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Lecture Personnel economics in practice - Chapter 7: Job design

On being introduced to this chapter, you will be able to address the following questions: What are the three main economic goals in designing a job? What are the key features of a job design? How should we begin to think about decision authority? | Chapter 7: Job Design 11/13/2014 1 Chapter 7: Job Design Patterns of Job Design Optimal Job Design: Skills, Tasks, and Decisions Multiskilling and Multitasking Skills Flexibility Communication Innovation Tasks Specialization versus Multitasking Lower Transactions Costs Supply Considerations Complementarity in Production On-the-job Learning Monitoring Difficulties Intrinsic Motivation Decisions Complementarity and Job Design When to Use Different Job Designs Taylorism Factors Pushing Toward Taylorism or Continuous Improvement Firm Size Complexity Predictability Time Horizon Intrinsic Motivation Summary 11/13/2014 2 Chapter 7 – Job Design On being introduced to this chapter, you will be able to address the following questions: What are the three main economic goals in designing a job? What are the key features of a job design? How should we begin to think about decision authority? 11/13/2014 3 3 Definition Job: An aggregation or tasks that can be completed by an individual worker . | Chapter 7: Job Design 11/13/2014 1 Chapter 7: Job Design Patterns of Job Design Optimal Job Design: Skills, Tasks, and Decisions Multiskilling and Multitasking Skills Flexibility Communication Innovation Tasks Specialization versus Multitasking Lower Transactions Costs Supply Considerations Complementarity in Production On-the-job Learning Monitoring Difficulties Intrinsic Motivation Decisions Complementarity and Job Design When to Use Different Job Designs Taylorism Factors Pushing Toward Taylorism or Continuous Improvement Firm Size Complexity Predictability Time Horizon Intrinsic Motivation Summary 11/13/2014 2 Chapter 7 – Job Design On being introduced to this chapter, you will be able to address the following questions: What are the three main economic goals in designing a job? What are the key features of a job design? How should we begin to think about decision authority? 11/13/2014 3 3 Definition Job: An aggregation or tasks that can be completed by an individual worker 11/13/2014 4 4 Patterns of Job Design 11/13/2014 5 “Classical” Job Design Adam Smith, 1776: specialization efficiency in on-the-job learning economies of scale in performing tasks (& the benefits we already discussed) don’t forget specialization: it is the reason that we have economies! Frederick Taylor, 1920s: “Taylorism” figure out best practice thru industrial engineering, & have all do it that way (UPS) an extremely logical approach note that it is centralization Effects narrow jobs (few tasks), low skills, low discretion (little decentralization) jobs may be poorly motivating 6 11/13/2014 “Modern” Job Design: Intrinsic Motivation 7 Hackman, et al, 1970s: Autonomy Responsibility for Outcomes of Work Knowledge of Actual Results of Work Feedback Task & Skill Variety Task Identity Task Significance Meaningfulness of Work Intrinsic Motivation Quality Job Satisfaction (?) 11/13/2014 Classical v. Modern Job Design The Classical & Modern approaches are diametric opposites job enrichment is the