Motivating and Motivating and

Rewarding EmployeesRewarding Employeeswww.epowerpoint.comwww.epowerpoint.com

Where We AreWhere We Are

Part 1 Introduction

Part 2 Planning

Part 3 Organizing

Part 4 Leading

Part 5 Controlling

Part 4 Leading

Chapter 8Motivating & Rewarding Employees

Chapter 9Leadership & Trust

Chapter 10Communication & Interpersonal Skills

Chapter 8 Motivating & Rewarding Employees

Chapter GuideChapter Guide• Motivation Overview• Theories of Motivation

– Early Theories: Maslow’s Hierarchy of Needs; McGregor’s Theories of X and Y; Hertzberg’s Two-Factors Theory

– Contemporary Theories: Three-Needs Theory; The Job Characteristics Model; ; Equity Theory; Expectancy Theory

• Further Discussion IssuesDiverse workforce; Pay for Performance or Time; Minimum-wage Workers; Professional Employees; Technical Workers; Flexible Work options.

Motivation Motivation

MotivationMotivation is the willingnesswillingness to exert a persistent and high level

of efforteffort toward organizational goalsgoals.

Overview

Motivation and NeedMotivation and Need

NeedNeed is some internal stateinternal state that

makes certain outcomes

appear attractive.

Overview

Components of MotivationComponents of Motivation

OrganizationalOrganizationalGoalsGoals

NeedsNeeds

MotivationMotivation

Effort

Overview

The Motivation ProcessThe Motivation Process

DrivesDrives

SearchBehavior

SearchBehavior

TensionTension Reductionof TensionReductionof Tension

SatisfiedNeed

SatisfiedNeed

UnsatisfiedNeed

UnsatisfiedNeed

Overview

UnsatisfiedNeed

UnsatisfiedNeed

Early Theories of Early Theories of MotivationMotivation

• Maslow’s Hierarchy of Needs

• MacGregor’s Theories X and Y

• Herzberg’s Two-Factor Theory

Early Motivation Theory

Maslow’sMaslow’sHierarchyHierarchyof Needsof Needs

Maslow’sMaslow’sHierarchyHierarchyof Needsof Needs

SelfSelf

EsteemEsteem

SocialSocial

SafetySafety

PhysiologicalPhysiological

Early Motivation Theory 1: Abraham Maslow

Maslow’s Hierarchy of Maslow’s Hierarchy of NeedsNeeds

• Is predetermined in order of importance.

• Lower level needs had to be satisfied before the next higher level need would motivate employees.

• Might create misunderstanding (1 or 5 needs)

Early Motivation Theory 1: Abraham Maslow

Theory XTheory XWorkersWorkers

Dislike WorkDislike Work

Avoid ResponsibilityAvoid Responsibility

Little AmbitionLittle Ambition

Theory YTheory YWorkersWorkers

Enjoy WorkEnjoy Work

Accept ResponsibilityAccept Responsibility

Self-DirectedSelf-Directed

Early Motivation Theory 2: Douglas McGregor

Herzberg’s Two-Factor Theory

– Job satisfaction and job dissatisfaction are created by different factors.

• Hygiene factors: environmental factors that create

job dissatisfaction.

• Motivators: psychological factors that create job

satisfaction.

– Attempted to explain why job satisfaction does not result in increased performance.

• The opposite of satisfaction is not dissatisfaction, but rather no satisfaction.

Early Motivation Theory 3: Frederick Herzberg

Herzberg’s Two-Factor Theory

Hygiene FactorsHygiene Factors MotivatorsMotivators

High HighJob Dissatisfaction Job Satisfaction0

• Quality of supervision• Salary and benefits• Company policies• Working conditions• Relations with others• Security and status

• Quality of supervision• Salary and benefits• Company policies• Working conditions• Relations with others• Security and status

• Career advancement• Recognition• Work itself• Responsibility• Advancement• Growth

• Career advancement• Recognition• Work itself• Responsibility• Advancement• Growth

Early Motivation Theory: Frederick Herzberg

Contrasting Views of Contrasting Views of Satisfaction-DissatisfactionSatisfaction-Dissatisfaction

