Hi All.
Although I got a number of responses to my recent post on incentives,
only one of them - from Frank Shipper - provided references. With his
permission, I am sharing the annotated bibliography he sent me with
you.
In addition, I have created a rough summary of our results to send out
to folks so that they can have a better idea of what we did/found, and
to solicit whatever insights and/or input people have to offer regarding
what our data "says" and how it can be used. If you'd like to see a
copy of that summary, please contact me offline at
cshunt@niu.edu.
Thanks.
Courtney Hunt
Frank Shipper's annotated bibliography:
Some recent work that I have been particularly impressed
with are:
Donovan, M. A., Drasgow, F., & Munson, L. J. (1998). The perceptions
of
fair treatment scale: Development and validation of a measure if
interpersonal treatment in the workplace. Journal of Applied
Psychology,
Vol. 83, No. 5, 683-692.
Procedural justice as a two-dimensional construct: An examination in
the per...
Berrin Erdogan; Maria L Kraimer; Robert C Liden
The Journal of Applied Behavioral Science; Jun 2001; 37, 2
Below is an annotated reference list of both articles and books that I
have put together on this subject:
Academic Articles:
Adams, J. S. (1963). "Toward an Understanding of Inequity." Journal of
Abnormal Psychology, v67n5, pp. 422-436.
A theory of social inequity, with special consideration given to wage
inequities is presented. A special case of Festinger's cognitive
dissonance, the theory specifies the conditions under which inequity
will arise and the means by which it may be reduced or eliminated.
Observational field studies supporting the theory and laboratory
experiments designed to test certain aspects of it are described.
Campbell, J. P., Dunnette, M. D., Lawler, E. E., III, Weick, K. E.,
Jr.
(1970). "Expectancy Theory" in John P Campbell et al., Managerial
Behavior, Performance and Effectiveness, New York: McGraw-Hill,
pp.343-348.
For the cognitive theorist, it is the anticipation of reward that
energizes behavior and the perceived value of various outcomes that
gives behavior its direction. This article compares drive theory and
expectancy theory and proposes a hybrid expectancy model for examining
organizational behavior. Further discussion includes discrepancy
theory
and the discrepancy between an employees job inputs and job outcomes
as
motivation to employees.
Case, J. (1998). "Common Sense About Group Incentives." Harvard
Management Update, pp. 3-4.
Few compensation ideas have swept the business world as quickly as
group incentive or gain sharing plans. Unlike traditional
profit-sharing
plans, group incentive plans emphasize unit or department results
rather
than company wide results. Unlike individual or project-team
incentives,
everyone in the unit is usually included. The idea behind group
incentives is simple and compelling: employees will be more productive
if part of their compensation is tied to business objectives.
Companies
get better performance and may even be able to cut fixed costs by
minimizing annual pay increases. A study by the Consortium for
Alternative Rewards Strategies found that group incentive plans
averaged
returns of $2.22 for every dollar of payout. Designing and
implementing
such a plan, however, is problematic. You must choose the right
objectives and inform and get support from managers and employees. HMU
tells you how to determine whether your company's plan is on track,
and
what you should do if it's not.
Cropanzano, R. & Folger, R. (1996). "Procedural Justice and Worker
Motivation." in Steers, R. M., Porter, L. W. & Bigley, G. A. (Eds.),
Motivation and Leadership at Work (6th Edition), New York:
McGraw-Hill,
pp. 72-83.
When people do not receive the rewards to which they feel entitled,
they are often motivated to do something about it. The problem comes
in
specifying whether workers will become angry and work less hard or
work
even harder in the hope of eventually obtaining what they want. One
way
of conceptualizing fairness is illustrated by equity theory, which
states people determine whether they have been treated fairly at work
by
examining their own payoff ratio of outcomes to inputs and comparing
that ratio to that of others, such as their coworkers. The notion of
procedural justice focuses instead on the fairness of the manner in
which the decision-making process is conducted. In other words, the
focus shifts from what was decided to how the decision was made. This
research looks at procedural justice as a supplement to equity theory
and measures employee attitudes on procedural justice. A two-component
model of justice examines (1) a person's perception of having received
an inequitable or negative outcome and (2) the perceptions of the
events
leading up to and accompanying the unfavorable outcome. The research
then discusses three situations: (1) allocation is favorable but the
procedures are unfair; (2) outcomes are inequitable but the procedures
are perceived as fair and (3) both distribution and administration are
unfair.
