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  1. 1. Motivation Dr.Rajesh Patel Director, SKIPS
  2. 2. “ Motivation as the process that account for an individual’s intensity, direction, and persistence of effort towards attaining a goal”. Dr.Rajesh Patel Director, SKIPS
  3. 3. The three key elements in our definition are intensity, direction, and persistence. Dr. Rajesh Patel Director, SKIPS
  4. 4. Early theories Of motivation 1. Maslow’s Hierarchy of Needs 2. MacGregor’s Theories X and Y 3. Herzberg’s Two-Factor Theory Dr.Rajesh Patel Director, SKIPS
  5. 5. . 1. Maslow’s Hierarchy of Needs <ul><li>Abraham Maslow’s hierarchy need theory emphasis of five needs : </li></ul><ul><li>Physiological. </li></ul><ul><li>Safety. </li></ul><ul><li>Social. </li></ul><ul><li>Esteem. </li></ul><ul><li>Self actualization </li></ul>
  6. 6. Maslow’s Hierarchy of Needs PHYSIOLOGICAL OR SURVIVAL NEEDS SAFETY NEEDS LOVE, AFFECTION, AND BELONGINGNESS NEEDS ESTEEM NEEDS Ego, status, respect, prestige, promotion, influence, power, recognition,et. Need for Self actualization MOST NEEDS HAVE TO DO WITH SURVIVAL PHYSICALLY AND PSYCHOLOGICALLY Food, drink, shelter, sex, warmth, physical comfort Freedom from danger and want
  7. 7. 2. Theory X and theory Y By Douglas McGregor Douglas McGregor proposed two distinct view of human beings: one basically negative, labeled Theory X and the other basically positive , labeled Theory Y .
  8. 8. Assumption of Theory X <ul><li>Employees inherently dislike work and whenever possible will attempt to avoid it. </li></ul><ul><li>Since employees dislike work, they must be coerced, controlled or threatened with punishment to achieve goals. </li></ul><ul><li>Employees will avoid responsibilities and seek formal direction whenever possible. </li></ul><ul><li>Most workers place security above all other factors associated with work and will display little ambition. </li></ul>
  9. 9. Assumption of Theory Y <ul><li>Employee can view work as being natural as rest or play. </li></ul><ul><li>People will exercise self direction and self –control if they are committed to the objectives. </li></ul><ul><li>The average person can learn to accept , even seek, responsibility. </li></ul><ul><li>The ability to make innovative decisions is widely dispersed throughout the population and is not necessarily the sole province of those in management positions. </li></ul>
  10. 10. What the motivational implications if you accept McGregor’s analysis? Theory X assumes that lower order needs dominate individuals. Theory Y assumes that higher order needs dominate individuals. McGregor himself held to the belief that theory Y assumptions were more valid then theory X . therefore, he proposed such ideas as participative decision making, responsible and challenging jobs, and good group relations as approached that would maximize an employee’s job motivation
  11. 11. Two factor Theory (Motivation Hygiene Theory) BY Fredrick Herzberg
  12. 12. <ul><li>Herzberg’s Motivation-Hygiene Theory </li></ul><ul><ul><li>Job satisfaction and job dissatisfaction are created by different factors. </li></ul></ul><ul><ul><ul><li>Hygiene factors: extrinsic ( job environment) factors that create job dissatisfaction. </li></ul></ul></ul><ul><ul><ul><li>Motivators: intrinsic (psychological factors/job content ) factors that create job satisfaction. </li></ul></ul></ul><ul><ul><li>Attempted to explain why job satisfaction does not result in increased performance. </li></ul></ul><ul><ul><ul><li>The opposite of satisfaction is not dissatisfaction, but rather no satisfaction. </li></ul></ul></ul>
  13. 13. Contrasting Views of Satisfaction-Dissatisfaction
  14. 14. Herzberg’s Motivation-Hygiene Theory
  15. 15. Motivators <ul><li>Achievement : This is a measure of the opportunities for you to use your full capabilities and make a worthwhile contribution. </li></ul><ul><li>Responsibility : A measure of freedom of action in decision-taking, style and job development. </li></ul><ul><li>Recognition : An indication of the amount and quality of all kinds of ‘feedback’, whether good or bad, about how you are getting on in the job. </li></ul><ul><li>Advancement : This shows the potential of the job in terms Promotion. The story of the monkey. </li></ul><ul><li>Work itself : The interest of the job, usually involving variety, challenge and personal conviction of one’s significance. </li></ul><ul><li>Personal Growth : Opportunities of learning and maturing. </li></ul>
