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Motivating and Motivating and Rewarding Employees Rewarding Employees

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Post on 19-Jan-2016




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  • Motivating and Rewarding

  • Where We AreChapter 8 Motivating & Rewarding Employees

  • Chapter GuideMotivation OverviewTheories of MotivationEarly Theories: Maslows Hierarchy of Needs; McGregors Theories of X and Y; Hertzbergs 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 is the willingness to exert a persistent and high level of effort toward organizational goals.


  • Motivation and Need

    Need is some internal state that makes certain outcomes appear attractive.Overview

  • Components of Motivation

    Organizational GoalsNeedsMotivationEffort Overview

  • The Motivation ProcessDrivesSearchBehaviorTensionReductionof TensionSatisfiedNeedUnsatisfiedNeedOverviewUnsatisfiedNeed

  • Early Theories of MotivationMaslows Hierarchy of Needs

    MacGregors Theories X and Y

    Herzbergs Two-Factor TheoryEarly Motivation Theory

  • MaslowsHierarchyof Needs Self




    PhysiologicalEarly Motivation Theory 1: Abraham Maslow

  • Maslows Hierarchy of Needs 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

  • Early Motivation Theory 2: Douglas McGregor

  • Herzbergs 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

  • Herzbergs Two-Factor TheoryHygiene FactorsMotivatorsHighHighJob Dissatisfaction Job Satisfaction0 Quality of supervision Salary and benefits Company policies Working conditions Relations with others Security and status Career advancement Recognition Work itself Responsibility Advancement GrowthEarly Motivation Theory: Frederick Herzberg

  • Contrasting Views of Satisfaction-DissatisfactionEarly Motivation Theory: Frederick Herzberg

  • Contemporary Theories of MotivationThree-Needs Theory

    Equity Theory

    The Job Characteristics Model

    Expectancy Theory

    Contemporary Motivation Theory

  • Contemporary Motivation Theory 1: David McClelland

  • Employees perceive what they get from a job situation (outcomes) in relation to what they put into it (inputs) and then compare their input-outcome ratio with the input-outcome ratios of relevant others.

    Equity TheoryContemporary Motivation Theory 2: J Stacey Adams

  • Outputs typically include:Financial rewards Intangibles that include: Recognition & PraiseReputation Responsibility Sense of Achievement Sense of AdvancementJob Security

    Equity TheoryContemporary Motivation Theory: J Stacey AdamsInputs typically include:Effort Loyalty & trust Hard Work Commitment Skill Ability Tolerance Support of colleagues

  • Equity TheoryRatio Comparison*EmployeesPerceptionOutcomes AInputs AOutcomes AInputs AOutcomes AInputs AOutcomes BInputs BOutcomes BInputs BOutcomes BInputs 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

  • ReferentThe 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 TheoryMotivation Theory: J Stacey Adams

  • Inequity peoples choiceWhen 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 JobCharacteristicsModelSkill VarietyTask IdentityTask SignificanceAutonomyFeedbackContemporary Motivation Theory 3: J Richard Hackman

  • CharacteristicsExamplesSkill Variety High varietyThe owner-operator of a garage who does electrical repair, rebuilds engines,does body work, and interacts with customers Low varietyA bodyshop worker who sprays paint eight hours a dayTask Identity High identityA cabinetmaker who designs a piece of furniture, selects the wood, builds the object, and finishes it to perfection Low identityA worker in a furniture factory who operates a lathe to make table legsTask Significance High significanceNursing the sick in a hospital intensive-care unit Low significanceSweeping hospital floorsAutonomy High autonomyA telephone installer who schedules his or her own work for the day, and decides on the best techniques for a particular installation Low autonomyA telephone operator who must handle calls as they come according to a routine, highly specified procedureFeedback High feedbackAn electronics factory worker who assembles a radio and then tests it todetermine if it operates properly Low feedbackAn 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 CharacteristicsMotivation 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 TheoryContemporary Motivation Theory 4: Victor Vroom

  • Expectancy TheoryIndividualEffortIndividualPerformanceIndividualGoalsOrganizationalRewards123Contemporary Motivation theory: Victor Vroom

  • Contemporary Motivation IssuesHow to motivate a diverse workforceHow to Pay -- for performance or timeHow to motivate minimum-wage workersHow to motivate professional and technical employeesHow to use flexible work optionsOther issues

  • Motivate Diverse Workforce

    Be aware of cultural differencesRecognize people have different needsOther issues 1: Diversity of workforce

  • The Key To Motivating A Diverse WorkforceRecognizing the different personal needs and goals of individualsProviding a diversity of rewards to match the varied needs of employeesBeing 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 MotivatePay forPerformancePay forCompetencyPay forTimeOther issues 2: payment

  • Pay-for-performance programspay employees on the basis of performance measures not directly related to time spent on the jobOther issues 2: payment

