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employee motivation

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  2. 2. 1.1Employee Motivation IntroductionAn issue which usually generates a great deal of attention from most managers,administrators and those involved in Human Resources Management is the issue ofhow to successfully motivate employee. While it is true that aspects like staffrecruitment, controlling, managing, leading, and many more are of great importanceto the success of an organization, Employee Motivation is generally considered a coreelement in running a successful business.In the organizational setting the word ―Motivation‖ is used to describe the drivethatimpels an individual to work. A truly motivated person is one who ―wants‖towork .Both employees and employers are interested in understanding motivationif employees know what strengthens and what weakens their motivation, theycanoften perform more effectively to find more satisfaction in their job. Employerswantto know what motivates their employees so that they can get them to workharder.Theconcept of motivation implies that people choose the path of action theyfollow.When behavioral scientists use the word motivation, they think of itssomethingsteaming from within the person technically, the term motivation has itsorigin inthe Latin word ―mover‖ which means ―to move‖. Thus the word motivationstandsfor movement. If a manager truly understands his subordinate‘s motivation, hecan channel their―inner state‖ towards command goals, i.e., goals, shared by both theindividual andthe organization. It is a well known fact that human beings have greatpotential butthey do not use it fully, when motivation is absent. Motivation factor arethosewhich make people give more than a fair day‘s work and that is usually onlyaboutsixty-five percent of a person‘s capacity .Obviously , every manager shouldbereleasing hundred percent of an individual‘s to maximize performance forachievingorganizational goals and at the same to enable the individual to develophispotential and gain satisfaction. Thus every manager should have both interestandconcern about how to enable people to perform task willingly and to the bestof their ability.At one time, employees were considered just another input into the 2
  3. 3. production of goods and services. What perhaps changed this way of thinking aboutemployeeswas research, referred to as the Hawthorne Studies, conducted by EltonMayo from1924 to 1932 This study found employees are not motivated solelybymoney and employee behavior is linked to their attitudes.TheHawthorne Studies began the human relations approach to management,wherebythe needs and motivation of employees become the primary focus ofmanagers.1.2Definition of Motivation  Motivation is a process that starts with a physiological or psychological deficiency or need that activates behavior or a drive that aimed at a goal or an incentive.  "The only way to get people to like working hard is to motivate them. Today, people must understand why theyre working hard. Every individual in an organization is motivated by something different." -Rick Pitino  ―Employee motivation is a reflection of the level of energy, commitment, and creativity that a companys workers bring to their jobs.‖  "Psychological forces that determine the direction of a persons behavior in an organization, a persons level of effort and a persons level of persistence."- G. Jones and J. George from the book "Contemporary Management."Basics about Motivation 1. Motivating employees starts with motivating yourself it‘s amazing how, if you hate your job, it seems like everyone else does, too. If you are very stressed out, it seems like everyone else is, too. Enthusiasm is contagious. If youre enthusiastic about your job, its much easier for others to be, too. Also, if you‘re doing a good job of taking care of yourself and your own job, youll have much clearer perspective on how others are doing in theirs. A great place to start learning about motivation is to start understanding your own motivations. The key to helping to motivate your employees is to understand what motivates them. So what motivates you? Consider, for example, time with family, recognition, a job well done, service, learning, etc. How your job is configured to support your own motivations? What can you do to better motivate yourself? 2. Always work to align goals of the organization with goals of employees as mentioned above, employees can be all fired up about their work and be working very hard. However, if the results of their work dont contribute to the 3
  4. 4. goals of the organization, then the organization is not any better off than if the employees were sitting on their hands -- maybe worse off! Therefore, its critical that managers and supervisors know what they want from their employees. These preferences should be worded in terms of goals for the organization. Identifying the goals for the organization is usually done during strategic planning. Whatever steps you take to support the motivation of your employees (various steps are suggested below), ensure that employees have strong input to identifying their goals and that these goals are aligned with goals of the organization. (Goals should be worded to be ―SMARTER". 3. Key to supporting the motivation of your employees understands what motivates each of them each person is motivated by different things. Whatever steps you take to support the motivation of your employees, they should first include finding out what it is that really motivates each of your employees. You can find this out by asking them, listening to them and observing them. 4. Recognize that supporting employee motivation is a process, not at ask Organizations change all the time, as do people. Indeed, it is an ongoing process to sustain an environment where each employee can strongly motivate themselves. If you look at sustaining employee motivation as an ongoing process, then youll be much more fulfilled and motivated yourself. 5. Support employee motivation by using organizational systems (for example, policies and procedures)--dont just count on good intentions don‘t just count on cultivating strong interpersonal relationships with employees to help motivate them. The nature of these relationships can change greatly, for example, during times of stress. Instead, use reliable and comprehensive systems in the workplace to help motivate employees.For example, establish compensation systems, employee performance systems,organizational policies and procedures, etc., to support employee motivation. Also,establishing various systems and structures helps ensure clear understanding andequitable treatment of employees.1.3 Importance of MotivationMotivation is a very important for an organization because of the following benefits itprovides:-  Puts human resources into actionEvery concern requires physical, financial and human resources to accomplish thegoals. It is through motivation that the human resources can be utilized by making fulluse of it. This can be done by building willingness in employees to work. This willhelp the enterprise in securing best possible utilization of resources. 4
  5. 5.  Improves level of efficiency of employeesThe level of a subordinate or a employee does not only depend upon his qualificationsand abilities. For getting best of his work performance, the gap between ability andwillingness has to be filled which helps in improving the level of performance ofsubordinates. This will result into-  Increase in productivity,  Reducing cost of operations, and  Improving overall efficiency.Leads to achievement of organizational goalsThe goals of an enterprise can be achieved only when the following factors take place:-  There is best possible utilization of resources,  There is a co-operative work environment,  The employees are goal-directed and they act in a purposive manner,  Goals can be achieved if co-ordination and co-operation takes place simultaneously which can be effectively done through motivation.  Buildsfriendly relationshipMotivation is an important factor which brings employees satisfaction. This can bedone by keeping into mind and framing an incentive plan for the benefit of theemployees. This could initiate the following things:  Monetary and non-monetary incentives,  Promotion opportunities for employees,  Disincentives for inefficient employees.In order to build a cordial, friendly atmosphere in a concern, the above steps shouldbe taken by a manager. This would help in:  Effective co-operation which brings stability,  Industrial dispute and unrest in employees will reduce,  The employees will be adaptable to the changes and there will be no resistance to the change,  This will help in providing a smooth and sound concern in which individual interests will coincide with the organizational interests,  This will result in profit maximization through increased productivity.  Leadsto stability of work forceStability of workforce is very important from the point of view of reputation andgoodwill of a concern. The employees can remain loyal to the enterprise only whenthey have a feeling of participation in the management. The skills and efficiency of 5
  6. 6. employees will always be of advantage to employees as well as employees. This willlead to a good public image in the market which will attract competent and qualifiedpeople into a concern. As it is said, ―Old is gold‖ which suffices with the role ofmotivation here, the older the people, more the experience and their adjustment into aconcern which can be of benefit to the enterprise.1.4What motivates employees?Every person has a different reason for going to work. These reasons are as individualas whichever person you may ask. But all of the reasons for working share a commonthread. We all obtain something from work we need.There is much discussion about the value of extrinsic motivation (monetary and othermaterial rewards) versus intrinsic motivation where people re driven by what‘s insidethem. not by the trappings of success.Whereas I recognize how critical extrinsic motivation is–we all need to be rewardedfairly for the job that we do-in my experience the most effective factors relating toemployee motivation are related to intrinsic motivation:1. Empowerment: Feeling trusted and empowered is a tremendous motivator.2. Growth: Feeling that they are growing and developing personally3. Inclusion: ‗To belong‘ is a fundamental need, whether as a member of a family,peer group, network, team or company. It‘s human nature to want to be on the inside,not the outside.4. Purpose: Today people care more about what happens tomorrow, and want tocontribute to ensuring the future of our children, and the health of our communitiesand planet.5. Trust: the fabric that holds it all together and makes it real.Framework of motivationThe framework comprises six steps:- 1) Motivation process begins with the individual‘s needs. Needs are teltdeprivations which the individual experiences at a given time and act as energizers. These needs may be psychological (e.g., the needs for recognition), physiological (e.g., the needs for water, air or foods) or social (e.g., the needs for friendship). 2) Motivation is goal directed. 3) A goal is a specific result that the individual wants to achieve. Anemployee‘s goal are often driving forces and accomplishing those goals cansignificantly reduce needs. 6
