Implications of motivation theories


Published on

Published in: Business, Technology
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Implications of motivation theories

  1. 1. Implications of Motivation Theories <br />
  2. 2. MBO<br />MBO is a program that encompasses specific goals, participatively set, for an explicit time period, with feed back on goal progress.<br />The set goals are tangible, verifiable and measurable.<br />MBO’s appeal lies in its emphasis on converting overall organizational objectives into specific objectives for organizational units and individual members.<br />
  3. 3. The organizational overall objectives are translated into specific objectives for each succeeding levels<br />i. e. <br />Divisional <br /> Departmental <br /> Individual<br />MBO works from the BOTTOMM UP as well from the TOP DOWN.<br />As a result a hierarchy of objectives is developed and MBO provides specific personal performance objectives.<br />
  4. 4. Cascading of objectives<br />Any Organisation<br />Consumer Products <br />Division<br />Industrial Products <br />division<br />Development<br />Research <br />Sales <br />Production<br />Marketing <br />Customer <br />Service<br />
  5. 5. 4 Common Ingredients of MBO Program<br />Goal Specificity<br />Participative Decision Making<br />An explicit time Period <br />Performance feedback<br />
  6. 6. Motivation by Job Design: The JCM<br />Job Characteristics Model (JCM)<br />Hackman and Oldham’s concept that any job can be described through five core job dimensions:<br />Skill variety – Requirements for different tasks in the job.<br />Task identity – Completion of a whole piece of work.<br />Task significance – The job’s impact on others.<br />Autonomy – Level of discretion in decision making. <br />Feedback – Amount of direct and clear information on performance.<br />The way elements in a job are organized (job design) impacts motivation, satisfaction, and performance.<br />
  7. 7. The Job Characteristics Model<br />Employee growth-need strength moderates the relationships<br />
  8. 8. Employee Recognition Programs<br />Recognition can be a potent motivator.<br />ERPs can be very informal like a private and prompt ‘thank you’ or sealed notes left at employees seats after every one has gone home.<br />A formal ERP can be a widely publicized formal program in which specific types of behaviour are encouraged and the procedure for attaining recognition are clearly identified.<br />
  9. 9. Employee involvement Programs<br />It is a participative process that uses the entire capacity of employees and is designed to encourage increased commitment to the organization's success.<br />Employees will be more motivated, committed, productive & satisfied; by<br />Involving them in decisions, by increasing their autonomy, and control over their work lives. <br />
  10. 10. Participative Management <br />It is a process in which subordinates share a significant degree of decision making power with immediate superiors.<br />It is an ethical imperative but participative management is not appropriate for every organisation or every work unit. <br />
  11. 11. Representative participation<br />Workers participate in organizational <br /> decision making through a small group of representative employees.<br />It is known as the most widely legislated form of employee involvement around the world.<br />The goal of representative participation is to redistribute power within an organisation, putting labor on a more equal platform with management & stakeholders. <br />
  12. 12. Forms of Representative Participation<br />WORK COUNSILS<br />BOARD REPRESENTATIVES are the most common ones.<br />QUALITY CIRCLES <br />And ESOPs are the other initiatives taken for representative participation.<br />
  13. 13. Work Councils <br />Work Councils link employees with management.<br />They are groups of nominated or elected employees who must be consulted when mgmt makes decision involving personnel.<br />Very effective while mergers and takeovers <br />
  14. 14. Board Representatives <br />A form of representative participation where employees sit on a company’s Board of Directors and represent the interest of the firms’ employees.<br />In some countries large companies may be legally required to make sure that employee representatives have the same no. of board seats as stockholders representatives. <br />
  15. 15. Quality Circles<br />A work group of employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions and take corrective actions.<br />Success of Quality Circles?<br />Easy way to get on the employee involvement Bandwagon?<br />
  16. 16. Employee Stock Ownership Plans<br />It is a company established benefit plans in which employees acquire stock as part of their benefits.<br />ESOPs have the potential to increase Employee job satisfaction and work motivation;<br />But for this Employees need to Psychologically experience ownership.<br />
  17. 17. Job Redesign & Scheduling Programs<br />Three popular ways of job redesign:<br /> 1. Job Rotation<br /> 2. Job Enlargement<br /> 3. Job Enrichment<br />Three popular scheduling options are:<br /> 1. Flextime<br /> 2. Job sharing<br /> 3. Telecommuting<br />
  18. 18. Job Rotation<br />It is the periodic shifting of an employee from one task to another.<br />Best suits those who suffer with over –routinization.<br />Also Known as cross training.<br />It reduces boredom and increases motivation through diversifying the employee’s activities. <br />
