AGENCY AGENCY MANAGEMENTMANAGEMENT

EMPLOYEE MOTIVATIONEMPLOYEE MOTIVATION

INTRODUCTIONINTRODUCTION

Job security is a very important issue for Job security is a very important issue for both organisations and people.both organisations and people.

People are motivated not only by tangible People are motivated not only by tangible things such as money and benefits but things such as money and benefits but also by intangibles like job security. also by intangibles like job security.

If a person has job security they may seek If a person has job security they may seek other job related incentives to work other job related incentives to work harder.harder.

However, if job security is removed it However, if job security is removed it quickly becomes a very important quickly becomes a very important need for many people. need for many people.

The need then becomes the The need then becomes the motivational driving force which in motivational driving force which in turn influences subsequent turn influences subsequent behaviours of the job holders. behaviours of the job holders.

Often the difference between an Often the difference between an effective & ineffective organisation effective & ineffective organisation are the employees motivational are the employees motivational profiles.profiles.

Nature Of Motivation In Nature Of Motivation In OrganisationsOrganisations

Motivation is the set of forces that Motivation is the set of forces that cause people to behave in certain cause people to behave in certain ways.ways.

E.G. the person who works late to E.G. the person who works late to meet a deadline or a student who will meet a deadline or a student who will follow a revision schedule to improve follow a revision schedule to improve their chances of passing an exam.their chances of passing an exam.

Conversely, the person who goes Conversely, the person who goes home early from work to avoid extra home early from work to avoid extra work or the student who declines to work or the student who declines to revise and prefers to socialise are revise and prefers to socialise are equally motivated people.equally motivated people.

In both these examples individuals In both these examples individuals are simply motivated to achieve are simply motivated to achieve different types of things.different types of things.

The Importance of MotivationThe Importance of Motivation

A managers objective is to motivate A managers objective is to motivate employees to behave in ways which are in employees to behave in ways which are in the organisation’s best interest.the organisation’s best interest.

A study of motivational processes and A study of motivational processes and techniques are important as, allied to techniques are important as, allied to employee abilities and work situation, employee abilities and work situation, these help determine performance. these help determine performance.

Motivational ProcessMotivational Process

The starting point in the motivational The starting point in the motivational process is a process is a need need which quite simply is a which quite simply is a deficiency experienced by a person.deficiency experienced by a person.

The need triggers a search for ways to The need triggers a search for ways to satisfysatisfy it by making a choice of goal it by making a choice of goal directed behaviours assessed in order of directed behaviours assessed in order of importance to goal achievement.importance to goal achievement.

The next stage is where the person The next stage is where the person actually carries out the behaviour actually carries out the behaviour chosen to satisfy the need.chosen to satisfy the need.

Finally, the person assesses the Finally, the person assesses the extent to which the need has been extent to which the need has been satisfied and if so was it satisfied to a satisfied and if so was it satisfied to a degree that makes its continuing degree that makes its continuing pursuit no longer a matter of urgency pursuit no longer a matter of urgency or concern. or concern.

Need Theories Of MotivationNeed Theories Of Motivation

Need theories are often regarded as Need theories are often regarded as the starting point for most the starting point for most contemporary thought on motivation.contemporary thought on motivation.

The basic premise of need theories is The basic premise of need theories is that human motivation is caused that human motivation is caused primarily by deficiencies in one or primarily by deficiencies in one or more important need categories.more important need categories.

The best known of these theories are The best known of these theories are

Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs Alderfer’s E.R.G. TheoryAlderfer’s E.R.G. Theory Hertzberg’s Two-Factor TheoryHertzberg’s Two-Factor Theory

The above theories are influenced by the The above theories are influenced by the school of human relations which argues school of human relations which argues the human beings are ‘wanting animals’ the human beings are ‘wanting animals’ and have innate desires to satisfy a given and have innate desires to satisfy a given set of needs.set of needs.

Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

The theory postulates that each The theory postulates that each person has a given set of needs person has a given set of needs which are arranged in a hierarchy of which are arranged in a hierarchy of importance.importance.

The most basic needs in the The most basic needs in the hierarchy are the physiological needs hierarchy are the physiological needs e.g. food, water and air. These must e.g. food, water and air. These must be satisfied first.be satisfied first.