  7. 7. 4) Promotions and raises are two of the ways that organizations seek tomaintain desirable behavior. They are signals to employees that their needs foradvancement and recognition and their behaviors are appropriate. 5) Once the employee have received either rewards or punishments. 6) They reassess their needs.The Role of Motivation:Why do we need motivated employees?The answer is survival. Motivated employees are needed in our rapidly changingworkplaces. Motivatedemployees help organizations survive. Motivated employeesare more productive. To be effective, managers need to understand what motivatesemployees within thecontext of the roles they perform. Of all the functions a managerperforms, motivating employees is arguably the most complex. This is due, in part, tothe factthat what motivates employee‘s changes constantly. For example, researchsuggests that as employees income increases, moneybecomes less of a motivator(Kovach, 1987). Also, as employees get older,interesting work becomes more of amotivator.Mechanism of motivationMotivation is the process that starts with physiological or psychological deficiencyorneed that activate behavior or a drive that is aimed at a goal or incentive.The following diagram depicts the motivation process.Mechanism of MotivationNeeds Drives GoalDeprivation Deprivation ReductionWith of DrivesDirectionThus, the key to understanding motivation lies in the meaning of, andrelationshipbetween needs, drives and goals Needs: Needs are created whenever thereis a physiological or psychologicalimbalance For example: A need exists when cellsin the body are deprived of foodand water or when the personality is deprived of otherpeople who serve friends orcompanions. Although psychological may be based on adeficiency, sometimes theyare not. For instant, and individuals with a strong need toget ahead may have ahistory of consistent success·Drives: ―Drives (Or motives) areset up to alleviate needs. Psychological needs canbe simply defined as a deficiencywith direction. Physiological or psychologicaldrives are action – oriented and provideenergizing thrust towards reaching anincentive or goals. They are at the very heart ofthe motivational process. Theneeds for food and water are translated into hunger and 7
  8. 8. thrust drives, and the needfor friend becomes a drives affiliation. Thus, drive is apsychological state whichmoves an individual satisfying need· Goals: At the end ofthe motivational cycle is the goal or incentive. It is anythingthat wills that willalleviate a need and reduce a drive. Thus, attaining a goal willtend to restorephysiological or psychological balance and will reduce or cut off thedrive. Eatingfood, drinking water and obtaining friends will tend to restore thebalance and reducethe corresponding drives food, water and friends are theincentive are the goals in thisexample.1.5Types of MotivationThere are many types of motivation.Motivational techniques have been experienced by every person from birth. We learnbehavior through motivation. We live our whole lives because of motivation. Thequestion that remains however is this: What motivation should a person have? This isimportant because our motivation decides our behavior. Some types of motivation aremore effective than others. However, the perfect motivation for you can only bedecided by one person: YOU .Why do people do what they do? Why do we go on everyday, living our lives andtrying to find justification for our existence? Some people think that they can findpurpose in the things that motivate them. Others just see the motivation and reactautomatically.There is no one thing that motivates people to perform certain actions. People aredifferent, so it follows that their motivations have to be different. Here are some typesof motivation :  Achievement –This is the motivation of a person to attain goals. The longing for achievement isinherent in every man, but not all persons look to achievement as their motivation.They are motivated by a goal. In order to attain that goal, they are willing to go as faras possible. The complexity of the goal is determined by a persons perception.To us, the terms "simple" and "complex" are purely relative. What one person thinksis an easy goal to accomplish may seem to be impossible to another person. However,if your motivation is achievement, you will find that your goals will grow increasinglycomplex as time goes by . 8
  9. 9.  Socialization –Some people consider socialization to be their main motivation for actions. This isespecially evident in the situation of peer pressure. Some people are willing to doanything to be treated as an equal within a group structure. The idea of being acceptedamong a group of people is their motivation for doing certain things.  Incentive motivation –This motivation involves rewards. People who believe that they will receive rewardsfor doing something are motivated to do everything they can to reach a certain goal.While achievement motivation is focused on the goal itself, incentive motivation isdriven by the fact that the goal will give people benefits. Incentive motivation is usedin companies through bonuses and other types of compensation for additional work.By offering incentives, companies hope to raise productivity and motivate theiremployees to work harder .  Fear motivation –When incentives do not work, people often turn to fear and punishment as the nexttools. Fear motivation involves pointing out various consequences if someone doesnot follow a set of prescribed behavior. This is often seen in companies as workinghand-in-hand with incentive motivation. Workers are often faced with a reward andpunishment system, wherein they are given incentives if they accomplish a certaingoal, but they are given punishments when they disobey certain policies.  Change motivation-Sometimes people do things just to bring about changes within their immediateenvironment. Change motivation is often the cause of true progress. People justbecome tired of how things are and thus, think of ways to improve it.  Natural Motivations- 9
  10. 10. Motivation is the most common type of motivation and happens the most often. It isthe motivation people get when naturally motivated.  Fear motivations-Fear Motivation happens often within the workforce when under pressure to completea task.  Booster motivations-Booster Motivations is normally selfdriven to overcome a task you have set yourself.1.6Methods of MotivationThere are as many different methods of motivating employees today as there arecompanies operating in the global business environment. Still, some strategies areprevalent across all organizations striving to improve employee motivation. The bestemployee motivation efforts will focus on what the employees deem to be important.It may be that employees within the same department of the same organization willhave different motivators. Many organizations today find that flexibility in job designand reward systems has resulted in employees increased longevity with the company,improved productivity, and better morale.  Empowerment - Giving employees more responsibility and decision-making authority increases their realm of control over the tasks for which they are held responsible and better equips them to carry out those tasks. As a result, feelings of frustration arising from being held accountable for something one does not have the resources to carry out are diminished. Energy is diverted from self-preservation to improved task accomplishment.  Creativity And Innovation - At many companies, employees with creative ideas do not express them to management for fear that their input will be ignored or ridiculed. Company approval and toeing the company line have become so ingrained in some working environments that both the employee and the organization suffer. When the power to create in the organization is pushed down from the top to line personnel, employees who know a job, product, or service best are given the opportunity to use their ideas to improve it. The power to create motivates employees and benefits the organization in having a more flexible work force, using more wisely the experience of its employees, and increasing the exchange of ideas and information among 10
  11. 11. employees and departments. These improvements also create an openness to change that can give a company the ability to respond quickly to market changes and sustain a first mover advantage in the marketplace.  Learning - If employees are given the tools and the opportunities to accomplish more, most will take on the challenge. Companies can motivate employees to achieve more by committing to perpetual enhancement of employee skills. Accreditation and licensing programs for employees are an increasingly popular and effective way to bring about growth in employee knowledge and motivation. Often, these programs improve employees attitudes toward the client and the company, while bolstering self-confidence. Supporting this assertion, an analysis of factors which influence motivation-to- learn found that it is directly related to the extent to which training participants believe that such participation will affect their job or career utility. In other words, if the body of knowledge gained can be applied to the work to be accomplished, then the acquisition of that knowledge will be a worthwhile event for the employee and employer.  Quality Of Life - The number of hours worked each week by American workers is on the rise, and many families have two adults working those increased hours. Under these circumstances, many workers are left wondering how to meet the demands of their lives beyond the workplace. Often, this concern occurs while at work and may reduce an employees productivity and morale.Companies that have instituted flexible employee arrangements have gainedmotivated employees whose productivity has increased. Programs incorporatingflextime, condensed workweeks, or job sharing, for example, have been successful infocusing overwhelmed employees toward the work to be done and away from thedemands of their private lives. All motivation ultimately comes from within a person.  Monetary Incentive - For all the championing of alternative motivators, money still occupies a major place in the mix of motivators. The sharing of a companys profits gives incentive to employees to produce a quality product, perform a quality service, or improve the quality of a process within the company. What benefits the company directly benefits the employee. Monetary and other rewards are being given to employees for generating cost- savings or process-improving ideas, to boost productivity and reduce absenteeism. Money is effective when it is directly tied to an employees ideas or accomplishments. Nevertheless, if not coupled with other, nonmonetary motivators, its motivating effects are short-lived. Further, monetary incentives can prove counterproductive if not made available to all members of the organization.  Other Incentives - Study after study has found that the most effective motivators of workers are nonmonetary. Monetary systems are insufficient 11