Eisenberger, R. & Cameron, J. (1996). "Detrimental Effects of Reward:
Reality or Myth?" American Psychologist, v51n11, 1153-1166.
Based on seemingly overwhelming empirical evidence of the detrimental
effects of reward on intrinsic task interest and creativity, the use
of
reward to alter human behavior has been challenged in literature
reviews, textbooks, and popular media. An analysis of a quarter of
research on intrinsic task interest and creativity revealed, however,
that (a) detrimental effects of reward occur under highly restricted,
easily avoidable conditions; (b) mechanisms of instrumental and
classical conditioning are basic for understanding incremental and
decremental effects of reward on task motivation; and (c) positive
effects of reward on generalized creativity are easily attainable
using
procedures derived from behavior theory.
Applied Articles:
Goddard, R.W. (November 1987). "Well Done." Management World, v16n6,
pp. 14-16.
Discusses using praise as a motivator, exploring reasons why praise is
not used or not used effectively and how to praise effectively.
Herzberg, F. (September/October 1987). "One More Time: How Do You
Motivate Employees?" Harvard Business Review, v65n5, pp. 109-120.
The growth or motivator factors that are intrinsic to a job are: 1.
achievement, 2. recognition for achievement, 3. the work itself, 4.
responsibility, and 5. growth or advancement. The
dissatisfaction-avoidance or "hygiene" factors that are extrinsic to
the
job include: 1. company policy and administration, 2. supervision, 3.
interpersonal relationships, 4. working conditions, 5. salary, 6.
status, and 7. security. A composite of the factors involved in
causing
job satisfaction and dissatisfaction, drawn from samples of 1,685
employees, reveals that motivators were the main cause of satisfaction
and hygiene factors the main cause of unhappiness on the job. The
motivation-hygiene theory suggests that work be enriched to bring
about
effective utilization of personnel. "Job enrichment" describes the
systematic attempt to motivate employees by manipulating the motivator
factors. Management can produce job enrichment by: 1. removing some
controls while maintaining accountability, 2. increasing employees'
accountability for their own work, 3. giving people complete natural
work units, and 4. assigning individuals specialized tasks so they can
become experts in them.
Kerr, S. (1995). "On the Folly of Rewarding A, While Hoping for B."
Academy of Management Executive, 9, 7-14.
A classic article that describes the disconnection between rewards as
given in many organizations and the goals that the organization
aspires
to obtain in its written statements.
Kopelman, R. E. (October 1983). "The Case for Merit Rewards."
Personnel
Administration.
Kouzes, J. M., & Posner, B. Z. (1995). "Recognize Contributions:
Linking Rewards with Performance," in J. M. Kouzes and B. Z. Posner,
The
Leadership Challenge, San Francisco: Jossey-Bass.
In this chapter the authors relate one of the practices, linking
rewards to performance, that outstanding leaders use to have others
accomplish something extraordinary in their organizations.
Larson, K. (August 1991). "How to Recognize Your Staffers'
Contribution (95KB)." Supervisory Management, v36, n8, p.8.
Twenty-five ways to say thanks; nine guidelines for choosing
recipients
and planning their recognition.
Lawler, E. E., III. (September-October 1976). "New Approaches to Pay
Administration." Personnel, v53, n5, pp. 11-23.
Lawler, E. E., III. (1987). "The Design of Effective Reward Systems,"
in J. W. Lorsch (Ed.), Handbook of Organizational Behavior. Englewood
Cliffs, N. J.: Prentice-Hall, pp. 255 - 271.
Luthans, F., & White, D. D., Jr. (1971). "Behavior Modification:
Application to Manpower Management." Personnel Administration, v34,
pp.
41-47.
Mihal, W. L. (1983). "Merit Pay: A good Idea But Does It Work."
Personnel Administration.
Mowday, R. T. (1987). "Equity Theory Predictions of Behavior in
Organizations" in Richard M. Steers and Lyman W. Porter (Eds.),
Motivation and Work Behavior (Fourth Edition). New York: McGraw-Hill,
pp. 89-110.