Security NeedsSecurity Needs: things that offer safety : things that offer safety & security such as housing, freedom from & security such as housing, freedom from worry and anxiety.worry and anxiety.

Belongingness NeedsBelongingness Needs: primarily social : primarily social needs which include the need for affection needs which include the need for affection and love. To be accepted by your peers.and love. To be accepted by your peers.

Esteem NeedsEsteem Needs::

The need for a positive self-imageThe need for a positive self-image

The need to be respected by others.The need to be respected by others.

Self-Actualisation Needs : these are Self-Actualisation Needs : these are at the top of Maslow’s hierarchy and at the top of Maslow’s hierarchy and are defined as involving the are defined as involving the realisation of our full potential – realisation of our full potential – becoming all that we can be.becoming all that we can be.

In most organisations’ Physiological Needs In most organisations’ Physiological Needs are the easiest to meet. Adequate wages are the easiest to meet. Adequate wages and comfortable working conditions are an and comfortable working conditions are an example.example.

Security Needs can be met by job Security Needs can be met by job continuity, a grievance system and an continuity, a grievance system and an adequate insurance and retirement adequate insurance and retirement system.system.

Belongingness Needs are satisfied by Belongingness Needs are satisfied by family ties & group relationships inside family ties & group relationships inside and outside the organisation.and outside the organisation.

Esteem Needs can be met by Job Esteem Needs can be met by Job Titles, office location, merit pay Titles, office location, merit pay awards etc.awards etc.

Self-Actualisation Needs are the Self-Actualisation Needs are the hardest to understand and the most hardest to understand and the most difficult to satisfy.difficult to satisfy.

Maslow’s Needs Theory makes a certain Maslow’s Needs Theory makes a certain amount of intuitive sense. amount of intuitive sense.

As it was the first motivation theory to be As it was the first motivation theory to be popularised it is one of the best known. popularised it is one of the best known.

However, it has been shown to have However, it has been shown to have deficiencies in that five levels of needs are deficiencies in that five levels of needs are not always present & the actual hierarchy not always present & the actual hierarchy of needs does not always conform to of needs does not always conform to Maslow’s theory.Maslow’s theory.

ALDERFER’S E.R.G. THEORYALDERFER’S E.R.G. THEORY

The E.R.G. stands for three basic The E.R.G. stands for three basic need categories:need categories:

• EXISTENCEEXISTENCE

• RELATEDNESSRELATEDNESS

• GROWTHGROWTH

Existence NeedsExistence Needs

Roughly corresponds to Maslow’s levels Roughly corresponds to Maslow’s levels 1&2 i.e. Physiological and Security Needs.1&2 i.e. Physiological and Security Needs.

Relatedness NeedsRelatedness Needs

Roughly corresponds to Maslow’s levels Roughly corresponds to Maslow’s levels 2&3 i.e. Belongingness and Esteem Needs.2&3 i.e. Belongingness and Esteem Needs.

Growth NeedsGrowth Needs

Corresponds to level 5 i.e. self-esteem and Corresponds to level 5 i.e. self-esteem and for self-actualisationfor self-actualisation

Alderfer however suggests that a Alderfer however suggests that a person is motivated by more than person is motivated by more than one need at a time e.g. relatedness one need at a time e.g. relatedness and growth needs.and growth needs.

Alderfer therefore postulates a Alderfer therefore postulates a duality of need which a person duality of need which a person satisfies in a concurrent rather than satisfies in a concurrent rather than hierarchical way.hierarchical way.

However a more important variation is However a more important variation is that the ERG theory contains 2 that the ERG theory contains 2 fundamental factors:fundamental factors:

1. Frustration – Regression1. Frustration – Regression

2. Satisfaction – Progression2. Satisfaction – Progression

1 argues that a person who is frustrated in 1 argues that a person who is frustrated in trying to satisfy a higher level need will trying to satisfy a higher level need will regress to a preceding level.regress to a preceding level.

2 tends to support Maslow’s theory of 2 tends to support Maslow’s theory of progression except that Alderfer progression except that Alderfer argues that a person can only pass argues that a person can only pass some of Maslow’s Hierarchical stages some of Maslow’s Hierarchical stages if a need for them is sufficiently if a need for them is sufficiently important.important.