  • Motivate Minimum-wage WorkersMoney is important, but not the only reward that people seekOther rewards can help motivatingRecognition programPraiseEmpoweringOther issues 3: Minimum wage workers

  • Other issues 4: Professional and technical

  • Motivators Job challengeOrganizational support of their workNew assignmentsAutonomyTraining and educational opportunitiesRecognition

    Motivating Professionals & Technical EmployeesOther issues 4: Professional and technical

  • Flexible Work OptionsOther issues 5: Flexibility

  • Chapter SummaryMotivation processMeaning of needsHierarchy of needs theoryTheory X vs. Theory YMotivation-hygiene theory

  • Chapter SummaryEquity theoryExpectancy theoryJobs designs to maximize performanceWorkforce diversity and motivation

    **An unsatisfied need creates tension; this tension drives a person to satisfy the need. A motivated employee works intensely and persistently. However, effort and persistence will not pay off unless they are channeled in a direction that benefits the organization.*Douglas McGregor proposed in 1960 in his book The Human Side of Enterprise that managers hold one of two sets of assumptions about human nature, and named them Theory X and Theory Y. Seeing people as irresponsible and lazy, managers who follow Theory X assume the following:Employees inherently dislike work and will try to avoid it.Since employees dislike work, they must be coerced, controlled, or threatened to achieve goals.Employees avoid responsibilities and seek formal direction, if possible.Most workers place security above all other work-related factors and will display little ambition.Seeing people as responsible and conscientious, managers who follow Theory Y assume the following:Employees can view work as being as natural as rest or play.When committed to their objectives, people will exercise self-direction and self-controlThe average person can learn to accept, even seek, responsibility. Many workers besides managers have innovative decision-making skills. No hard evidence confirms that either set of assumptions is universally true. It is more likely that the assumptions of Theory X or Theory Y may or may not be appropriate, depending on the situation at hand. *By asking people what do you fell exceptional good or bad about your job, Frederick Herzberg identified two categories of factors affect peoples motivation in their their jobs. His findings are called motivation-hygiene theory. Herzberg asserted that intrinsic factors are related to job satisfaction whereas extrinsic factors are associated with dissatisfaction. So, he called company policy, supervision, interpersonal relations, working conditions, and salary hygiene factors. When these factors are adequate, people will not be dissatisfied; however, they will not be satisfied either. He believed that achievement, recognition, the work itself, growth, and responsibility are motivators because people find them intrinsically rewarding. *Based on his findings, Herzberg proposed the existence of a dual continuum: the opposite of satisfaction is no satisfaction, and the opposite of dissatisfaction is no dissatisfaction.

    *David McClelland asserts that there are three relevant motives or needs that motivate behavior in the workplace, which he believed are acquired from the culture of a society.:The need for achievement (nAch) is the need to excel, to achieve in relation to a set of standards, to succeed. The need for power (nPow) is the need to shape and control the behavior of others. The need for affiliation (nAff) is the desire for interpersonal relationships. The consistent findings in the areas High achievement need people prefers job satisfaction with personal responsibilities,feedback and intermediate degree of risk.High achievement need people are NOT necessarily good managers, especially in large organizarions.High need for powerPeople can be trained to stimulate their achivement needSome people have a compelling drive to succeed, but they strive for personal achievement, not for the rewards of success, per se (nAch). These high achievers seek situations in which they can take responsibility for solving problems, can receive rapid unambiguous feedback on performance, and can set moderately challenging goals. Persons with a high need for power (nPow) desire to be influential, in charge, and seek competitive, status-oriented situations. Those who have a high need for affiliation (nAff) want to be liked and accepted by others; so, they strive for friendships, cooperation, and high-trust situations.

