motivation strategies-HRM2014.pptx
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Road Map
What is Motivation ?
Why study Motivation theories
What is morale?
Financial and non-financial motivational strategies
Challenges (including Multigenerational workforce )
the backbone of organisations is……..
Performance
Output
Productivity
High performance, high commitment and loyalty
are the primary expectations of organisations
What expectations do individuals enter organisations
with ?
“people join organizations for specific reasons and usually with some purpose in mind.” - Dr. Teresa Daniel
“Ordinary, everyday experience teaches us that the same people react quite differently to different circumstances “ “Or at the very least, there are different human natures which behave differently under different conditions.” - Peter Drucker
( what does this mean? ???? )
Hence motivation………
What is motivation?
The set of forces that cause people to behave in certain ways
It has to do with why behaviour gets started, is energised, is sustained, is directed, is stopped and what reaction is present in the person when all this is going on
Individual performance is the function of the product of ability and motivation
Performance= f ( ability X motivation)
Motivation is defined as an innate need or desire with a physiological or psychological basis that propels an individual to undertake an activity to satisfy the need or desire
Why study motivation theories?
Theories offer insight into how to motivate employees, what is important and what the rewards may be
The ultimate goal being improved and/or sustained performance by employees and the organization as a whole
Motivation is at the heart of performance, essential for success for both the organization and its workforce, as a group and as individuals
Theories
Maslow’s Needs Hierarchy theory
Hertzberg’s two factor theory
Alderfer’s ERG theory
McClelland’s Achievement theory
Vroom’s Expectancy theory
Adam’s Equity theory
Goal setting theory
Where are the theories used?-(Applications of motivational concepts)
Rewards and Incentives
Awards
Equity
Job designing (enlargement, enrichment)
Goal setting
Empowerment etc..
A motivational model
Felt need
Environmental
influence
Tensions
Incentives and goals
Expectations
Effort
and ability
Performance
External(praise,
promotion)
Internal(esteem)
Rewards(outcom
e)
Morale
Employee morale describes the overall outlook, attitude, satisfaction, and confidence that employees feel at work
It is defined by the employee's outlook, optimism, self-concept, and assured belief in themselves and their organization ( its mission, goals, defined path, daily decisions, and employee appreciation)
(how is it related to motivation??????)
When employees are positive about their work environment and believe that they can meet their most important needs at work, employee morale is positive or high
If employees are negative and unhappy about their workplace, and feel unappreciated and as if they cannot satisfy their goals and needs, employee morale is negative or low.
Faith in self and faith in their organization are both important factors in positive employee morale (intrinsic/extrinsic)
Carrot and stick doctrine
Dangling a reward in front of employees (carrot) as an incentive, in hope that what’s good will be achieved and gets repeated OR
Putting up a system of punishment (stick) in its various forms, in hope that what’s bad will be avoided and not get repeated
Is motivation so simplistic? Does the carrot and stick motivation work well?
Extrinsic or Intrinsic motivation
Motivation in an individual is the result of an intrinsic or extrinsic factor
Extrinsic: rewards-financial and non –financial
the rewards system becomes critical to employee performance and organisational success
Intrinsic: when individuals are self motivated, the rewards may take the form of satisfaction, commitment, enthusiasm or loyalty
Intrinsic Motivation
the desire to self-direct our own lives
the urge to get better and better at something that matters
the yearning to do what we do in the service of something larger than ourselves
With that I could understand much better why I do what I do, why I don’t, what really moves me, why I’m not motivated as much as I “should” by the external reward-punishment system in place
Components of employee remuneration
Wages and salaries
Incentives
Fringe benefits
Perquisite
Non-monetary benefits
Wages and salaries
Wages are hourly rates of pay, salary refers to the monthly
rate of pay
Both are subject to annual increments
Depend upon the job, type of industry, seniority and merit
Incentives
Also called ’payment by results” , paid in addition to salary
Depend on productivity, sales, profit
May be individual or group
Fringe Benefits
Include benefits such as PF, gratuity, medical care, hospitalisation, accident /health/group insurance, canteen, recreation etc
Perquisites
These are allowed to executives for the position they
hold
May include company car, club membership, paid
holidays, furnished house , stock option schemes
Non-monetary benefits
challenging job responsibilities, recognition ,
growth prospects, competent supervision,
comfortable working conditions, flexitime
Motivational
practices
RewardsJob design
EmpowermentQuality of work life (QWL )
Others
Incentives
strategies
Other strategies
Flexible working hours (flextime)
Flexible benefits
Telecommuting (work away from the company’s main location)
Cross training Teaching workers more than one job : multi-skilling
Reward is….
