to sources beyond the individual’s control 26 Attributional Biases Fundamental attribution error • The tendency to make attributions to internal causes when focusing on someone else’s behavior Self-serving bias • The tendency to make attributions to internal causes when focusing on one’s own behavior 27
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Synthesizing Compensation Controversies at AIG
1. What types of work behaviors did AIG intend to encourage through its retention bonus
plan?
The bonuses were very extravagant. Essential to note is that the bonuses were just retention
bonuses, and they were not in any way related to the performance of the employee. Before
considering work behaviors that AIG was trying to promote with this strategy it is essential to
mention the work behaviors they were trying to discourage. They were trying to discourage
drifters, since they were worried that they might lose their employees. This is because they had
experienced billion in deficit in the previous years. The fact that they were not performing means
that employees could feel like less of achievers, and leave the company.
They were trying to encourage performers and analyzers. Even though not all bonuses were
based on employee’s performance, there are employees who deserved the bonuses. The CEO
was not able to turn around the company, but was only working for a base salary of $ 1 a year. In
addition, Mr. Poling was the top performer, having sold most units in the real estate an...


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