  12. 12. motivators, in part because expectations often exceed results and because disparity between salaried individuals may divide rather than unite employees. Proven nonmonetary positive motivators foster team spirit and include recognition, responsibility, and advancement. Managers, who recognize the "small wins" of employees, promote participatory environments, and treat employees with fairness and respect will find their employees to be more highly motivated. One companys managers brainstormed to come up with 30 powerful rewards that cost little or nothing to implement. The most effective rewards, such as letters of commendation and time off from work, enhanced personal fulfillment and self-respect. Over the longer term, sincere praise and personal gestures are far more effective and more economical than awards of money alone. In the end, a program that combines monetary reward systems and satisfies intrinsic, self-actualizing needs may be the most potent employee motivator. 1.7Factors for Lack of Motivation in the WorkplaceA drop in staff motivation can become contagious if the cause is not identified andaddressed. Management needs to be conscious of employee motivation, and thatmeans being able to identify the factors that cause a lack of motivation in theworkplace. Become familiar with the factors that can degrade staff motivation anddesign plans to combat these productivity killers.RumorsThe important thing to remember about rumors is that they are not always wrong.Some rumors have basis in fact, but that does not make them good for employeemorale. An employee that hears a rumor that she may be laid off experiences aninstant drop in motivation. To deal with the problem of rumors in the workplace, it isimportant for management to share important information with the staff in a timelymanner. This helps employees to feel confident that management will address rumorsand encourages staff members to wait on information from the company before actingon a rumor.Inadequate Job SkillsEmployees are motivated to succeed at jobs for which they feel prepared and properlytrained. Before moving an employee into a position of greater responsibility or beforeallowing any changes to an employees job duties, be certain that employee has hadthe training needed to get started. Putting an employee in a position where she feelsshe has inadequate job skills will erode the employees confidence and stifle anymotivation to succeed.Goal FlawsEmployees are not motivated by the notion that their hard work will make companyowners and executives rich, the more internalized a companys goals sound, the lessmotivated employees are to fulfill those goals. The company needs to focus on thecustomer and give employees a chance to feel as though it has done somethingsubstantial to help the customer. For example, develop a referral program that 12
  13. 13. encourages customers that have recently purchased products to recommend otherpeople that your sales professionals can call on. The company and sales staff benefitfrom the increase in business, but the sales staff also gets to see the appreciation ofpast clients in the form of potential new business.OverworkEmployees that are overworked are likely to lose motivation regardless of how muchovertime pay they are receiving. If you know a period is coming where extra hourswill need to be worked, develop a schedule in advance and give your employeesample warning so they can make preparations in their personal life. Make sure thestaff schedule still allows employees to spend time with their families and get awayfrom the stress of working too much. 1.8Techniques of Employee MotivationHere are some motivations techniques that will help to get staff re-energised andengaged at work. To begin with, make sure you have the right conditions in place sothat your work culture supports motivation.Make sure you offer:√ Fair pay and conditions√ A comfortable, safe, working environment√ Opportunities for employees to socialize and make friends√ clearly defined work responsibilities and goals√ Education and training opportunities√ Career opportunitiesAs a manager, you play a key role in building on a solid foundation and motivatingemployees. Remember that 70% of people leave their boss, not the company.So what can you do to make sure that employees are switched on at work?Here are some practical motivation techniques that you can use to improve motivationin your workplace: 13
  14. 14. 1. Treat Employees as IndividualsDo you make assumptions about what motivates your employees? Some are likely tobe career focused, but others may see their work as a place to make friends and earnmoney.Find out what motivates employees outside of work. Some enjoy a challengesuch as a sporting activity; others may like to be on committees so they can use theirorganizational skills. Use their innate talents in the workplace where possible to keepthem motivated. Set goals which stretch their abilities. Make goals SMART - specific,measurable, achievable, relevant and timeframed.Treat Employees with RespectGet to know your employees on a personal level, and offer support when needed, evenif it is only to listen to their concerns.Ask your employees for their opinions wherepossible, for example if you are changing systems or introducing new equipment.Being involved in decision making is one of the best motivation techniques.Catchyour employees doing something well and praise them - and if you do this in front ofothers, it makes the employee feel even better. Giving employees recognition for theirefforts will motivate them to repeat the process.Provide Opportunities for Employee Learning and DevelopmentEncourage a learning climate, through structured on-the-job training programmes, jobtransfers, inter-disciplinary projects and support for further education. Aim to haveyour employees constantly learning new skills and gaining new knowledge. This willreduce the level of stagnation that can easily occur in a business.Promote from withinwhere feasible - and invest the time and support in developing employees so they cantake on new opportunities.Some managers worry that by offering a high level oftraining to employees, they may leave the business for better opportunities elsewhere.Remember this allows other employees to rise up and take their place! Also the wordwill spread that you are a good employer - which may encourage a higher caliber ofexternal job applicants.Make the Workplace a Fun PlaceHaving fun is one of the best motivation techniques. And small things can make allthe difference..√ bringing sweets to team meetings√ sharing non-business news through e.g. newsletters√ arranging activities such as lunchtime yoga sessions 14
  15. 15. √ surprising employees with a birthday cake√ asking the employees for their opinion on what would make the workplace a funplace!Morale BoostersMeasuring MoraleTheres only one way to know how good morale really is in your company: ask thepeople who work there.Street Smarts: The TournamentMorale took a real beating this fall. But theres nothing that lifts the spirits likesome friendly competition.Revving Up the "P" Word (Productivity)Though productivity is often defined in numbers, it relies very heavily upon peopleand their attitudes.Leading in Hard TimesCEOs offer 10 tips for leading your company through bleak times.Non-Cash IncentivesLow-Cost Ways to Build Employee CommitmentConsider the power of the five Is.It Takes More than Pay to Keep Good WorkersCompanies are finding a number of ways to expand responsiveness and flexibilitybeyond traditional compensation programs to retain top employees.Incentives for All GenerationsThe one-size-fits-all approach no longer suits todays multigenerational workplaces.Check this list of desired perks for mature workers, baby boomers, Gen Xers, andmore. 15
  16. 16. Winter Holiday RewardsThe hectic holiday season is the time to show off a well-thought-out reward strategythat helps yourworkforce stay motivated and focused.Perks You Can AffordIn this classic Inc. article, take a look at some unique employee benefits that can helpyou create an environment your workers wont want to leave.Motivation by CompensationTrust but VerifyIn addition to providing valuable information on the companys 20restaurants, the Noodles & Co. secret shopper program is used as a motivational tool.The Store that Stark BuiltNot only does every employee at Debras Natural Gourmet have a management role,in a move unheard of in retail, profits are shared amongst the team.In a Former Life: Alan SchultzThis CEO learned a valuable lesson during his past life as a steelworker: A companyshould compensate its sales force based on fair and reachable short-term goals.Hands On: Showing UpAre your workers not in the habit of showing up every day? Try instituting a bonussystem to encourage perfect attendance.Turn Motivation Inside OutInside sales teams often go unrecognized and unrewarded. To motivate them andbuild a winning sales team all around, reward sales support staffers with commissions,too.Goals, Roles, Pay, and PerformanceIf youve promised goal-based compensation, you need to clearly communicate roles,goals, and paths; otherwise, you may end up with disgruntled employees.Turbo charger Your Bonus PlanTake a regular bonus plan and add a kicker—an increase in the payout if certaintargets are met. 16
  17. 17. 1.9Theories of MotivationOverviewAt a simple level, it seems obvious that people do things, such as go to work, in orderto get stuff they want and to avoid stuff they dont want. Why exactly they want whatthey do and dont want what they dont is still something a mystery. Its a black boxand it hasnt been fully penetrated.Overall, the basic perspective on motivation looks something like this:In other words, you have certain needs or wants (these terms will be usedinterchangeably), and this causes you to do certain things (behavior), which satisfythose needs (satisfaction), and this can then change which needs/wants are primary(either intensifying certain ones, or allowing you to move on to other ones).A variation on this model, particularly appropriate from an experimenters ormanagers point of view, would be to add a box labeled "reward" between "behavior"and "satisfaction". So that subjects (or employees), who have certain needs do certainthings (behavior), which then get them rewards set up by the experimenter or manager(such as raises or bonuses), which satisfy the needs, and so on.Theories of Motivation are as follows:-Aldermen’s ERG theoryAdorer classifies needs into three categories, also ordered hierarchically: growth needs (development of competence and realization of potential) relatedness needs (satisfactory relations with others) existence needs (physical well-being)This is very similar to Maslow -- can be seen as just collapsing into three tiers. Butmaybe a bit more rational. For example, in Adorer‘s model, sex does not need to be inthe bottom category as it is in Maslows model, since it is not crucial to (theindividuals) existence. (Remember, this about individual motivation, not speciessurvival.) So by moving sex, this theory does not predict that people have to have sexbefore they can think about going to school, like Maslows theory does. 17
