MANAGERIAL APPROACHES TO MOTIVATION

1. MANAGERIAL APPROACHES TO MOTIVATION SCIENTIFIC MANAGEMENT (1890 – 1930) ECONOMIC INCENTIVES HUMAN RELATIONS MANAGEMENT (1930 – 1965) SOCIAL RELATIONSHIPS HUMAN RESOURCES MANAGEMENT (1965 +) MEANINGFUL WORK EXPERIENCES

2. PSYCHOLOGICAL APPROACHES TO MOTIVATION HEDONISM (pre 1890) RATIONAL CHOICES INSTINCT (UNCONSCIOUS) (1890 – 1920) UNCONSCIOUS HEDONISM DRIVE (REINFORCEMENT) (1920 +) HEDONISM OF THE PAST COGNITIVE (1940 +) HEDONISM OF THE FUTURE

3. WHAT IS MOTIVATION?HEDONISM?? 3 WAYS OF LOOKING AT MOTIVATION: 1. WHAT INITIATES OR ACTIVATES BEHAVIOR? NEEDS 2. WHAT DIRECTS BEHAVIOR TOWARD A PARTICULAR GOAL? RATIONAL PROCESSES 3. HOW IS GOOD BEHAVIOR SUSTAINED OVER TIME? REINFORCEMENT

4. MOTIVATION THEORIES CONTENT (NEED) THEORIES HIERARCHY OF NEEDS (Maslow) ERG THEORY (Alderfer) MANIFEST NEEDS (Murray, McClelland) TWO-FACTOR THEORY (Herzberg) JOB DESIGN THEORY (Hackman) PROCESS THEORIES EQUITY THEORY (Adams) EXPECTANCY THEORY (Vroom) COGNITIVE EVALUATION THEORY (Deci) GOAL-SETTING THEORY (Locke) REINFORCEMENT THEORIES OPERANT CONDITIONING (Skinner) BEHAVIOR MODIFICATION

5. CONTENT THEORIES WHAT INITIATES OR ACTIVATES BEHAVIOR? Models of motivation that try to answer the question…”What factors in the workplace motivate people?” Focuses on needs and deficiencies of individuals.

6. Maslow’s Hierarchy of Needs Source: Adopted from Abraham H. Maslow, “A Theory of Human Motivation,” Psychology Review, 1943, Vol. 50, pp. 370-396.

7. HIERARCHY OF NEEDSMASLOW (43) ASSUMPTIONS A 5-LEVEL HIERARCHY OF NEEDS EXISTS UNIVERSALLY ONLY UNSATISFIED NEEDS MOTIVATE US AS LOWER-LEVEL NEEDS ARE SATISFIED, HIGHER-LEVEL NEEDS BECOME MORE IMPORTANT DETERMINANTS OF BEHAVIOR THE HIERARCHY 5. SELF-ACTUALIZATION 4. ESTEEM OR EGO NEEDS 3. BELONGINGNESS OR SOCIAL NEEDS 2. SECURITY OR SAFETY NEEDS 1. PHYSIOLOGICAL NEEDS RESEARCH FINDINGS NO DISTINCT PROGRESSION UP THROUGH THE 5 LEVELS PEOPLE PURSUE SEVERAL NEEDS SIMULTANEOUSLY PEOPLE CAN REGRESS (MOVE BACK DOWN) THE HIERARCHY

8. ERG THEORYALDERFER (69) ASSUMPTIONS A THREE-LEVEL HIERARCHY MORE THAN ONE NEED CAN BE SIMULTANEOUSLY PURSUED PEOPLE CAN REGRESS (MOVE BACK DOWN) THE HIERARCHY THE HIERARCHY 3. GROWTH NEEDS 2. RELATEDNESS NEEDS 1. EXISTENCE NEEDS RESEARCH FINDINGS FITS THE EMPIRICAL RESEARCH BETTER THAN MASLOW ALL OTHER ASPECTS OF THIS MODEL ARE ESSENTIALLY SIMILAR TO MASLOW’S NEED HIERARCHY

