6. MOTIVATION APPROACHES
Expectancy
Hierarchy of needs
Theory X and Y
Needs - achievement, power,
affiliation
Two factors – motivation/hygiene
Goal setting
8. MOTIVATION DEPENDS ON
Industry culture
Level within the company
Personal ambition
Experience
Age, family, education
Specific incentives
9. Expectancy: the association between
performance and outcomes, must be
high for motivation to be high.
Need Theory: pay is used to satisfy
many needs.
Equity Theory: pay is given in relation
to inputs.
Goal Setting : pay linked to
attainment of goals.
PAY & MOTIVATION
10. MERIT PAY AND PERFORMANCE
Merit Pay Plan
Bases pay on individual, group or
organization performance.
Individual plan: when individual
performance can accurately measured.
Sales
Production
11. MERIT PAY AND PERFORMANCE
Piece-rate Pay
Employee’s pay is based on the number of units that
the employee produces.
Commission Pay
Employee’s pay is based on a percentage of sales
that the employee makes.
Organization-based Plans
Scanlon plan—focuses on reduced expenses or
cutting costs
Profit sharing—employees receive a share of an
organization’s profits
12. OILFIELD INCENTIVES - HOURLY
White truck & fuel card
Meals on the road
Uniform or clothing
Overtime pay
13. EXECUTIVE INCENTIVES
Country club
Petroleum club
Company car/truck
No set hours
Personal benefits at work
Brokerage advice
Personal benefits at work
14. UNUSUAL INCENTIVES
Flexible work hours
Day care for children
On-site wellness
Event tickets or trips
Gift cards
Gym time
15. SELF IMPROVEMENT
Training programs in-house
Formal training, skills, OJT
Seminars
Technical training – by specialists
Cross-training
16. SELF IMPROVEMENT
Training programs in-house
Formal training, skills, OJT
Seminars
Technical training – by specialists
Cross-training
New degrees
17. Motivational Value of Bonus Is Higher
When:
Salary levels are unrelated to current
performance.
Changes in other compensation items
(cost of living, seniority) are not having a
large effect in increasing compensation.
Salaries rarely change and performance
does.
18. STOCK PLANS
Option – entitled to buy
shares of company's stock
at a certain price at a later
date
Restricted - stock not fully
transferable until certain
conditions have been met
Grant – simply provided as a
result of past performance
19. GOAL SETTING
Goal
What employee is trying to accomplish
through efforts and behaviors
Must be specific and difficult
Goals point out
What is important to the firm.
Workers encouraged to develop action plans
to attain goals.
20. GOAL SETTING STEPS
1. Establish goals
together
1. Specific
2. Measurable
3. Time frame
2. Monitor
performance
3. Provide feedback
23. JOB EMBEDDEDNESS
Links with other workers
Social life is dependent
Friends connected to work
Workers depend on their presence
24. JOB EMBEDDEDNESS
Links with other workers
Social life is dependent
Friends connected to work
Workers depend on their presence
Encourage other workers
Won’t let others down
Reduced turnover
25. ENGAGEMENT
Engaged
• Employees work with passion and feel a profound
connection to the company.
• They drive innovation and move the organization forward.
Not
Engaged
• Employees are “checked out”
• Sleepwalking through workday, putting in time
• No energy or passion in their work
Actively
Disengaged
• Employees acting out their unhappiness every day
• Undermine what their engaged co-workers accomplish
28. BOTTOM LINE
Motivation and goals are
related
Know your employee needs
Incentives should be
relevant
Compensation may not be
the key
Engaged employees are
highly motivated
29. TWEET YOUR TAKEAWAY FROM THIS
EDUCATIONAL SESSION.
@MIDLANDENRGEXPO #MEEUTPB