Nadler, D. A., & Lawler, E. E., III. ( 1977). "Motivation: A
diagnostic
Approach" in J. Richard Hackman, Edward E. Lawler, III, and Lyman W.
Porter (Eds.), Perspective on Behavior in Organizations (Second
Edition). New York, McGraw-Hill.
Nelson, A. (May 1987). "Just Praise Won't Do It." Supervision, v49n5,
pp. 8-9, 26.
In most of the basic theories of motivation, praise is seldom singled
out as the powerful motivator it can be when used properly.
Traditional
theory stresses money as the primary motivator. Maslow's needs
hierarch
theory says that workers have needs other than money, such as physical
needs, job security, and acceptance by the work group. The 4th level
in
the hierarchy finds the employee seeking a sense of self-esteem, with
praise playing a big part in achieving that sense. In the last level,
the worker believes he has reached full potential. Herzberg's
maintenance-motivation theory says that the true motivators relate to
the job itself. These include recognition, job advancement, a sense of
achievement, growth, potential, and responsibility. The
preference-expectancy theory of motivation is that the employee's
motivation is dependent upon his preferences and expectations.
Supervisors should be genuine in their recognition of workers and be
specific when praising them.
Pfeffer, J. (1998). "Six Dangerous Myths About Pay." Harvard Business
Review, v76n3, pp. 108-119.
In this article, Jeffrey Pfeffer (Thomas D. Dee Professor of
Organizational Behavior at Stanford Business School) identifies widely
accepted "fictions" about pay, disproves them with evidence, and then
offers advice on how managers should pay their employees, and why.
Every
day, executives make decisions about pay, and they do so in a
landscape
that's shifting. As more and more companies base less of their
compensation on straight salary and look to other financial options,
managers are bombarded with advice about the best approaches to take.
Unfortunately, much of that advice is wrong. Indeed, much of the
conventional wisdom and public discussion about pay today is
misleading,
incorrect, or both. The result is that business people are adopting
wrongheaded notions about how to pay people and why. In particular,
they
are subscribing to six dangerous myths about pay: 1) Labor rates are
the
same as labor costs; 2) Cutting labor rates will lower labor costs; 3)
Labor costs represent a large portion of a company's total costs; 4)
Keeping labor costs low creates a potent and sustainable competitive
edge; 5) Individual incentive pay improves performance; and 6: People
work primarily for the money. The author explains why these myths are
so
pervasive, shows where they go wrong, and suggests how leaders might
think more productively about compensation. With increasing frequency,
the author says, he sees managers harming their organizations by
buying
into--and acting on--these myths. Those that do, he warns, are
probably
doomed to endless tinkering with pay that at the end of the day will
accomplish little but cost a lot.
Sherwood, A. (May 1987). "A Bakers Dozen of Ways to Motivate People."
Management Solutions, v49n11, pp. 14-16.
Thirteen tips to motivate, in four categories: giving recognition,
delegating responsibility, the right mix of extrinsic and intrinsic
rewards, and creating a positive self fulfilling prophecy.
Woodruff, M.J. (June 1992). "Why Companies Should Say Thanks (233KB)."
Supervision, v53n6, pp. 3-5.
Companies can motivate their employees by giving them awards and
recognition. Sometimes a simple expression of gratitude will suffice.
According to a survey completed by the American Productivity Center
and
the American Compensation Association, 3/4 of the businesses in the US
have some type of innovative reward system. Some guidelines for
companies considering implementing a reward system are: 1. The rewards
should match the achievement. 2. The more a reward is expected, the
less
it is appreciated. 3. The best reward programs are tailor made. 4. A
reward does not have to be large to be effective. In addition, it is
important to have an accurate and objective evaluation system so that
employees do not feel cheated.
Books:
Bowen, R. B. 2000. Recognizing and Rewarding Employees. New York:
McGraw-Hill (241 pages).
Positive feedback and recognition are proven and valuable--but too
often overlooked--management tools. Recognizing and Rewarding
Employees
gives managers the top-ten rewards most successful at motivating
employees, tips for showing appreciation for work done well, ways to
promote achievement through recognition, and more.
Deeprose, D. 1994. How to Recognize & Reward Employees (Worksmart
Series). New York: AMACOM (107 pages).