9. MANIFEST NEEDSMURRAY (38), McCLELLAND (65) ASSUMPTIONS THERE IS NO HIERARCHY AMONG THE NEEDS NEEDS ARE LEARNED, NOT INSTINCTIVE NEEDS ARE NEVER COMPLETELY SATISFIED (N ACH) ACHIEVEMENT ASSUMES PERSONAL RESPONSIBILITY SETS MODERATELY DIFFICULT GOALS, TAKES RISKS DESIRES IMMEDIATE, CONCRETE FEEDBACK PREOCCUPIED WITH TASKS & ACCOMPLISHMENTS (N AFF) AFFILIATION DESIRES APPROVAL AND REASSURANCE FROM OTHERS WANTS TO HAVE CONTACTS WITH OTHERS CONFORMS TO WISHES AND NORMS OF OTHERS CONCERNED WITH FEELINGS AND SOCIAL RELATIONSHIPS (N POW) POWER (DOMINANCE) DESIRES INFLUENCE & ADVISE OTHERS AROUND THEM DESIRES TO CONTROL ONE’S OWN ENVIRONMENT HAS A STRONG SENSE OF ORDER

10. TWO-FACTOR THEORYHERZBERG (59) ASSUMPTIONS TWO DIFFERENT TYPES OF FACTORS INFLUENCE US…HYGIENES & MOTIVATORS THE OPPOSITE OF SATISFACTION IS “NO SATISFACTION” THE OPPOSITE OF DISSATISFACTION IS “NO DISSATISFACTION” ONLY MOTIVATING FACTORS LEAD TO SATISFACTION HYGIENES AT BEST LEAD TO NO DISSATISFACTION HYGIENES (EXTRINSIC)MOTIVATORS (INTRINSIC) WORKING CONDITIONS RESPONSIBILITY COMPANY POLICIES CHALLENGE OF WORK SUPERVISIOR MEANINGFUL WORK COWORKERS ACHIEVEMENT SALARY & BENEFITS ACCOMPLISHMENT STATUS SYMBOLS GROWTH OPPORTUNITIES IMPLICATIONS ABUNDANT HYGIENES DO NOT MOTIVATE WORKERS, THEY ONLY PREVENT DISSATISFACTION ENRICH JOBS TO PROVIDE MOTIVATING, CHALLENGING WORK AND HIGH SATISFACTION WEAKNESSES RESEARCH METHODOLOGY IS FLAWED DOESN’T RECOGNIZE INDIVIDUAL NEED DIFFERENCES…NOT EVERYONE WANTS ENRICHED JOBS OVEREMPHASIZES JOB SATISFACTION

11. JOB DESIGN THEORYHACKMAN & OLDHAM (76) JOB CHARACTERISTICS MODEL FIVE JOB DIMENSIONSPSYCHOLOGICAL STATES SKILL VARIETY TASK IDENTITY  MEANINGFULNESS TASK SIGNIFICANCE (Leads to high internal work motivation) AUTONOMY  PERSONAL RESPONSIBILITY (Leads to high quality work & satisfaction) FEEDBACK  KNOWLEDGE OF RESULTS (Leads to high satisfaction & low turnover) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - EFFECTIVENESS IS MODERATED BY EMPLOYEE GROWTH-NEED STRENGTH CALCULATE THE MOTIVATING POTENTIAL SCORE TO DETERMINE IF THE JOB NEEDS TO BE REDESIGNED ARE YOUR WORKERS MOTIVATED BY INTRINSIC WORK FACTORS AND A STRONG NEED FOR ACHIEVEMENT (AN ENRICHED JOB)?

12. PROCESS THEORIES WHAT DIRECTS BEHAVIOR TOWARD A PARTICULAR GOAL? What is the rational thinking process that we go through to decide whether to do something or not? Focuses on why people choose certain behavioral options to satisfy their needs and how they evaluate their satisfaction after they have attained their goals.

13. EQUITY THEORY(ADAMS 65) • I compare my work outcomes (Om) with my perception of what others’ outcomes are (Oo). I also compare my work inputs (Im) with what I think others are contributing to their jobs (Io). • If the relative ratio of my outcomes/inputs (Om/Im) is similar to the perceived outcomes/inputs (Oo/Io) of others at work, EQUITY exists and the organization is perceived to be “fair.” (Om/Im) = (Oo/Io) I feel fairly treated (content)

14. POSITIVE & NEGATIVE INEQUITY • If I believe my outcomes/inputs ratio is more generous than the outcome/input ratio of others, I feel guilty and over-rewarded. This is POSITIVE INEQUITY, and this perception may or may not motivate one to action. (Om/Im) > (Oo/Io) I feel over-rewarded (guilty) • If I think my outcomes/inputs ratio is less than the outcome/input ratio of others, I feel frustrated and under-rewarded. This is NEGATIVE INEQUITY, and this perception usually motivates one to act to resolve this “unfair” situation. (Om/Im) < (Oo/Io) I feel under-rewarded (frustrated)

