The document discusses various strategies for motivating employees, including incentive schemes, job enrichment through empowerment, and increasing employee engagement. It describes key drivers of employee engagement like trust in management, career growth opportunities, and relationship with one's manager. It also discusses different types of monetary incentives and their potential problems, as well as other motivational strategies like appreciation, training, and job design approaches like autonomous work groups.

1. Motivating Employees ( Theory not covered here, but needed for exam) Strategies Incentive Schemes Job Enrichment - Empowerment

2. MOTIVATION Revisiting motivation… Why bother ??? Attraction Development Contribution retention employee engagement...

3. Employee Engagement “… emotional connection - an employee feels for organization that influences him or her to exert greater discretionary effort to work". Some Key drivers… easier for small companies...

4. Some Key Drivers of EE common to many studies Trust and integrity – do managers communicate and 'walk the talk'. Nature of the job – mentally stimulating day-to-day? Line of sight between employee and company performance Career Growth opportunities Pride in company – Association with Co a source of Self Esteem Coworkers/team members Employee development Relationship with one's manager Consequences of EE – one study – highly engaged employees outperform disengaged by 2—28 % - one study Older emp – rewards and recognition

5. MOTIVATION MUSINGS Role of unsatisfied needs Reward that satisfies (need) may be Intrinsic or Extrinsic Individuals are motivated differently Perceived Inequity can de-motivate Different forms of inequity

6. Motivation Musings Importance of creating valencies Importance of expectancies Importance of - ability - self efficacy Importance of role, task clarity Different Techniques - importance of money

7. DOES MONEY MOTIVATE? Amount should be significant Motivating if rooted in performance The problem with money… indicates performance indicates appreciation

8. The Problem with Money… Can create conflicts between employees between employees and organisation Between attainment of different goals Types of money incentives

9. MONEY INCENTIVES MAY BE Individual or group White collar or blue collar Linked to output, Quality or any parameter that reflects a desired outcome

10. INCENTIVES FOR OPERATIONS EMPLOYEES Straight piecework Proportionate Increasing rate Decreasing rate Guaranteed piecework Standard Hour Plans - incentive on time saved Problems with incentives no details required for exam

11. PROBLEMS WITH INCENTIVES Erosion of standards / wrong standards allowances short ‘termism’ conflict with other goals variability in earnings conflicts  lack of team work require frequent review When not linked to the individual’s performance??? Other types of incentives

12. OTHER KINDS OF INCENTIVES PERFORMANCE RELATED PAY SALES INCENTIVES EXECUTIVE BONUSES PROFIT SHARING GAIN SHARING SHARE AWARDS REFERAL / RETENTION BONUSES SKILL INCENTIVES QUALITY INCENTIVES Other motivational strategies

13. SOME MOTIVATION STRATEGIES Incentives - cash/kind Status and benefits Leadership Security Congenial organisation climate Participation / Voice

14. SOME MOTIVATION STRATEGIES Appreciation Enabling growth Training - Development stretch goals Flexibility Missions that motivate Job Design and Empowerment …

15. JOB DESIGN The specification of Contents Methods Relationships of jobs McJob??? What does job design include…

16. JOB DESIGN Tasks may be Wide or narrow Simple or complex Individual or group Methods Responsibilities Authority - how much freedom? Interactions - Relationships Feedback How to design a job to make it meaningful

17. What makes a Job meaningful? Job Characteristics Model of Hackman and Oldman Lead to productivity & quality Skill variety Task Identity Task significance Autonomy - responsibility and authority Knowledge of results Approaches to job design

18. Approaches to job design Job rotation Job enlargement Job enrichment Empowerment Self managing teams AUTONOMOUS WORK GROUPS

19. Autonomous Work Groups - Self Managing Teams planning work / Scheduling work decide who will do what controlling scrap obtaining supplies complete an agreed amount of work often - responsibility for product quality

20. SMTs Sundaram Fastners Split manufacturing system into smaller modules - Zones of Autonomous Production - AIM Enhancing worker skills Increasing flexibility Telco - automation has reduced all low end jobs. Workers are now largely operate as self directed teams and need less supervision

21. AUTONOMOUS WORK GROUPS at DR REDDY’S- Human Capital – Jan 2003 Experiment at one Formulations Unit Team of 56 young people (PUC) Structure Handholding group Executives – SMT members Housekeeping Personnel Responsibility of SMT – Maintenance, HR, Safety, Continuous / process improvement Was result of BPR Other companies using SMT

23. Other Companies that use SMT Human Capital – Jan 2003 EID Parry Godrej Dupont Godrej (Mercury) Pepsi Barriers to implementing SMTs

24. Barriers to implementing Autonomous Work Groups Training Supervisor resistance incompatible systems - lack of planning lack of management support lack of union support end

25. Intrinsic Motivation feeling of having accomplished something worthwhile Satisfaction from doing a job well Rewards like More responsibility Training for better job etc… Appreciation

26. EXPECTANCY THEORY MOTIVATIONAL FORCE = VALENCE*EXPECTANCY OUTCOME 1 OUTCOME 2 2 B 2 A 1 B 1 A INSTRUMENTALITY EXPECTANCY VALENCE - +1 to - 1 EXPECTANCY 0 - 1 INSTRUMENTALITY 0 - 1

27. PERFORMANCE SATISFACTION MODEL INTRINSIC REWARDS VALUE OF REWARD EFFORT PERCEIVED EFFORT/REWARD PROBABILITY ROLE PERCEPTIONS PERFORMANCE (ACCPMPLISHMENT) ABILITIES AND TRAITS PERCEIVED EQUITABLE REWARDS EXTRINSIC REWARDS SATISFACTION

28. What Job Enrichment Means freedom to Plan, Implement and evaluate work Direct feedback client relationships new learning scheduling own work unique experience control over resources direct communication authority personal accountability

29. EMPOWERMENT Recognising and unleashing power of individual Knowledge and Internal motivation Empowerment requires authority to resolve work related problems...

30. EMPOWERMENT REQUIRES … commitment – part of a larger process Role clarity - so you know what to delegate Suitable communications and co-ordinating systems Huge amounts of training Some issues in empowerment

31. ISSUES IN EMPOWERMENT erodes junior/mid management roles - hence resistance Employee Desire Capability can flatten organisation hierarchies, IT and empowerment??

34. From Dirxions Jan 2008 YES Bank says "Yes" to Red Box Rewards YES Bank has engaged Red Box Rewards to manage rewards to be given to its employees for exceptional sales performance. The program aims to recognize and reward consistently good performance among its sales staff and increase overall productivity. Reward items range from cars to motor-bikes and white goods such as air conditioners and DVD players.