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MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi
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MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Mar 26, 2015

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Page 1: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

MOTIVATION CONCEPTS

Prepared by:Abraham SitompulEva Marinne SaguneHery HaryantoImam HaryantoPetrus MintowiyonoRusdi

Page 2: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

DEFINING MOTIVATION

Motivation Is the result of interaction between an individual and

situation Motivation is the process concerning individual effort

in term of: Intensity Direction Persistence

to achieve a goal

Page 3: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

EARLY THEORIES OF MOTIVATION

Hierarchy of Needs Theory, by Abraham Maslow

Motivation depend on level of the hierarchy that person is currently on

Revised by Clayton Alderfer to ERG Theory that mention an individual could be focusing on all 3 needs categories (no rigid hierarchy)

Self Actualization

Esteem

Social

Safety

Phisological

Higher order needs

Lower order needs

Page 4: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Theory X and Theory W, by Douglas Mc Gregor Theory X Negative

Employees inherently dislike work Has to be directed or even coecced/forced to perform

job Theory Y Positive

Employees like work The average person can learn, accept, even seek

responsibility

Page 5: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Two Factor Theory by Frederick Herzog (also called Motivation – Hyigene Theory) Determine job satisfaction and job dissatisfaction

toward job. Intrinsic factors related to job satisfaction, such as:

Advancement, recognition, responsibilities, and achievement.

Extrinsic factors related to job dissatisfaction, such as: supervision, pay, company policies, working conditions (called hygiene factors)

Factors that lead to job satisfaction are separate and distinct from those that lead to job dissatisfaction

Page 6: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Theory of Needs by McClelland Focuses on three needs:

Need for Achievement (nAch) Need for Power (nPow) Need for Affiliation (nAff)

High achiever perform test for probability of success 0.5 (dislike gambling)

No Challenge Poor Change

Page 7: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

CONTEMPORARY THEORIES

Cognitive Evaluation Theory Giving extrinsic reward (such as money) for work

effort that was previously intrinsically rewarding tend to decrease overall motivation.

Need to make the work interesting, provide recognition, and support growth and development, other than extrinsic reward.

Page 8: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Goal Setting TheoryAccording Edwin Locke: Intention to work toward a goal are a major source

of work motivation Specific goals result higher performance Difficult goals result higher performance, why?

Difficult goals will: Direct people’s attention to the task in hand and away

from irrelevant distractions Energize people to work harder to attain goal People persist to attain goal

Page 9: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Implementing Goal-Setting, using MBO (Management by Objectives) that emphasizes participatively set goals that are: Tangible Verifiable Measurable

Cascading of Objectives:Overall Organizational Objectives

Divisional Objectives

Departmental Objectives

Individual Objectives

The Company

Division

Dept.

Division

Dept. Dept. Dept.

Page 10: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Self-Efficacy Theory(also known as Social Cognitive Theory or Social

Learning Theory refers to an individual belief that someone is capable of performing a task)

High Self Efficacy respond to negative feedback with increased effort and motivation, whilst Low One are likely to lessen their effort

Goal Setting Theory and Self efficacy complement each other

Page 11: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

According to Albert Bandura, there are 4 ways self efficacy can be increased:1. Enactive mastery2. Vicarious modeling3. Verbal persuasion4. Arousal

Pygmalion Effect is a form self fulfilling prophecy in which believing something to be true can make it true

Galatea Effect occurs when high performance expectations are communicate directly

Self efficacy may simply be a by product in a smart person with a confident personality

Page 12: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Reinforcement Theory Takes a behavioristic approach that being

environmentally caused. The theory:

Ignores the inner state of individual, such as feeling, attitude, expectation, and other cognitive variables that affect behavior

Concentrates solely on what happens to a person when he or she takes some actions

Page 13: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Equity Theory Equity plays in motivation

Ratio Comparison PerceptionO/IA < O/IB Inequity due to being underrewarded

O/IA = O/IB Equity

O/IA > O/IB Inequity due to being overrewardedWhere O/IA represent the employee and O/IB represent relevant

other

Page 14: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Model of Organizational Justice

Equity Theory focused on distribution justice

Distribution Justice

Procedural Justice

Interactional Justice

Organizational Justice

Page 15: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Expectancy Theory by Victor Vroom Strength of a tendency to act depend on the

strength of an expectation given outcome to the individual

Individual

effortIndividual

performanceOrganizational

rewardsPersonal

goal

21 3

1 Effort-performance relationship

2 Performance-reward relationship

3 Rewards-personal goal relationship

Page 16: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

INTEGRATING CONTEMPORARY THEORIES

Individual effort

Individual performance

Organizational rewards

Personal goal

Objective performance evaluation

system

Reinforcement Dominant needs

Goals direct behavior

Performance evaluation criteriaAbilityOpportunity

Equity comparison/Organizational justice

Job design

High nAch

Page 17: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

GLOBAL IMPLICATION

Most of theories are cultural bound, since developed in US by.