15. LIKELY RESPONSES WHEN INEQUITY IS PERCEIVED • CHANGE MY OUTCOMES • CHANGE MY INPUTS • RECONSIDER (OR DISTORT) THE PERCEIVED RATIOS • CHANGE “OTHER’S” INPUTS OR OUTCOMES • CHANGE COMPARISON “OTHER” • LEAVE THE ORGANIZATION OR WITHDRAW

16. EXPECTANCY-VALENCE THEORYTHREE PERCEPTIONS EXPECTANCY (E P) If I put forth effort (E), what’s the probability that I can achieve the performance objective (P)? INSTRUMENTALITY (P  O) If I achieve the performance objective (P), what’s the probability that a specific outcome (O) or reward will be given to me? VALENCE (V) How much value (positive or negative) do I attach to receiving this outcome? MOTIVATION (EFFORT) = (E  P) x sum of [(P  O)i(V)i]

17. COGNITIVE EVALUATION THEORYDECI (95) (The “Deci Argument” or the “Insufficient Justification” Thesis) MORE REWARDS ARE NOT NECESSARILY BETTER FOR MOTIVATION: THE EFFECTS OF INTRINSIC AND EXTRINSIC REWARDS IS NOT ADDITIVE. WHEN MONEY IS STRESSED AS A WORK REWARD, PEOPLE LOSE SIGHT OF THE INTRINSIC REWARDS THAT ARE INHERENT IN THE WORK ITSELF. THIS IS PARTICULARLY PRONOUNCED WHEN YOU TANGIBLY REWARD “VOLUNTEERS” OR PAY MUCH MORE FOR WORK THAN WAS EXPECTED. MAYBE WE SHOULDN’T LINK PAY OR REWARDS TO WORK PERFORMANCE…SO THE INTRINSIC REWARDS OF THE JOB WILL CONTINUE TO BE PERCEIVED WEAKNESSES ORIGINAL STUDIES DONE MOSTLY WITH STUDENTS HIGH LEVELS ON INTRINSIC MOTIVATION ARE NOT DIMINISHED BY EXTRINSIC REWARDS MOST WORKERS IN THE “REAL WORLD” EXPECT TO BE PAID FOR THEIR EFFORTS SENSITIZATION SEEMS TO MAINTAIN AWARENESS OF INTRINSIC MOTIVATORS

18. GOALSETTING THEORYLOCKE (68) ASSUMPTIONS • WORKERS WANT CLEAR CRITERIA FOR WORK EVALUATION • SPECIFIC GOALS INCREASE PERFORMANCE * DIFFICULT GOALS (WHEN ACCEPTED) RESULT IN MORE PERFORMANCE THAN EASY GOALS • FEEDBACK LEADS TO HIGHER PERFORMANCE THAN DOES NONFEEDBACK FINDINGS • PARTICIPATION INCREASES ACCEPTANCE OF CHALLENGING GOALS • PEOPLE WILL WORK TOWARD MEETING GOALS IF THEY FEEL THEY HAVE CONTROL OVER GOAL ACCOMPLISHMENT • SELF-GENERATED (as opposed to externally-provided) FEEDBACK LEADS TO THE HIGHEST GOAL ACHIEVEMENT • NOT ALL CULTURES RESPOND WELL TO GOALSETTING (where worker independence and the expectation of individual evaluation is assumed) • QUANTITATIVE, SHORT-TERM GOALS MAY NOT APPROPRIATELY CAPTURE THE ESSENTIAL QUALITIES WHICH SHOULD BE ACHIEVED IN A GIVEN JOB

19. USING GOALSETTING MANAGEMENT BY OBJECTIVES (MBO) FOUR ELEMENTS GOAL SPECIFICITY PARTICIPATIVE DECISION-MAKING EXPLICIT TIME PERIOD FEEDBACK Are the objectives reasonable? …are they accepted? More difficult goals can be accomplished if participatively set Are significant rewards given for accomplished objectives? Are significant portions of the job ignored because objectives cannot be set and measured? Does the culture accept the idea of individual evaluation and reward?

20. REINFORCEMENT THEORIES HOW IS GOOD BEHAVIOR SUSTAINED OVER TIME? The role of rewards as they cause behavior to change or remain the same over time. Assumes that: • Behavior that results in rewarding consequences is likely to be repeated, whereas behavior that results in punishing consequences is less likely to be repeated.