A prize that you give to your employees for doing an exceptional job at work
Can be monetary or non-monetary
pay ,bonuses, promotions, time off, special assignments, awards, paid vacations, verbal praise, plaques, parties or even just a pat on the back to say "great job."
To show appreciation to the employee to encourage him to continue achieving
Incentive is… A way to motivate employees to do a
better job going forward
Extra pay for extra performance in addition to regular wages for a job
To encourage better performance from workers who may not be meeting desired goals
Common incentives include offering sales commissions, stock options or the promise of a bigger office space etc.
Put in simple terms, a reward is something which is actually given to an employee, whereas an incentive is a motivating factor
For example, if you give one of your employees a gift for their hard work, that is a reward
However, if that same employee works hard and exceeds your expectations because of the thought of receiving a reward, that is an incentive
Profit sharing, signing bonus and stock options
Thanking employees, praising employees, presenting employees with a certificate of achievement, or announcing an accomplishment at a company meeting
Employee referral awards that some companies use to encourage employees to refer job candidates
Company parties and celebrations, company paid family activity events, birthday celebrations, sporting events, paid group lunches, and sponsored sports teams ……..are all incentives
Rewards- job status based (traditional method)
Based on the status of the job held (not on the incumbent)
Job Evaluation system used (a decision process to determine a job's relative position in the internal hierarchy of jobs)
More efforts, duties, responsibility, difficult working conditions = jobs having more value=higher pay grades
Was developed for static /hierarchical organizations; that is to say, jobs and work systems not subject to frequent changes.
Motivated employees to compete for higher position
Rewards- competency based (new model)
Skills + knowledge+ traits =competency
Rewards linked to competencies leads to skill based pay
The new model focuses on the individual and his or her capabilities
only the most competent can expect to progress to the highest levels (purpose is to motivate to acquire additional skills)
Rewards- performance basedOrganisational Rewards ESOPs
Profit sharing
Team Rewards Special bonus
Gain sharing
Individual Rewards Piece rate
Commission
Merit pay
Bonuses
Rewards-membership & seniority based
For joining that particular firm
On experience- seniority
Used to attract job applicants (joining bonus etc)
May not directly motivate
Rewards-examples
PepsiCo India - the "Aha-Standards of excellence" and "Star Spot Awards" to acknowledge outstanding employee contributions at work
The "Star Spot Awards" are given to individuals who have contributed value to the organisation by going beyond the call of duty
Sends the top two or three achievers to New York where they receive awards at the hands of the Chairman of Pepsi's parent arm
Contd……
LG- achievers and their families are given a free holiday trip abroad
High performers get an LG product of their choice free
LG also bestows "best employee" awards periodically-Outstanding employees speak on their achievement so that others can get inspired
It also has team awards whereby the entire team is sent abroad
Jacques Creeten, MD, sales & marketing for FedEx India, Middle East and Africa says Fed Ex always compliments employees who do a good job
The boss can hand out theater tickets, diner certificates and cash up to $100 to the deserving employee on the spot
FedEx too has awards like 'Circle of Excellence,' 'Customer Service Center of the Year,' 'Club FedEx' among others
2. Job design
The process of assigning tasks to a job including interdependency of those tasks with other jobs (eg.production,banks)
Some jobs have few tasks requiring limited skills..others more complex requiring trained professionals
From the organisation’s point of view- increases productivity and reduces cost when similar /continuous tasks are grouped
Benefits of job Design for employee
Poorly designed job =low productivity, boredom, employee turnover, absenteeism, complaints, resignations etc.
For employee-Motivation is affected by the match between job factors (content, qualifications, rewards) and personal needs
Job Design -popular approaches
Job rotation –moving employees from job to job
Job engineering-tasks to be performed, methods to be used, layout, performance standards are re-evaluated (industrial engineering, ergonomics- IV eg))
Job enlargement – expansion of the number of tasks performed (horizontal loading)
Job enrichment –adding more responsibility to make it more exciting, challenging, creative, rewarding(vertical loading)
Job enrichment
Means adding depth( increasing difficulty) to a job to increase motivation and interest in performing the job
Provides the employee an opportunity for greater recognition, achievement, growth, greater responsibility (lack of which can cause worker alienation)
In short, it involves modifying jobs so that they appeal more to employee’s higher order needs
(Eg. allowing secretaries to sign their own outgoing letters and to be responsible for content and quality)
Empowerment
Empowerment occurs when individuals in an organization are given autonomy, authority, trust, and encouragement to accomplish a task
Employee empowerment means making the employee/s able to run the show by himself/themselves
Forms of empowerment Quality Circles (QCs): - work group of
employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions and take corrective actions
QC is formed to achieve the following objectives:
Improvement in quality of product manufactured, in methods of production.
Development of employees participating in QC.
Promoting morale of employees
CONTD…
Empowered Teams: also referred to as self-directed or self managing teams.
