The document discusses strategies for motivating employee performance through rewards and the importance of goal setting as a motivational tool within organizations. It outlines key elements of effective goal-setting, such as goal difficulty, specificity, acceptance, and commitment, and how they influence organizational performance and individual motivation. The text also highlights the role of intrinsic and extrinsic rewards, performance management, and various compensation strategies in enhancing employee engagement and satisfaction.

1. EDM 205
HUMAN BEHAVIOR IN
ORGANIZATION

2. MOTIVATING EMPLOYEE
PERFORMANCE
THROUGH REWARDS
Motivating employee performance through rewards involves designing and implementing
a system that recognizes and incentivizes desirable behavior and high performance.
By thoughtfully designing a reward system that recognizes and incentivizes desired
behaviors, organizations can enhance employee performance, satisfaction, and retention.

3. GOAL SETTING AND
MOTIVATION
Goal setting is a powerful tool for enhancing motivation
and performance. When done effectively, it provides
employees with clear direction, a sense of purpose, and
measurable targets to strive towards

4. Goal Setting
 is a process that starts with careful consideration of
what you want to achieve, and ends with a lot of hard
work to actually do it.
 is a process of identifying something that you want to
accomplish and establishing measurable goals and time
frames.
Goal setting is indeed a process that begins with thoughtful consideration of what you want to
achieve and culminates in dedicated effort to make it happen.
This process helps clarify your ambitions, provides a roadmap for achieving them, and
allows for tracking progress along the way. By defining clear goals with measurable
outcomes and specific timelines, you increase your chances of success and maintain focus
throughout your pursuit

5. Motivation
 can be defined as “the stimulation of any emotion or
desire operating upon one’s will and promoting or
driving it to action.”
It causes people to act – whether switching off the
television or changing your career path.
It highlights how motivation involves the activation of emotions or desires that influence
and energize a person's behavior towards achieving specific goals or outcomes.
Absolutely! Motivation serves as the driving force behind people's actions and decisions. It
can compel individuals to take a wide range of actions, from simple daily tasks like turning
off the television to significant life-changing decisions such as pursuing a new career path.

6. Motivation
 In fact, motivation is the driving force behind
our actions. In other words, it can energize a
person and compels him/her to act in a
certain way.
Understanding motivation enables individuals to effectively manage their own
motivation levels and cultivate environments within organizations that foster high levels
of motivation among employees.

7. Goal-Setting Theory
A social learning theory that provides insights into why and
how goals can motivate behavior.
I think a Social learning Theory that is the Theory of Albert
Banduras
It also help us understand how different people cope with
failure to reach their goals.
Edwin Locke’s goal-setting theory of motivation assumes
that behavior is a result of conscious goals and intentions.
Albert Bandura's social learning theory provides valuable insights into how goals
can motivate behavior through the process of observational learning and self-
regulation.
By applying social learning theory, individuals and organizations can better understand how
people cope with failure and support them in developing resilience, persistence, and adaptive
strategies to achieve their goals over time.
highlighting how setting and striving towards specific objectives
can significantly enhance motivation and performance.

8. Goal-Setting Theory
By setting goals for people in the organization, a manager
should be able to influence their behavior.
Develop a through understanding of the process by which
people set their goals and then work to reach them.
By effectively setting and managing goals, managers can influence employee behavior in a positive
way, fostering motivation, productivity, and alignment with organizational goals. Goal setting serves
as a powerful tool for driving individual and collective performance within the organization.
By understanding these processes and factors, individuals and organizations can better
support goal achievement, enhance motivation, and foster personal and professional
development.

9. Goal Setting Theory of Motivation
Goal
Difficulty
Goal
Specificity
Goal
Commitment
Goal
Acceptance
Goal-
Directed
Effort
Organizational
Support
Individual
Abilities
and Traits
Performance
Intrinsic
Reward
Satisfaction
Extrinsic
Reward
By: Locke and Gary Latham
The expanded theory
argues that Goal-
Directed Effort is a
function of four(4) good
attributes:
Goal difficulty
Goal specificity
Goal acceptance
Goal commitment

10. Goal Difficulty This refers to the level of challenge presented by the
goal.
Goal Specificity: This pertains to how clearly and
precisely the goal is defined.
Goal Acceptance: This involves the extent to which individuals agree
with and accept the goals set for them.
Goal Commitment This refers to the degree to which individuals are
dedicated to achieving the goal.
By focusing on these four attributes, organizations and individuals can enhance
Goal-Directed Effort, leading to improved performance and achievement of desired
outcomes.