Alderfer’s theory is a fairly new Alderfer’s theory is a fairly new addition to motivational concepts addition to motivational concepts and has not been studied as much as and has not been studied as much as other need theories.other need theories.

HERTZBERG’S TWO-FACTOR HERTZBERG’S TWO-FACTOR THEORYTHEORY

This theory identifies motivation This theory identifies motivation factors which affect :factors which affect :

SATISFACTIONSATISFACTION

HYGIENE FACTORS (Dissatisfaction)HYGIENE FACTORS (Dissatisfaction)

Hertzberg’s research found that 2 entirely Hertzberg’s research found that 2 entirely different sets of factors were associated different sets of factors were associated with 2 kinds of feelings about work e.g.with 2 kinds of feelings about work e.g.

A person who indicated low pay as a cause A person who indicated low pay as a cause of dissatisfaction would not necessarily of dissatisfaction would not necessarily identify high pay as a cause of satisfaction identify high pay as a cause of satisfaction and motivation.and motivation.

Instead his research identified issues such Instead his research identified issues such as as RecognitionRecognition or or AchievementAchievement with with satisfaction and motivation.satisfaction and motivation.

Hertzberg concluded that other Hertzberg concluded that other factors intrinsic to the work itself were factors intrinsic to the work itself were of extreme motivational importance. of extreme motivational importance. (Motivation and Psychological (Motivation and Psychological Contract).Contract).

Motivation Factors:Motivation Factors:

1. Achievement1. Achievement 2. Recognition2. Recognition 3. The Job Itself3. The Job Itself 4. Responsibility4. Responsibility 5. Advancement and Growth5. Advancement and Growth

Hygiene FactorsHygiene Factors• 1. Supervision1. Supervision• 2. Work Conditions2. Work Conditions• 3. Interpersonal Relationships3. Interpersonal Relationships• 4. Pay & Job Security4. Pay & Job Security• 5. Organisational Policies5. Organisational Policies

If the above factors are poor this can lead If the above factors are poor this can lead to dissatisfaction – but if acceptable do not to dissatisfaction – but if acceptable do not necessarily mean satisfaction – just a necessarily mean satisfaction – just a feeling of no dissatisfaction.feeling of no dissatisfaction.

According to Hertzberg, once a state According to Hertzberg, once a state of no dissatisfaction exists, further of no dissatisfaction exists, further trying to improve motivation through trying to improve motivation through hygiene factors is a waste of time. hygiene factors is a waste of time.

At that point, the motivation factors At that point, the motivation factors enter the picture. enter the picture.

Increasing motivation opportunities Increasing motivation opportunities is seen as the way forward.is seen as the way forward.

Unlike many other theorists however, Unlike many other theorists however, Hertzberg describes quite explicitly Hertzberg describes quite explicitly how managers could apply his how managers could apply his theory.theory.

A technique called ‘Job Enrichment’ A technique called ‘Job Enrichment’ would make it possible for the would make it possible for the employee to be motivated by employee to be motivated by feelings of Achievement, feelings of Achievement, Responsibility, Recognition.Responsibility, Recognition.

VERTICAL JOB LOADINGVERTICAL JOB LOADING

1. ACCOUNTABILITY1. ACCOUNTABILITY

Employee held responsible for their Employee held responsible for their performance.performance.

2. ACHIEVEMENT2. ACHIEVEMENT

Employee should believe they are Employee should believe they are doing something worthwhile.doing something worthwhile.

3. FEEDBACK3. FEEDBACK

Employees must receive direct & clear Employees must receive direct & clear information about their performanceinformation about their performance

4. WORK PACE4. WORK PACE

To whatever extent it is possible and To whatever extent it is possible and having regard to the work process an having regard to the work process an employee should be able to set their employee should be able to set their own pace.own pace.

5. Control Over Resources5. Control Over Resources

If possible employees should have a If possible employees should have a measure of control over the measure of control over the resources used in their job.resources used in their job.

6. Personal Growth and Development6. Personal Growth and Development

An employee should have opportunity An employee should have opportunity to learn new skills and where feasible to learn new skills and where feasible to develop higher level potential.to develop higher level potential.

