2.5 Motivation

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.

F.W. Taylor and Scientific Management

This was the first attempt to analyze worker motivation.

Early mass production factories used his method.

Aim: reduce inefficiency and improve productivity.

F.W. Taylor and Scientific Management

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”

F.W. Taylor and Scientific Management

What is the “economic man”

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

Therefore – motivate workers by pay

Do you think this is true?

F.W. Taylor and Scientific Management

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?

Maslow’s Hierarchy of Human Needs

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

Maslow’s Hierarchy of Human Needs

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

Maslow’s Hierarchy of Human 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 permanent

Herzberg and the “two-factor” Theory

Factors that lead to positive feelings about a job (MOTIVATORS) Achievement, recognition, work itself, responsibility,

advancement

Factors that lead to negative feelings about a job but do not provide motivation. (HYGIENE FACTORS) Company policy & administration, supervision, salary,

relationships with others, working conditions

Herzberg and the “two-factor” Theory

Job SatisfactionMotivators (intrinsic)

Job DissatisfactionHygiene Factors (extrinsic)

Achievement Company policy and administration

Recognition for achievement Supervision

The work itself Salary

Responsibility Relations with others

Advancement Working Conditions

Herzberg and the “two-factor” Theory

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. (Hygiene Factors)

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

3. Higher pay may get the job accomplished but does NOT actually motivate (Movement).

Herzberg and the “two-factor” Theory

AchievementRecognitionWork itself

Responsibility Advancement

Motivators have the ability to increase job satisfaction.

Company Policy & AdministrationSupervision

SalaryRelationships with others

Working conditions

Hygiene Factors cannot improve job satisfaction on their own but can create job dissatisfaction.

Motivators Hygiene Factors

Herzberg and the “two-factor” Theory

Today's impact:

1. Team work is now more common

2. Workers tend to be made more responsible for the quality of their work rather than being closely supervised

3. Most firms are looking for ways to improve communication, group meetings with 2-way communication is favored.

Adams and Equity Theory

Premise:

If workers feel their input/effort is greater than output such as pay, recognition, and security.....

They will be demotivated and adjust the imbalance.

Once there is a balance, they will respond with positive attitudes.

Daniel Pink

Autonomy: Self-direction

Mastery: Everyone gets better with practice

Purpose: Connecting with a cause larger than oneself

These 3 elements create MOTIVATION!

Ted Talk:

Daniel Pink, 2009 The puzzle of motivation 19 min

Financial Payment

Hourly Wage Rate (also called “time based 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 $75,000 - $175,000

D: Department Heads $40,000 - $60,000

C: Office Managers $35,000 - $45,000

B: Secretaries $28,000 - $39,000

A: Junior Clerical Staff $25,000 - $32,000

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 (Perks)

Non-cash rewards to workers

Company car Life Insurance, Disability Insurance, Health Insurance Pension Employee discounts

Non-Financial Motivators Job Enlargement

Increasing the scope or amount of work Job Enrichment

Increasing the responsibility, decreasing supervision, offer challenging tasks

Job RotationMoving employees among several different jobs with similar levels of difficulty to avoid boredom

Team WorkWorking in groups

DelegationGiving work to others to perform

Cultural Impact on RewardsHow a culture perceives rewards can have great

impact on methods of rewards selected. Performance Orientation: improvement,

innovation and strive for excellence Future Orientation: individuals are focused on

delaying immediate rewards for future gains; individual incentives work well(Germanic Europe, UK, China; weak in Latin America)

Institutional Collectivism: encourage distribution of resources so the group is effective; team and profit sharing work well

(Nordic Europe, Germanic Europe; weak in Asia)

Cultural Impact on Fringe BenefitsWhat constitutes a reward or a fringe benefit varies

from culture to culture

France: Employees appreciate vouchers for gourmet food

India: A ticket to Bollywood is popular Asia: Clocks are NOT acceptable. It means

management is watching time and you are not putting in the effort desired

United States: No cost medical insurance, in most other countries that is provided by the government.

Cultural Impact on Non-financial United States: It is acceptable to recognize

employees of the month or recognize an employee's contribution.

Asia: Singling out an individual can be embarrassing as they prefer team recognition.

In Asia, a demotion could motivate an employee to perform better. In the U.S., this could cause the employee to look for another job!