Driving My Company (enterprise Skill)
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  • 1. Driving My Company G105 Enterprise Skills Problem 04: Motivation 6th Presentation
  • 2. Learning Objectives 1. Describe and compare the contemporary theories of motivation 2. Apply the motivation theories to structure work and rewards to motivate staff 3. Explain how to provide feedback and modify behaviours through rewards and punishment
  • 3. Problem Analysis No Improvement in Performance! $500 bonus for Harris the everyone: Employer Sourcing; Sales; How? Admin
  • 4. What Is Motivation? • Motivation – Motivation is an internal process by which a person’s efforts are energized, directed, and sustained towards attaining a goal. – may be intrinsic, extrinsic, or both. Intrinsic Motivation Extrinsic Motivation • Drives behaviour performed for • Drives behaviour performed for the sake of activity itself external rewards or to avoid • Comes from internal desire punishment such as: • Comes from outside the person: • interest • salary and other tangibles • need for challenge • intangible rewards such as • personal satisfaction praises from the boss © 2007 Prentice Hall, Inc. All rights reserved. 16–4 Money is but one motivator. People are motivated by different things.  Harris needs to find out what works for his staff, beyond monetary rewards.
  • 5. Motivation • Rewards and punishments are used by organisations to motivate. • Effectiveness of rewards varies – explained by motivation theories. Content Theories Process Theories Reinforcement (focus on: Needs) (focus on: Cognitive Theories Process) (focus on: Consequences) • Hierarchy of Needs • Expectancy Theory • Operant Conditioning (Maslow) (Vroom) (Skinner) • 2-Factor Theory • Equity Theory (Adams) • Organisation (Herzberg) • Goal Setting Theory Behaviour • 3 Needs Theory (Locke) Modification (Luthans (McClelland) & Kreitner)
  • 6. Limitations & Assumptions Whenever we apply motivation theories, we have to keep in mind the following limitations & assumptions: 1.Motivation theories assume that we know what motivates other people, and what their needs, wants, priorities, and values are (which in reality is not true) 2.Motivation is a very complex issue involving many factors: i. A motivator that works for one person may not work for another ; ii. What works for a person at one point in time may not work in the future; & iii. No single motivator is likely to work on its own.
  • 7. Maslow’s Hierarchy of Needs • Lower level needs must be satisfied first before higher level needs are ‘activated’. • Satisfied needs cease to motivate.  the money may cater to lower level needs that no longer motivate Harris’ employees • Unsatisfied needs can cause frustration/stress  lower needs take precedence.
  • 8. Herzberg’s Two-Factor Theory To motivate staff, Harris’ focus should be on the increasing motivators while maintaining adequacy in the hygiene factors. Hygiene Factors Motivating Factors • inadequacy results in frustration • source of motivation and lack of motivation • intrinsic factors / content of work • beyond adequacy, does not • e.g. differentiate the bonus amount = motivate achievement & recognition of good • extrinsic factors / context of work performance • e.g. flat $500
  • 9. McClelland’s Three Acquired Needs Theory David McClelland’s research indicates that individuals are motivated based on three major needs:  To motivate his staff, Harris must understand what needs his employees are motivated by and structure work, assign roles, provide rewards, and behave accordingly to meet those needs. nAch nPow nAff • The drive to excel, to • The need to make • The desire for achieve a set of others behave in a friendly & close standards, to strive way they would not interpersonal to succeed have behaved relationships • E.g. otherwise • E.g. • Set stretch goals • E.g. • Praise, lunch together • Provide timely • Give titles & assign • Show care & concern performance feedback leadership roles • Listen to feedback
  • 10. Expectancy Theory Outcome / Effort Performance Reward P to O Expectancy (Instrumentality) E to P Expectancy likelihood of being rewarded Valence (Expectancy) for performance preference for belief that effort will Reward influence performance •Not effective as $500 is given positively regardless of performance •Is $500 •Could differentiate amount attractive? •Provide periodic to strengthen instrumentality •Differentiate feedback to strengthen by relating it to performance- amount to expectancy related goals or criteria (e.g. improve valence sales targets, cost reduction, on time billing) • Expectancy, Instrumentality and Valence must be high to motivate staff to work towards the reward
  • 11. Equity Theory • Most highly-motivated employees are those who perceive their rewards are equal to their contributions. Differentiate bonus amount so that those who work harder & perform better are better compensated Individual’s outcomes relational partner’s outcomes Individual’s own inputs relational partner’s inputs Ensure employees’ compensation are in line with industry’s • When people feel fairly treated, they are more likely to be motivated; when they feel unfairly treated, they will be easily de-motivated
  • 12. Goal Setting Theory Harris would have to ensure that each element of the goal-setting theory must be present to motivate staff. Goal Organisational Intrinsic Acceptance Support Rewards S.M.A.R.T Goal Directed Performance Satisfaction Goals Effort Goal Individual Traits Extrinsic Commitment & Abilities Rewards Put in more effort to discuss & set Spend time to provide feedback; goals with staff Make sure staff are confident of own abilities; provide training if necessary.
