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Motivation, Reward and
Recognition System Management
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Motivation
The force within us that activates our behavior.It is a function of three distinct components,Intensity, Direction, and Persistence.
Intensity PersistenceDirection
Motivation
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Motivation - Intensity
Intensity refers to the amount of mental andphysical effort put forth by the person.
PersistenceDirection
Motivation
Intensity
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Motivation - Direction
The extent to which an individual determinesand chooses efforts focused on a particulargoal.
Intensity PersistenceDirection
Motivation
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Motivation - Persistence
The extent to which the goal-directed effort isput forth over time.
Intensity PersistenceDirection
Motivation
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Motivation: Intrinsic vs. Extrinsic
Intrinsic
When doing the job is
inherently motivating
Extrinsic
When rewards such as pay
and formal recognition
act as motivators
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Two Basic Categories of Rewards
Compensation Rewards:
Those given in return for acceptable
performance or effort. They can include
nonfinancial compensation.
Non-Compensation Rewards:
Those beneficial factors related to the worksituation and well-being of each person.
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Types of Rewards
Intrinsic ExtrinsicMotivation
Pay
Promotion
Sense ofAccomplishment
Personal Growth
OpportunitiesRecognition
Job
security
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Financial Compensation: Straight Salary
Advantages
- Salaries are simple to administer
- Planned earnings are easy to project.
- Salaries are useful when substantialdevelopment work is required.
Disadvantages
- Salaries offer little incentive for betterperformance.
- Salaries represent fixed overhead.
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Financial Compensation: Pay for Performance
Reward Systems in most cases should be consistent
with other HR systems.
The Reward System is a key driver of:
HR Strategy Business Strategy
Organization Culture
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Need for Consistency with Other HR Systems
Culture
Performance
Management
Employment
Training
Labor
Relations
Rewards
Overtime
pay rulesin
contract
Sign-on BonusMerit Pay
Merit pay
reinforces
performance
culture
Skill-based pay
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Financial Compensation: Performance Bonuses
Advantages
- Organization can direct emphasis to what itconsiders important.
- Bonuses are particularly useful for tying rewardsto accomplishment of objectives.
Disadvantages
- It may be difficult to determine a formula forcalculating bonus achievement if the objective
is expressed in subjective terms.
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Non-financial Compensation
Opportunity for Promotion:
The ability to move up in an organization along
one or more career paths
Sense of Accomplishment:
The internal sense of satisfaction from
successful performance
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Non-financial Compensation
Opportunity for Personal Growth:
Access to programs that allow for personal
development (e.g., tuition reimbursement,
leadership development seminars)
Recognition:
The informal or formal acknowledgement of a
desired accomplishment
Job Security:
A sense of being a desired employee that comes
from consistent exceptional performance
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Understanding Reward & Recognition
Definitions:
A reward is an item or experience with monetary value that
is provided for a desired behavior or performance, often
with accompanying recognition
Recognition is a positive consequence provided to a person
for a behavior or a result in the form of acknowledgement,approval or the expression of gratitude
Recognition is more of an activity or an association (a
social or interpersonal activity) while a Reward is more of
a thing (Money, Merchandise, Trophy, Travel etc)
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Why Reward & Recognise employees
By valuating and recognizing people, you harness the powerof motivation, which is the single most powerful strategy
used to promote performance and positive behaviors
Drives Stretch in Performance
Enhances aspirations and creates Motivation
Feeling Valued
Builds Self Esteem and sense of Belonging
Improves Individual Attitudes
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Reward is a Right; Recognition is a Gift..
* Gerald Ledford Jr. and Peter LeBlanc, World at Work 9, no.3 (Q3 2000):1-11
Rewards at work
Direct Financial (pay)
Indirect Financial (benefits)
Work Content (work) Careers (development)
Affiliation (feeling ofbelonging)
Study results: Surprisingly,all 5 types of rewards wereconsidered equallyimportant.
Recognition
Praise
Time
Toys, Trophies & Trinkets Fun, Freedom & Food
Small Money
Others
Common thread Genuine,positive, emotion
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What is Recognition?
Recognition is any thought, word, or deed towards makingsomeone feel appreciated for who they are and recognized
for what they do. 1
Recognition can be a strategic tool for shaping behavior and
moving an organization in a desired direction. 2
Recognition is something a manager should be doing all thetimeits a running dialogue with people. 3
1Making Recognition a Daily Event by Roy Saunderson, Recognition Management Institute
2A Culture of Recognition; Building a System to Celebrate Great Performance by Rhonda
Sunnarborg, BI Business Improvement Series
3 Ron Zemke, Training magazine
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Why Focus on Recognition?
Employees identify recognition as one of the most effective
motivators1
Even small increases in supportive practices are associated
with decreased turnover and increased sales/profitability2
Employees who feel that their organization values them aremore likely to value their customers2
Appreciation and/or praise are among the top three drivers of
employee motivation and engagement across a variety of
industries and companies
3
1 The Conference Board, 1999 HR Executive Review:
Employee Recognition Programs
2 Pfeffer 2001 study
3 Hewitt Associates
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Exercise
You are the HR Manager of an FMCG organisationwhich has 400 employees at their HO.
You have been asked to develop an R&R program
for your organisation to keep employees engaged
and motivation levels high. A separate budget would be provided for the R&R
activities.
You and you team has to design a program and
present it to your leadership team.