21. LEARNING LEARNING – A RELATIVELY PERMANENT CHANGE IN BEHAVIOR OR POTENTIAL BEHAVIOR THAT RESULTS FROM DIRECT OR INDIRECT EXPERIENCE. KEY POINTS CHANGES IN BEHAVIOR LONG-LASTING EFFECTS AFFECTS POTENTIAL AND ACTUAL BEHAVIOR CAUSED BY DIRECT OR INDIRECT EXPERIENCE (Vicarious Learning) CLASSICAL CONDITIONING (Reflexive Behavior) PAVLOV’S DOG – INVOLUNTARY RESPONSE (No Choice) OPERANT CONDITIONING (Reinforcement) DRAWS ON EXPERIENCES OF THE PAST PEOPLE CAN MAKE CHOICES ABOUT THEIR BEHAVIOR RECOGNIZES THAT CHOICES HAVE CONSEQUENCES CONSEQUENCES EXPERIENCED WILL AFFECT FUTURE CHOICES

22. REINFORCEMENT THEORY(SKINNER 72) ASSUMPTIONS: The consequences of past actions will influence our future actions We repeat behaviors which lead to rewards that are satisfying We reduce behaviors which go unrewarded or lead to punishment Thus, tie valued rewards to desired behaviors in the workplace It is better to positively reinforce behavior than to use punishment TYPES OF REINFORCEMENT POSITIVE AVOIDANCE (NEGATIVE) EXTINCTION PUNISHMENT

23. SCHEDULES OF REINFORCEMENT CONTINUOUS (every time) New behaviors are quickly learned, but also stop quickly when unrewarded INTERMITTENT (not every time) Fixed-Ratio Fixed-Interval Variable-Ratio Variable-Interval Takes longer to learn new behaviors, but behavior is sustained over a longer period of time

24. 5 MOST EFFECTIVE REINFORCERSWARREN • MONEY (Tangible Compensation) • RECOGNITION (Publicity, Praise) • FREEDOM (Autonomy, Discretion) • OPPORTUNITIES TO IMPROVE (Grow, Develop, Train) • INFLUENCE & POWER (Promotion) CONCERNS WITH REINFORCERS ARE REWARDS PERCEIVED AS IMPORTANT AND DESIRABLE? CAN REWARDS BE GIVEN INCREMENTALLY AND FLEXIBLY? CAN REWARDS BE GIVEN FREQUENTLY, OR DO THEY “WEAR OUT?” ARE WORKERS LIKELY TO FEEL MANIPULATED? WILL GIVING EXTRINSIC REWARDS ERODE INTRINSIC VALUES?

25. HOW TO ENCOURAGE EXCELLENCE? ARE WE TAKING FULL ADVANTAGE OF THE REWARDS WE CONTROL? HAVE WE THOUGHT THROUGH THE FULL IMPACT THAT OUR REWARD SYSTEM HAS ON THE ORGANIZATION? DO EMPLOYEES HIGHLY VALUE THE REWARDS WE MAKE AVAILABLE TO THEM? DO EMPLOYEES KNOW WHAT THEY MUST DO TO OBTAIN THESE REWARDS? IN SHORT, DO WE REWARD EXCELLENCE OR MEDOCRITY?

26. WHAT ARE YOU REWARDING WITH YOUR “PAY” SYSTEM? • TIME SPENT ON-THE JOB • LONGEVITY (SENIORITY) WITH THE FIRM • DEMONSTRATED SKILLS & COMPETENCIES • PAST ACHIEVEMENTS & ACCOMPLISHMENTS • CURRENT PERFORMANCE & PRODUCTIVITY REMEMBER, YOU GET WHAT YOU REWARD!! HOW MUCH OF EACH COMPENSATION DOLLAR SHOULD BE PAID CONTINGENT ON PERFORMANCE? 5 % 10% 15% 25% 50% 100% ????

27. INCENTIVES AND PERFORMANCE-BASED REWARDS FOR INCENTIVES TO BE SUCCESSFUL 1. PERFORMANCE INDICATORS MUST BE CLEARLY DEFINED 2. STANDARDS MUST BE CLEARLY COMMUNICATED TO WORKERS 3. WORKERS MUST BE ABLE TO INFLUENCE PERFORMANCE LEVELS 4. PERFORMANCE MUST BE ACCURATELY EVALUATED 5. REWARDS MUST BE BASED ON PERFORMANCE ACHIEVEMENT 6. REWARDS OFFERED MUST BE HIGHLY VALUED BY WORKERS 7. WORKERS AND MANAGEMENT MUST TRUST EACH OTHER HOW TO ADMINISTER INCENTIVE PAY A. ADD IT TO THE REGULAR PAYCHECK ONCE ACQUIRED…FOREVER PAID…NEVER IS “EARNED” AGAIN INCENTIVE PAY MIXED WITH BASE PAY…WORKERS LOSE MOTIVATION B. PAY IT ALL OUT AS A LUMP-SUM AT ONE TIME LARGE CASH OUTFLOWS ARE DIFFICULT FOR THE FIRM TO MANAGE OPPOSED BY UNIONS BECAUSE ANNUAL WAGES DON’T GROW