Offers 10 guidelines for developing formal programs and informal
behaviors for recognizing employees. Deeprose offers 100 thoughtful
ideas for affirmation--including many that are very inexpensive--plus
scores of exercises, self-tests, and sidebars.
The ESOP Reader: A Primer on Employee Ownership Plans (2003 edition).
Oakland, CA: National Center for Employee Ownership (228 pages).
This book is a general guide to employee stock ownership plans (ESOPs)
in both private and public companies. It is written more for the
person
who wants a straightforward primer on these issues than for the person
who wants detailed technical coverage.
Glanz, B. A. 1996. Care Packages for the Workplace: Dozens of Little
Things You Can Do To Regenerate Spirit At Work. New York: McGraw-Hill
(222 pages).
Morale is down-spirits are low-the workload is mounting. Today's
hard-working employees need a break! And nothing feels better than
Care
Packages for the Workplace from internationally known,
lift-your-spirits
author Barbara Glanz. This timely gift-book format provides the hard
at
work with dozens of simple "brighten-your-day" ideas such as:
beautifying the work space in order to do what Tom Peters
recommends-"Fight Bland Dullness!"; putting a personal signature on
all
work; sharing a joke-a-day, one month at a time; holding grapevine
meetings where rumors are openly discussed; partaking in good news
hours
where positive news is shared; creating special awards for a job well
done; scheduling lunches with management.
Grove, A. S. 1987. One-On-One with Andy Grove: How to Manage Your
Boss, Yourself, and Your Co-Workers. New York: G. P. Putnam's Sons
(235
pages).
This book is a classic, but was printed before Andy Grove became a
business hero and is difficult to find since it has been out of print
for some time.
Harvey, E. 2000. 180 Ways to Walk the Recognition Talk. Dallas: The
Walk the Talk Company (43 pages).
A short and inexpensive book provides some clever ideas on how to
provide recognition.
Heneman, R. L. 1992. Merit Pay for Performance: Linking Pay Increase
to Performance Ratings. New York: Addison-Wesley Pub Co. (298 pages).
Of all U.S. organizations, 80 percent now use merit pay. In his book,
Robert Henemann summarizes current research which can be used to
develop
new merit-pay plans, or to increase the effectiveness of existing
plans.
He also shows how performance-appraisal research should be expanded to
include certain situational factors, such as the administrative
purpose
of the appraisal, organizational politics, the type of organization,
and
the goals of the compensation systems. Major sections of the book
include an assessment of the desirability and feasibility of the merit
pay, development and administration of a merit-pay plan, and the
evaluation of relevant outcomes. Henemann's book is a summary of the
current knowledge of merit pay that emphasizes three perspectives: a
balanced perspective, an interdisciplinary perspective, and
recommendations for merit pay policy and practice.
Jeffries, R. (1996). 101 Recognition Secrets. Chevy Chase, MD:
Performance Enhancement Group (106 Pages).
Top Ten Best Seller at the American Society of Training and
Development
International Conference. This quick 17-minute management tool offers
over a hundred instant, practical, low-cost, ready-to use ideas for
how,
when, and where managers can recognize and motivate individuals in
today's diverse workplace. Based on anecdotal research developed from
the responses of over 10,000 managers and employees, 101 Recognition
Secrets shows:
* How to use recognition as a performance measurement tool * How to
motivate marginal employees * Strategies to boost employee performance
and productivity * Principles necessary for effective recognition.
Klubnik, J. P. 1995. Rewarding and Recognizing Employees: Ideas for
Individuals, Teams, and Managers (Briefcase Books Series). Irwin
Professional Publishers ( 198 pages).
From Booklist: "Management literature consistently emphasizes the need
to recognize and reward employees, but usually falls short when it
comes
to suggesting specific, concrete ways to do so. Furthermore, many
managers and supervisors are not able to alter easily or readily
establish benefit and reward mechanisms. Klubnik, a partner in a
training and consulting firm and author of Team-Based Problem Solver
(1994), lists well over 100 creative, easy-to-implement suggestions
for
recognizing employees. She also admonishes against using these ideas
without first analyzing current staff attitudes, already established
recognition activities, and the organizational culture to avoid what
might come across as empty gestures. Klubnik goes on to detail how to
establish an organization-wide recognition program. This unique book
belongs in most management collections." David Rouse
Lawler, III, E. E. (2000). Rewarding Excellence: Pay Strategies for
the New Economy, San Francisco: Jossey-Bass (352 pages).