  18. 18. Adorer believed that as you start satisfying higher needs, they become more intense(e.g., the power you get the more you want power), like an addiction.Do any of these theories have anything useful to say for managing businesses? Well,if true, they suggest that Not everyone is motivated by the same things. It depends where you are in the hierarchy (think of it as a kind of personal development scale) The needs hierarchy probably mirrors the organizational hierarchy to a certain extent: top managers are more likely to motivated by self-actualization/growth needs than existence needs. (but try telling Bill Clinton that top executives are not motivated by sex and cheeseburgers...) McClelland’s Theory of Needs:According to David McClelland, regardless of culture or gender, people are driven bythree motives: • Achievement, • Affiliation, and • Influence.Since McClellands first experiments, over 1,000 studies relevant to achievementmotivation have been conducted. These studies strongly support the theory. • Achievement: The need for achievement is characterized by the wish to take responsibility for finding solutions to problems, master complex tasks, set goals, get feedback on level of success. • Affiliation: The need for affiliation is characterized by a desire to belong, an enjoyment of teamwork, a concern about interpersonal relationships, and a need to reduce uncertainty. • Power: The need for power is characterized by a drive to control and influence others, a need to win arguments, a need to persuade and prevailAccording to McClelland, the presence of these motives or drives in an individualindicates a predisposition to behave in certain ways. Therefore, from a managersperspective, recognizing which need is dominant in any particular individual affects theway in which that person can be motivated.Summary: People with achievement motives are motivated by standards of excellence,delineated roles and responsibilities and concrete, timely feedback. Those with affiliationmotives are motivated when they can accomplish things with people they know and trust.And the power motive is activated when people are allowed to have an impact, impressthose in power, or beat competitors. 18
  19. 19. Cognitive Evaluation TheoryThis theory suggests that there are actually two motivation systems: intrinsic andextrinsic that corresponds to two kinds of motivators: Intrinsic motivators: Achievement, responsibility and competence. motivators that come from the actual performance of the task or job -- the intrinsic interest of the work. Extrinsic: pay, promotion, feedback, working conditions -- things that come from a persons environment, controlled by others.One or the other of these may be a more powerful motivator for a givenindividual.Intrinsically motivated individuals perform for their own achievement andsatisfaction. If they come to believe that they are doing some job because of the payor the working conditions or some other extrinsic reason, they begin to losemotivation.The belief is that the presence of powerful extrinsic motivators can actually reduce apersons intrinsic motivation, particularly if the extrinsic motivators are perceived bythe person to be controlled by people. In other words, a boss who is always danglingthis reward or that stick will turn off the intrinsically motivated people.Note that the intrinsic motivators tend to be higher on the Maslow hierarchy. Two Factor Theory (Herzberg)Two-factor Theory: Herzbergs Two Factor Theory, also known as the Motivation-Hygiene Theory, was derived from a study designed to test the concept that people havetwo sets of needs:1. Their needs as animals to avoid pain2. Their needs as humans to grow psychologicallyHerzberg‘ study Herzbergs study consisted of a series of interviews that sought to elicitresponses to the questions:(1) Recall a time when you felt exceptionally good about your job. Why did you feelthat way about the job? Did this feeling affect your job performance in any way?Did this feeling have an impact on your personal relationships or your well- being?(2) Recall a time on the job that resulted in negative feelings? Describe the sequenceof events that resulted in these negative feelings.(3)Research Results: it appeared from the research, that the things making peoplehappy on the job and those making them unhappy had two separate themes. 19
  20. 20. (1) Satisfaction (Motivation): Five factors stood out as strong determiners of jobsatisfaction: • Achievement • Recognition • Work Itself • Responsibility • AdvancementThe last three factors were found to be most important for bringing about lasting changesof attitude. It should be noted, that recognition refers to recognition for achievement asopposed to recognition in the human relations sense.(2) Dissatisfaction (Hygiene): The determinants of job dissatisfaction were found to be:• Company Policy • Administrative Policies • Supervision • Salary • Interpersonal Relations • Working ConditionsFrom the results Herzberg concluded that the replies people gave when they felt goodabout their jobs were significantly different from the replies given when they felt bad.Certain characteristics tend to be consistently related to job satisfaction and others to jobdissatisfaction. Intrinsic factors, such as work itself, responsibility and achievement seemto be related to job satisfaction. Respondents who felt good about their work tended toattribute these factors to themselves. On the other dissatisfied respondents tended to citeextrinsic factors such as supervision, pay, company policies and working condition.Herzberg proposed that his findings indicated the existence of a dual continuum: theopposite of ―satisfaction‖ is ―No satisfaction‖ and the opposite of ―Dissatisfaction‖ is ―NoDissatisfaction.According to Herzberg, the factors leading to Job satisfaction are separate and distinctform those that lead to job dissatisfaction. Therefore, managers who seek to eliminatefactors that can create job dissatisfaction may bring about peace but not necessarilymotivation. They will be placating their workforce rather than motivating them. As aresult, conditions surrounding the job such as quality of supervision, pay , companypolicies, physical working conditions relations with others and job security werecharacterized by Herzberg as hygiene factors, when they‘re adequate, people will not bedissatisfied ; neither will they be satisfied. If we want to motivate people on their jobs,Herzberg suggested emphasizing factors associated with the work itself or to outcomes 20
  21. 21. directly derived form it, such as promotional opportunities, opportunities for personalgrowth, recognition, responsibility and achievement. These are the characteristics thatpeople find intrinsically rewarding. Reinforcement Theory:This theory focuses its attention as to what controls behaviour. In contrast to goal settingtheory, which is cognitive approach focus attention on what initiates behaviour?Behaviour, as per cognitive approach is initiated by internal events. Reinforcement theoryargues that behaviour is reinforced and controlled by external events. The classicalconditioning proposed by Pavlov which we have already studied in our earlier lessonsexplains this in a better way. Equity TheorySuppose employee A gets a 20% raise and employee B gets a 10% raise. Will both bemotivated as a result? Will A be twice as motivated? Will be B be negativelymotivated?Equity theory says that it is not the actual reward that motivates, but the perception,and the perception is based not on the reward in isolation, but in comparison with theefforts that went into getting it, and the rewards and efforts of others. If everyone gota 5% raise, B is likely to feel quite pleased with her raise, even if she worked harderthan everyone else. But if A got an even higher raise, B perceives that she worked justas hard as A, she will be unhappy.In other words, peoples motivation results from a ratio of ratios: a person comparesthe ratio of reward to effort with the comparable ratio of reward to effort that theythink others are getting.Of course, in terms of actually predicting how a person will react to a givenmotivator, this will get pretty complicated: 1. People do not have complete information about how others are rewarded. So they are going on perceptions, rumors, inferences. 2. Some people are more sensitive to equity issues than others 3. Some people are willing to ignore short-term inequities as long as they expect things to work out in the long-term. 21
  22. 22. Expectancy Theory (Vroom)This theory is meant to bring together many of the elements of previous theories. Itcombines the perceptual aspects of equity theory with the behavioral aspects of theother theories. Basically, it comes down to this "equation":M = E*I*VOrMotivation = expectancy * instrumentality * valenceM (motivation) is the amount a person will be motivated by the situation they findthemselves in. It is a function of the following.E (expectancy) = the persons perception that effort will result in performance. Inother words, the persons assessment of the degree to which effort actually correlateswith performance.I (instrumentality) = the persons perception that performance will berewarded/punished. I.e., the persons assessment of how well the amount of rewardcorrelates with the quality of performance. (Note here that the model is phrased interms of extrinsic motivation, in that it asks what are the chances Im going to getrewarded if I do good job?. But for intrinsic situations, we can think of this as askinghow good will I feel if I can pull this off?).V (valence) = the perceived strength of the reward or punishment that will result fromthe performance. If the reward is small, the motivation will be small, even ifexpectancy and instrumentality are both perfect (high). Theory of “X” and Theory of “Y”:Douglas McGregor observed two diametrically opposing viewpoints of managers abouttheir employees, one is negative called ―Theory of X‖ and one is positive called ―Theoryof Y‖ a) Theory of X : Following are the assumptions of managers who believe in the ―Theory of X‖ in regard to their employees. • Employees dislike work; if possible avoid the same • Employees must be coerced, controlled or threatened to do the work • Employees avoid responsibilities and seek formal direction • Most employees consider security of job, most important of all other factors in the job and have very little ambition b) Theory of Y: Following are the assumptions of managers who believe in the ―Theory of Y‖ in regard to their employees. 22
  23. 23. • Employees love work as play or rest • Employees are self directed and self controlled and committed to the organizational objectives • Employees accept and seek responsibilities • Innovative spirit is not confined to managers alone, some employees also possess it.Theory of X assumes Maslow‘s lower level needs dominate in employees. WhereasTheory of Y, assumes Maslow‘s higher level needs dominate in employees. Self-Determination TheorySelf-Determination Theory (SDT) is closely related to Maslows Theory with theexception SDT suggests that people do not operate on auto-pilot... Instead, they relyheavily on nourishment and support from their social environment to functioneffectively.SDT presupposes that all people have a built-in tendency toward growth anddevelopment...that they strive to master challenges and to integrate their experiencesinto a coherent sense of self.According to Self-Determination Theory there are three concepts that affectmotivation:Autonomy - Separateness... "I can do it myself"Competence Feedback - Approval and Acknowledgment from significant othersRelatedness - Connectedness... "Im not alone" 23
