BUS272 TB

Chapter 5 Motivation in Action 191
EXHIBIT 5-6 How to Fulfill the Drives That Motivate Employees
DRIVE PRIMARY LEVER ACTIONS
1
Acquire
Reward System
• Sharply differentiate good performers from average and poor performers
• Tie rewards clearly to performance
• Pay as well as your competitors
2
Bond
Culture
• Foster mutual reliance and friendship among co-workers
• Value collaboration and teamwork
• Encourage sharing of best practices
3
Comprehend
Job Design
• Design jobs that have distinct and important roles in the organization
• Design jobs that are meaningful and foster a sense of contribution to
the organization
4
Defend
Performance Management
and Resource Allocation
Processes
• Increase the transparency of all processes
• Emphasize their fairness
• Build trust by being just and transparent in granting rewards, assignments, and
other forms of recognition
Source: N. Nohria, B. Groysberg, and L.-E. Lee, “Employee Motivation: A Powerful New Model,” Harvard Business Review 86, no. 7–8
(July–August 2008), p. 82 .
plan. Latin American companies also have the highest percentage of total payroll
allocated to variable pay, at nearly 18 percent. European and US companies are relatively
lower, at about 12 percent. 146 When it comes to executive compensation, Asian
companies are outpacing Western companies in their use of variable pay. 147
Flexible Benefits
Today, almost all major corporations in the United States offer flexible benefits. They
are becoming the norm in other countries, too. As mentioned earlier, a recent survey of
211 Canadian organizations found that 60 percent offer flexible benefits. 148 Research
in 2013 of companies in the United Kingdom found that only 27 percent have flexible
benefits programs in place, up just 8 percent since 2007. 149
In Exhibit 5-7 , we show the link between a country’s rating on GLOBE/Hofstede
cultural dimensions , which we discussed in Chapter 3 , and its preferences for particular
types of rewards. Countries that put a high value on uncertainty avoidance prefer pay
based on objective measures, such as skill or seniority, because the outcomes are more
certain. Countries that put a high value on individualism place more emphasis on an
individual’s responsibility for performance that leads to rewards. Countries that put
a high value on humane orientation offer social benefits and programs that provide
work–family balance, such as child care, maternity leave, and sabbaticals. 150 Also,
although vacation is an important reward, taking leisure time appears to be more
challenging for North American employees as compared with European employees as
Case Incident—Motivation for Leisure on page 198 shows. Managers who receive overseas
assignments should consider a country’s cultural orientation when designing and
implementing reward practices.