2.5 motivation chapter 14. what motivates employees? intrinsic motivation satisfaction derived from...

2.5 Motivation

Chapter 14

What motivates employees?

Intrinsic motivationSatisfaction derived from working on and completing a task.

Extrinsic motivationSatisfaction from external rewards associated with working on task such as pay or other benefits.

Motivational Theories

Content Theories-Based on the assumption that individuals are motivated by their desire to fulfill their inner needs.

F.W. Taylor and Scientific Management

Maslow’s Hierarchy of Human Needs

McGregor’s Theory X and Theory Y

Herzberg and the “two-factor” Theory


This was the first attempt to analyze worker motivation.

Early mass production factories used his method.

Aim: reduce inefficiency and improve productivity.


Taylor’s Scientific approach:

1. Select workers to perform the task2. Observe them performing the task and take notes3. Record the time it takes to do each part of the task4. Identify the quickest method recorded5. Train all workers on the quickest method and do not

allow changes6. Supervise workers to ensure the “best way” is always

followed and time checks examined7. Pay workers on the results – “economic man”


What is the “economic man”

The idea that man is driven or motivated by money alone!

Therefore – motivate by workers by pay

Do you think this is true?


Taylor’s Approach Relevance TodayEconomic Man Is pay the only way to motivate

employees?

Select the right people for the job Is staff selection for the job a current consideration?

Observe and record the performance of staff

“Time and motion study” Still utilized but done with cooperation of employees.

Establish the best method of doing a job – method study

Efficiency studies are still used to determine “best practices”

Piece-work payment systems Is this a popular method?


Needs start at the lowest level

Once a level is reached and satisfied, we will strive for the next level

Once a need is satisfied, it will no longer motivate a person to action

Self-actualization isn’t achieved by everyone, but everyone can reach their potential

Self-ActualizationReaching one’s full potential

Esteem NeedsRespect from others; status recognition of achievement

Social NeedsTrust; acceptance; friendship;

belonging to a group;

Safety NeedsProtection from threats; job security;

health and safety at work

Physical NeedsFood; shelter; water; rest


Level of Need

Business Conditions

Self-Actualization

Challenging work that stretches an individual

Esteem Needs Recognition for a job well done

Social Needs Working in teams or groups

Safety Needs Job security

Physical Needs Income to meet daily essentials

Self-Actualization

Esteem Needs

Social Needs

Safety Needs

Physical Needs


Limitations Not everyone has the same needs How do you identify which level your

employee’s are on? Money can satisfy other levels than

physical needs (social or status) Self-Actualization is not a permanent


McGregor identified 2 different management views:

X = Workers are lazy, dislike work, are unprepared, and need to be controlled

Y = Workers enjoy what they do, they are creative, and take an active part in what they do


Why is this important? Workers behave in the way they are

treated – living up to the expectation of management If you think I am lazy, I will be. If you think I am responsible, I will be.


Factors that lead to positive feelings about a job

Factors that lead to negative feelings about a job

2 Factors: Positive NegativeFeelings Feelings


Job Satisfactionresults from

Job Dissatisfactionresults from

Achievement Company policy and administration

Recognition for achievement Supervision

The work itself Salary

Responsibility Relations with others

Advancement Working Conditions


Results of Herzberg’s Theory

1. Pay and working conditions can be improved to help remove job dissatisfaction but it will not, on its own, provide motivation to an employee.

2. Motivators need to be in place for workers to willingly do their best. (Job Enrichment)

3. Higher pay is a temporary motivator.

HL-Mayo and the “Hawthorne Effect” Elton Mayo conducted experiments at the

Hawthorne factory at Western Electric in Chicago, Illinois

He assumed that working conditions could control worker productivity (better lighting, heating, rest periods, improved pay)

He did not get the results he thought!

HL-“Hawthorne Effect” Conclusions

Changes in working conditions and financial rewards had NO effect on productivity

What did IMPROVE productivity:

When managers took an interest in workers and their work, productivity improved.

Working in teams improved productivity. When workers controlled breaks and some decisions, positive

motivation resulted

This research has influenced business today with the development with personnel departments and structuring work to include team and group work and involving workers

HL-David McClelland – 3 Types of Motivational Need

Achievement Motivation (n-ach)a person with a strong motivational need for achievement will seek out motivational goals and feedback.

Result-driven attitude seen in successful business people and entrepreneurs.