  • 13. Reinforcement Theories Consequences Behaviours of Behaviour Desired +ve reinforcement Org Behaviours -ve reinforcement Antecedents Undesired Extinction Org Behaviours Punishment Set out the expectations clearly Map out the consequences of their behaviours to his staff
  • 14. OB Mod Four Alternative Consequences Application Positive Reinforcement Punishment e.g. differentiate the Manager’s Use bonus amounts -ve Consequence Consequence +ve Extinction Negative e.g. remove bonus Reinforcement for those who have not been performing Withdrawal
  • 15. Operant Conditioning • A behaviour is a function of its consequence. – A behaviour that is reinforced/rewarded will be repeated & vice-versa. • Schedules of Reinforcement: Fixed Interval Continuous Partial Variable Interval Fixed Ratio Variable Ratio → most effective for steady & long-term change * Don’t just depend on year-end bonus * Time rewards to follow immediately after performance
  • 16. Integrating Contemporary Theories of Motivation © 2007 Prentice Hall, Inc. All rights reserved.
  • 17. Harris can… 1. Set the right expectations (behaviours, performance goals, and rewards). 2. Understand the different needs of his staff and provide rewards that satisfy those needs or are valued by your staff. 3. Focus on the motivators to encourage staff to perform better – provide growth opportunity, recognition, etc. Be creative in coming up with motivators. 4. Set goals, together with his staff, that are attainable if the staff puts in the effort and ensure that the link between performance and rewards is clear. 5. Be equitable - fair compared to other companies selling OEM computer parts, & between high performers and mediocre performers within his company (e.g. top salesman vs purchaser who just reissues purchase contracts without review). 6. Time rewards to follow immediately after performance but use a variable ratio schedule. 7. Differentiate rewards between high performers, mediocre performers, and poor performers, so that high performers are rewarded and those who aren’t are punished or at least not rewarded. 8. Make sure that the motivators and processes he put in place to motivate his staff are aligned and do not work against one another.
  • 18. Conclusion Rewards and punishments are used to motivate staff but their effectiveness varies. The motivation theories explain why some are motivated while others are not. Using the theories, Harris can: •structure his rewards based on the needs of the staff. •ensure all elements that influence how the staff view the rewards have been considered in structuring the rewards. •reinforce the right behaviours of the staff.
  • 19. EXTENDED LEARNING
  • 20. Expectancy Theory Outcome / Effort Performance Reward E to P Expectancy (Expectancy) belief that effort will influence performance Positively • Expectancy (E to P Expectancy) is the belief that increased effort will lead to increased performance i.e. if I work harder then this will be better. <For e.g., If I study an extra hour every day, I will improve my exam score by 1 grade.> This is affected by such things as: – Having the right resources available (e.g. raw materials, time) – Having the right skills to do the job – Having the necessary support to get the job done (e.g. supervisor support, or correct information on the job)
  • 21. Expectancy Theory Outcome / Effort Performance Reward P to O Expectancy (Instrumentality) likelihood of being rewarded for performance • Instrumentality (P to O Expectancy) is the belief that if you perform well that a valued outcome will be received i.e. if I do a good job, there is something in it for me. This is affected by such things as: – Clear understanding of the relationship between performance and outcomes – e.g. the rules of the reward ‘game’ – Trust in the people who will take the decisions on who gets what outcome – Transparency of the process that decides who gets what outcome
  • 22. Expectancy Theory Outcome / Effort Performance Reward Valence preference for Reward • Valence (Outcome) is the importance that the individual places upon the expected outcome. For example, if I am mainly motivated by money, I might not value offers of additional time off.
  • 23. Expectancy Theory Outcome / Effort Performance Reward E to P Expectancy (Expectancy) P to O Expectancy (Instrumentality) Valence belief that effort will likelihood of being rewarded preference for influence performance for performance Reward Positively • Individuals change their level of effort according to the value they place on the outcomes they receive from the process and on their perception of the strength of the links between effort and outcome. • So, if I perceive that any one of these is true: – My increased effort will not increase my performance; – My increased performance will not increase my rewards; or – I don’t value the rewards on offer ...then Expectancy theory suggests that I will not be motivated. • This means that even if an organisation achieves two out of three, that employees would still not be motivated; all three are required for positive motivation.  Expectancy, Instrumentality and Valence must be high to motivate staff to work towards the reward.
