UnitIIIOTBstudyguide.pdf

BBA 3451, Organizational Theory and Behavior 1

Course Learning Outcomes for Unit III

Upon completion of this unit, students should be able to:

3. Explain applied performance practices.
3.1 Explain the SMARTER acronym and how it can be used to improve performance practices.
3.2 Identify goals and timelines for a project.

Course/Unit
Learning Outcomes

Learning Activity

3.1

Unit Lesson
Chapter 5: Foundations of Employee Motivation
Chapter 6: Applied Performance Practices, pp. 154–172
Unit III Assignment

3.2

Unit Lesson
Chapter 5: Foundations of Employee Motivation
Chapter 6: Applied Performance Practices, pp. 154–172
Unit III Assignment

Reading Assignment

Chapter 5: Foundations of Employee Motivation

Chapter 6: Applied Performance Practices, pp. 154–172

Unit Lesson

Foundations of Employee Motivation

Our two main readings in this unit have a central focus on employee motivation and applied performance
practices (management). Reflecting on the last few units, think about yourself. What makes you tick? What
motivates you? How does motivation affect your behavior as well as the behavior of others? There are
basically two types of motivation: extrinsic and intrinsic (McShane & Von Glinow, 2018). Extrinsic is an
outside stimulus such as an award, a luncheon, or a bonus. Intrinsic is based on internal feelings and
accomplishment. Are you motivated more by extrinsic or intrinsic motivators?

Let’s start this lesson with a current, real-world example of employee motivation theory through two
companies.

The first is the Frucor Beverages Company, which is mentioned on pages 120 and 121 of your textbook. The
company deals with a highly motivated workforce through goal setting; focused, meaningful work; enriched
jobs; and leadership that recognizes performance (McShane & Von Glinow, 2018). The company encourages
its employees through leveraging their internal motivators.

Now, let’s look outside the United States at the TESCO Company in the United Kingdom. TESCO is a British
grocery company that has been in business since 1919 and has expanded into insurance. Today, the
company has over 2,200 stores (in comparison to Walmart, which has 6,363 international locations, and
McDonalds, which has 35,000 locations) ( Case Studies, n.d.). In perspective, TESCO is a decent-
sized company but not at the level of Walmart or McDonalds. What makes TESCO a motivational place to
work? A few factors are employee training, challenging work that is enjoyable, the opportunity for
advancement, and a sense of impact on the company’s future growth and success. TESCO values its

UNIT III STUDY GUIDE

Motivation and Applied
Performance Practices

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employees with competitive pay, excellent health benefits and insurance, as well as other benefits such as
gym memberships and discounts ( Case Studies, n.d).

Reflection: What motivated you to work? What do you look for in an employer?

Employee Motivation

Employee motivation is a challenge in any corporation, team, or
organization. Why? It is the idiom of putting the carrot on a stick
in front of a donkey and having them continually walk to get it. It
refers to a policy of reward and punishment. Employee
performance is based on an employee’s work objectives and
contribution to the organization’s vision and mission statements.
According to McShane and Von Glinow (2018), performance
management and performance measurement are based on
strategy, measurement techniques, and decision-making. The
system works as a whole to set direction, measure performance,
and make adjustments. Adjustments can range from the job
design and expectations to improve motivation for employees.
McShane and Von Glinow (2018) noted that organizations need
to complete these tasks for mission accomplishment: clear job
descriptions, quality employee training, clear performance

standards and expectations, effective compensation and reward systems, and professional career
development counseling. When looking at the big picture, it comes down to individual performance and
individual motivation. Complete the task, and you get the reward. This all sounds easy; however, all
employees are different with regard to what motivates them, what their needs are that need to be fulfilled at
work, and what decisions and behaviors they adapt to complete the objectives.

Click here to access an interactive presentation on employee motivation.

Click here to access the transcript.

Organizational leadership determines the direction of the company by setting a vision of the organization’s
goals for the future. It then must establish goals and objectives as well as timelines and metrics for the
employee to get there. According to McShane and Von Glinow (2018), motivation is a driving force that
pushes employees to meet goals with intensity.

Drives, Emotions, and Needs

You may have heard the common phrase by Mark Shields that states there is strength in numbers. Think
about this statement for a minute; what does it have to do with organizational behavior, motivation, and
performance practices? McShane and Von Glinow (2018) clearly indicate that individuals who are engaged
and motivated at their jobs provide the drive to move forward and produce more. As employees, mission
objectives are more easily met, individual and corporate needs are met, and leaders take on more challenges
and decisions to grow the business. The baseline is that an individual’s internal commitment drives emotions
to produce higher quality work, meet objectives, and become rewarded, and this commitment creates a
culture of performance, reward, and comradery.

There has to be a starting point for meeting goals and expectations. What is the center point? What is the
bullseye? For there to be strength in numbers and strength in an individual, metrics for goal setting must be
established. McShane and Von Glinow (2018) highlight what is called the SMARTER approach to goal
setting. The acronym stands for specific, measurable, achievable, relevant, time-framed, exciting, and
reviewed. Let’s break down the acronym.

 Specific: What needs to be accomplished? Are the requirements and expectations clear as to when,

where, and who is involved?

 Measureable: Goals need to be measured according to accomplishment. Measurement usually
includes quantity, time frame, or quality. Individuals establish metrics to gauge goal accomplishment.