28. “INCENTIVE” PLANS AND PERFORMANCE-BASED REWARDS -- 1 1. SENIORITY & LONGEVITY SYSTEMS • Rewards loyalty to the firm…not productivity or performance • Workforce more likely to possess obsolete skills • Increments must be granted each year (no limit or “cap”) 2. ACQUIRED SKILLS & KNOWLEDGE INCENTIVES • The size of pay increments for each added skill • Labor costs go up…but does productivity improve? • Once all skills are mastered…what motivates the worker? • There really aren’t any rewards for work performance

29. “INCENTIVE” PLANS AND PERFORMANCE-BASED REWARDS -- 2 3. PIECE RATES & COMMISSIONS • Setting “fair” standards • Changing standards and rates • Who controls work outcomes? • Are there rewards for all the essential duties of the job? WHEN IS IT FEASIBLE TO USE PIECE RATES? 1. UNITS OF WORK ARE EASY TO DISTINGUISH AND MEASURE 2. QUALITY IS OF LESSER IMPORTANCE THAN QUANTITY 3. WORKER INVOLVEMENT IS A MAJOR DETERMINANT OF PRODUCTIVITY 4. THE WORKER CONTROLS WORK SPEED…NOT MACHINE-PACED 5. CLOSE SUPERVISION IS IMPRACTICAL 6. CHANGES IN WORK PROCESSES ARE INFREQUENT 7. YOU HAVE EXPERTS TO SET AND EVALUATE YOUR WORK STANDARDS 8. COMPETITION REQUIRES THAT UNIT LABOR COSTS BE PREDICTABLE

30. “INCENTIVE” PLANS AND PERFORMANCE-BASED REWARDS -- 3 • MERIT REVIEW PLANS WHY DO MERIT PLANS FAIL? (HAMNER, 75) • Appraisal ratings seem invalid or biased • APPROPRIATE MEASURES? • OBJECTIVITY OR RATERS? • Pay adjustments not seen as being related to performance • Supervisors more concerned about satisfaction than performance • Incentives offered (type and size) aren’t motivating • ARE THESE REWARDS HIGHLY DESIRED? • SMALL INCREMENTS DO NOT MOTIVATE • Usually added to base pay as a percentage • EARNED ONCE…KEPT FOREVER • Trust and openness about pay and merit increases is very low

31. “INCENTIVE” PLANS AND PERFORMANCE-BASED REWARDS -- 4 5. SUGGESTION SYSTEMS • Origin of the idea…who should get the credit? • Some workers can’t write their ideas down • Does management follow up on the ideas submitted? • Supervisors criticized…suggests they’re incompetent 6. COST-REDUCTION (GAINSHARING) PLANS • SCANLON, KAISER, RUCKER, IMPROSHARE • Sensitive cost data must be revealed to workers • Middle management is left out • Unions use the system to criticize management • Usually a complex formula for distributing rewards • Weakened link between rewards & individual performance

32. “INCENTIVE” PLANS AND PERFORMANCE-BASED REWARDS -- 5 7. PROFIT-SHARING PLANS • Is there a real link to worker performance? • Impact of economic decline…what happens to motivation? • Determining the formula for distribution 8. STOCK OWNERSHIP PLANS • Dilution of control over the company • Impact of changes in the tax laws and economic cycles • Any real link to worker performance? • SPECIAL CONTESTS AND AWARDS ABSENTEEISM, SALES PROMOTIONS, OUTSTANDING SERVICE AWARDS • Are the consequences of the spirit of competition anticipated? JEALOUSY, UNCOOPERATIVENESS, COMPETITION WITHIN TEAMS AND GROUPS • Only the “Best” receives a reward…what about # 2? • Awards are often seen as “rights” (I earned it!), not as gifts