  • 24. Goal Setting Theory • Goal setting theory assumes behavior results from a person’s conscious goals and intentions. • Goal setting is motivating if the goals are Specific, Measureable, Attainable, Realistic and Time Bound. • Research suggests that specific challenging goals have been shown to lead to high performance only if people accept and are committed to the goal. • The resulting goal-directed effort turns into performance when the individual has the abilities to do the job and there are sufficient resources and support from the organisation. • The satisfaction that the individual gets is based on his performance as well as his level of abilities (how hard he had to try) and his satisfaction with the support from the organisation. • His satisfaction can be from intrinsic or extrinsic rewards.
  • 25. Goal Setting Theory • In order to generate high performance, 1. Goals should be specific, rather than vague. 2. Feedback should be provided (especially workers giving feedback on their own outputs). 3. The individuals should be committed to the goals. 4. The individuals should believe in their own ability to accomplish the goals.
  • 26. Operant Conditioning • Schedules of Reinforcement: Fixed Interval Partial Continuous Variable Interval Fixed Ratio Variable Ratio • Continuous reinforcement means that the behavior is followed by a consequence each time it occurs. • Intermittent schedules are based either on the passage of time (interval schedules) or the number of correct responses emitted (ratio schedules).
  • 27. Operant Conditioning • The consequence can be delivered based on the same amount of passage of time or the same number of correct responses (fixed) or it could be based on a slightly different amount of time or number of correct responses that vary around a particular number (variable). Interval - refers to time period • This results in an four classes of Ratio refers to no. of correct responses intermittent schedules. Note: Continuous reinforcement is actually a specific example of a fixed ratio schedule with only one response emitted before a consequence occurs.
  • 28. Operant Conditioning • Fixed interval -- the first correct response after a set amount of time has passed is reinforced. The time period required is always the same. • Variable interval -- the first correct response after a set amount of time has passed is reinforced. After the reinforcement, a new time period (shorter or longer) is set with the average equaling a specific number over a sum total of trials • Fixed ratio -- a reinforcer is given after a specified Interval - refers to time period number of correct responses. This schedule is best Ratio refers to no. of correct responses for learning a new behavior Note: Continuous reinforcement is • Variable ratio -- a reinforcer is given after a set actually a specific example of a number of correct responses. After reinforcement fixed ratio schedule with only one the number of correct responses necessary for response emitted before a reinforcement changes. This schedule is best for consequence occurs. maintaining behavior.
  • 29. References Textbooks 1. McShane S. L. and Von Glinow M. A. (2009) Organizational Behavior: Essentials, 2nd ed. McGraw-Hill/Irwin. 2. Huczynski, A. and Buchanan, D. (2001) Organizational Behaviour: An introductory text, 4th ed. Essex: Financial Times/Prentice Hall. 3. Ivancevich, J. M. and Matteson, M. R. (2002) Organizational Behaviour and Management, 6th ed. McGraw-Hill. 4. Miner, J. B. (2005) Organizational Behavior I: Essential theories of motivation and leadership. New York: M.E. Sharpe, Inc. 5. Newstrom, J. W. (2007) Organizational Behavior: Human behaviour at work, 12th ed. McGraw-Hill/Irwin. 6. Robbins, S. P. (2001) Organizational Behavior, 9th ed. Prentice-Hall International. Websites 1. Adams’ Equity Theory. http://www.mindtools.com/pages/article/newLDR_96.htm Retrieved on 12 Apr 2010. 2. Employee Motivation. Theory and Practice. http://www.accel-team.com/motivation/ Retrieved on 12 Apr 2010. 3. Expectancy Theory of Motivation. http://www.arrod.co.uk/archive/concept_vroom.php. Retrieved on 12 Apr 2010. 4. Motivation & Employee Productivity. www.cobracm.org/Quality/Fordham/Motivation%20&%20Advanced%20Motivation.ppt . Retrieved on 12 Apr 2010. 5. Psychology 101. Chapter 4: Learning Theory and Behavioural Psychology. http://allpsych.com/psychology101/reinforcement.html. Retrieved on 12 Apr 2010. 6. The 2 Factor Hygiene and Motivation Theory. http://accel-team.com/human_relations/hrels_05_herzberg.html. Retrieved on 12 Apr 2010. 7. Two-Factor Theory. http://www.valuebasedmanagement.net/methods_herzberg_two_factor_theory.html. Retrieved on 12 Apr 2010. 8. David McClelland’s Motivational Needs Theory. http://www.businessballs.com/davidmcclelland.htm. Retrieved on 12 Apr 2010.