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MOTIVATION
Motivation is the combination of internal and external factors that stimulate desire and energy in people to be continually interested in and committed to a job, role, or subject, and to exert persistent effort in attaining a goal. It is the decision-making process through which the individual chooses desired outcomes and sets in motion the behavior appropriate to acquiring them. (Huczynski and Buchanan) The urge to take action to achieve a specific goal

Motivation
Motivation The internal and external forces that lead an individual to work toward a goal.
Key Elements 1. Intensity: how hard a person tries 2. Direction: toward beneficial goal 3. Persistence: how long a person tries

"The heart of motivation is to give people what they really want most from work. The more you are able to provide what they want, the more you should expect what you really want, namely: productivity, quality, and service.

Motivation Vs. Satisfaction

Motivation: How hard you are willing to work Satisfaction: Being content with your job and not looking for another

A motivated worker would:

Work harder Make fewer mistakes Generate less waste Want more feed back Make more suggestions Dont waste time

What do workers expect from boss?

Focus me Know me Care about me Hear me Help me feel proud Help me review my contributions Equip me Help me see my value Help me grow Help me see my importance Help me build mutual trust Challenge me

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Why is motivation important?

Motivation could be a key concept in organization and could benefit:
Organization Individual Team

Organization
Increased output motivated workers will work harder and productivity increase Lower staff turnover reduced training, recruitment and selection cost Better quality of work Greater commitment Less absenteeism Innovation motivated workers will come up with new ideas which will benefit company

Individual
Improved morale Greater sense of purpose Improved self esteem More challenging work Improved career prospects Improved health (less stress)

Teams
More likely to cooperate Put team interest first Increasing goal congruence Reduce conflicts

Theories of motivation
Motivation theory seeks to develop the understanding of motivation through the identification of motivating factors Content theory vs. Process theory
Content theory focuses on the question of what stimulates, sustains and regulates good directed behavior, that is what particular things motivate people. (what are the things that motivate people) Process theory attempts to explain and describe how people start, sustain and direct behavior aimed at the satisfaction of needs or the elimination or reduction of inner tension. (How can people be motivated)

Hierarchy of Needs Theory (Maslow)

Best-known theory of motivation is Abraham Maslows hierarchy of needs. He hypothesized that every human being has a hierarchy of five needs Individuals become motivated once they have the opportunity to fulfill these needs Maintains that a person does not feel a higher need until the needs of the current level have been satisfied

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Basic Salary Safe working conditions Lunch break Rest periods

Basic Human Needs

Food Air Water Clothing

Physiological Needs

Job security Fringe benefits Health care Life insurance

Safety and Security

Protection Stability Pain Avoidance

Compatible work group Friendship at work Office layout Teamwork Company outings

Love and Belonging

Affection Acceptance Inclusion Friendship

Social Needs

Safety Needs

Merit Pay rise High status job title Promotion Employee of the month

Ego & Esteem

Self-Respect Self-Esteem Respected by Others Achievement Status Recognition Attention

Esteem Needs

Challenging job Achievement in work Creative tasks demand

Self-Actualization

Achieve full potential Fulfillment

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Opportunities for satisfaction in Maslows hierarchy of human needs.

Criticisms of Maslows hierarchy

Individuals has different needs and not necessarily in the same order Individuals may seek to satisfy several needs at the same time Not all of these needs are or can be satisfied through work

Two factor theory

o Developed by Frederick Herzberg. o Also known as motivation-hygiene theory. o Portrays two different factors hygiene factors and motivator factors as the primary causes of job dissatisfaction and job satisfaction.

For example, Im satisfied with my level of pay, but Im not motivated by it. I dont get up in the morning thinking, I cant wait to get to work to earn this salary Im making! On the contrary, I feel like I deserve it.

What do people want from their jobs? in an effort to determine what might lead to a persons success or failure at work.

DISSATISFIED AND DEMOTIVATED

HYGIENE FACTORS

NO LONGER DISSATSFIED BUT NOT YET MOTIVATED

MOTIVATORS

SATISFIED AND MOTIVATED

The hygiene factors are concerned with the environment and conditions of work. Matters or conditions that need to be attended to. In the world of work, hygiene factors are conditions that lead to dissatisfaction if they are not maintained, but do not lead to motivation if they are taken care of. These factors can stop people from being dissatisfied at work, but are not enough to motivate them. The motivator factors are connected to the work itself and help to create job satisfaction which leads to motivation.