Traditional View

Satisfaction Dissatisfaction

Motivators

Herzberg‘s View

Satisfaction No SatisfactionNo Satisfaction

Hygiene Factors

No DissatisfactionNo Dissatisfaction Dissatisfaction

Early Motivation Theory: Frederick Herzberg

Contemporary Theories of Contemporary Theories of MotivationMotivation

• Three-Needs Theory

• Equity Theory

• The Job Characteristics ModelThe Job Characteristics Model

• Expectancy Theory

Contemporary Motivation Theory

The TheoryThe Theoryof Needsof Needs

DavidDavidMcClellandMcClelland

The TheoryThe Theoryof Needsof Needs

DavidDavidMcClellandMcClelland

Need forNeed forAchievementAchievement

(nAch)(nAch)

Need forNeed forAchievementAchievement

(nAch)(nAch)

Need forNeed forPowerPower(nPow)(nPow)

Need forNeed forPowerPower(nPow)(nPow)

Need forNeed forAffiliationAffiliation

(nAff)(nAff)

Need forNeed forAffiliationAffiliation

(nAff)(nAff)

Contemporary Motivation Theory 1: David McClelland

Employees perceive

what they get from

a job situation (outcomesoutcomes) in relation to

what they put into it (inputsinputs)) and

then compare their input-outcome ratio

with the input-outcome ratios of

relevant others.

Equity TheoryEquity TheoryEquity TheoryEquity TheoryContemporary Motivation Theory 2: J Stacey Adams

Outputs typically include:• Financial rewards • Intangibles that include:

– Recognition & Praise– Reputation – Responsibility – Sense of Achievement – Sense of Advancement– Job Security

Equity TheoryEquity TheoryEquity TheoryEquity TheoryContemporary Motivation Theory: J Stacey Adams

Inputs typically include:• Effort • Loyalty & trust • Hard Work • Commitment • Skill • Ability • Tolerance • Support of colleagues

Equity TheoryEquity TheoryEquity TheoryEquity TheoryRatio

Comparison*Employee’sPerception

Outcomes A

Inputs A

Outcomes A

Inputs A

Outcomes A

Inputs A

Outcomes B

Inputs B

Outcomes B

Inputs B

Outcomes B

Inputs B

<

=

>

Inequity (Under-Rewarded)

Equity

Inequity (Over-Rewarded)

*Where A is the employee, and B is a relevant other or referent.

Motivation Theory: J Stacey Adams

• ReferentReferent– The other persons, the systems, or the

personal experiences against which individuals compare themselves to assess equity.

– The choice of a particular set of referents is related to the information available about referents as well as to the perceived relevance.

Equity TheoryEquity TheoryEquity TheoryEquity Theory

Motivation Theory: J Stacey Adams

Inequity people’s choiceInequity people’s choice

• When employees perceive an inequity they may:– Distort either their own or others’ inputs or

outcomes.– Behave so as to induce others to change their

inputs or outcomes.– Behave so as to change their own inputs or

outcomes.– Choose a different comparison referent.– Quit their job.

Motivation Theory: J Stacey Adams

The JobThe JobCharacteristicsCharacteristics

ModelModel

The JobThe JobCharacteristicsCharacteristics

ModelModel

Skill Variety

Task Identity

Task Significance

Autonomy

Feedback

Skill Variety

Task Identity

Task Significance

Autonomy

Feedback

Contemporary Motivation Theory 3: J Richard Hackman

Characteristics ExamplesSkill Variety

• High variety The owner-operator of a garage who does electrical repair, rebuilds engines,does body work, and interacts with customers

• Low variety A bodyshop worker who sprays paint eight hours a day

Task Identity• High identity A cabinetmaker who designs a piece of furniture, selects the wood, builds the

object, and finishes it to perfection• Low identity A worker in a furniture factory who operates a lathe to make table legs

Task Significance• High significance Nursing the sick in a hospital intensive-care unit• Low significance Sweeping hospital floors

Autonomy• High autonomy A telephone installer who schedules his or her own work for the day, and

decides on the best techniques for a particular installation• Low autonomy A telephone operator who must handle calls as they come according to a

routine, highly specified procedure

Feedback• High feedback An electronics factory worker who assembles a radio and then tests it to

determine if it operates properly• Low feedback An electronics factory worker who assembles a radio and then routes it to a

quality control inspector who tests and adjusts it

Examples of High and Low Job Characteristics

Motivation Theory: Job Characteristic Model

The Job Characteristics ModelMotivation Theory: Job Characteristic Model

An individual tends to act in

a certain way, in the expectation that

the act will be followed by given outcome,

and according to the attractiveness

of that outcome.

