READING PASSAGE 2
You should spend about 20 minutes on Questions 14 —27, which are based on Reading Passage on the following pages.
Motivating employees under adverse conditions
THE CHALLENGE
It is a great deal easier to motivate employees in a growing organization than a declining one. When organizations are expanding and adding personnel, promotional opportunities, pay rises and the excitement of being associated with a dynamic organization create feelings of optimism. Management is able to use the growth to entice and encourage employees. When an organization is shrinking, the best and most mot mobile workers are prone to leave voluntarily. Unfortunately, they are the ones the organization can least afford to lose - those with the highest skills and experience. The minor employees remain because their job options are limited.
Morale also suffers during decline. People fear they may be the next to be made redundant. Productivity often suffers, as employees spend their time sharing rumors and providing one another with moral support rather than focusing on their jobs. For those whose jobs are secure, pay increases are rarely possible. Pay cuts, unheard of during times of growth, may even be imposed. The challenge to management is how to motivate employees under such retrenchment conditions. The ways of meeting this challenge can be broadly divided into six Key Points, which are outlined below.
KEY POINT ONE
There is an abundance of evidence to support the motivational benefits that result from carefully matching people to jobs. For example, if the job is running a small business or an autonomous unit within a larger business, high achievers should be sought. However, if the job to be filled is a managerial post in a large bureaucratic organization, a candidate who has a high need for power and a low need for affiliation should be selected. Accordingly, high achievers should not be put into jobs that are inconsistent with their needs. High achievers will do best when the job provides moderately challenging goals and where there is independence and feedback. However, it should be remember that not everybody is motivated by jobs that are high in independence, variety and responsibility.
KEY POINT TWO
The literature on goal - setting theory suggests that managers should ensure that all employees have specific goals and receive comments on how well they are doing in those goals. For those with high achievement needs, typically a minority in any organization, the existence of external goals is less important because high achievers are already internally motivated. The next factor to be determined is whether the goals should be assigned by a manager or collectively set in conjunction with the employees. The answer to that depends on perceptions of goal acceptance and the organization's culture. If resistance to goals is expected, the use participation in goal-setting should increase acceptance. If participation is inconsistent with the culture, however, goals should be assigned. If participation and the culture are incongruous, employees are likely to perceive the participation process as manipulative and be negatively affected by it.
KEY POINT THREE
Regardless of whether goals are achievable or well within management's perceptions of the employee's ability, if employees see them as unachievable they will reduce their effort. Managers must be sure, therefore, that employees feel confident that their efforts can lead to performance goals. For managers, this means that employees must have the capability of doing the job and must regard the appraisal process as valid.
KEY POINT FOUR
Since employees have different needs, what acts as a reinforcement for one may not for another. Managers could use their knowledge of each employee to personalize the rewards over which they have control. Some of the more obvious rewards that managers allocate include pay, promotions, autonomy, job scope and depth, and the opportunity to participate in goal-setting and decision-making.
KEY POINT FIVE
Managers need to make rewards contingent on performance. To reward factors other than performance will only reinforce those other factors. Key rewards such as pay increases and promotions or advancements should be allocated for the attainment of the employee's specific goals. Consistent with maximizing the impact of rewards, managers should look for ways to increase their visibility. Eliminating the secrecy surrounding pay by openly communicating everyone's remuneration, publicizing performance bonuses and allocating annual salary increases in a lump sum rather than spreading them out over an entire year are examples of actions that will make rewards more visible and potentially more motivating.
KEY POINT SIX
The way rewards are distributed should be transparent so that employees perceive that rewards or outcomes are equitable and equal to the inputs given. On a simplistic level, experience, abilities, effort and other obvious inputs should explain differences in pay, responsibility and other obvious outcomes. The problem, however, is complicated by the existence of dozens of inputs and outcomes and by the fact that employee groups place different degrees of importance on them. For instance, a study comparing clerical and production workers identified nearly twenty inputs and outcomes. The clerical workers considered factors such as quality of work performed and job knowledge near the top of their list, but these were at the bottom of the production workers’ list. Similarly, production workers thought that the most important inputs were intelligence and personal involvement with task accomplishment, two factors that were quite low in the importance ratings of the clerks. There were also important, though less dramatic, differences on the outcome side. For example, production workers rated advancement very highly, whereas clerical workers rated advancement very highly, whereas clerical workers rated advancement in the lower third of their list. Such findings suggest that one person’s equity is another’s inequity, so an ideal should probably weigh different inputs and outcomes according to employee group.