    *Equity theory seeks to find how the outcome of job influence motivation, and proposes that inequity creates tension, which then would cause an employee to seek fairness. Workers compare their job inputs and outcomes with others. There are four referents that an employee can use: (1) Self-inside: an employees experiences in a different position inside the organization. (2) Self-outside: an employees experiences in a position outside of the organization.(3) Other-inside: an employees perception of persons inside the organization. (4) Other-outside: an employees perception of persons outside of the organization.There are three possible perceptions: inequity due to being under-rewarded, equity, or inequity due to being over-rewarded. Workers who perceive an inequity will react in one of the six following ways: change inputs, change outcomes, distort perceptions of self, distort perceptions of otherschoose a different referent, or leave the field. Two key properties of the theory: relative and conceived *The Job Characteristics Model (JCM) proposes that any job can be described in terms of the following five core job dimensions:Skill variety. Does the job require workers to use different skills and abilities?Task identity. Does the job require workers to complete identifiable pieces of work?Task significance. Does the job have a significant impact on the lives or work of others?Autonomy. Does the job allow workers substantial freedom, discretion, and independence?Feedback. Does the job allow workers to obtain direct, clear performance information?Richard Hackman and Greg Oldhan proposed the framework to analyze and design jobs in 1977.*The figure above offers examples of job activities that rate high and low for each characteristic.*The first three dimensions--skill variety, task identity, and task significance--combine to create meaningful work. The jobs that possess autonomy give the worker a feeling of personal responsibility for the results. If a job provides feedback, the worker will know how well he or she is performing. From the standpoint of motivation, the model tells that internal rewards are obtained by a worker when one learns (knowledge of results) that he or she personally (experienced responsibility) has done well on a task that he or she cares about (experienced meaningfulness). The more that these three elements are present, the greater will be the employees motivation, performance, and satisfaction. The links between job dimensions and outcomes are moderated by the strength of the individuals growth need: that is, by his or her desire for self-esteem and self-actualization. Therefore, those with high growth needs are more likely to experience the psychological states when their jobs are enriched than those with low growth need. Research has shown the following: The model is a usable framework for defining the core characteristics in a cross-section of jobs. Workers whose jobs rate high on core job dimensions are generally more motivated, satisfied, and productive than workers whose jobs rate low. Job dimensions influence personal and work outcome by operating through the critical psychological states rather than influencing outcomes directly. *Expectancy theory argues that an employee will be motivated to produce more when he or she believes that the effort will lead to a good performance appraisal; that a good appraisal will lead to organizational rewards; and that the rewards will satisfy the employees personal goals. This theory focuses on three relationships.The effort-performance relationship is the probability perceived by the individual that exerting a given amount of effort will lead to performance.The performance-rewards relationship is the degree to which an individual believes that performing at a particular level will lead to the attainment of a desired outcome. The rewards-personal goals relationship is the degree to which the rewards of an organization satisfy an individuals personal goals or needs and the attractiveness of those rewards.

    **When motivating a diverse workforce, flexibility is the key. Employees have different needs and goals that they hope to satisfy through work. So, the rewards system must be flexible to meet their diverse needs. Managers must also be sensitive to cultural differences. Managers cannot assume that motivation concepts are universally applicable, so they must adjust motivation techniques according to the culture. Most of the theories of motivation were developed by psychologists who were studying American workers. For instance, theories based on self-interest that are applicable in cultures that value capitalism and individualism may be of questionable value in collectivist cultures. *Before most people do anything, they look for a pay-off or reward. Therefore, managers must consider how pay can be used to motivate high levels of performance in the workplace. Pay-for-performance programs are getting popular these days, such as profit sharing, lump sum bonuses, or wage incentive plans, piece rate plans, pay employees according to some performance measure. Such pay programs are compatible with expectancy theory because workers will perceive a strong relationship between their performance and their rewards. Competency-based compensation program pays and rewards employees on the basis of their skills, knowledge, or behaviors. *One of the toughest challenges a manager can face is motivating minimum-wage workers. Money is important. But, managers should also use other rewards: for instance, employee recognition programs, praise, and employee empowerment. ---- to overcome one of most common misunderstandings.*Professional and technical employees are loyal to their fields of expertise, typically more so than to their employers. To stay current, they need to update their knowledge regularly. They rarely define their workweek in terms of 9-to-5 and 5 days a week. They tend to be paid well and enjoy what they do; so money and promotions are low on their priority list. They like challenging jobs and want others to think that what they are doing is important. Managers should give professional and technical employees new assignments and challenging projects. They should be given autonomy and rewarded with educational opportunities and recognition.To motivate Professional and technical employees *Flexible work options refers any other arrangement than 8 hours a day 5 days per week A compressed workweek consists of four ten-hour days. This schedule allows employees time off to take care of personal business. But studies have shown that there are drawbacks: for instance, decrease in service to customers, decrease in productivity, and under-utilization of equipment. A special type of part-time work, job sharing allows two or more individuals to split a traditional 40-hour-a-week job. Therefore, the organization can draw upon the talents of more than one person for a given job and acquire skilled workers who are only available part-time. However, it is hard to find compatible employees who can coordinate job responsibilities. Flextime allows employees some discretion over when they arrive and leave work. While they still work a specified number of hours, workers can vary the hours within constraints. Flextime offers several benefits: improved employee motivation and recruitment of higher qualified, more diverse workers. But, flextime is not applicable to every job. It works best with clerical tasks that require minimal employee contact with persons outside of the organization. No commute time, flexible hours, no dress code, and few interruptions are some of the benefits of telecommuting: employees working at home on a computer that is linked to their office. The long-term future of telecommuting depends on the answers to some questions. Will work-at-home employees be at a disadvantage in office politics? Will they be less likely to be considered for pay raises or promotions? Will non-work distractions reduce productivity?