Contrasting Views of Satisfaction and Dissatisfaction

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Hygiene factors.
Sources of job dissatisfaction. Associated with the job context or work setting. Improving hygiene factors prevent people from

Motivator factors.

being dissatisfied but do not contribute to satisfaction.

o company policy; o supervision; o salary; o relationship with peers; o working conditions; o status; o security.

enables people to be satisfied. Absence of motivator factors in the job results in low satisfaction, low motivation, and low performance.
o achievement; o recognition; o work itself; o responsibility; o advancement; o growth.

Sources of job satisfaction. Associated with the job content. Building motivator factors into the job

Herzbergs two-factor theory

In the work place, employers must first address hygiene factors so that their employees are not unhappy. But they then must focus on factors that will motivate their employees such as training, opportunities for promotion, and recognition programs.

Expectancy Theory
Developed by Victor Vroom. He believes that how motivated an individual is to achieve a task depends on the extent to which the results of his efforts will contribute to his personal needs and/or goals. An employee will be motivated to exert a high level of effort when he or she believes the following: That the effort will lead to good performance That good performance will lead to organizational rewards, such as a bonus, a salary increase, or a promotion That the rewards will satisfy his or her personal goals

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The theory, therefore, focuses on the three relationships (expectancy, instrumentality (belief that successful performance will be followed by rewards), and valence)

Motivational implications of expectancy

Force of motivation Valence.

F=VxE

theory.
Motivation is sharply reduced when,

the force or strength of the individual's motivation to behave

expectancy, Force or valence approach zero.

Motivation is high when expectancy and force

in a particular way (Strengths of a person's motivation)

the value or importance an individual places on a reward.(the

are high and valence is strongly positive.

strength of the individual preference for a given outcome or reward) Valence ranges from 1 (very undesirable reward) to +1 (very desirable reward). Does the individual want the reward?

Expectancy.
the individual's perception the behavior will result in the outcome/reward. . The probability of success. Expectancy can be expressed as probability, and ranges from 0 to 1. Does the individual believe they will achieve the reward?

Managerial implications of expectancy

theory.
Managers should act to maximize

Theory X and Theory Y (Douglas McGregor)

Theory X
Assumes that employees dislike work, lack ambition, avoid responsibility, and must be directed and coerced, threatened with punishment if they are to perform.

expectancies, Force, and valences that support organizational objectives.

Immediate and on-going feedback should be

given
Individuals are more committed to specific

Theory Y
Assumes that employees like work, seek responsibility, are capable of making decisions, and exercise self-direction and self-control when committed to a goal.

goals which they have helped to set themselves, taking their needs and expectations into account.

Attributes Theory X
lacks ambition; dislikes work; avoids work; avoids responsibility; wants to be led; is self-centred; resists change; seeks security; is gullible and not very bright; is mainly motivated by money

Theory Y
accepts responsibility; learns to seek responsibility; will exercise self-direction towards accepted goals; has imagination, ingenuity and creativity

Implications
Theories X and Y are assumptions and not actual types of people. However, if a manager treats his employees as if they are Theory X, they will behave like Theory X workers which could result in demotivation. If a manager treats employees as if Theory Y were true, then their behaviour will change accordingly.

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Rewards and incentives

A reward is
A token given to an individual/team in recognition of their success or contribution. A reward can be monetary or non monetary.

Extrinsic vs. intrinsic rewards

Extrinsic rewards are not within the control of the employee. (Herzberg's hygiene factors) E.g. Pay, praise, and benefits (given to you by someone) Intrinsic rewards, although made available by the organisation, can only be taken by the employee, (arises from performance of the work ) e.g.:
companionship achievement status and recognition job interest participation responsibility

An incentive is
The offer of a reward given to an individual/team in order to motivate them to behave in a way to earn it.