11. 1. Goal Difficulty
Goal difficulty is the extent to which a goal is
challenging and requires effort.Difficult goals typically
demand more effort and persistence. When goals are
challenging, individuals are motivated to invest more
energy and resources to meet these higher standards.
If people work to achieve goals, it is reasonable to
assume that they will work harder to achieve more
difficult goals.
This is a core principle of goal-setting theory, which suggests that
challenging goals can lead to higher performance, provided that the goals
are perceived as attainable and the individuals are committed to them.

12. 2. Goal Specificity
Goal specificity is the clarity and precision of the goal.
refers to how clearly and precisely a goal is defined. Specific
goals outline exactly what is expected, how much, and by
when.By ensuring that goals are specific, individuals and organizations can
enhance clarity, focus, and performance, leading to better outcomes and higher
levels of achievement.
Some goals, such as those involving costs, output,
profitability, and growth can easily be states in clear and
precise terms.Yes, goals related to costs, output, profitability, and growth
are often well-suited to being stated in clear and precise terms. These types of
goals can typically be quantified and measured, making them easier to track
and manage.

13. 3. Goal Acceptance
Is the extent to which a person accepts a goal as his or her
own.
By fostering goal acceptance, organizations can enhance employee
motivation, commitment, and performance, leading to more successful goal
achievement and overall organizational effectiveness.
4. Goal Commitment
Is the extent to which he or she personally interested in
reaching the goal.
By understanding and fostering goal commitment, organizations and
individuals can enhance motivation, persistence, and overall performance,
leading to successful goal achievement and personal satisfaction

14. Goal Setting Theory of Motivation
Goal
Difficulty
Goal
Specificity
Goal
Commitment
Goal
Acceptance
Goal-
Directed
Effort
Organizational
Support
Individual
Abilities
and Traits
Performance
Intrinsic
Reward
Satisfaction
Extrinsic
Reward
The interaction of
Goal- Directed
Effort,
Organizational
Support and
Individual
Abilities
determines actual
Performance.
By: Locke and Gary Latham

15. Goal-Directed Effort: This refers to the amount of energy and focus an
individual dedicates to achieving specific goals.
Organizational Support: This includes the resources, training, and
encouragement provided by the organization.
Individual Abilities: These are the skills, knowledge,
and competencies that an individual possesses.

16. Organizational Support
Is whatever the organization does to have better
performance.
Individual Abilities and Traits
Are the skills and other personal characteristics
necessary to do a job.
Yes, organizational efforts to improve performance often
involve a combination of strategies aimed at enhancing goal-
directed effort, organizational support, and individual abilities.
Yes, the skills and other personal characteristics necessary to perform a job
effectively are commonly referred to as competencies. Competencies
encompass a wide range of attributes that contribute to successful job
performance.

17. Goal Setting Theory of Motivation
Goal
Difficulty
Goal
Specificity
Goal
Commitment
Goal
Acceptance
Goal-
Directed
Effort
Organizational
Support
Individual
Abilities
and Traits
Performance
Intrinsic
Reward
Satisfaction
Extrinsic
Reward
By: Locke and Gary Latham As a result of
performance, a
person receives a
various intrinsic
and extrinsic
rewards that, in
turn, influence
satisfaction
Intrinsic Rewards:Recognition and
Feedback
Job Enjoyment
extrinsic Rewards: Compensation,

18. Intrinsic Reward
 An internal reward that employees achieve from
completing their tasks or projects successfully.Exactly! An
intrinsic reward is an internal satisfaction or sense of
fulfillment that individuals experience when they engage
in and complete tasks or projects. These rewards come
from within the person and are not dependent on external
factors such as money or praise from others
 Mostly psychological and are based on the effort and
abilities of a person.

