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• What motivates you?• Morse & Weiss (1955)• Morale• Content theories• Maslow’s hierarchy of needs• Herzberg’s two-factor theory • Process theories of motivation• Vroom • Sources of motivation• Financial rewards• Importance of pay• Performance related pay• Group bonus schemes• Profit sharing schemes• Participation
Chapter 15Motivating
individuals and groups
Motivation
• Motivation is the urge to take action to achieve something or to avoid something
• If managers understand what motivates their staff they can actively use this knowledge to get employees to achieve organisation’s objectives
• Clearly about more than money
Basic assumptions of motivation
Assume that:• People seek to satisfy needs• Organisations can offer some of that satisfaction• Organisations can influence people’s behaviour
Meeting needs = job satisfaction + positive attitude to work
Needs
Even the same basic need will cause different people to act in different ways:
Hunger
Junk food
Ready meal
Takeaway
FruitCook
healthy dinner
Needs & goals
Even the same basic need will cause different people to act in different ways.
Goals also vary with time, circumstances & other factors
Influences Comments
Childhood environment/education
Aspiration levels are formed early on
Experience Teaches us what to expect from life, ie “we learn from our mistakes”
Age & position Career may be very important before having children, after which prospective changes
Culture Some organisations emphasis the organisation, whilst others emphasis is on individual
Self-concept What employee thinks of themselves & their position is also important
Morale
• Military term related to satisfaction• Low morale implies dissatisfaction• Dissatisfaction is bad news as can result in:
– Low productivity
– High labour turnover• Attitude surveys can also used to indicate workers’
perceptive of job satisfaction
Theories of motivation
Motivation theories
What motivates peopleCONTENT THEORIES
How can people be motivated?PROCESS THEORIES
Content theories
• Assume people have a set of needs • Motivate an employee by finding out what their needs are
and offer rewards that satisfy them
Approaches:• Maslow’s hierarchy of needs• Herzberg’s two-factor theory
opportunities for it)• Recognition• Responsibility• Challenging work• Sense of achievement• Growth in the job
Hygiene factors = satisfiers
• Company policy & administration
• Salary• Quality of supervision• Interpersonal relations• Working conditions• Job security
Herzberg conclusions
Motivation can be increased by:• Job enlargement – widening job by including number of operation• Job rotation – planned transfer of staff from one job to other to
responsibility, breadth and challenge of work into job.
Conclusion – it’s what you do that makes you work harder, the conditions in which you do it don’t make you happy, but can prevent you from fulfilling your potential
Criticisms of Herzberg• An inadequately small sample size – 203 engineers & accountants • Limited cultural context – Western professionals • Impact of job satisfaction has proved difficult to verify
& measure
Process theories of motivation
Process theories ask:• ‘How can individuals be motivated?’ • They explore the process through which outcomes
become desirable and are pursued by individuals
Victor Vroom expectancy theory• Expectancy × valence = force of motivation
Vroom Expectancy• The strength of the individual’s expectation that behaving in a certain way will
result in a given outcome
Valence• The value that the individual places on the outcome (whether positive/desired
or negative/undesired)
Force of motivation• The strength of the individual’s motivation to behave in the given way (and the
likelihood he will do so)• High force is only possible if both high Valence and Expectancy exist
Vroom example• High force is only possible if:
High valence + High expectancy
Consider your FAB exam:
You must want to pass the exam and believe that it is possible to be motivated to study for it.
Managerial implications of process theories
• Intended results should be made clear• Individuals are more committed to specific goals which
they helped to set• Immediate & ongoing feedback should be given• Individuals might set lower standards if they know their
rewards are linked to achieving them
Choosing a motivational approach
• McGregor presented 2 opposing assumptions held by managers about employees, which affected how they managed & motivated them
• Theory X – assumes that individuals have an inherent dislike for work & will avoid it if they can
• Theory Y – asserts that work is as natural as play or rest
• Opposite ends of a continuum
Theory X
Employee characteristics:• Prefers to be directed• Has little ambition• Is resistant to change• Gullible• Must be coerced & controlled
= “carrot ‘n’ stick approach”
Theory Y
Employee characteristics:• Self direction• Self control• An emphasis on self actualising needs
• Motivated by circumstances of work
Rewards & incentives
• Reward – given in recognition of success• Intrinsic reward – related to the job itself, eg loving being a
nurse• Extrinsic rewards – outside the job, eg financial – you like
the pay, or non-financial – you like the working hours• Incentive – offer of a reward designed to motivate current
& future performance
Sources of Motivation
Financial Rewards
Job Satisfact
ion
Job Design
Participation in
decision making
1. Financial rewards• Maslow & Herzberg both recognise money as a means of
satisfying some needs & symbolising worth
BUT• If you were paid twice as much would you work twice as
hard?
