Work motivation

1. ‘Money may not be able to buy happiness, but you can make a substantial down payment on it’ Marx Workmotivation

2. WHY? HOBBY & ENERGY

3. WHY? WORK

4. A motive is a reason for doing something. • Motivation is concerned with the factors that influence people’s behaviour • Direction – what? • Effort – how? • Persistence – how long? What is motivation?

5. MOTIVATION • Intrinsic Rewards Status/ Growth / Responsibility • Extrinsic Rewards Non-financial (office, staff, title, etc.) Financial (direct and indirect compensation)

6. Herzberg 2 factortheory

7. Motivation theories – herzberg two factors Motivators/ Satisfiers • Achievement • Recognition • Work itself • Responsibility • Advancement Hygiene factors/ Dissatisfiers • Company policy and administration • Supervision • SALARY • Interpersonal relations • Working conditions

8. Maslow Hierarchy of needs

9. „The only way to do great work is to love what you do”

10. The paydichotomy Employee seeks to Company seeks to Competing Often Incompatible Aims

11. Payobjectives(Torrington and Hall) Employee objectives • Purchasing power • ‘Felt fair’ • Rights (To share in company’s profit) • Relatives • Recognition • Composition Employer objectives • Prestige • Competition • Control • Motivation and productivity • Cost

12. Organizational Compensation System Requirements Maximize ability to attract and retain qualified employees Be within ability to pay Allow organization to remain competitive

13. Legal obligations/ The ‘minimum’ reason Get sufficient share of relevant labour market/ The ‘competitive’ reason Fair reward for those performing specified roles/ The ‘equitable’ reason Provide an incentive for employees/ The ‘motivational’ reason Keep pace with inflation/ The ‘cost of living’ reason Reasons – INFLuencesanalysis

14. External Influences on Compensation • Supply of Labor • Demand for Labor • Company Location • Economic State • Competition • Union Influence • Product/Service Demand

15. Internal Influences onCompensation • Organization Size • Willingness to Pay • Ability to Pay • Tradition • Unionization • Job Itself • Employer Prestige • WorkForce Character • Desired Employee Quality • Ratio of Labor Costs to Total Costs

16. Organizational Compensation System Requirements Maximize ability to attract and retain qualified employees Be within ability to pay Allow organization to remain competitive

17. Key components: • pay for the job • pay for the man • pay for time spent • pay related to output contribution

18. its physical difficulty • the nature of the physical surroundings • its intellectual difficulty, and thus the qualifications it demands (this is not the same as the qualifications the man doing the job happens to possess. Paying more for a job because it needs a graduate is pay-fot-the-job. Paying a man more because he has a degree is pay-for-the-man.) • the value of the job to the firm Pay for the job:

19. his age • his experience • his needs (number and kind of dependants, for instance) • his qualiications (not those necessarily demanded by the job, but any others he may have) • his rank (this is rare in Western industry, but it is central to military payment systems, and is a fairly important factor in Japan, though rank in Japan is fairly closely correlated with age and experience). Pay for the man:

20. Levels of Incentives • Individual • Group • Company-wide • Executive

21. Individual Incentive Plans Piecework Payment/ Paymentbyresult: Pay proportional to output / effort Standard Hour/ Time rate system: Pay related to hours, not to effort Commissions Bonuses Skills-based Pay Non-financial Awards

22. Group Incentive Plans Piece-rate Systems Standard Hour Plans Group Bonuses Profit Sharing

23. Company-wide Incentives Profit Sharing Gainsharing • Scanlon plan: a gainsharingprogram in which employees share in pre-established cost savings, based upon employee effort) • Rucker plan: a gainsharing program that returns cost savings to the employees, usually as a lump-sum bonus. It is a productivity measure, as opposed to profit-sharing which is a profitability measure. Stock Ownership Plans (ESOP)

24. Executive Incentives Salaries Stock Options Long-term Incentive Plan Payouts Directors’ Fees Perks (membership, familiy, school etc.)

26. Benefits Benefits in kind Fringe benefits Perks

27. What is the best practice?

28. Example of bestpractice • It is important to establish a strategic Reward Management System which clearly articulates the aims of the various reward elements, integrates them in a coherent way and tells employees what they can expect to receive and why. • The Reward strategy needs to be written, communicated and understood throughout the organization. • The strategic Reward Management System is a key element of: • HR Strategy • Business Strategy • Organization Culture

29. TOTAL Reward System

30. Flexible Benefit (Cafeteria) WHY? For Employer For Employees • Tool of standardization and control of benefits • The amount and use of benefits are measurable • Trace flexibly the different and changing needs of employees • Fit to company's budget • Cost-effective • Attract and retain employees • Best market practice • Suit their current needs • Simple, clearand justified • Sense of control and involvement by having a choice • Additional amount over their regular salaries

31. CAFETERIA Pension Fund Tickets, Vouchers Internet Allowances Health Fund Frame amount

32. Management objectives • Problems in the existing scheme • Types of employee /size of unit • Possible future change (need for flexibility) • History • Lupton and Gowler • Technology • Labour market • Disputes and disputes procedures • Structural dimensions Factorstoconsiderindevising a newpaymentsystem/scheme

33. Union pressure/preferred methods • Legislative constraints • Curnow: • Internal consistency • External competitiveness • Flexibility • Easy to understand/administer • Continual updating Factorstoconsiderindevising a newpaymentsystem/scheme