Expectancy Theory

Contemporary Motivation Theory 4: Victor Vroom

Expectancy Theory

3. Rewards - Personal Goals relationship

1. Effort - Performance relationship

2. Performance - Rewards relationship

IndividualIndividualEffortEffort

IndividualIndividualPerformancePerformance

IndividualIndividualGoalsGoals

OrganizationalOrganizationalRewardsRewards

1 2

3

Contemporary Motivation theory: Victor Vroom

Contemporary Contemporary Motivation IssuesMotivation Issues

• How to motivate a diverse workforce

• How to Pay -- for performance or time

• How to motivate minimum-wage workers

• How to motivate professional and technical

employees

• How to use flexible work options

Other issues

Motivate Motivate Diverse Diverse

WorkforceWorkforce

Motivate Motivate Diverse Diverse

WorkforceWorkforce

Be aware of cultural

differences

Recognize people

have different needs

Other issues 1: Diversity of workforce

The Key To Motivating The Key To Motivating A Diverse WorkforceA Diverse Workforce

• Recognizing the different personal needs and goals of individuals

• Providing a diversity of rewards to match the varied needs of employees

• Being flexible in accommodating the cultural differences within a diverse workforce – Motivating a diverse workforce through flexibility:

• Men desire more autonomy than do women.

• Women desire learning opportunities, flexible work schedules, and good interpersonal relations.

Other issues: Diversity of workforce

Use Pay to Motivate

Pay forPay forPerformancePerformance

Pay forPay forPerformancePerformance

Pay forPay forCompetencyCompetency

Pay forPay forCompetencyCompetency

Pay forPay forTimeTime

Pay forPay forTimeTime

Other issues 2: payment

Pay-for-performance Pay-for-performance programsprograms

• pay employees on the basis of performance measures not directly related to time spent on the job

Other issues 2: payment

Motivate Minimum-wage Motivate Minimum-wage WorkersWorkers

• Money is important, but not the only

reward that people seek

• Other rewards can help motivating

– Recognition program

– Praise

– Empowering

Other issues 3: Minimum wage workers

Tend to like Tend to like Challenges from jobsChallenges from jobs

Tend to like Tend to like Challenges from jobsChallenges from jobs

May not be interestedMay not be interestedin becoming managersin becoming managersMay not be interestedMay not be interested

in becoming managersin becoming managers

Professional and Professional and Technical EmployeesTechnical Employees

Professional and Professional and Technical EmployeesTechnical Employees

Loyal to their Loyal to their profession rather profession rather

than their employersthan their employers

Loyal to their Loyal to their profession rather profession rather

than their employersthan their employers

Strong and long-termStrong and long-termcommitment tocommitment to

their fieldtheir field

Strong and long-termStrong and long-termcommitment tocommitment to

their fieldtheir field

Other issues 4: Professional and technical

– Motivators

• Job challenge

• Organizational support of their work

• New assignments

• Autonomy

• Training and educational opportunities

• Recognition

• ……

Motivating Professionals Motivating Professionals & &

Technical EmployeesTechnical Employees

Other issues 4: Professional and technical

Flexible Work OptionsFlexible Work Options

CompressedCompressedWorkweekWorkweek

FlextimeFlextime

JobJobSharingSharing

TelecommutingTelecommuting

Other issues 5: Flexibility

Chapter SummaryChapter Summary

• Motivation process

• Meaning of needs

• Hierarchy of needs theory

• Theory X vs. Theory Y

• Motivation-hygiene theory

Chapter SummaryChapter Summary

• Equity theory

• Expectancy theory

• Jobs designs to maximize performance

• Workforce diversity and motivation