Importance of Pay
Pay is important because:• It is a major cost for the organisation• People feel strongly about it• Legal issue eg minimum wage• It enables the organisation to attract & retain individuals
with required skills, knowledge & experience
How pay is determined• Job evaluation – based on job content, reflecting the relative worth of the
role• Fairness – must be perceived to match the level of work• Negotiated pay scales• Market rates• Individual performance in the job
Types of Rewards• Basic wages• Overtime payments• Performance related bonus• Shares• Share options• Benefits in kind eg healthcare• Pension contributions• Service contracts & termination payments
Performance related pay• Form of incentive system, awarding extra pay for extra output or
performance
Examples:• Piecework • Bonuses for achievement of specific objectives/ outstanding
performance
Benefits of performance related pay• Improves commitment & capability• Complements other HR initiatives• Improves focus on the business’s performance objectives• Encourages 2 way communication• Greater supervisory responsibility• It recognises achievement when other means are not available
Potential problems of PRP
• Subjectivity of awards for less measurable criteria (eg teamwork)
• Encouraging short-term focus & target hitting (rather than improvement)
• Divisive against team working (if awards are individual)• Difficulties in gaining union acceptance (if perceived to
erode basic pay)
Rewarding the Team
Group bonus schemes• Group bonus schemes can be used to encourage everyone to
work together• But, get bonus even if you don’t pull your weight
Profit sharing schemes• Offer employees bonuses directly related to the profits or value
added• Based on the assumption all employees can contribute to profit
and should care
To be successful:• Sum should be significant• Clear & timely link between effort & reward• Reasonable chance of achieving goal
Job satisfaction
Is a key motivator & is achieved through:• Variety• Task identity/clarity• Autonomy/ownership• Constructive feedback• Task significance
Job design
Job design or redesign can increase motivation:• Job rotation – moves staff from one job to another to
increase variety• Job enlargement – widen the number of operations in
which job holder is involved to increase variety• Job enrichment – making the job more interesting
Participation
Participation works as a motivator if the “5 Cs” are present:
1. Certainty
2. Consistency
3. Clarity
4. Capacity
5. Commitment
Specimen paper
Which one of the following statements is correct in relation to monetary rewards in accordance with Herzberg’s two-factor theory?
A Pay increases are a powerful long-term motivator
B Inadequate monetary rewards are a powerful dissatisfier
C Monetary rewards are more important than non-monetary rewards
D Pay can never be used as a motivator
(2 marks)
Chapter 15 – summary
What is motivation? Rewards and Incentives
Motivating individuals and groups
'Desire to take or avoid
action'Key theoretical approaches
Reward Using pay as a
motivator• Intrinsic• Extrinsic
• Job evaluation
• PRP• Bonus• Profit share
Content theories
What motivates?
Maslow Herzberg
• Motivating factors
• Hygiene factors
Self-actualisation
Esteem needs
Social needs
Safety needs
Physiological needs
Chapter 15 – summary (cont’d)
Process theories
VroomTheory X/Y – McGregor
How can people be motivated?Choosing suitable
rewards and incentives
• Job design• Financial
rewards• Participation –
5Cs• Job satisfaction• Feedback
• Approaches to learning theory • Honey & Mumford (1986) –
Learning styles• Classifications of learning style• The learning cycle: Kolb• Identifying the need for training• Learning gap• Setting training objectives• Personal development plan• Steps in personal development
planning• Training methods• Induction training • Responsibility for training &
development• Hamblin – 5 level model
Chapter 16Training and development
Approaches to learning theory
Approaches
Behaviourist psychology– relationship between stimuli & response to stimuli which causes
learning
Cognitive approach –Interpretation &
rationalisation from past experiences
Effective training programmes
Design of an effective training programme should assume:• The individual is motivated to learn• Clear objectives & standards set, so each task has some
meaning• Timely relevant feedback on progress• Positive & negative reinforcement should be judiciously
used• Active participation is more telling than passive reception
Honey & Mumford (1986) – Learning styles
• Found that the way people learn depends upon their psychological preferences
• 4 classifications of learning style• Knowledge of style favoured by learner helps tailor
learning activities
1. Theorists – seek to understand the underlying concepts taking an intellectual & logical approach
2. Reflectors – observe & consider phenomena then act at their own pace
3. Activists – deal with practical active problems, in a hands-on experience manner
4. Pragmatists – study if there is a direct link to practical problems (on the job training)
The learning cycle: Kolb
Learning organisation
Facilitates:• Acquisition & sharing of knowledge• Learning of all its members• Continuous & strategic transformation to rapidly changing
market
Strengths of learning organisations• Experimentation – ie tolerate risk that things may go wrong• Learning from past experience• Learning from others• Transferring knowledge quickly & efficiently throughout the
organisation
Training & development
Training & development strategies
Benefits of training for the organisation
• Improves productivity of staff• Reduces accidents & errors at work (at associated costs)• Improves motivation & retention of staff• Improves quality of staff available internally for promotion• Attracts better staff due to showing commitment &
progression opportunities• Enables succession planning & career development• Source of competitive advantage through innovation• Helps build corporate culture
Benefits of training for the employee
• Enhances portfolio of skills• Psychological benefits – helps self esteem & confidence in
future• Social benefit – helps satisfy social needs• The job – helps them to do it successfully
Systematic approach to training
In order to ensure that training meets the real needs of the organisation, larger firms adopt a systematic approach.
