Motivation

35
Motivation Motivation is a force that drives people to do things. Employees are normally motivated to achieve their needs, whatever they may include. Motivation is inside another person's head and heart. It may be intrinsic or extrinsic. This is what we call motivation. Employees of a company will be motivated if they associate certain incentives with an activity of work. Motivation is an important function which every manager performs by assigning the people to work for accomplishment of objectives of the organization .Issuance of well conceived instructions and orders does not mean that they will be followed .A manager has to make appropriate use of motivation to enthuse the employees to follow them. Effective motivation succeeds not only in having an order accepted but also in gaining a determination to see that it is executed efficiently and effectively. In order to motivate workers to work for the organizational goals, the managers must Determine the motives or needs of the workers and provide an environment in which Appropriate incentives are available for their satisfaction .If the management is successful in doing so; it will also be successful in increasing the willingness of the workers to work. This will increase efficiency and effectiveness of the organization. There will be better utilization of resources and workers abilities and capacities. Concept of motivation The word motivation has been derived from motive which means any idea, need or emotion that prompts a man in to action. Whatever may be the behaviour of man, there is some stimulus behind it .Stimulus is dependent upon the motive of the person concerned. Motive can be known by studying his needs and desires. There is no universal theory that can explain the factors influencing motives which control mans behaviour at any

Transcript of Motivation

Page 1: Motivation

Motivation

Motivation is a force that drives people to do things. Employees are normally motivated to achieve their needs, whatever they may include. Motivation is inside another person's head and heart. It may be intrinsic or extrinsic. This is what we call motivation. Employees of a company will be motivated if they associate certain incentives with an activity of work.

Motivation is an important function which every manager performs by assigning the people to work for accomplishment of objectives of the organization .Issuance of well conceived instructions and orders does not mean that they will be followed .A manager has to make appropriate use of motivation to enthuse the employees to follow them. Effective motivation succeeds not only in having an order accepted but also in gaining a determination to see that it is executed efficiently and effectively.In order to motivate workers to work for the organizational goals, the managers mustDetermine the motives or needs of the workers and provide an environment in whichAppropriate incentives are available for their satisfaction .If the management is successful in doing so; it will also be successful in increasing the willingness of the workers to work. This will increase efficiency and effectiveness of the organization. There will be better utilization of resources and workers abilities and capacities.

Concept of motivation

The word motivation has been derived from motive which means any idea, need or emotion that prompts a man in to action. Whatever may be the behaviour of man, there is some stimulus behind it .Stimulus is dependent upon the motive of the person concerned. Motive can be known by studying his needs and desires.There is no universal theory that can explain the factors influencing motives which control mans behaviour at any particular point of time. In general, the different motives operate at different times among different people and influence their behaviours. The process of motivation studies the motives of individuals which cause different type of behaviour.

Definition of Motivation.

According to Edwin B Flippo, “Motivation is the process of attempting to influence others to do their work through the possibility of gain or reward.

Page 2: Motivation

Need of motivation

Management’s basic job is the effective utilization of human resources for achievements of organizational objectives. The personnel management is concerned with organizing human resources in such a way to get maximum output to the enterprise and to develop the talent of people at work to the fullest satisfaction. Motivation implies that one person, in organization context a manager, includes another, say an employee, to engage in action by ensuring that a channel to satisfy those needs and aspirations becomes available to the person. In addition to this, the strong needs in a direction that is satisfying to the latent needs in employees andHarness them in a manner that would be functional for the organization.

Employee motivation is one of the major issues faced by every organization. It is the major task of every manager to motivate his subordinates or to create the ‘will to work’ among the subordinates. It should also be remembered that a worker may be immensely capable of doing some work; nothing can be achieved if he is not willing to work. A manager has to make appropriate use of motivation to enthuse the employees to follow them.

Significance of Motivation

Motivation involves getting the members of the group to pull weight effectively, to give their loyalty to the group, to carry out properly the purpose of the organization. The following results may be expected if the employees are properly motivated.