  16. 16. Contemporary Theories of motivation Dr. Rajesh Patel Director, SKIPS
  17. 17. McClelland’s Theory Of Needs <ul><ul><li>There are three major acquired needs that are major motives in work: </li></ul></ul><ul><ul><ul><li>1. Need for achievement (nAch) </li></ul></ul></ul><ul><ul><ul><ul><li>The drive to excel and succeed </li></ul></ul></ul></ul><ul><ul><ul><li>2. Need for power (nPow) </li></ul></ul></ul><ul><ul><ul><ul><li>The need to influence the behavior of others </li></ul></ul></ul></ul><ul><ul><ul><li>3. Need of affiliation (nAff) </li></ul></ul></ul><ul><ul><ul><ul><li>The desire for interpersonal relationships </li></ul></ul></ul></ul>Dr. Rajesh Patel Director, SKIPS
  18. 18. <ul><li>Most people have a motivation to achieve but only in 10 per cent of the population this is a highly developed. </li></ul><ul><li>Such tendencies emerge at a very early age. </li></ul><ul><li>The percentage (10%) is likely to be much higher in certain jobs, like management. </li></ul><ul><li>High-achievers share three major characteristics. </li></ul><ul><ul><li>1. They like to set their own goals. They want the victory or defeat to be unmistakably theirs. </li></ul></ul><ul><ul><li>They tend to avoid extremes of difficulty in selecting goals. They prefer moderate goals. </li></ul></ul><ul><ul><li>They prefer tasks which provide them with more or less immediate feedback. </li></ul></ul><ul><ul><li>Effect of monetary incentives is rather complex. They are normally working at peak efficiency anyway. They prefer to place a high price on their jobs. </li></ul></ul>McCleland’s Self-Motivated Achiever Dr. Rajesh Patel Director, SKIPS
  19. 19. Cognitive Evaluation Theory It is studies that the introduction of extrinsic rewards such as pay for work efforts that was previously intrinsically rewarded due to the pleasure associated with the content of the work itself tends to decrease overall motivation. Dr. Rajesh Patel Director, SKIPS
  20. 20. It is argues that when extrinsic rewards are used by organization as pay offs for superior performance, the intrinsic rewards, which are derived from individuals doing what they like, are reduced. In other words, when extrinsic rewards are given to someone for performing as interesting task, it causes intrinsic interest in the task itself to decline. Dr. Rajesh Patel Director, SKIPS
  21. 21. Why would such an outcome occur? The popular explanation is that the individual experiences a loss of control over his or her own behavior so that the previous intrinsic motivation diminished. Further more, the elimination of extrinsic rewards can produce shift from an external to an internal explanation in an individual's perception of causation of why he or she works on a task. Dr. Rajesh Patel Director, SKIPS
  22. 22. A more recent outgrowth of the cognitive evaluation theory is self concordance which considers the degree to which peoples reasons for pursuing goals are consistent with their interests and core values. For example if individuals pursue goals because of an intrinsic interest they are more likely to attain their goals and are happy and if they do not attain them , why ? Because the process of striving towards them is fun. In contrast , people who pursue goals for extrinsic reasons (money , status , or other benefits) are less likely to attain their goals and are less happy even when they do achieve them. Why? Because the goals are less meaningful to them Dr. Rajesh Patel Director, SKIPS
  23. 23. Goal Setting Theory In the late 1960s, Edwin Locke proposed that intentions to work towards a goals are a major source of work motivation. Goals tells an employee what needs to be done and how much effort will need to be expended . The evidence strongly supports the value of goals. More to the point, we can say that specific goals increase performance; that difficult goals, when accepted, result in higher performance than do easy goals; and that feedback leads to higher performance than does no feedback.
  24. 24. Specific goals produce a higher level of output than does the generalized goal of do your best why? The specificity of the goal itself seems to act an internal stimulus. For instance, when a trucker commits to making 12 roundtrip hauls between Mumbai and Pune , each week, this intention gives him a specific objective to try to attain. We can say that, all things being equal, the trucker with a specific goal will outperform a counterpart operating with no goals or the generalized goal of do your best.