The Michigan StudiesThe Michigan StudiesRensis LikertRensis Likert

High Producing ManagersHigh Producing Managers

Those who achieved not only the highest Those who achieved not only the highest productivity but also the lowest costs and the productivity but also the lowest costs and the highest levels of employee motivation.highest levels of employee motivation.

High producing managers build their High producing managers build their successes on interlocking & tightly knit successes on interlocking & tightly knit groups of employees, whose co-operation had groups of employees, whose co-operation had been gained through attention to a range of been gained through attention to a range of motivational forces. These included not only motivational forces. These included not only economic and security motives but also ego & economic and security motives but also ego & creativity motives (self actualisation).creativity motives (self actualisation).

Although high producers utilised the tools Although high producers utilised the tools of classical management – i.e. work study, of classical management – i.e. work study, budgeting etc. they did so in a way which budgeting etc. they did so in a way which recognised the aspirations of the recognised the aspirations of the employees, by encouraging participative employees, by encouraging participative approaches.approaches.

Low Producing ManagersLow Producing Managers

• Those who produced higher costs and lower Those who produced higher costs and lower employee motivation.employee motivation.

Likert’s main idea was Likert’s main idea was SUPPORTIVE RELATIONSHIPSSUPPORTIVE RELATIONSHIPS

Managers can achieve high performance Managers can achieve high performance when employees see their membership of when employees see their membership of a work group to be supportive i.e. when a work group to be supportive i.e. when they experience a sense of personal worth they experience a sense of personal worth & importance from belonging to it.& importance from belonging to it.

Likert built in the idea of supportive Likert built in the idea of supportive relationships as part of the ideal relationships as part of the ideal Organisational Structure where effective Organisational Structure where effective working groups could interact with other working groups could interact with other effective groups in an overlapping form of effective groups in an overlapping form of organisation.organisation.

LIKERT’S FOUR STYLES OF LIKERT’S FOUR STYLES OF MANAGEMENTMANAGEMENT

1. EXPLOITATIVE – AUTHORATIVE1. EXPLOITATIVE – AUTHORATIVE

Where power and direction come from Where power and direction come from the top downwards, where threats the top downwards, where threats and punishment are employed, and punishment are employed, communication poor, teamwork poor, communication poor, teamwork poor, production low.production low.

2. BENEVOLENT – AUTHORATIVE2. BENEVOLENT – AUTHORATIVE

Similar to 1 but allows some upward Similar to 1 but allows some upward opportunities for consultation and opportunities for consultation and some delegation. Rewards mat be some delegation. Rewards mat be available as well as threats. available as well as threats.

Production fair to good but with high Production fair to good but with high absenteeism and staff turnover.absenteeism and staff turnover.

3. CONSULTATIVE3. CONSULTATIVE

Goals are set after discussion with Goals are set after discussion with subordinates, communication both subordinates, communication both up and down, teamwork encouraged. up and down, teamwork encouraged.

Some involvement of employees as a Some involvement of employees as a motivator. Production good, motivator. Production good, moderate absenteeism.moderate absenteeism.

4. PARTICIPATIVE – GROUP4. PARTICIPATIVE – GROUP

Ideal system. Participation, commitment to Ideal system. Participation, commitment to organisational goals in cooperative way. organisational goals in cooperative way.

Communication good – up & down & Communication good – up & down & laterally. Motivation by a variety of means. laterally. Motivation by a variety of means.

Production High – absenteeism & turnover Production High – absenteeism & turnover low.low.

EXPECTANCY THEORYEXPECTANCY THEORY

Suggests that people are motivated Suggests that people are motivated by how they want something and by how they want something and how likely they think they are to get how likely they think they are to get it e.g. if a person is ambitious and it e.g. if a person is ambitious and wishes to be promoted their wishes to be promoted their behaviour will reflect that need.behaviour will reflect that need.