Authority/power motivation (n-pow)a person with a strong need to dominate and desires to control others. Wants to be influential, effective, and make an impact.

Strong leadership instinct and when authority is gained over others it brings personal status and prestige.


Affiliation Motivation (n-affil)a person with a need for friendly relationships with others and is motivated with interaction with others.

Good team members, need to be liked and popular and to be held in high regard.


Results All three needs are found in varying degrees in all

workers and managers.

A managers motivation will effect how he believes others are motivated.

Achievement motivated people get the most done but can expect too much of workers and value achievement over other needs of workers.

HL-Process Theories:Thought process that influence behavior

Vroom and Expectancy TheoryPeople choose to behave in ways that they

believe will lead to outcomes they value Positive link between effort and performance Favorable performance will result in a desirable

reward The reward will satisfy an important need The desire to satisfy the need is strong enough

to make the work effort worthwhile


Vroom and Expectancy Theory3 Beliefs

Valence: the depth of the want of employee for an extrinsic reward such as money or an intrinsic reward such as satisfaction

Expectancy: the degree to which people believe that putting effort into work will lead to a given level of performance

Instrumentality: the confidence of employees that they will actually get what they desire regardless what is promised by a manager

If just one of these items is missing, employees will not be motivated. Therefore, managers should try to ensure that employees believe that increased work effort will improve performance and that this performance will lead to valued rewards.


Adams and Equity Theory Employees are demotivated if they believe their

inputs are greater than their outputs.Inputs: effort, loyalty, commitment, skill

Outputs: financial rewards, recognition, security, and sense of achievement

When this is in balance, employees will respond with positive attitudes and high levels of motivation.

Financial Payment

Hourly Wage Rate (also called “time rate”)

Wage is determined by an hourly rate X the number of hours worked…usually paid weekly.

Security of payment Speed of work completion is NOT rewarded. Slow work could encourage overtime pay.

Financial Payment

Piece Rate

Wage is determined by number of units produced X a fixed amount

Level of payment rate is critical in order to not overpay or under pay the worker.

Speed of work is encouraged – quality could suffer. Slow work can be encouraged when a worker reaches a

satisfactory wage level.

Financial Payment

SalaryFlat amount paid regardless of hours worked.

Common for management and supervisory staff. Salary level is fixed so

companies can budget. Banding is common.

Job Grade Salary Band

E: Regional Heads $50,000 - $75,900

D: Department Heads $30,000 - $49,000

C: Office Managers $20,000 - $29,900

B: Secretaries $10,000 - $19,900

A: Junior Clerical Staff $5,000 - $9,900

Financial Payment

Commission

Wage usually determined by percentage of sales.

Can be added to a base salary or can be 100% commission

Workers may be encouraged to use high-pressure sales tactics.

Slow work can be encouraged when a worker reaches a satisfactory wage level.

Does not encourage team work.

Financial Payment Performance-Related Pay (PRP)

Usually paid out in bonuses in addition to a basic salary.

Targets are set and management determines if targets are met.

Issues Additional pay does not motivate workers in the long-term

(according to Herzberg’s theory). There is no change in the work performed – no motivators for work

improvement. The emphasis on individual performance does not encourage team

work. Bonuses are often inadequate to improve worker’s efforts. Since management determines if targets are met, claims of

favoritism are often made.

Financial Payment Profit-Related Pay

Paying workers a portion of the profit made by the company.

A worker may be motivated to work harder or be active in cost-saving measures.

The reward is not based on an individual effort. Small profits earned may not be worth the

“effort”

Financial Payment Employee Share-Ownership Schemes

Paying employees with shares of company stock.

Establishes workers as part owners of the company.

In reality – workers typically sell the stock quickly.

Financial Payment Fringe Benefits

Non-cash rewards to workers

Company car Life Insurance, Disability Insurance,

Health Insurance Pension Employee discounts

Non-Financial Motivators

Job EnlargementIncreasing the scope or amount of work

Job EnrichmentIncreasing the responsibility, decreasing supervision, offer challenging tasks

Team WorkWorking in groups

DelegationGiving work to others to perform

2.5 motivation chapter 14. what motivates employees? intrinsic motivation satisfaction derived from...

Documents

inner needs

physical needs social

permanent slide

factor theory slide

group safety needs protection

potential esteem needs

best method

quickest method