  25. 25. In a business school a professor gave building blocks to the students and asked them to build as high as they could. The group was able to achieve 14 levels. To the next group, the professor gave a target of 19 levels, and the group could achieve21 levels. Thus inspite of the same conditions, goal setting helped the second group to outperform the first. To yet another group in similar conditions, the professor said, group 2 has achieved 21 levels, let us see what you all can achieve to his surprise, the group achieved 25 levels. If factors such as acceptance of the goals are held constant we can also state that the more difficult the goal, the higher the level of performance. of course , it’s logical to assume that easier goals are more likely to be accepted. But once a hard task is accepted the employee can be expected to exert a higher level of efforts to try to achieve it But why are people more motivated by difficult goals? First, difficult goals direct our attention to the task at hand and away from irrelevant distractions. Challenging goals get our attention and thus tend to help us focus. Second, difficult goals energize us because we have to work harder to attain them. For example, think of your study habits. Do you study as hard for an easy exam as you do for a difficult one? Probability not. Third, when goals are difficult, people persist in trying to attain them. Finally difficult goals lead us to discover strategies that help us perform the job or task more effectively . If we have to struggle for a way to solve a difficult problem, we often thinks of a better way to go about it.
  26. 26. People will do better when they get feedback on how well they are progressing toward their goals, because feedback helps to identify discrepancies between what they have done and what they want to do, that is, feedback act to guide behavior. But all feedback is not equally potent. Self generated feedback – for which employees are able to monitor their own progress – has been shown to be more powerful motivator than externally generated feedback. If employees have the opportunity to participate in the setting of their own goals , Will they try harder? The evidence is mixed regarded the superiority of participative over assigned goals. In some cases participative set goals elicited superior performance, while in other cases, individuals performed best when assigned goals by their boss. But a major advantage of participation may be in increasing acceptance of the goal itself as a desirable one towards which to work. As we'll note shortly, commitment’s important. If participation isn’t used , then the purpose and importance of the goals need to be explained clearly by the individual assigning the goals
  27. 27. Are there any contingencies in goal setting theory or can we take it as a universal truth that difficult and specific goals will always lead to higher performance ? In addition to feedback , three other factors have been found to influence the goals – performance relationship. There are goal commitment, task characteristics, and national culture. Goal setting theory presupposes that an individual is committed to the goals , that is an individual is determined not lower or abandon the goal. Behaviorally, this means that an individual (a) believes he or she can achieve the goals and (b) wants to achieve it. Goal commitment is most likely to occur when goals are made public , when the individual has an internal locus of control and when the goals are self set rather than assigned. Research indicates that goal setting theory doesn’t work equally well on all tasks . The evidence suggest that goals seem to have a more substantial effect on performance when tasks are simple rather than complex, well-learned rather than novel, and independent rather than interdependent . On interdependent tasks , group goals are preferable.
  28. 28. Finally , goal setting theory is culture bound its well adapted to countries like the united states and Canada because its key components align reasonably well with North American cultures. It assumes that employee will be reasonably independent (not too high a score on power distance), that managers and employees will seek challenging goals (low in uncertainly avoidance ), and that performance is considered important by both (high in achievement), so doesn't expect goal setting to necessarily lead to higher employee performance in countries such as Portugal or Chile, where the opposite conditions exist.
  29. 29. Self Efficacy Theory Self efficacy or social learning refers to an individual’s belief that he or she is capable of performing a task. The higher your self efficacy , the more confidence you have in your ability to succeed in a task. So, in difficult situations, we find that people with low self efficacy are more likely to lessen their effort or give up altogether while those with higher self efficacy will try harder to master the challenge. In addition , individuals high in self efficacy seem to respond to negative feedback with increased effort and motivation , while those low in self efficacy are likely to lessen their effort when given negative feedback. How can managers help their employees achieve high levels of self efficacy ? By bringing together goals setting theory and self efficacy theory .
  30. 30. Joint effect of goals and self efficacy on performance Individuals has confidence that given level of performance will be attained (self efficacy ) Manager sets difficult, specific goals for jobs or task Individual sets higher personal (self set) goals for their performance Individual has higher level of job or task performance
  31. 31. The researcher who developed self efficacy theory , Albert Bandura, argues that there are four ways self efficacy can be increased : <ul><li>Enactive Mastery . </li></ul><ul><li>Vicarious modeling . </li></ul><ul><li>Verbal persuasion. </li></ul><ul><li>Arousal . </li></ul>
  32. 32. 1. Enactive mastery . Enactive mastery is gaining relevant experience with the task or job. If I have been able to do the job successfully in the past , then I an more confident I will be able to do it in the future .
  33. 33. 2. Vicarious modeling . Vicarious modeling mean becoming more confident because you see someone else doing the task.
