Using Merit Pay: A merit raise is a salary increase, usually permanent, that is based on the

employee's individual performance. It is a continuing increment rather than a single payment like a
bonus. Relying heavily on merit rewards can be a problem because the reinforcement benefits of
merit pay is usually only determined once per year.
d. Using Spot Awards: A spot award is one given to an employee as soon as the laudable
performance is observed. These awards are consistent with principles of motivation because they
are contingent on good performance and are awarded immediately.
e.
Using Skill-Based Pay: With skill-based pay, employees are paid for the range, depth, and types
of skills and knowledge they are capable of using rather than for the job they currently hold. Skillbased pay is consistent with motivation theory because people have a self-concept in which they
seek to fulfill their potential. The system also appeals to the employee's sense of self-efficacy
because the reward is a formal and concrete recognition that the person can do the more
challenging job well.
f.
Using Recognition: Some employees highly value day-to-day recognition from their supervisors,
peers and team members because it is important for their work to be appreciated by others.
Recognition helps satisfy the need people have to achieve and be recognized for their achievement.
g. Using Job Redesign: Job design refers to the number and nature of activities in a job. The key
issue is whether jobs should be more specialized or more enriched and nonroutine. Job design has
been implemented in several ways. Job enlargement assigns workers to additional same-level tasks
to increase the number of tasks they have to perform. Job rotation systematically moves workers
from job to job. Job enrichment means building motivators like opportunities for achievement into
the job by making it more interesting and challenging. Job enrichment may be implemented by
forming natural work groups, combining tasks, establishing client relationships, vertically loading
the job, and having open feedback channels.
h. Using Empowerment: Empowerment means giving employees the authority, tools, and
information they need to do their jobs with greater autonomy, as well as the self-confidence to
perform new jobs effectively. Empowerment boosts employees' feelings of self-efficacy and
enables them to use their potential more fully.
i.
Using Goal-Setting Methods: People are strongly motivated to achieve goals they consciously
set. Setting goals with employees can be a very effective way of motivating them. Goals should be

clear and specific, measurable and verifiable, challenging but realistic, and set with participation.
j.
Using Positive Reinforcement: Positive reinforcement programs rely on operant conditioning
principles to supply positive reinforcement and change behavior. Experts claim it is better to focus
on improving desirable behaviors rather than on decreasing undesirable ones. There are a variety
of consequences including social consequences (e.g., peer approval or praise from the boss),
intrinsic consequences (e.g., the enjoyment the person gets from accomplishing challenging tasks),
or tangible consequences (e.g., bonuses or merit raises).
k. Using Lifelong Learning: Lifelong learning can be used to deal with problems of downsizing
and employee commitment, and to counterbalance their negative effects. It provides extensive
continuing training and education, from basic remedial skills to advanced decision-making
techniques, throughout the employees' careers, which provide employees the opportunity to boo

Reinforcement Theory
In 1911, psychologist Edward Thorndike formulated the law effect: Behavior that is followed by positive
consequences probably will be repeated. This powerful law of behavior laid the foundation for country
investigations into the effects of the positive consequences, called rein forcers that motivate behavior.
Organizational behavior modification attempts to people's actions.
Four key consequences of behavior either encourage or discourage people's behavior

1.
Positive Reinforcement- applying a valued consequence that increases the likelihood that the
person will repeat the behavior that led to it. Examples of positive reinforcers include
compliments, letters of commendation, favorable performance evaluations, and pay raises. Equally
important, jobs can be positively reinforcing. Performing well on interesting, challenging, or
enriched jobs (discussed later in this chapter) is much more reinforcing, and therefore motivating,
then performing well on jobs that are routine and monotonous.
2.
Negative Reinforcement- removing or withholding an undesirable consequence. For example, a
manager takes an employee (or a school takes a student) off probation because of improved
performance. Frequent threatening memos admonished people to achieve every one of their many

performance goals
3.
Punishment- administering an aversive consequence. Examples include criticizing or shouting at
an employee, assigning an unappealing task, and sending a worker home without pay. Negative
reinforcement can involve the threat of punishment, but not delivering it when employees
perform satisfactorily. Punishment is the actual delivery of the aversive consequenc