 Achievable: Goals need to be challenging but not impossible to attain. If the goal is set too high and
not met, there can be setbacks with morale and motivation with individuals and groups. If the goal is

Leadership
(Danymena88, 2017)

https://online.columbiasouthern.edu/bbcswebdav/xid-64050545_1

https://online.columbiasouthern.edu/bbcswebdav/xid-64050889_1

BBA 3451, Organizational Theory and Behavior 3

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too low, there is no sense of achievement. McShane and Von Glinow (2018) note that studies have
shown if goals are unexpectedly too high, it increases the possibility of unethical behavior.

 Relevant: Goals need to apply to the employee’s job. This creates a sense of accomplishment,

reflection on what happened, why, and how to move forward.

 Time-framed: Goals need dates for completion also known as milestones. At this point, goals are
measured against the set standard where decisions are made to adjust or move forward.

 Exciting: Consider the role of passion and commitment. If employees see the goals in these two
shades, they will become more engaged in goal attainment, reward, and personal growth through
accomplishment.

 Reviewed: Closing the loop on SMARTER is feedback. Feedback is provided to improve the
employees’ engagement toward goal progress and goal fulfillment.

The bottom line for any organization is to motivate workers to accomplish goals and objectives that drive the
organization to the finish line in their business. The finish line can include gains in market share, reduced
cost, shorter time for restructuring, or the development of a better product or service for customers. The
SMARTER model keeps the employee and organization focused on the goal process and is a logical stepping
stone for accomplishment.

Financial Rewards Practices

As we have noted in the lesson thus far, motivation is different for each of us and for the organization as a
whole. However, organizations take a more direct route through setting up reward-based systems. Exhibit 6.1
on page 155 of your course textbook indicates reward objectives based on membership/seniority, job status,
competencies, and task performance (McShane & Von Glinow, 2018). As you review the chart, you can
observe the types of rewards for each as well as the advantages and disadvantages. Which do you think is
more effective? As noted, there is no best method. The best method might be what fits the corporate culture.

Someone with a lot of work experience may indicate that rewards and promotion are based on each one of
those factors listed in the exhibit. They may note that those who had excelled at their job, delivered results in
meeting organizational goals, and worked well with other “team players” were rewarded with promotions as
well as follow-on jobs of stature.

Empowerment

What is empowerment, and how does it relate to work performance?

Imagine if your boss called you in and said, “We have a requirement from corporate to develop a new
customer loyalty program. They have given some guidelines and expectations, which I have included here in
the folder for you. I want you to take on this project and make it happen. In 1 week, share with me your future
plans of action and ideas in which I can assist you in reaching success.”

McShane and Von Glinow (2018) explain empowerment as the psychological aspects of meaning and
determination with regard to the individual’s job role. With this knowledge, reflect on the above situation and
the definition of empowerment. How do you feel? Are you motivated? Are you nervous? Do you care? Why?
Why not? Only you can answer these questions, but some common responses are listed below.

 How do you feel? I feel extremely honored. From an organization with 250 people, I have been

singled out to take on a corporate project that has a direct impact on my company, my company’s
position in the marketplace, and customer loyalty.

 Are you motivated? Absolutely. I have the ability to craft a project from start to finish. I can apply my

professionalism and experiences and develop a team of constituents who will support the desired
plan.

 Are you nervous? Is this a trick question? Is my boss testing me? Yes, I am nervous because I do not

want to fail my superiors; however, no, I am also not nervous because I know I have the competence,
determination, leadership, and management skills (plan, organize, lead, control, and staff) to make
this project a success. In addition, when I do have questions, my superior has already stated that he
or she will assist.

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 What is your response to your boss? I gladly accept the challenge. I will have a rough outline and
resources I need for your review within a week. I will get on your assistant’s calendar for the meeting
time.

Your superior has trusted you because of your competence.

Looking at the key words in the empowerment definition (i.e., self-determination, meaning, competence, and
impact), what do the terms mean from a literal standpoint and from an emotional standpoint?

 Self-determination: From a literal standpoint, self-determination comes from within. It is the feeling
you experience regarding confidence, independence, and freedom to work the project at your
discretion (McShane & Von Glinow, 2018).

 Meaning: This means that you were called in because of your personal record of accomplishment
because you care. Your boss would not select someone who does not possess the skill sets or
competitive advantage to make the project a success. That would set up the individual for failure as
well as the superior delegating the project.

 Competence: Also, you are competent, and you have confidence in yourself. You are organized and
a critical thinker. You are someone who can take the task on and deliver results with minimal
supervision.

 Impact: Your work will make an impact not only in your organization but also in the brand and
corporate policy with this program going forward.

So, what motivates you to work harder at work to achieve performance-based awards? Is it money, stature,
empowerment, challenges, or responsibility? There is no right answer. It can be one or a mix of any of these
(e.g., money, vacation, job title, empowerment). All of these factors work together from both an organizational
and individual structure to deliver bottom-line results. Companies grow because employees meet goals and
objectives. Employees grow because they are challenged, self-motivated, and understand their
responsibilities to the company. They know how to set measurable, realistic goals to achieve success, and
they comprehend the concept of empowerment, which is the ability to make a difference when placed in the
position to do so.

References

Case Studies. (n.d). Motivational theory in practice at Tesco. Retrieved from

http://businesscasestudies.co.uk/tesco/motivational-theory-in-practice-at-tesco/introduction.html

Danymena88. (2017). [Clipart leader standing on an arrow] [Image]. Retrieved from

https://pixabay.com/en/leader-leadership-manager-team-2206099/

McShane, S. L., & Von Glinow, M. A. (2018). Organizational behavior: Emerging knowledge, global reality

(8th ed.). New York, NY: McGraw-Hill Education.