Most related to US culture such as: Rational Individual thought Needs hierarchy Willingness to accept a moderate degree of risk Concern with performance Highly sensitive to equity in reward allocation

But don’t assume there are no cross cultural consistencies like desire for interesting works seem important to almost all workers

Page 18: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

MOTIVATION BY JOB DESIGN

Job Characteristics Model (JCM) Hackman and Oldham’s concept that any job can be

described through five core job dimensions: Skill variety – Requirements for different tasks in the job. Task identity – Completion of a whole piece of work. Task significance – The job’s impact on others. Autonomy – Level of discretion in decision making. Feedback – Amount of direct and clear information on

performance. The way elements in a job are organized (job design)

impacts motivation, satisfaction, and performance.

Page 19: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.
Page 20: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

How Can Jobs Be Redesigned? Job Rotation

The periodic shifting of a worker from one task to another

Job EnlargementThe horizontal expansion of jobs

Job EnrichmentThe vertical expansion of jobs

Page 21: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Guidelines for Enriching a Job

Page 22: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Alternative Work Arrangements

Flextime

Job Sharing The practice of having two or more people split a 40-hour-

a-week job Telecommuting

Employees do their work at home at least two days a week on a computer that is linked to their office.

Page 23: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

The Virtual Office Employees work out of their home on a relatively

permanent basis. Typical Telecommuting Jobs

Professional and other knowledge-related tasks Routine information-handling tasks Mobile activities

Page 24: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Reasons for and against Telecommuting

Advantages

Larger labor pool

Higher productivity

Less turnover

Improved morale

Reduced office-space costs

Disadvantages

Employer

Less direct supervision of employees

Difficult to coordinate teamwork

Difficult to evaluate non-quantitative performance

Employee May not be as noticed for

his or her efforts

Page 25: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Motivation Is Not the Whole Story

P = f(A x M x O)

Page 26: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Employee Involvement

A participative process that uses the input of employees to increase their commitment to the organization’s success.

By increasing worker autonomy and control over work lives (involvement), organizations: Increase employee motivation Gain greater organizational commitment Experience greater worker productivity Observe higher levels of job satisfaction

Page 27: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Types of Employee Involvement Programs

Participative Management Subordinates share a significant degree of decision-

making power with their immediate superiors Representative Participation

Works councils Groups of nominated or elected employees who must be consulted for any

personnel decisions Board representative

An employee sits on a company’s board of directors and represents the interests of the firm’s employees

Quality Circle A work group of employees who meet regularly to

discuss their quality problems, investigate causes, recommend solutions, and take corrective actions

Page 28: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Motivational Theory Links to EI Programs

Page 29: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Four Major Strategic Reward Decisions

1. What to pay? (pay structure)2. How to pay individuals? (variable pay plans and

skill-based pay plans)3. What benefits to offer? Do we offer choice of

benefits? (flexible benefits)4. How to build recognition programs?

Page 30: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

What to Pay – Pay Structure

Internal equity The worth of the job to the organization Determined by job evaluations

External equity The competitiveness of the company’s pay relative to

pay elsewhere in the industry Determined through pay surveys

Choose organizational position Pay leaders

Greater employee loyalty Attracts better-quality employees

Pay laggards – accept high turnover for low hourly costs

Page 31: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

How to Pay - Variable Pay Programs

Types of Variable Pay ProgramsA portion of an employee’s pay is based on some individual and/or organizational measure of performancePiece Rate:

Workers are paid a fixed sum for each unit of production completed Weakness: not feasible for many jobs

Merit-Based: Based on performance appraisal ratings Gap increasing between average and top-performers Weaknesses: validity of system based on annual appraisals, pay pool can be

small, unions strongly resistBonuses:

Rewards recent performance Weakness: employees consider this a pay

Page 32: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

How to Pay - Skill-Based Pay Programs

Types of Skill-Based Programs:Also known as competency- or knowledge-based pay - sets pay based on skills or number of jobs an employee can performProfit Sharing:

Organization-wide programs that distribute compensation based on some established formula designed around a company’s profitability

Gain Sharing: An incentive plan in which improvements in group productivity determine the total

amount of money that is allocatedEmployee Stock Ownership Plans (ESOPs)

Company-established benefit plans in which employees acquire stock as part of their benefits

Page 33: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

Evaluation of Variable and Skill-based Pay

To some extent, variable pay does increase motivation and productivity

Benefits of Skill-based Pay Plans Provide staffing flexibility Facilitate communication across the organization Lessen “protection of territory” behaviors Meet the needs of employees for advancement Lead to performance improvements

Drawbacks: Lack of additional learning opportunities Continuing to pay employees for obsolete skills Paying for skills of no immediate use to the

organization Paying for a skill, not for performance of the skill

Page 34: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

What Benefits to Offer - Flexible Benefits

Employees tailor their benefit program to meet their personal need by picking and choosing from a menu of benefit options.Modular Plans

Predesigned benefits packages for specific groups of employees

Core-Plus Plans A core of essential benefits and a menu-like selection

of other benefit optionsFlexible Spending Plans

Allow employees to use their tax-free benefit dollars to purchase benefits and pay service premiums

Page 35: MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi.

How to Build Recognition Programs

Intrinsic Rewards: Stimulate Intrinsic Motivation Personal attention given to employee Approval and appreciation for a job well done Growing in popularity and usage

Benefits of Programs Fulfill employees’ desire for recognition Inexpensive to implement Encourage repetition of desired behaviors

Drawbacks of Programs Susceptible to manipulation by management