  34. 34. Verbal persuasion Vicarious modeling mean becoming more confident because someone convinces you that you have the skills necessary to be successful.
  35. 35. Verbal persuasion Which is becoming more confident because someone convinces you that you have the skills necessary to be successful.
  36. 36. 4. Arousal Arousal leads to an energized state, which drives a person to complete the task. The person gets “psyched up” and performs better.
  37. 37. Reinforcement theory <ul><ul><li>Assumes that a desired behavior is a function of its consequences, is externally caused, and if reinforced, is likely to be repeated. </li></ul></ul><ul><ul><ul><li>Positive reinforcement is preferred for its long-term effects on performance. </li></ul></ul></ul><ul><ul><ul><li>Ignoring undesired behavior is better than punishment which may create additional dysfunctional behaviors. </li></ul></ul></ul>
  38. 38. Equity theory <ul><ul><li>Proposes that employees perceive what they get from a job situation ( outcomes ) in relation to what they put in ( inputs ) and then compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevant others. </li></ul></ul><ul><ul><ul><li>If the ratios are perceived as equal then a state of equity (fairness) exists. </li></ul></ul></ul><ul><ul><ul><li>If the ratios are perceived as unequal , inequity exists and the person feels under- or over-rewarded . </li></ul></ul></ul><ul><ul><ul><li>When inequities occur, employees will attempt to do something to rebalance the ratios (seek justice ). </li></ul></ul></ul>
  39. 39. <ul><ul><li>Employee responses to perceived inequities: </li></ul></ul><ul><ul><ul><li>1.Distort own or others’ ratios. </li></ul></ul></ul><ul><ul><ul><li>2.Induce others to change their own inputs or outcomes. </li></ul></ul></ul><ul><ul><ul><li>3.Change own inputs (increase or decrease efforts) or outcomes (seek greater rewards). </li></ul></ul></ul><ul><ul><ul><li>4. Choose a different comparison (referent) other (person, systems, or self). </li></ul></ul></ul><ul><ul><ul><li>5. Quit their job. </li></ul></ul></ul><ul><ul><li>6.Employees are concerned with both the absolute and relative nature of organizational rewards. </li></ul></ul>
  40. 41. <ul><ul><li>Distributive justice: </li></ul></ul><ul><ul><ul><li>The perceived fairness of the amount and allocation of rewards among individuals (i.e., who received what). </li></ul></ul></ul><ul><ul><ul><ul><li>Influences an employee’s satisfaction. </li></ul></ul></ul></ul><ul><ul><li>Procedural justice: </li></ul></ul><ul><ul><ul><li>The perceived fairness of the process use to determine the distribution of rewards (i.e., how who received what). </li></ul></ul></ul><ul><ul><ul><ul><li>Affects an employee’s organizational commitment </li></ul></ul></ul></ul>
  41. 42. Organizational justice : Overall perception of what is fair in the workplace Distributive Justice : Perceived fairness of outcome Procedural Justice: Perceived fairness of process used to determine outcome Interactional justice: Perceived degree to which one is treated with dignity and respect. Model Of Organizational Justice
  42. 43. Expectancy Theory Expectancy Theory says that employees will be motivated to expert a high level of effort when they believe that effort will lead to a good performance appraisal; a good appraisal will lead to organizational rewards such as a bonus, a salary increase, or a promotion; and that the rewards will satisfy the employees' personal goals. The theory therefore focuses on three relationships:
  43. 44. Expectancy Theory Individual effort Individual performance Organizational rewards Personal Goals
  44. 45. 1. Effort – Performance relationship. 2. Performance – Reward relationship. 3. Reward- Personal goals relationship.
  45. 46. Integrating Contemporary Theories of Motivation
  46. 47. Job Design Equity Comparison Organizational Justice QA : QB Performance Evaluation criteria Individual effort Individual performance Organizational rewards Personal Goals Objective Performance Evaluation system Reinforcement Dominant needs Goal direct behaviour Opportunity Ability High nAch Integrating Contemporary Theories Of Motivation
  47. 48. Motivating by changing the nature of Work Environment
  48. 49. Research in job design provides stronger evidence that the way the elements in a job are organized can act to increase or decrease effort. This research also offers detailed insights into just what those elements are. We’ll first review the job characteristics model and then discuss some ways jobs can be redesigned
  49. 50. The job characteristic model Developed by J. Richard Hackman and Greg Oldham, the job characteristics model proposes that any job can be described in terms of five core job dimensions: 1. Skill variety. 2. Task identity. 3. Task significance. 4. Autonomy. 5. feedback.