These groups are given a large degree of decision-making autonomy and expected to control their own behavior and results
They plan, set goals, supervise progress, prepare their own budgets ,coordinate with other departments, take responsibility for achieving quality in their products and services
Under Tejaswini, Tata motivates its female employees to join technical jobs by training & improve their position in the organization
Beyond Tejaswini, Tata has an Adventure Foundation in Tata Steels. Tata has succeeded to have a team of self motivated female employees
Bachendri Pal, the first Indian lady to climb Mount Everest, is from Tata Steel Adventure Foundation & now she is the Head of the Foundation
Encourages women for these daring activities but also motivates them to hold the jobs, which are said to be only for men
QUALITY OF WORK LIFE (QWL)
Favorableness or un-favorableness of a total job
environment for people
Will increase productivity Turnover might decrease Able to attract better workers more easily Morale might improve
Some methods of improving QWL
Job enrichment,enlargement,rotations
Cross training
Feedback and reinforcement
Well pay and floating holidays
Empowerment
Ergonomics changes
Wellness programs
Paradigm shift in organisations today…
De-layering (hierarchies reduced)
Downsizing
Cultural diversity
Job hopping
Increased focus on individual competencies etc
Multigenerational workforce
the bottom line is employees need to perform
Multigenerational workforce
Today four generations are working side by side in the workplace
Many organizations are trying to balance a generation gap of more than 30 years between the oldest and youngest employees
Although there is no consensus of the exact birth dates that define each generation, they are generally broken into four distinct groups
The Traditionalist - born between 1927 and 1945
The Baby boomers- born between 1946 and 1964
Generation X – born between 1965 and late 1970
Generation Y- born early 1980s to the early 2000 (also known as Millenials)
The diverse perspectives, motivations, attitudes and needs of these four generations have changed the dynamics of the workforce
Some of their traits
Tech- savvy – Armed with smartphones, laptops, tablets and other gadgets, Generation Y is plugged-in 24 hours a day, 7 days a week. This generation prefers to communicate through e-mail and text messaging rather than face-to-face contact
Work-life balance-willing to trade high pay for fewer billable hours, flexible schedules and a better work/life balance
Achievement oriented-confident, ambitious and achievement-oriented. They have high expectations of their employers, seek out new challenges and are not afraid to question authority.
Team oriented-As children, Generation Y participated in team sports, play groups and other group activities. They value teamwork and seek the input and affirmation of others.
Attention – craving-craves attention in the forms of feedback and guidance. They appreciate being kept in the loop and seek frequent praise and reassurance. Generation Y may benefit greatly from mentors who can help guide and develop their young careers
Indian workplace is a blend of 3 to 4 generations
the business leaders and the CEOs of baby boomer generations (45 plus)
management teams and senior professionals from Gen X (23 to 45)
young Gen Y professionals (23-28 )
This generation gap has lead to differences in working styles and communication styles as well as motivation
Situation….. Kathy has been with the company longer than any of your
other employees. She joined the company as a Sales representative. Although she has no sales background, she possessed an innate ability to sell. Over the years, she consistently met or exceeded her sales quotas for her region. She likes her region and knows her customers well.. Although she has had several opportunities to transfer to a larger region, she has always declined the offer, stating that her preference was to stay where she was. For the first time in her career, for the past six months, she has consistently missed her sales quota. Until now, you have chosen to ignore the problem. Initially, you thought it was temporary phase that would simply go away. Your rationale was based on the fact that Kathy has always been a good performer. You assumed that she was either encountering temporary personal problems that was disrupting her productivity or that sales were slow in her region. You now realize, with mounting pressure from your employees and concerns from upper management, that you must address the situation immediately
situation
It’s happened gain. As you walk through your work area a half our after starting time, you notice that Sam’s desk is empty for the second time this week. This has become an ongoing problem for him over the past several months. Because he didn’t ask for any time off, there is only one conclusion you can come to-he is late again. The area gets quiet as you glance around and notice that everyone is watching you in anticipation. To dampen your employee’s suspicions, you walk over to Sam’s desk, pick up a piece of paper and look at it to show them that that is why you came into the work area in the first place. You then quickly make your exit. Twenty minutes later, you catch Sam sneaking in through the back door and scrambling to his desk. This has got to stop !!
situation
George is good at what he does , but he needs to slow down. He has just one speed- fast. Whenever you give him an assignment, you can count on the fact that he will show up at your office door, telling you he’s done with the project a few days early, asking for another project. The problem confronting you is that several employees in your organization have complained about George’s work tactics. If he asks them for something he needs to complete an assignment and they can’t give it to him immediately , he goes behind their backs and takes whatever he needs. How can you motivate George to become more diplomatic without destroying his empowered drive?
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