Job design
Satisfaction derived by an employee through the performance of his job Dissatisfaction could be caused by monotony, repetition, lack of control and stress. Job design refers to how tasks are organized to create jobs for individuals. Job design aims to enhance job satisfaction and performance, methods include job rotation, job enlargement, job enrichment and empowerment and team working.

Job enrichment
An attempt to motivate employees by giving them the opportunity to use the range of their abilities. Job enrichment is planned, deliberate action to build greater responsibility, breadth and challenge of work into a job Developed by Frederick Hertzberg in the 1950s An enriched job should ideally contain:
A range of tasks and challenges of varying difficulties (Physical or Mental) A complete unit of work - a meaningful task Feedback, encouragement and communication

Job enrichment activities may include giving the opportunity

To work in teams For employees to become accountable for the roles they perform Higher level of decision making Greater empowerment Regular feedback Encouraging employees to participate in the planning decisions of their superiors

Job enlargement
The workers who are involved in repetitive tasks often get very bored and frustrated Increasing the scope of a job through extending the range of its job duties and responsibilities generally with in the same level and margin The success depends on how different tasks are and amount of responsibility

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In order for employees to be provided with Job Enlargement they will need to be retrained in new fields which can prove to be a lengthy process Results have shown that this process can see its effects diminish after a period of time, as even the enlarged job role become the mundane, this in turn can lead to similar levels of de-motivation and job dissatisfaction at the expense of increased training levels and costs.

Job rotation
Job rotation is an approach to management development where an individual is moved through a schedule of assignments designed to give him or her a breadth of exposure to the entire operation. Job rotation is the planned transfer of staff from one job to another to increase task variety. It offers leaning and development opportunities to staffs as skills are gained and passed on to others as well

Reward systems
Pay is important because:
It is a major cost for the organisation People feel strongly about it: it 'stands in' for a number of human needs and goals It is a legal issue (minimum wage, equal pay legislation)

How is pay determined?

Job evaluation Job content Fairness Negotiated pay scales Market rates Individual performance in the job

A good reward system should

Motivate employees Decrease turnover Attract prospective employees Create goal congruence Be fair and objective Encourage innovation

Incentive schemes
An incentive scheme ties pay directly to performance and the reward should encourage improvements in performance It can be tied to performance of an individual or a team of employees and the scheme should link performance to organizational goals Such schemes include:
Performance related pay (PRP), involves Piece rates, Point schemes, Management by objectives (MBO), Commission and Bonus schemes Profit sharing

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Performance Related Ray (PRP)

Performance related pay (PRP) is related to output (in terms of the number of items produced or time taken to produce a unit of work), or results achieved (performance to defined standards in key tasks, according to plan).
Awarding extra pay for extra output or performance

Performance Related Ray (PRP)

Piece work: reward related to the pace of the work or effort. The faster the employee works, the higher the output and the greater the reward. MBO: key results are identified for which rewards will be paid on top of salary Point systems: points are awarded for performance of various criteria (efficiency, cost savings, quality of service and so on). Certain points totals then win cash or other awards Commission and bonuses: paid on the performance of an individual typically paid to staffs in sales function, where the commission earned is in proportion with sales.

Benefits of PRP
Improves commitment and capability Complements other HR initiatives Improves focus on the business's performance objectives Encourages two-way communication Greater supervisory responsibility It recognizes achievement when other means are not available

Potential problems
Subjectivity of awards for less measurable criteria (e.g. 'teamwork') Encouraging short-term focus and targethitting (rather than improvements) Divisive/against team working (if awards are individual) Difficulties gaining union acceptance (if perceived to erode basic pay)

Rewarding Teams
Group bonus schemes: Usually one-offs as oppose to PRP schemes which are usually continual management policy Group incentive schemes typically offer a bonus for a team which achieves or exceeds specified targets. It may enhance team-spirit and co-operation as well as provide performance incentives, but it may also create pressures within the group if some individuals are seen not to be pulling their weight.

Profit-sharing schemes
Profit-sharing schemes offer employees (or selected groups) bonuses, directly related to profits or value added. Profit sharing is based on the belief that all employees can contribute to profitability, and that that contribution should be recognized. The effects may include profit-consciousness and motivation in employees, commitment to the future prosperity of the organisation and so on. Employee share ownership scheme