  50. 51. Motivating by changing the nature of Work Environment
  51. 52. How can jobs be redesigned ?
  52. 53. 1 . Job rotation
  53. 54. 2. Job enlargement
  54. 55. 3. Job enrichment
  55. 56. Alternative work arrangement
  56. 57. 1. flextime.
  57. 58. 2. Job sharing .
  58. 59. 3. Telecommuting
  59. 60. 4. Employee involvement <ul><li>Participative management . </li></ul><ul><li>Representative participation. </li></ul><ul><li>Quality circle. </li></ul>
  60. 61. Rewarding Employees 1. What to pay :establishing a pay structure. 2. How to pay : rewarding individual employees through variable- pay programs: a. piece rate pay. b. merit based pay c. bonus. d. profit sharing plans. e. gain sharing. f. employee stock ownership plans.
  61. 62. How to Pay : Rewarding individual employees through skill-based pay plans
  62. 63. Skill based pay facilitates communication across the organization because people gain a better understanding of each others jobs. Where skill based pay exists, you are less likely to hear the phrase “its not my job”. In addition skill pay helps meet the needs of ambitious employees who confront minimal advancement opportunities. These people can increase their earnings and knowledge without a promotion in job title. What about the downside of skill based pay? People can “top out” learning all the skills the program calls for them to learn, this can frustrate employees after they have become challenged by an environment of learning, growth and continual pay raises and skills can become obsolete. When this happens what should management do? Cut employee pay or continue to pay for skills that are no longer relevent.
  63. 64. Linking skill based pay plans to motivation theories Skill based pay plans are consistent with several motivation theories. Because they encourage employees to learn, expand their skills, and grow, they are consistent with ERG Theory . Among employees whose lower order needs are substantially satisfied, the opportunity to experience growth can be a motivator .
  64. 65. Flexible benefits: Developing a benefits package Flexible benefits allow each employee to put together a benefit package individually tailored to his or her own needs and situation. It replaces the traditional “one benefit plan fits all” programs that dominated organizations for more than 50 years. Consistent with expectancy theory’s thesis that organizational rewards Should be linked to each individual employee’s goals, flexible benefits individualize rewards by allowing each employees to choose the compensation package that best satisfies his or her current needs.
  65. 66. Most of the organizations in India are offering flexible salary structures because of changing tax environment where an employee has the freedom to choose from a defined many of items of pay and optimize his or her tax planning.
  66. 67. Intrinsic rewards: employee recognition programs Employee recognition programs range from a spontaneous and private ” thank you ” up to widely publicized formal programs where specific types of behavior are encouraged and the procedures for attaining recognition clearly identified.
  67. 68. Wipro believes that reward and recognition systems are some of the fundamental ways of improving motivational level. The company has a unique package called Encore, which is essentially ‘ a basket of non – monetary rewards’ given to motivate employees and recognize excellent work performance. For example, award ‘ feather in my cap’ is an on the spot recognition of an effort awarded to a project or project team; ‘ dear boss recognizes’ the positives of a good boss, including technical , managerial, and leadership skills , and awards like ‘ mastermind’ , which notes the most innovative solution of idea in wipro and the wipro ‘ hall off fame’ recognizes superlative performers in different roles as well as superlative team performances.
  68. 69. Question for critical thinking
  69. 70. <ul><li>Identify five-different criteria by which organizations can compensate employees. Based on your knowledge and experiences, do you thick performance is the criterion most used in practice? Discuss. </li></ul>
  70. 71. 2. Recognition may be motivational for the moment but it doesn’t have any staying power. It’s an employee reinforcer. Why? Because when you go to the grocery store, they don’t take recognition as a from of payment ! Do you agree or disagree? Discuss.
  71. 72. 3. Performance can’t be measured , so any effort to link pay with performance is a fantasy. Differences in performance are often caused by the system, which means the organization ends up rewarding the circumstances. It’s the same thing as rewarding the weather forecaster for a pleasant day. Do you agree or disagree with this statement ? Support your position.
  72. 73. 4. It’s an indisputable fact that there has been an explosive increase in the difference between the average U.S.. Worker's income and those of senior executives. In 1980 the average CEO made 42 times the average blue coller worker's pay. In 1990 it was 85 times. In 2000 it had risen to 531 times. What are the implications of this trend for motivation in organization?
  73. 74. 5. This book argues for recognizing individual differences. it also suggest paying attention to members of diversity groups. Is this contradictory? Discuss.