MOTIVATING EMPLOYEES

1. MOTIVATING EMPLOYEES

2. MOTIVATION • Motivation is the process that accounts for an individual’s intensity, direction and persistence of effort while attaining a goal.

3. Why do we need to motivate employees? • To avoid the behaviour associated with dissatisfied employees such as tardiness theft, loafing and employee turnover. • To attract and keep best possible talents • To enhance employees’ performance • To inspire Organisational Citizenship behaviour (behaviour on behalf of the organisation that goes beyond normal job expectations) • Increase competitive advantage

4. Maslow’s Hierarchy of Needs Theory • Needs were categorized as five levels • Individuals must satisfy lower-order needs before they can satisfy higher order needs • Satisfied needs will no longer motivate • Motivating a person depends on knowing at what level that person is on the hierarchy • Hierarchy of needs • Lower-order (external): physiological, safety • Higher-order (internal): social, esteem, self-actualization

5. Maslow’s Hierarchy of Needs Self- Actualization Esteem Social Safety Physiological

6. Maslow’s Hierarchy of Needs Theory • This theory says that most people are motivated by several needs at the same time but the strongest source is the lowest unsatisfied need. • Once a lower level need is satisfied the next higher need becomes the primary motivator. • The bottom four are “deficiency needs” while self actualisation is a “growth need” • Main drawback of this theory is that it assumes that everyone has the same heirarchy of needs

7. McGregor’s Theory X and Theory Y • Theory X • Employees have little ambition, dislike work, avoid responsibility, and require close supervision • Theory Y • Employees can exercise self-direction, desire responsibility, and like to work • There is no evidence that either set of assumptions is valid or that accepting Theory Y assumptions and altering one’s actions accordingly will lead to more motivated workers.

8. Herzberg’s Motivation-Hygiene Theory (two factor theory) • Job satisfaction and job dissatisfaction are created by different factors • Hygiene factors: extrinsic (environmental) factors that create job dissatisfaction • Motivators: intrinsic (psychological) factors that create job satisfaction • The opposite of satisfaction is not dissatisfaction, but rather no satisfaction • This is also not a validated theory

9. Motivators Hygiene Factors • Achievement • Supervision • Recognition • Company Policy • Work Itself • Relationship with • Responsibility Supervisor • Advancement • Working Conditions • Growth • Salary • Relationship with Peers • Personal Life • Relationship with Subordinates • Status • Security Extremely Satisfied Neutral Extremely Dissatisfied Herzberg’s Motivation-Hygiene Theory

10. Contrasting Views of Satisfaction–Dissatisfaction Traditional View Satisfied Dissatisfied Herzberg’s View Motivators Hygiene Factors Satisfaction No Satisfaction No Dissatisfaction Dissatisfaction

11. McClelland’s Theory of Needs • Need for achievement (nAch) – is the drive to excel, to achieve in relation to a set of standards, to strive to succeed. • Need for power (nPow) – is the need to make others behave in a way in which they would not have behaved otherwise. • Need for affiliation (nAff) – is the desire for close and friendly personal relationships • High achievers generally perform well when they percieve their probability of success as 0.5 • They are highly motivated when jobs have a high degree of personal responsibility and feedback. • The best managers are high in their need for power and low in their need for affiliation

12. Reinforcement Theory • Behaviour is influence by consequences • Reinforcers are consequences that, when given immediately following a behaviour, increases the probability that the behaviour will be repeatedly • Positive, negative reinforcement, punishment and extinction • Extrinsic rewards – anything received from another person that the recipient values and is contingent on his/her behaviour or results • Intrinsic rewards – a positive emotional experience resulting directly and naturally from the individual’s behaviour/results. • Reinforcement theory ignores feelings, attitudes, expectations.

13. Equity Theory • Proposes that employees perceive what they get from a job situation (outcomes) in relation to what they put in (inputs) and then compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevant others • Job inputs may be effort, experience, education and competence • Job outcomes may be salary levels, raises and other forms of recognition. • If the ratios are perceived as equal then a state of equity (fairness) exists • If the ratios are perceived as unequal, inequity exists and the person feels under- or over-rewarded • When inequities occur, employees will attempt to do something to rebalance the ratios (seek justice)

14. Equity Theory Referent comparisons used: • Self – inside • Self – outside • Other – inside • Other – outside Moderating variables • Gender • Length of tenure • Level in the organisation • Amount of education or professionalism