19. Extrinsic Reward
 Mostly financial or tangible rewards given to
employees, such as pay raises, bonuses, and
benefits.
 They are extrinsic because they are external to
completing work itself and are controlled by the
people other than the employee.

20. Management By Objectives (MBO)
 Is essentially a collaborative goal-setting process
through which organization goals systematically
cascade down through the organization.
 Starts with top managers establishing overall goals for
the organization.
 Managers and employees throughout the organization
collaborate to set subsidiary goals.
 An annual performance review will be done at the end
of the specified time period.

21. PERFORMANCE
MANAGEMENT IN
ORGANIZATIONS

22. The Nature of Performance Management
Performance measurement or performance appraisal
is the process by which someone
1) Evaluates an employee’s work behaviors by
measurement and comparison with previously
established standards,
2) Documents the results,
3) Communicates the results to the employee.

23. Organizational Processes and Activities
Total Quality Management
The Nature of Performance Management
A Performance Management System (PMS) compromises the
processes and activities involved in performance appraisals.
Timing and
Frequency of
Evaluation
Determination of
Who Appraises
Whom
Measurement
Procedure
Storage of
Distribution of
Information
Recording
Methods
Performance Measurement
Manager Employee

24. Purposes Of Performance Measurement
Providing job performance feedback is the primary use of
appraisal information.
Judgement of Past Performance
• Provide basis for reward allocation.
• Provide basis for promotions, transfer, layoff, and so on.
• Identify high-potential employees.
• Validate selection procedures.
• Evaluate previous training program.

25. Development of Future Performance
• Faster work improvement.
• Identify training and development opportunities.
• Develop ways to overcome obstacles and performance.
• Establish supervisor-employee agreement on expectations.
Purposes Of Performance Measurement
Providing job performance feedback is the primary use of
appraisal information.

26. Performance Measurement Basics
The Appraiser
• Supervisor
• Multiple-rater system
• 360-degree feedback
Frequency
• Regular basis,
typically once a year
• “as needed” basis
Measuring Performance
• Must be valid, reliable and
free of bias
• Graphic rating scale,
checklists, essays or diaries,
behaviorally anchored
rating scales, and force-
choice systems

27. INDIVIDUAL REWARDS IN
ORGANIZATION

28.  The rewarding system consist of all
organizational components, including people,
processes, rules and procedures, and decision-
making activities, involved in allocating
compensation and benefits to employees in
exchange for their contributions to the
organization.

29.  The purpose of the reward in most
organizations is to attract, retain and motivate
qualified employees.
 The organization’s compensation structure must
be equitable and consistent to ensure equality of
treatment and compliance with the law.
 Compensation should be also be a fair reward to
the individual’s contribution to the organization.

30.  The organization needs to decide of what type
of behavior or performance it wants to
encourage with a reward system because what
is rewarded tend to recur.

31. Meaning of Rewards to Employees
 The surface value of a reward to an employee is its
objective meaning or worth.
 The symbolic value of a reward to an employee is its
subjective and personal meaning or worth.

32. Types of Reward
An individual’s compensation package is
the total array of money (wages, salary,
commissions) incentives, benefits, perquisites, and
awards provided by the organizations.

33. Types of Reward
Basic Pay - An effectively planned and managed pay system can
improve motivation and performance
Incentive Systems – are plans in which employees can earn additional
compensation in return for certain types of performance.
o Piecework programs
o Gain-sharing programs
o Bonus system
o Long-term compensation
o Merit pay plans
o Profit-sharing plans
o Employee stock option plans

34. Indirect Compensation – another major component of the compensation
package which also commonly referred to as the employee benefit plan
Types of Reward
o Payment for time not worked
o Social Security contributions
o Unemployment compensation
o Disability and worker’s compensation
benefits
o Life and health insurance program
o Pension or retirement
Perquisites – are special privileges awarded to selected members of
an organization usually top managers.
Awards – at many companies, employees receive awards for anything
from seniority to perfect attendance, from zero defects (quality work)
to cost reduction suggestions.

35. Managing Reward System
Issues to consider in Developing Reward System:
Pay Secrecy Employee
Participation
Expatriate
Compensation
Ability to
pay
Impact on
Organizational
Performance
Economic
and Labor
Market
Factors
Flexible
System

36. Thank you!