Basic Expectancy Model- VH VROOMBasic Expectancy Model- VH VROOM

Theory is based on a view that people Theory is based on a view that people take decisions on a constant basis take decisions on a constant basis about what to do next. It proposes about what to do next. It proposes that the motivation to perform a that the motivation to perform a given act will depend on 3 main given act will depend on 3 main factors:factors:

VALENCEVALENCEINSTRUMENTALITYINSTRUMENTALITYEXPECTANCYEXPECTANCY

VALENCEVALENCE

Refers to the value that a person will Refers to the value that a person will place on the possible outcomes that place on the possible outcomes that are produced by the act e.g. a sales are produced by the act e.g. a sales person who places a high value on person who places a high value on promotion calls on 5 extra clients a promotion calls on 5 extra clients a month hoping to produce new month hoping to produce new business and eventually promotion.business and eventually promotion.

INSTRUMENTALITYINSTRUMENTALITY

Is concerned with the probability that Is concerned with the probability that the acts, in this case calling on 5 new the acts, in this case calling on 5 new clients will lead to the expected clients will lead to the expected outcomes i.e. increased sales and outcomes i.e. increased sales and promotion. promotion.

* Note the importance of ‘Probability’ in * Note the importance of ‘Probability’ in this behaviour in that the person this behaviour in that the person believes the objectives can be obtained.believes the objectives can be obtained.

EXPECTANCYEXPECTANCY

Is the subjective belief that a given level Is the subjective belief that a given level of effort will lead to success.of effort will lead to success.

In practical terms it suggests motivation In practical terms it suggests motivation and performance are determined by the and performance are determined by the person’s views of how much effort will person’s views of how much effort will be needed to attain a satisfactory level be needed to attain a satisfactory level of performance and thus desired of performance and thus desired outcomes.outcomes.

EXPECTANCY THEORY – EXPECTANCY THEORY – PORTER-LAWLERPORTER-LAWLER

Porter & Lawler modified and built upon Porter & Lawler modified and built upon Vroom’s original expectancy theory of Vroom’s original expectancy theory of 1964 and Adams Equity Theory of 1963.1964 and Adams Equity Theory of 1963.

As distinct from needs theories these As distinct from needs theories these considered the relationship betweenconsidered the relationship between

EFFORTEFFORT PERFORMANCEPERFORMANCE

REWARDREWARD

Porter & Lawler agree with Porter & Lawler agree with Hertzberg’s motivators but develop Hertzberg’s motivators but develop these to include the under noted these to include the under noted variables to label them asvariables to label them as

INTRINSICINTRINSIC OrOr EXTRINSIC REWARDSEXTRINSIC REWARDS

INTRINSIC REWARDSINTRINSIC REWARDS

Variety in job contentVariety in job content Belief they are a valuable team memberBelief they are a valuable team member Increased responsibility & autonomyIncreased responsibility & autonomy Sense of accomplishmentSense of accomplishment Participation in setting target and Participation in setting target and

opportunities to achieve themopportunities to achieve them Feedback of informationFeedback of information RecognitionRecognition Opportunities to learn & growOpportunities to learn & grow

EXTRINSIC REWARDSEXTRINSIC REWARDS

Results from the actions of others Results from the actions of others such as supervisors – senior such as supervisors – senior management and are thus more management and are thus more easily controlled e.g.easily controlled e.g.• PAYPAY• FRINGE BENEFITSFRINGE BENEFITS• PRAISEPRAISE• PROMOTIONPROMOTION

Pay is often used to motivate as it Pay is often used to motivate as it can easily be differentiated and can easily be differentiated and computed. It can be linked to desired computed. It can be linked to desired performance and is generally a performance and is generally a valued reward. The major valued reward. The major components in its meaning can be:components in its meaning can be:

• Material enjoymentMaterial enjoyment• Social statusSocial status• SecuritySecurity• Recognition of achievement.Recognition of achievement.

Summary – Main features of Summary – Main features of Expectancy TheoryExpectancy Theory

It takes a comprehensive view of the It takes a comprehensive view of the motivational process.motivational process.

It indicates that individuals will only It indicates that individuals will only act when they have a reasonable act when they have a reasonable expectancy that their behaviour will expectancy that their behaviour will lead to the desired outcomes.lead to the desired outcomes.

It stresses the importance of individual It stresses the importance of individual perceptions of reality in the motivational perceptions of reality in the motivational process.process.

It implies that job satisfaction follows It implies that job satisfaction follows effective job performance rather than effective job performance rather than the other way around.the other way around.