15. Equity Theory • Employee responses to perceived inequities: • Distort perceptions of own or others’ ratios • Change their outcomes • Change own inputs (increase or decrease efforts) or outcomes (seek greater rewards) • Choose a different comparison (referent) or other (person, systems, or self) • Quit their job • Employees are concerned with both the absolute and relative nature of organizational rewards

16. Equity Theory • Given payment by time, over rewarded employees will produce more than will equitably paid employees • Given payment by quantity, over rewarded employees will produce less pieces of better quality than will equitably paid employees • Given payment by time, under rewarded employees will produce less or poorer quality output • Given payment by quantity, under rewarded employees will produce a large number of low-quality units in comparison with equitably paid employees

17. Ratio of Output to Input Person 1’ s Perception Person 1 Inequity, under-rewarded Person 2 Person 1 Equity Person 2 Person 1 Inequity, over-rewarded Person 2 Equity Theory

18. Expectancy Theory • Individuals act based on the expectation that a given outcome will follow and whether that outcome is attractive • Key to the theory is understanding and managing employee goals and the linkages among and between effort, performance, and rewards • Effort: employee abilities and training/development • Performance: valid appraisal systems • Rewards (goals): understanding employee needs

19. Individual Individual Organizational Individual Effort Performance Rewards Goals Simplified Expectancy Model A B C = Effort-performance linkage A = Performance-reward linkage B = Attractiveness of reward C

20. Expectancy Relationships • Expectancy (effort-performance linkage) • The perceived probability that an individual’s effort will result in a certain level of performance • Instrumentality • The perception that a particular level of performance will result in attaining a desired outcome (reward) • Valence • The attractiveness/importance of the performance reward (outcome) to the individual

21. Improving Expectancy Improving Instrumentality Improving Valence Improve the ability of the Make sure that the reward is Increase the individual’s belief that individual to perform meaningful to the individual performance will lead to reward • Make sure employees have skills • Observe and recognize performance. • Ask employees what rewards they for the task. • Deliver rewards as promised. value. • Provide training. • Indicate to employees how previous • Give rewards that are valued. • Assign reasonable tasks and goals. good performance led to greater rewards. Steps to Increasing Motivation

22. LOCKE’S GOAL SETTING THEORY • This theory proposes that intentions to work towards a goal are a major source of work motivation • Through his goal-setting theory, Locke claimed that setting specific employee goals increases performance • Difficult goals when accepted by the employee, resulted in even higher performance that easy goals do. • Employee feedback led to higher performance than when feedback was lacking

23. GOAL SETTING THEORY • Difficult goals motivate than easier goals because challenging goals get our attention and help us focus, they energise us because we have to work harder to attain to get them, finally difficult goals help us come with strategies to perform the task more effectively. • Self generated feedback is a powerful motivator • Participative decision making increases acceptance of goals

24. GOAL SETTING THEORY • Contingency factors • Goal commitment • Task characteristics – simple rather than complex, well learned rather than novel, and independent rather than interdependent (on interdependent tasks, group goals are preferable) • Culture bound

25. Management by Objectives (MBO) • A more systematic way of utilising goal setting theory • Goal specificity, participative decision making, an explicit time period and performance feedback. • Reasons for failure • Unrealistic expectations regarding results • Lack of commitment by top management • Inability or unwillingness to allocate rewards based on goal accomplishments • Cultural incompatibilities

26. Job Characteristics Model (JCM) • The model suggests that a person’s intrinsic motivation depends on three critical psychological states • A framework for designing motivating jobs • Five primary job characteristics: • Skill variety: how many skills and talents are needed? • Task identity: does the job produce a complete work? • Task significance: how important is the job? • Autonomy: how much independence does the jobholder have? • Feedback: do workers know how well they are doing?

27. Core Job Critical Personal and Dimensions Psychological States Work Outcomes High Internal Skill Variety Experienced Work Motivation meaningfulness Task Identity of the work High-Quality Task Significance Work Performance Experienced responsibility Autonomy High Satisfaction for outcomes of the work with the Work Low Absenteeism Knowledge of the actual Feedback and Turnover results of the work activities Job Characteristics Model .

28. Redesigning jobs • Job rotation – reduces boredom, increases motivation through diversifying employee activities, and helps employees better understand how their work contributes to the organisation. It is done at the expense of increased training costs and reduced productivity • Job enlargement – expanding jobs horizontally • Job enrichment

29. Guidelines for Job Enrichment .

30. MOTIVATION 3.0 • Autonomy • Mastery • Purpose