  24. 24. 1.10 Challenges of MotivationMotivation seems to be a simple function of management in books, but in practice it ismore challenging.The reasons for motivation being challenging job are as follows:One of the main reasons of motivation being a challenging job is due to the changingworkforce. The employees become a part of their organization with various needs andexpectations. Different employees have different beliefs, attitudes, values,backgrounds and thinking. But all the organizations are not aware of the diversity intheir workforce and thus are not aware and clear about different ways of motivatingtheir diverse workforce.Employees motives cannot be seen, they can only be presumed. Suppose, there aretwo employees in a team showing varying performance despite being of same agegroup, having same educational qualifications and same work experience. The reasonbeing what motivates one employee may not seem motivating to other.Motivation of employees becomes challenging especially when the organizationshave considerably changed the job role of the employees, or have lessened thehierarchy levels of hierarchy, or have chucked out a significant number of employeesin the name of down-sizing or right-sizing. Certain firms have chosen to hire and fireand paying for performance strategies nearly giving up motivational efforts. Thesestrategies are unsuccessful in making an individual overreach himself.The vigorous nature of needs also pose challenge to a manager in motivating hissubordinates. This is because an employee at a certain point of time has diverse needsand expectations. Also, these needs and expectations keep on changing and might alsoclash with each other. For instance-the employees who spend extra time at work formeeting their needs for accomplishment might discover that the extra time spent bythem clash with their social needs and with the need for affiliation.Work MotivationCraig Pindar ―echoing the basic definition of motivation, define it as follows:―Workmotivation is a set of energetic force that originate both within as well asbeyond andindividuals being, to initiate work – related behavior, and to determine its form,direction, intensity, and duration.‖While general motivation is concerned with efforttowards any goal, StephenRobbins narrow the focus to organizational goals in orderto reflect singular interesting work related behavior the effort element is a measure ofintensity. The needmeans some internal state that makes certain outcomes appearattractive. Andunsatisfied need creates tension that stimulates drives within the 24
  25. 25. individual. Thisdrives general a search behavior to find particular goals, if attend, willsatisfied theneeds and lead to the reduction of tension.Integrated Model of Work MotivationThe integrated model of work motivation, by Locke and Latham, forms the theoryfoundation for this study.The model shows that a person‘s needs affect his values and personality, which affecthis choice of goals and his satisfaction or dissatisfaction, determining his actions. Aperson‘s choice of goals can be understood through the study of goal theory. Goaleffects are enhanced by goal moderators. Goals affect performance while performancedetermines rewards.The elements of the model and the various related theories will be discussed in depth.Maslow’s needs hierarchyThe first item in the integrated model is ‗needs‘, since motivation starts with needs This theory was proposed by Abraham Maslow and is based on the assumption thatpeople are motivated by a series of five universal needs. These needs are ranked,according to the order in which they influence human behavior, in hierarchicalfashionPhysiological needs are deemed to be the lowest- level needs. These needs includethe needs such as food & water.So long as physiological needs are unsatisfied, they exist as a driving ormotivating force in a persons life. A hungry person has a felt need. This felt needsets up both psychological and physical tensions that manifest themselves in overtbehaviors directed at reducing those tensions (getting something to eat). Once thehunger is sated, the tension is reduced, and the need for food ceases to motivate. Atthis point (assuming that other physiological requirements are also satisfied) the nexthigher order need becomes the motivating need.Thus, safety needs -- the needs for shelter and security -- become the motivators ofhuman behavior.Safety needs include a desire for security, stability, dependency, protection, freedomfrom fear and anxiety, and a need for structure, order, and law.. In the workplace thisneeds translates into a need for at least a minimal degree of employment security; the 25
  26. 26. knowledge that we cannot be fired on a whim and that appropriate levels of effort andproductivity will ensure continued employment.Social needs include the need for belongingness and love. Generally, as gregarious creatures, human have a need to belong. In the workplace,this need may be satisfied by an ability to interact with ones coworkers and perhapsto be able to work collaboratively with these colleagues. After social needs have been satisfied, ego and esteem needs become the motivatingneeds. Esteem needs include the desire for self-respect, self-esteem, and the esteem ofothers. When focused externally, these needs also include the desire for reputation,prestige, status, fame, glory, dominance, recognition, attention, importance, andappreciation.The highest need in Maslows hierarchy is that of self-actualization; the need for self-realization, continuous self-development, and the process of becoming all that aperson is capable of becoming.The key to Maslow‘s theory is that once a particular level of need is satisfied, it thenstops being a motivating force. The person then seeks a higher level of needsatisfaction. The theory also indicates that money‘s power to motivate a person islimited.Maslow‘s theory can be a useful tool for managers in determining the kinds ofrewards that could be effective in motivating employees. The key is to recognizeevery employee as an individual and also to remember that employees‘ needs differfrom time to time. Therefore it is the manager‘s duty to regularly reassess theemployeesGoal choice: Vroom’s VIE theoryAs the integrated model indicates, one‘s values and personality contribute to Goalchoice, which is influenced by incentives and self-efficacy. The way in which goals,rewards or outcomes affect motivation is encompassed in Vroom‘s theory.Vroom developed a complex mathematical model to explain motivation in theworkplace , known as the expectancy theory. It is one of the most widely acceptedmotivational theories. Although there has been criticism of the expectancy theory, theproof is still supportive of the theory.Expectancy theory explains how rewards lead to behaviour by focusing on internalcognitive states that lead to motivation. The theory assumes that people think aboutwhat they are doing, what they are getting, and its worth. The idea of this theory isthat the individual will be motivated when he or she believes that their behaviour will 26
  27. 27. lead to desired rewards or outcomes. If the individual does not believe that his or herbehaviour will lead to the desired outcomes or rewards, he or she will not bemotivated to perform. Also, if he or she does not want the outcomes or rewards, thenhe or she will not be motivated to perform the behaviour. Vroom‘s theory posits thatmotivation is a mathematical function of three types of cognitions. The equation asfollowing:Motivation = Expectancy × (Valences × Instrumentalities) Three major elements that determine a person‘s motivation are: valence, which isdefined as the measure of the value of the outcome of work (Edwards, 1999:385);expectancy, which is one‘s belief about the possibility of a particular outcome; andinstrumentality, the probability belief linking one outcome to another.Expectancy theory explains that an employee is willing to perform with a high levelof effort when he or she believes that this will lead to desired rewards.This theory is well accepted for two main reasons. Firstly, it is logical to think thatemployees will not be motivated by things they do not wish to have. Secondly, thistheory works in conjunction with the other motivational theories. For instance,recognition is also pointed out by Herzberg‘s theory, while status is mentioned byMaslow.Goal theory: Goal choiceGoal theory also affects one‘s choice of goals. Goal-setting theory is probably thetheory of motivation that has been most useful to psychologists. The principles of thetheory have been widely used in organizations. Locke suggests that the intentions people have play an important role in formulatingtheir behavioral patterns. The basic idea of goal-setting theory is thus that people‘sbehaviour is motivated by their intentions, objectives and goals. According to thetheory, a goal is what an individual wants to achieve or attain goals are a major sourceof motivation, so goal setting is an important part of most motivational programmesand managerial methods of motivating employees. Goals can be specific or general,difficult or easy. Specific goals lead to better performance; difficult goals, whenaccepted, will lead to even better performance. In this theory, the specificity of thegoal acts as an internal stimulus. However, it is difficult for goals to direct employees‘behaviour unless they receive feedback. Feedback regarding goals will result in higher 27
  28. 28. performance than when the feedback is absent. In other words, employees do bestwhen they receive feedback on how well they are heading towards their goals.Feedback shows employees the difference between what they have done and whatthey want to achieve. Self-generated feedback, where employees monitor their ownprogress, has proven to be a more powerful motivator than externally generatedfeedback.On the other hand, some evidence shows that the more difficult the goal, the greaterthe sense of accomplishment and achievement the employee feels when the goal isachieved.Thus employees might tend to be more motivated to achieve difficult goals than easyones, even if the probability of achievement is low. In this case, the manager shoulddirect the employee in the right direction for achieving the difficult goal in order toprevent cheating, unethical behaviour or the falsification of performance measures.Goal-setting studies point out that goals motivate employees for several reasons.Firstly, a goal directs an employee‘s attention to a specific target, so the employeeexerts efforts in a specific direction toward achieving that specific target. Secondly, achallenge goal, which requires repeated effort, encourages persistence. Lastly,because the goal creates a gap between the reality and the desired, it fosters thecreation of strategies and courses of action.Although researchers have proved that goal-setting theory can be effective, someresearchers have begun to notice its limitations. Yearta et al. point out that most goal-setting studies involve single goals, and that when goals are more than one and aremore complex or difficult, performance is poorer.Enriching goal-setting theory with timeTime is an important factor in people‘s lives, both at and outside work. Time issignificant to one‘s past and present experiences, and also to one‘s future plans andlife expectations. Work motivation theories have, however, generally failed toincorporate time as an important variable that affects one‘s motivation to work. Asdiscussed previously, goal-setting theory states that expectancy, instrumentality, andvalence will be high if goals are difficult, challenging, specific and achievable. Thetheory further states that one‘s commitment is important to maximize the relationshipbetween goal and performance. Finally, timely feedback is necessary for successfulattainment of the goal.One time-related issue that is discussed in goal-setting theory is that of a deadline,which defines when the task needs to be completed. The idea is that a deadline servesas a tool for time control and increases the motivational effect of goals. In otherwords, when the available time is longer than needed to complete the task, theindividual tends to slow down activity to fill the available time. In contrast, when thedeadline is closer, one tends to work faster (Fried &Slowik, 2004:407). Research has 28