It has led to developments in work It has led to developments in work redesign, where emphasis has been laid redesign, where emphasis has been laid on intrinsic job factors, such as variety, on intrinsic job factors, such as variety, autonomy, task identity and feedback.autonomy, task identity and feedback.

THE PSYCHOLOGICAL THE PSYCHOLOGICAL CONTRACTCONTRACT

  The psychological contract is not a written The psychological contract is not a written document but implies a series of mutual document but implies a series of mutual expectations and satisfaction needs expectations and satisfaction needs arising from the people-organisation arising from the people-organisation relationship. relationship.

It covers arrange of expectations of rights It covers arrange of expectations of rights and privileges, duties and obligations and privileges, duties and obligations which do not form a formal agreement but which do not form a formal agreement but still have an important influence on still have an important influence on people’s behaviour.people’s behaviour.

INDIVIDUAL EXPECTATIONSINDIVIDUAL EXPECTATIONS

Provide safe and hygienic working Provide safe and hygienic working conditionsconditions

Make every reasonable effort to provide Make every reasonable effort to provide job securityjob security

Attempt to provide challenging and Attempt to provide challenging and satisfying jobs and reduce alienating satisfying jobs and reduce alienating aspect of workaspect of work

Adopt equitable personnel policies and Adopt equitable personnel policies and proceduresprocedures

Allow staff genuine participation in Allow staff genuine participation in decisions which affect themdecisions which affect them

Implement best practice in equal Implement best practice in equal opportunity policies and proceduresopportunity policies and procedures

Provide reasonable opportunities for Provide reasonable opportunities for personal development and career personal development and career progressionprogression

Treat members of staff with respectTreat members of staff with respect

Demonstrate an understanding and Demonstrate an understanding and considerate attitude towards personal considerate attitude towards personal problems of staff.problems of staff.

ORGANISATION’S ORGANISATION’S EXPECTATIONSEXPECTATIONS

To accept the ideology of the organisationTo accept the ideology of the organisation

To work diligently in pursuit of To work diligently in pursuit of organisational objectivesorganisational objectives

Not to abuse goodwill shown by Not to abuse goodwill shown by managementmanagement

To uphold the image of the organisationTo uphold the image of the organisation

To show loyaltyTo show loyalty

Not to betray positions of trustNot to betray positions of trust

To observe reasonable and acceptable To observe reasonable and acceptable standards of dress and appearance.standards of dress and appearance.

5 Main Influences on the Psychological 5 Main Influences on the Psychological ContractContract

Organisational CultureOrganisational Culture

Human Resources Policies and PracticesHuman Resources Policies and Practices

Previous experiencesPrevious experiences

Future ExpectationsFuture Expectations

AlternativesAlternatives

SICKNESS ABSENCE IN THE N.I. PUBLIC SICKNESS ABSENCE IN THE N.I. PUBLIC SECTORSECTOR

  

DAYS LOSTDAYS LOST

187 MILLION DAYS LOST IN UK (CBI 187 MILLION DAYS LOST IN UK (CBI 2000)2000)

COST £10.5 BILLIONCOST £10.5 BILLION    

NICS SICKNESS ABSENCE NICS SICKNESS ABSENCE 19991999

COSTSCOSTS  

UK All Sectors UK All Sectors £438 MILLION£438 MILLION

UK Public SectorUK Public Sector £619 MILLION£619 MILLION

NICSNICS £848 MILLION£848 MILLION

Days LostDays Lost

UK OverallUK Overall 6.8DAYS6.8DAYS

P.S.P.S. 9.99.9

N.I OverallN.I Overall 88

NICSNICS 1313

COST OF ABSENCECOST OF ABSENCE

££PSYCHOLOGICALPSYCHOLOGICAL 4.5M4.5MVIRALVIRAL 3.8M3.8MPREGNANCYPREGNANCY 3.4M3.4MINJURYINJURY 2.5M2.5MMUSCULO SKELETALMUSCULO SKELETAL 1.5M1.5MDIGESTIVEDIGESTIVE 1.3M1.3MCARDIOCARDIO 0.8M0.8MRESPIRATORYRESPIRATORY 0.8M0.8M