  19. 19. Advantages & Disadvantages of Job rotation<br />Work Scheduling <br />Adapting to changes <br />Filling vacancies.<br />Training costs are increased<br />Productivity is reduced by moving an employee to newer positions.<br />Also creates disruptions.<br />Supervision time is also increased <br />Adjustment of the new employees.<br />
  20. 20. Job Enlargement<br />Means expanding the jobs horizontally.<br />Best suits the job of lower level with less conceptual and analytical capabilities.<br />The number and variety of tasks that an individual performs is increased and it results into a more diverse job.<br />
  21. 21. Job Enrichment<br />It means the vertical expansion of jobs.<br />Increases the control of a worker over planning , execution and evaluation of his/her own job.<br />Core job dimensions like Skill variety, task identity, Task significance, autonomy & feedback are focused in such a way that can yield satisfaction for an employee.<br />
  22. 22. Flextime<br />It allows employees some discretion over when they arrive at and leave work.<br />Employees have to work a specific number of hours a week, but they are free to vary the hours of work within certain limits.<br />
  23. 23. Benefits and drawbacks of Flextime<br />Reduced absenteeism.<br />Frequently improves worker productivity.<br />Adjustment of work activities to those hrs in which they are individually more productive.<br />Not applicable to every job<br />Like the jobs which requires availability of the employee for interaction with outside people at predetermined time.<br />
  24. 24. Job sharing<br />An arrangement that allows two or more individuals to split a traditional 40 to 60 hrs a week job.<br />It’s a recent innovation in the field of work scheduling.<br />It increases flexibility; but finding compatible pairs of employees who can successfully coordinate the intricacies of one job is a bit difficult .<br />
  25. 25. Telecommuting<br />It refers to employees who do their work at home at least twice a week on a computer that is linked to their office.<br />A virtual office kind of phenomena.<br />Most suitable for <br />-Routine info handling tasks<br />-Mobile activities <br />-other professional & knowledge related tasks.<br />
  26. 26. Benefits & drawbacks<br />A larger labor pool.<br />Higher productivity<br />Less turnover –(undoubtedly employee turnover)<br />Improved morale<br />Reduced office space costs.<br />Less direct supervision of employees.<br />Less coordinated teamwork.<br />Increased feeling of isolation .<br />Possibility of overlooking or undervaluing the contribution of less seen employees, increases. <br />
  27. 27. Variable Pay Program<br />A portion of an employees pay is based on some individual or organizational measure of performance, instead of paying for tenure or seniority.<br />Different forms of variable pay programs are:<br /> Piece Rate plans<br /> Bonuses<br /> Profit Sharing<br /> Gain Sharing<br />
  28. 28. Piece Rate plans<br />Workers are paid a fixed sum fro each unit of production completed.<br />A pure piece rate plan is a situation when an employee gets no base salary and is paid only for what he or she produces.<br />Modified piece rate plan includes a base hourly wage plus a piece rate differential.<br />
  29. 29. Bonuses<br />Bonuses are the additional benefits given to the employees when company’s profits improve.<br />Can be paid to executives for increasing total shareholder return as well as to all employees.<br />Some companies include lower ranking employees also and routinely reward production employees with bonuses.<br />
  30. 30. Profit sharing plans<br />These are organization wide programs that distribute compensation based on some established formula designed around a company’s profitability.<br />These can be direct cash outlays or allocated as stock options (in case of top managers)<br />
  31. 31. Gain sharing <br />It is a formula based group incentive plan in which improvements in group productivity determine the total amount of money that is to be allocated .<br />The division of productivity saving can be split between the companies and the employees in 50 -50 or nay other way.<br />
  32. 32. Gain Sharing Vs Profit Sharing <br />Gain Sharing<br />It focuses on productivity gains.<br />It rewards specific behavior and less influenced by external factors. <br />Employees can receive incentive awards even when the orgn is not profitable.<br />Profit Sharing<br />It focuses on profits.<br />Influenced by external factors.<br />It is dependent on organization's profit.<br />
  33. 33. Skill based pay plans<br />Also called competency based or knowledge based pay.<br />Pay levels are based on how many skills employees have or how many jobs they can do.<br /> Skill based pay plans encourage employees to learn, expand their skills and grow.<br />
  34. 34. Flexible benefits<br />Employees tailor their benefit programs to meet their personal needs by picking and choosing from a menu of benefit options. <br />It replaces “one benefit plan fits all” concept to a tailored package as per employee own needs and situations.<br />
  35. 35. Ground rules for Practitioners <br />Recognize individual differences.<br />Use goals and feed back<br />Allow employees to participate in decisions that affect them<br />Link rewards to performance<br />Check the system for equity<br />
  36. 36. Queries????<br />