  29. 29. found that insufficient time before a deadline can lead to less effective performance,especially when performing complex tasks.An important issue that also needs to be addressed is how time affects the choice andselection of multiple goals and how these goals relate to each other across time.Finally, goal-setting theory suggests that people work longer on challenging goals. Anumber of studies have supported this suggestion. However, similar to othermotivational theories, goal-setting theory has failed to address the potential effect thattime has on the major components of the theory - goal difficulty, goal attainability,andgoal specificity.Time and goal difficulty: The idea that difficult and challenging goals lead to higherwork motivation and performance than simpler goals, as long as they are attainable,may not always be true, but it may be contingent on the time context in which theparticular goal is being performed. Control theory suggests that behaviour iscomplicated and can be explained by hierarchies of feedback loops.In suchhierarchies, performing one goal successfully may be part of the input to a higherorder goal. For example, in the workplace, employees may use clock time as a basisfor performing sequential goals that have different levels of difficulty. They maywork hard for less challenging goals if they see the accomplishment of these simplergoals as a step in performing more challenging and difficult goals inthe future.Time and the attainability of goals: Goal-setting theory states that for goals to bemotivational, they must not only be challenging and specific but also achievable.Again, the relationship between goal achievability and employee motivation andeffort may be influenced by time. Employees may be given risky goals with a lowpossibility of achievement, which would cause low employee motivation. Forexample, an individual might be asked to be involved in innovative operations, whereboth the processes of achieving a product and the time frame are uncertain. Theprobability of successfully producing a new product is obviously.Goal moderatorsThe effects of goals on motivation are enhanced by goal moderators. Locke andLatham have identified the following four goal moderators: feedback; commitment;ability; and task complexity.FeedbackResearch has shown that goal setting without the presence of feedback is ineffective.Goal setting and feedback together lead to improved performance. Goals direct one‘sactions while feedback tracks the progress of those actions in relation to the goal.When an individual works towards a goal and is told that he is behind schedule, hetends to work harder, hence performance is improved; whereas an individual who istold that he is on target tends not to improve performance. 29
  30. 30. CommitmentChallenging goals lead to high performance only if the individual commits to them.An individual‘s commitment tends to decline as goal difficulty increases, soperformance decreases rather than increases. There are at least four factors affectinggoal commitment: legitimate power or authority; peers influence; individual‘sexpectancy; and rewards or incentives: Authority: Jones and George (2003:48) define authority as ―the power to hold peopleaccountable for their actions and to make decisions concerning the use oforganizational resources‖. Authority gives managers the right to achieveorganizational goals through directing and controlling employee behaviour. Goals thatare assigned by the person with authority over the individual tend to become theindividual‘s personal goals. With regard to commitment, there is no differencebetween goals assigned by the authority figure and goals set by the individual in aparticipative manner, providing the goals are reasonably explained and the individualis supported by the authority figure.Peer influence: Peer influence, especially peer pressure and modeling, also affectsgoal commitment. Peer pressure is known to encourage commitment. Strong groupnorms also induce commitment, giving little difference in productivity among groupmembers. There will be higher commitment to individual goals if both group goalsand individual goals are assigned for a group task than if only individual goals areassigned.Expectancy: The individual‘s expectancy of being able to reach the goal or perform ata high level affects commitment. According to Vroom‘s expectancy theory, goals thatare moderate or easy are more likely to be accepted than goals that are difficult,although a high degree of commitment can be engaged for a short time for goals thatare hard to reach. Individuals usually prefer moderate goals.However, the employee might still be motivated to achieve a difficult goal if twoconditions are met: firstly, the connection between rewards and achieving the difficultgoal is clear; secondly, the reward for achieving the goal is large. The choice of goalscan also be influenced by previous or current goals assigned.Rewards or incentives: Goal commitment is high when an individual works to achievea goal that is seen as instrumental in gaining other valued outcomes. Verbal appraisalis found to be especially powerful in motivating. Commitment is measured to behigher when a reward is offered for partial success than when only full success isrewarded. 30
  31. 31. AbilityObviously, whether a person is capable of meeting a goal or not is determined by hisor her ability. Goal-setting studies have proved that the relation between goaldifficulty and performance can be limited by a person‘s ability. There is also evidencethat goal setting has a stronger effect on people with higher ability than on peoplewith lower ability.Task complexityThere are three dimensions of task complexity: component complexity, meaning theelements in the task; coordinative complexity, meaning the number and nature of therelationships between the elements; and dynamic complexity, meaning the numberand types of elements and the relationships between them over time.Research has found that the effect of goals is significantly larger with less complextasks than with more complex tasks. Evidence shows that with highly complex tasks,the individual who has no previous experience and is told to perform well rather thantold to ‗do your best‘, may perform poorly.In summary, a specific challenging goal can be attained the best when the individualhas the ability, is committed to the goal, gets feedback on progression in relation tothe goal and has high expectancy to perform the task well, and the task is simple.Goal and efficacy mechanisms: mediatorsGoals also affect performance through their effects on mediators: direction, effort,persistence and, indirectly, task strategies. Wood and Locke define three mediators ormechanisms that help the individual to attain goals: direction of attention; effort; andpersistence. These correspond to the three attributes for motivated action: direction,intensity and duration.This simply means that an individual can perform better if he or she pays attention tothe task, puts effort into it and persists over a period of time. Goals direct anindividuals attention to the task or activities specified by the goal, with the result thathe or she will focus less on the goal‘s irrelevant tasks or activities. With regard totask persistence, when an individual is given a goal, he or she will most likelycontinue working until the goal is reached. If there are no time limits to achieving thegoal, the individual will work longer for a harder goal than for an easier goal. Theindividual will also spend more time preparing to perform if the goal requires a high-performance standard than if it requires a low-performance standard.Goals can also influence performance indirectly by motivating the individual todevelop task-specific strategies. There are, broadly speaking, two types of task-specific strategies: 31
  32. 32. • Stored task-specific strategies. These are learned either through instructions given orthrough practice. Such strategies can be performed automatically when the individualperforms similar or relevant tasks.• New task-specific strategies. When stored task-specific strategies fail as a result of atask being new or differences in task situations, the individual will develop new-taskspecific strategies to adapt and to cope with the new situation. There is no guaranteethat the individual will always choose the right or appropriate task strategies, butgoals may guide the individual.Performance and outcomesThere are three basic types of objective outcome measurements in the workplace thatcanbe used to guide performance: quality of production, for instance the amountproduced orthe number of mistakes; money, such as profit and loss; and time,including attendance and deadlines for tasks. When objective outcome measurementsare not available, behavioural measurements can be used. These can be made byobserving the individual. If desired behaviours are demonstrated frequently, desirableoutcomes will be attained more easily.RewardsWhen rewards are given to those who achieve high performance, they can become animportant instrument to encourage the continuance of the desired behaviour. In theworkplace, external rewards include incentives, benefits and other monetary forms ofrewards. Such external rewards are often used as motivators by managers. However,Herzberg argues that motivation comes from work itself and these external rewardsare merely just satisfiers or dissatisfies. Managers who feel that their employees havea lack of motivation should reassess the reward systems being used in the company.Managers must maintain a balance between the employee‘s base pay, benefits andother external rewards. These provide employees with a reward programme that isfair, competitive and measurement-based. Once employees are motivated, they will beable to fulfill the customers‘ needs and together achieve the company‘s goals (Bowen,2000:182). However, not all rewards are external. Internal rewards can occur as a result of asense of accomplishment, attaining a level of excellence and success or makingprogress towards a goal. Higher satisfaction is experienced when the success isattributed to the individual her or himself rather than to external factors. Difficultgoals may lead to higher levels of satisfaction than easier goals because they areattained less frequently. Research has been done on how rewards affect employeeperformance. 32