Includes:• Definition• Objective setting• Planning training programmes• Delivering training programmes• Evaluating results
Identifying the need for training
• Obvious & automatic – eg new computer system• Response to critical incident – eg bad press about
customer service• Qualitative indicators – eg number of complaints• Self assessment – eg employee attitude surveys
Learning gap
Required competence – present competence = training need
SMART objectives detailing:• Behaviour – what should the trainee be able to do?• Standard – to what level of performance?• Environment – under what conditions? (so that the
Individuals can incorporate training & development objectives into a personal development plan.
Purpose of personal development plan:• Improving performance in the existing job• Developing future skills
Steps in personal development planning
1.Analyse the current position – personal SWOT analysis or use skills analysis
The aim is to incorporate more of the employees’ interests into their actual roles.
Steps in personal development planning (cont’d)
2. Set goals:• Cover performance in the existing job• Future changes in current role• Move elsewhere in organisation• Develop specialist expertise
3. Draw up an action plan to achieve goals, including:• The objective• Methods to develop skills• Timescales for progress review• Methods of monitoring & reviewing progress
& achievement
Goals must be SMART
Training methods
Off the job trainingEg: Courses run by organisation’s training department, outside the context
of job, computer based learning.
Advantages:• No risk – allows exploration/experimentation• Focus on learning away from distractions of work• Standardised training• May confer status, implying promotion
Disadvantages• May not be directly relevant or transferable to the job and/or content• May be perceived as a waste of time• Immediate & relevant feedback may not be available
(eg if delay for exam results)• Tends to be more theoretical – doesn’t suit “hands on” learning styles• May represent a threat – implying inadequacy
On the job training
Eg: demonstration, job rotation, temporary promotion, assistant to positions, committees, project work
Advantages:• Takes account of job context – high relevance & transfer of learning• Suits “hands on” learning styles – learning by doing• No adjustment barriers• Develops working relationships as well as skills
Disadvantages:• Undesirable aspects of job context – eg corner-cutting learned• Doesn’t suit “hands off” learning styles• Trial & error may be threatening• Risks of throwing people in at deep end with real consequences of
mistakes• Distractions & pressures of the workplace may hamper learning focus
Induction training
Purposes:• Help new recruits find their bearings• Begin to socialise new recruits into the culture & norms of
team/organisation• Support recruits• Identify training/development needs• Avoid initial problems at the “induction crisis” stage of the
employment lifecycle – which may cause employees to leave prematurely
Responsibility for training & development
• Trainee• HR department or training department• Line managers• Training manager
Increasingly, responsibility for training & development is being devolved to the individual learner in collaboration with line managers & training providers.
Responsibility of training manager
• Liaison – with HR & operating departments• Scheduling – convenient training times• Needs identification – existing & future skills shortages• Programme design – developing tailored training
programmes• Feedback – to trainee, the operating department & HR• Evaluation – measuring the effectiveness of the training
Evaluating training programmes
• Evaluation – carry out a cost v benefit analysis• Validation – observe results of the course & measure
whether training objectives have been identified
Hamblin – 5 level evaluation model
1. Trainee’s reaction to the experience
2. Trainee learning
3. Changes in job behaviour following training
4. Impact of training on organizational goals/results
5. Ultimate value
Development
Development is wider than just training and includes:• Work experience• Guidance, support & counselling• Education & training• Planning of the individual’s future
Approaches to development
Include:• Management development (eg MBA)• Career development (career paths)• Professional development (CPD)• Personal development (more rounded individuals)
Specimen paper
Role playing exercises using video recording and playback would be most effective for which type of training?