33. EMPLOYEE RECOGNITION PROGRAMS “EMPLOYEE OF THE MONTH” AWARDS VOTED BY PEERS / CUSTOMERS or PICKED BY THE SUPERVISOR? INFORMALLY ACKNOWLEDGED or PUBLICLY CELEBRATED? PRAISED or TANGIBLY REWARDED? TYPES OF RECOGNITION INSTANT, SPONTANEOUS VERBAL COMPLIMENT PERSONALIZED WRITTEN NOTE / LETTER OF APPRECIATION PLAQUE OR CERTIFICATE OF OUTSTANDING PERFORMANCE POST PICTURE OF WINNER / GET SPECIAL PARKING SPOT ARTICLE IN COMPANY NEWSLETTER CASH AWARD OR VALUABLE GIFT CAUTIONS WAS THIS RECOGNITION LEGITIMATELY EARNED, OR IS IT FAVORITISM? IF COLLABORATION WAS INVOLVED, HOW TO RECOGNIZE THE CONTRIBUTION OF THE GROUP (ALL THE OTHERS) WHO HELPED YOU? IS THERE A RULE THAT PREVENTS YOU FROM EARNING IT AGAIN?

34. EMPOWERMENT & PARTICIPATION Empowerment The process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of influence. Participation The process of giving employees a voice in making decisions about their work. • Areas of Participation for Employees • Making decisions about their jobs (what to do and when) • Making decisions about administrative matters. • Participating in decision making about broader issues of product quality.

35. EMPLOYEE INVOLVEMENT PLANS PARTICIPATIVE MANAGEMENT QUALITY CIRCLES EMPLOYEE STOCK OWNERSHIP SUGGESTION PLANS* ALL OF THESE APPROACHES TRY TO “EMPOWER” THE WORKER THIS MAY NOT FIT WELL WITH THE CULTURE & WORKER EXPECTATIONS WHILE WORKERS MAY DESIRE TO BE INVOLVED IN DECISION-MAKING, THEY MAY ALSO EXPECT THAT THEY SHOULD RECEIVE A REWARD FOR DOING THIS FOR THE COMPANY…MANY PLANS DO NOT PROVIDE TANGIBLE REWARDS FOR THESE SUGGESTIONS, ETC.

36. FLEXIBILITY & WORKER CONTROL WORK SCHEDULE FLEXIBILITY 1.COMPRESSED WORK WEEK WORKER FATIGUE ISSUE OF OVERTIME DIFFICULTIES IN WORK SCHEDULING 2. FLEXTIME SUPERVISION & COORDINATION IS MORE DIFFICULT ADEQUATE COVERATE OF WORK---HOW TO SCHEDULE? JOBS THAT REQUIRE ALL TO BE PRESENT 3. JOB SHARING / PART-TIME WORK COORDINATING WITH OTHER WORKERS INCREASED COST OF BENEFITS 4. TELECOMMUTING NO CONTACTS WITH OTHER WORKERS—NO COORDINATION NO SUPERVISION—NOT EASY TO GET HELP WHEN NEEDED HOW PRODUCTIVE ARE YOU WHEN WORKING AT HOME? ISSUE OF LIABILITY WHEN WORK IS DONE AT HOME

37. FLEXIBLE BENEFIT PLANS(CAFETERIA BENEFIT PLANS) TYPES OF FLEXIBLE PLANS CORE MODULAR ( BASE + PACKAGES) FLEXIBLE SPENDING ACCOUNTS HEALTH SAVINGS ACCOUNTS ADVANTAGES CAPS OR CONTAINS BENEFIT COSTS RAISES CONSCIOUSNESS RE: BENEFIT COSTS PROVIDES WORKERS ONLY THE BENEFITS THEY DESIRE LIMITATIONS COST OF BENEFITS FLUCTUATES (ADVERSE SELECTION) PEOPLE MAKE IRRESPONSIBLE DECISIONS IRS RULINGS & TAX LIABILITY ISSUES BOOKKEEPING & ADMINISTRATIVE ISSUES

38. IMPLICATIONS OF THESE APPLICATIONS OF MOTIVATION THEORY Recognize Individual Differences EVERYONE ISN’T MOTIVATED BY THE SAME THING Use Objectives and Feedback HELP WORKERS TO KNOW WHAT TO DO & HOW THEY’RE DOING Employee Participation in Decisions that Affect Them GIVES THE WORKERS A VOICE…EMPOWER THEM Link Rewards to Performance YOU ONLY GET WHAT YOU REWARD, SO BE CAREFUL Check the Systems for Equity and Fairness ADMINISTER REWARDS ON A FAIR & CONSISTENT BASIS