  33. 33. Attribution theoryAccording to Locke and Latham‘s model, attribution theory should also be consideredwhen studying performance. Attribution theory suggests that motivation is a responseby the individual to a self-perception of their behaviour. Its emphasis is on the waysthat the attributions an individual makes about his or her own or other‘s performance,affect that individual‘s subsequent choices and actions. Attribution theory does notidentify the actual cause of the behaviour; it provides the cause of the behaviour fromthe perceiver‘s point of view (Martin, 1998:49). Kelley is credited with developingthe theory of attribution that provides views of the attribution process (Miner,2005:187). Co-variation is the central principle of Kelley‘s theory. A causalrelationship exists between two events when they occur at the same time. If aparticular outcome only occurs when a specific situation exists, then the situation issaid to co-vary with the effect. Kelley suggests that individuals tend to identify co-variance relationships through a number of ways:• Distinctiveness. Did the behaviour only occur when performing this specific taskand not others?• Consistency. How consistent is this behaviour with the other behaviour of theindividual?• Consensus. Is the behaviour unique to this individual or has it been widespreadamong others?Later, Weiner developed a framework to distinguish different types of attribution andtherefore appropriate response behaviours: the individual‘s ability; the individual‘seffort level; the difficulty of the task to be performed; and luck.Achievement-motivated individuals attribute their success to their effort and hardwork and their failures to their not having tried hard enough. If they fail, they tend totry again because they believe that they can succeed with greater efforts. In contrast,individuals with a low need for achievement see effort and hard work as irrelevant.They attribute their own failures to other factors and view their success as due to luckor the easiness of the task.Limitations of the integrated modelThe numerous limitations of the integrated model of work motivation by Locke andLatham should be considered: 33
  34. 34.  Some arrows are omitted to limit cognitive-perceptual overload. For example, the relationship between perceived justice and goal commitment is omitted, while there is no indication that personality can affect job satisfaction.  There are several theories not fully elaborated, aside from goal theory. For example, there are sub-theories and complexities involved in procedural justice.  Ability, knowledge and skills, abbreviated as KAS, are significant to performance. They are the abilities needed to perform, yet they are not shown in the model.  The model focuses on conscious motivation and leaves out the sub-conscious.  The model does not take doubtful or highly limited theoriesintoconsideration.1.11 Recent Development of Work MotivationIntroductionWhile theoretical development on work motivation may have declined in recent years,the world of work has changed dramatically and rapidly. It has described theenormous changes the world of work is going through, and includes factorsinfluencing the motivation of today‘s employees, to serve as guidelines formanagement today.Changes in the world of work  Changes in the organizationThe above section describes the changes that are reshaping today‘s economy. Thesechanges have also affected today‘s organizations. Understanding these changes couldhelp managers to minimize the negative effects and to capitalize on the positiveeffects that the changes are having on the company.  Externalization of risksCompanies in the 1960s and 1970s owned and controlled the business as much as theycould. IBM was one of the examples. To maintain maximum control over theoperation, the company created centralized departments to monitor the decisionsmade by the lower management levels. Two of the disadvantages of this strategy areexposure to business risks and inflexibility. To overcome this, companies todayexternalize risks by outsourcing. Outsourcing occurs when a company contractsoutside companies to provide resources or services. However, the company should 34
  35. 35. take care not to lose its strategic skills or advantages. With outsourcing, companiesare able to focus on their strengths and emphasize their core competencies.Companies have now recognized the importance of leasing or buying services orproducts from other companies when striving to meet cost-reduction and growthobjectives  Work flexibilityAs Locke and Latham indicate in their integrated model of work motivation, it isimportant to understand employees‘ needs. Flexible benefit programmes, flexibleworking hours, family-friendly programmes and bonus pay are designed to motivateemployees to be satisfied and become high performers. Working-time flexibilityrefers to management‘s use of variable working hours to meet the company‘sdemands. The practice of flexible working is becoming more popular for economic,industrial and social reasons. The growing globalization requires companies tooperate in different time zones around the clock; customers are demanding lateropening hours and greater accessibility, especially from the service and retail sectors;competitive pressures in the manufacturing sectors require expensive equipment tooperate for the maximum period to save costs; and there is a stronger need for bothmen and women to balance their family and work. There has been a great deal writtenand spoken about work and life balance in recent years. Research suggests thathelping employees to balance their work and family life can result in betterperformance; increase productivity and reduce absenteeism; while the company canrecruit and retain skilled employees more easily.  TeamworkEffective teamwork has been a key factor in business success. Today, a lot ofmanagers use teams to solve problems, generate ideas and complete jobs. Teamworkoffers opportunities for job enrichment, gives autonomy to employees, decreases theworkload of supervisors and may also enhance performance on difficulty orcomplicated tasks .Team is defined by Thiagarajan and Parker as ―a group of peoplewith a high degree of interdependence geared toward the achievement of a goal or thecompletion of a task‖. Employees working in teams help to increase flexibility incompanies. A recent survey shows that 73 percent of the companies in the UnitedStates have some of their employees working in teams. Employees lose sight of thebig picture when they are divided into departments. When employees work in teams,both horizontal and vertical hierarchical barriers are broken down, allowing thecompany to respond faster to changes and permitting better coordination in activitiesbetween departments. Since unclear ormisleading directions usually cause team 35
  36. 36. failure, managers need to communicate the vision, mission and the values clearly tothe employees when organizing teams.  MulticulturalismMulticulturalism is another issue that is reshaping the workforce. Globalization hasencouraged immigration. Workforce diversity is changing companies today and theworkforce will become even more diverse in the next twenty years. Diversity seems tobe growing in the business world, although it has always been there. Having a varietyof different talents to use and being able to improve market understanding are some ofthe main benefits of managing diversity. Cross-cultural teams can create problems interms of language differences and the different ways of communicating, but can alsobe more creative.  DownsizingAnother issue to be addressed is downsizing. Downsizing is a management practice inwhich companies reduce the size of a company by laying off employees. The focusmay be monetary costs, time costs, or technological costs. This management strategyhas becoming popular, but management‘s motivation for this is not always obvious.Some critics believe that downsizing is a way for management to show thestockholders that there is a need to keep costs down. Supporters of this strategy arguethat employee reductions are needed to maintain competitiveness in the fast-changingglobal marketplace. Companies are strategically reducing operations that are over-employed while increasing employees in areas that add value. Downsizing is likely tohave some undesirable outcomes as it affects employees‘ morale, motivation andproductivity; service delivery, because of the loss of skilled employees; anddepartmental planning. Many people who have been laid off by big companies chooseto start their own businesses. Purchasing a franchise allows them to run their ownbusinesses with less risk because of the support provided by the franchiser. Whencompanies are busy downsizing, they are in fact also facing a labour shortage. Theemployees who are being laid off do not have the skills that the companies need to becompetitive. Lawler identifies the two powerful forces that are causing the increasingshortage of knowledge-skilled employees: workforce demographics and education.Many developed countries, for example, Japan, Italy and Germany, are experiencing ahigh percentage of their workforce entering or having already entered the age ofretirement. This shift is a result of both low birth rates and longer life expectancies.Although some of the retirees can still stay in the workforce, they do not necessarilyhave the up-to-date knowledge to meet the needs of the companies. The second forcecomes from a lack of education. The schooling system is not producing enough well-educated students to perform the type of work required in today‘s business world,especially people who can do technical and engineering work. The importance of a 36
  37. 37. highly skilled workforce must not be undervalued. In the old business environment,many jobs did not need to be performed by highly skilled employees, so the need forthe highly talented was limited. However, the situation is different now with thechallenges that technology has brought. The growth of knowledge and technology andthe demands for an educated workforce will definitely continue to grow.  Changes in today‘s employeesThe changes that have reshaped the economy and the organisation have redefined theterm employee.The term multi-skilling implies a higher level of flexibility for a job in a company.This happens usually in activities which require unskilled to skilled or technicalexpertise. In the past, companies were stable and it was preferable for employees tohave a narrow set of specific skills in order to perform repetitive tasks. Today,companies need employees with multiple skills to handle a variety of job tasks, ratherthan specialists. The more skills an employee has, the better he or she can help thecompany to achieve its goals and the more valuable he or she is in the job market. Asmentioned earlier, being a team player has becoming increasingly important forcompanies that organize around teams. Therefore skills such as problem solving,group decision-making skills, conflict-solving skills and interpersonal skills areespecially needed to contribute to high-performance teams. Effective managers shouldcommunicate the company‘s vision, goals, and business strategy with the team andlink these with the team‘s mission. This gives the team members clear direction,purpose and security. Team members perform best when they know what is expectedfrom them and what they can expect from the company.The changing world of work implies longer working hours, less family time and morestress. To keep costs low, companies have been downsizing and re-engineering,causing many employees to work harder in order to stay in their company. Also,companies delegate more tasks to the highly skilled employees, usually resulting instress for the employees. Employees often struggle to cope with the pressure andstress due to an increased amount of work and to high levels of insecurity. This couldalso cause alienation. Alienation implies a feeling of powerlessness, meaninglessnessand even social isolation.The changes in the world of work have also brought changes to people‘s attitudestowards work. Krech and Crutchfield define attitude as ―an enduring organisation ofmotivational, emotional, perceptual and cognitive processes with respect to someaspect of the individual‘s world‖. There are numerous theories and models that havebeen developed on attitudes in general and particularly on work. Katz and Kahnsuggest that attitudes and motivation are intertwined. Motivation needs to bemaintained by the managers to create a working environment where employees willhave positive attitudes. People‘s values and attitudes towards work have changed in 37