In a job market in which companies are falling over themselves to meet
potential employees' demands, Edward Lawler asks the question of the
moment: Is money really what motivates workers? The answer, he
suggests
in Rewarding Excellence, is no. He proposes alternative ways for
companies to motivate their employees. Lawler dismisses merit pay
doled
out on the basis of seniority and job ranking. In fact, he's skeptical
about the whole relationship between worker performance and pay.
"Research in this field suggests that pay for performance can cause
people to stop finding intrinsic pleasure from doing work, and as a
result, cause employees to do things only when they are paid for doing
them," Lawler writes. With charts and performance-matrix graphs, he
quotes stats on the best ways to use money to inspire excellence.
Merit
pay may be necessary, Lawler admits, but it can do only so much, he
maintains. He says it's OK for companies to give raises and bonuses,
but
only if they're based on fair and accurate employee evaluations. That
isn't easy to do, he concedes, since such tests require companies to
apply their overall strategy to every employee's role. But Lawler lays
out a method for grading performance, as well as an alternative reward
system based on team rather than individual performance. Anyone who
needs to get up to speed on compensation trends will benefit from
Lawler's real-world examples and clear instructions. But if you're
looking for bottom-line salary figures, you won't find them here. No
magic pay scale exists, he insists; he doesn't believe in
one-size-fits-all numbers. Lawler's argument is a paradox: He
downplays
the correlation between pay and performance, and then writes
extensively
about how to use money to motivate workers. But in the end he's
realistic, acknowledging that in an overheated job market money talks
-
and underpaid workers walk.
Nelson, R. (1994). 1001 Ways to Reward Your Employees. New York:
Workman Publishing (302 pages).
The president of a leading management-training and consulting company
has delved extensively into the issue of employee rewards and put
together an idea-filled reference to making the
person/achievement/reward equation work.
Risher, H. 1999. Aligning Pay and Results: Compensation Strategies
That Work from the Boardroom to the Shop Floor. New York: AMACOM (324
pages).
Proven pay-for-performance solutions from some of the country's
leading
compensation experts. Measuring performance is now standard procedure
at
all levels of business. But the natural extension--linking performance
to compensation for every employee--is only beginning to be recognized
as a valuable strategy for continued organizational success. With a
breadth of expertise unavailable in any other source, this book offers
insights from fourteen prominent compensation consultants. They
discuss
such topics as: * developing and installing incentive plans for all
employees * communicating changes in compensation programs * designing
incentive plans around new performance concepts like the Balanced
Scorecard and Economic Value * executive compensation * group
incentives
and team-based pay.
Rodrick, S. S. (1999) Incentive Compensation and Employee Ownership.
Oakland, CA: National Center for Employee Ownership (200 pages).
This book takes a broad look at how to use incentives, ranging from
stock options to cash bonuses to gainsharing, to motivate and reward
employees in dynamic companies that seek to create a more productive
"ownership" culture. Using both technical discussions and case
studies,
it explores incentives both as self-sufficient tools and as
complements
to retirement-oriented plans such as employee stock ownership plans
(ESOPs). Specific topics covered by individual chapters include stock
incentives in entrepreneurial growth companies, how incentives fit
into
the "Great Game of Business," communicating short-term incentives to
employees, performance-based stock options, gainsharing and the
Scanlon
plan, the incentive programs at employee-owned Science Applications
International Corporation (SAIC), how to correctly design a cash
incentive program, and more.
Rye, D. 1998. 1,001 Ways to Inspire Your Organization, Your Team, and
Yourself. Career Press (300 pages).
The Association of Quality and Participation says, "Motivation is the
single most important management strategy you will ever need to ensure
your personal, professional and organizational success. And l,001 Ways
to Inspire Your Organization, Your Team, and Yourself shows how to
re-apply motivation in everything you do (300 pages).
Hope that this helps,
Frank
Frank Shipper, Ph.D.
Professor of Management
Perdue School of Business
Salisbury University
Salisbury, MD 21801
Phone: (410) 543-6333
FAX: (410) 546-6208
E-mail:
fmshipper@salisbury.edu