  38. 38. today‘s world. Many people no longer want long term relationships withorganizations. On average, people used to have three or four jobs during their careers,but this is now increasing as people become more mobile. To decrease the turnoverrate, managers should understand what employees are looking for in their jobs.Recent Developments of Work Motivation ApproachesThe newer theorists, after research and interviews, have come up with new ideas ofmotivation for today‘s employees. There are a variety of factors regarded by differenttheorists as motivational..Belief system of motivationThad Green, a university professor who established his own company, used Vroom‘sexpectancy theory) as a foundation for training unemployed people to develop theskills they needed to keep productive jobs. Green simplified Vroom‘s expectancytheory by removing the mathematics. Instead of saying that people have expectationsthat determine motivation at work, Green simply says that people have beliefs. Also,instead of measuring expectations in the form of probabilities, Green measures beliefson a simple ten-point rating scale. He calls the theory the Belief system of motivationand performance. Working with people in his own company, Green has turnedVroom‘s theoretical model into an application model. He proved that there is a criticalconnection between motivation and performance. Green points out: ―Employees arethe best source of solutions to their own motivation and performance problems.Managing is a shared responsibility. It takes more than offering people what theywant to unleash their motivation to perform‖.The Belief system of motivation and performance explains how people determine thelevel of effort they put into work and how well they will perform. All these decisionsoriginate from a process or chain of events: effort leads to performance which leads tooutcomes and results in satisfaction (Green, 2000:5). Green has identified threebeliefs: confidence, trust and satisfaction. These beliefs are the key to motivatingemployees, so all three should be put into effect.The first belief is confidence, which deals with the relationship between employeeeffort and performance. One must believe that the effort one is capable of giving willlead to the expected performance (Green, 2000:6). The second belief, trust, deals withthe relationship between performance and outcomes. Employees must believe andtrust that managers will give them what their performance deserves, for instance,rewards, promotions or personal thanks for a job well done. In this case managersmust keep their word before diminishing an employee‘s trust. However, this trust inan appropriate reward can sometimes be a problem in the workplace: performance isnot easy to measure; it is not easy to tie outcomes to performance; there are notalways desirable outcomes; and sometimes employees expect outcomes based on their 38
  39. 39. effort rather than on their performance (Green, 2000:9). Lastly, the satisfaction beliefdeals with the relationship between outcomes and satisfaction. The outcome given bythe manager for completion of the job should satisfy the employee. Managers mustrealize that the same outcomes do not always satisfy every employee.Green points outthat most motivation theories assume that performance reaches its peak whenemployees are offered something they want, as they will work hard in order toachieve it. The other side of the tactic is to offer something that employees do notwant, such as unemployment, so employees will work hard to avoid it.Research hasproved that the belief system works. As a result of this system, managers becomemore effective leaders; employees are more motivated; the performance ofindividuals, teams and the organisation improves; workers find greater jobsatisfaction; teamwork is strengthened; management of changes runs more smoothly;downsizing works; and turnarounds are more successful.Understanding of employee motivationLindner points out in his journal, Understanding employee motivation, that for acompany to survive, it is important to keep the employees motivated. Motivatingemployees is known as one of the most complex functions a manager can perform,owing to the fact that these motives change. For instance, when an employee getsolder, interesting work could become more important than other factors, or when anemployee‘s salary increases, money becomes less of a motivator.Research was done by James Lindner to examine the importance of certain motivationfactors, using a descriptive survey method, at the Piketon Research and ExtensionCentre and Enterprise Centre at the Ohio State University. The target group was askedto rank the factors from the most motivating to the least motivating. The followingreflects the order the respondents gave from most to least motivating:• Interesting work. Managers can motivate employees through interesting work. Workcan be interesting when jobs are well designed and when specific goals are specified.• Good wages. Companies attempt to increase employee motivation and performanceby linking incentive pay to increases in performance. In studies of motivation,compensation has always been and certainly still is an important motivator, but notthe only one. Money itself cannot guarantee productivity among employees. AsHerzberg mentions, money can only be a short-term satisfier• Appreciation of work well done. This can be achieved through giving the employeesfeedback, recognition, reward and promotion. The need for appreciation for a job well 39
  40. 40. done from the managers can be more important than the need for a payrise for today‘semployees.• Job security. As mentioned earlier, companies lay off employees, downsize, and re-engineer to save costs and to be competitive. Companies can increase employeemotivation by giving certain levels of job security.• Good working conditions. Working conditions are a primary concern ofManagementas they can determine employees‘ performance and productivity.• Personal loyalty to employees. The instability of employment reflects a change inemployers‘ views towards the employment relationship. Motivating employeesthrough loyalty can be done by sharing information and celebrating successes, whichgive the employees a sense of ownership. Celebration can help to bring employeesand the company closer together, hence improving the relationship.• Tactful discipline. In this case, managers attempt to keep the employees‘performance at acceptable levels by using discipline.• Sympathetic help with personal problems. Showing interest in employees and theirneeds is an essential step in establishing positive relationships. Managers get theirwork done through employees. If managers do not know what employees need, theymay also not know what motivates them.• Promotions and growth in the company. Training and development help growth in acompany. Both the employees and the company benefit, not just in the present, butalso in the future.• Feeling of being in on things. This can be done through empowerment –encouraging decision-making among employees. Empowerment is soimportantbecause a company needs its employees‘ knowledge, experience and skillsandtheir commitment to the company. 40
  41. 41. CARE model for motivating employeesWith studies in motivation and retention, Glanz (2002:31) developed a CARE modelthat assists managers in motivating and retaining employees. CARE is an acronymmade up from the words:  Creative communication: Research done by Runzheimer International found that the average manager spends 80 percent of his or her time communicating. Glanz explains that effective communication contributes to a healthy and cooperative work environment. Managers must therefore be open and honest in their communications with employees.  Atmosphere and appreciation: In all the current research on what motivates employees and keeps them productive, appreciation is always one of the top three desires. Nelson also mentions that a feeling of appreciation and recognition is important.  Respect and reason for being: When managers focus on employees as individuals, they begin to treat the employees with respect. Managers need to learn about employees and their strengths. Employees now search for the meaning of their work, and the reason for being at work. As O‘Reilly III and Pfeffer state, ―To the extent that any organisation can truly unleash the hidden value in its people, it will increase its chance of success‖. Empathy and enthusiasm: To value employees more as human beings is important in today‘s motivation management. When companies care for employees‘ personal needs and help to provide the resources to fulfill these needs, employees are loyal and therefore more motivated. Managers must thus constantly assess the needs of their employees and understand what they want in order to keep them motivated. 41
  42. 42. 1.12 Changes in the world of work  Changes in the organizationThe above section describes the changes that are reshaping today‘s economy. Thesechanges have also affected today‘s organizations. Understanding these changes couldhelp managers to minimize the negative effects and to capitalize on the positiveeffects that the changes are having on the company.  Externalization of risksCompanies in the 1960s and 1970s owned and controlled the business as much as theycould. IBM was one of the examples. To maintain maximum control over theoperation, the company created centralized departments to monitor the decisionsmade by the lower management levels. Two of the disadvantages of this strategy areexposure to business risks and inflexibility. To overcome this, companies todayexternalize risks by outsourcing. Outsourcing occurs when a company contractsoutside companies to provide resources or services. However, the company shouldtake care not to lose its strategic skills or advantages. With outsourcing, companiesare able to focus on their strengths and emphasize their core competencies.Companies have now recognized the importance of leasing or buying services orproducts from other companies when striving to meet cost-reduction and growthobjectives.  Work flexibilityAs Locke and Latham indicate in their integrated model of work motivation, it isimportant to understand employees‘ needs. Flexible benefit programmers, flexibleworking hours, family-friendly programmers and bonus pay are designed to motivateemployees to be satisfied and become high performers. Working-time flexibilityrefers to management‘s use of variable working hours to meet the company‘sdemands. The practice of flexible working is becoming more popular for economic,industrial and social reasons. The growing globalization requires companies tooperate in different time zones around the clock; customers are demanding lateropening hours and greater accessibility, especially from the service and retail sectors;competitive pressures in the manufacturing sectors require expensive equipment to 42