1. The workforce will be better satisfied if the management provides them withOpportunities to fulfil their physiological and psychological needs. The workers willCooperate voluntarily with the management and will contribute their maximum towards the goals of the enterprise.

2. Workers will tend to be as efficient as possible by improving upon their skills andKnowledge so that they are able to contribute to the progress of the organization. This will also result in increased productivity.

3. The rates of labour’s turnover and absenteeism among the workers will be low.

4. There will be good human relations in the organization as friction among the workers themselves and between the workers and the management will decrease.

5. The number of complaints and grievances will come down. Accident will also be low.

6. There will be increase in the quantity and quality of products. Wastage and scrap will be less. Better quality of products will also increase the public image of the business.

Page 3: Motivation

Motivation Process

1. Identification of need2. Tension3. Course of action4. Result –Positive/Negative5. Feed back

Theories of Motivation .

Understanding what motivated employees and how they were motivated was the focus of many researchers following the publication of the Hawthorne study results (Terpstra, 1979).Six major approaches that have led to our understanding of motivation are Mcclelland’s Achievement Need Theory, Behaviour Modification theory; Abraham H Mallows need hierarchy or Deficient theory of motivation. J.S. Adam’s Equity Theory, Vrooms Expectation Theory, Two factors Theory.

1. Mcclelland’s Achievement Need Theory

According to mcclelland’s there are three types of needs;

Need for Achievement This need is the strongest and lasting motivating factor. Particularly in case of persons who satisfy the other needs. They are constantly pre occupied with a desire for improvement and lack for situation in which successful outcomes are directly correlated with their efforts. They set more difficult but achievable goals for themselves because success with easily achievable goals hardly provides a sense of achievement.

Need for Power

It is the desire to control the behaviour of the other people and to manipulate theSurroundings. Power motivations positive applications results in domestic leadership style, while it negative application tends autocratic style.

Need for affiliationIt is the related to social needs and creates friendship. This results in formation of informal groups or social circle.

2. Behavioural Modification Theory

According to this theory people behaviour is the outcome of favourable and unfavourable past circumstances. This theory is based on learning theory. Skinner conducted his researches among rats and school children. He found that stimulus for desirable behaviour could be strengthened by rewarding it at the earliest. In the industrial situation, this relevance of this theory may be found in the installation of

Page 4: Motivation

financial and non financial incentives. More immediate is the reward and stimulation or it motivates it. Withdrawal of reward in case of low standard work may also produce the desired result. However, researches show that it is generally more effective to reward desired behaviour than to punish undesired behaviour.

3. Abraham H Maslow Need Hierarchy or Deficient theory of Motivation

The intellectual basis for most of motivation thinking has been provided by behavioural scientists, A.H Maslow and Frederick Heizberg, whose published works are the “Bible of Motivation”. Although Maslow himself did not apply his theory to industrial situation, it has wide impact for beyond academic circles. Douglous Mac Gregor has used Maslow’s theory to interpret specific problems in personnel administration and industrial relations.

The crux of Maslow’s theory is that human needs are arranged in hierarchy composed of five categories. The lowest level needs are physiological and the highest levels are the self actualization needs. Maslow starts with the formation that man is a wanting animal with a hierarchy of needs of which some are lower in scale and some are in a higher scale or system of values. As the lower needs are satisfied, higher needs emerge. Higher needs cannot be satisfied unless lower needs are fulfilled. A satisfied need is not a motivator. This resembles the standard economic theory of diminishing returns. The hierarchy of needs at work in the individual is today a routine tool of personnel trade and when these needs are active, they act as powerful conditioners of behaviour- as Motivators.

Hierarchy of needs; the main needs of men are five. They are physiological needs, safety needs, social needs, ego needs and self actualization needs, as shown in order of their importance.

Self-ActualizationEgo Needs

Social NeedsSafety Needs

Physiological Needs

The above five basic needs are regarded as striving needs which make a person do things. The first model indicates the ranking of different needs. The second is more helpful in indicating how the satisfaction of the higher needs is based on the satisfaction of lower needs. It also shows how the number of person who has experienced the fulfilment of the higher needs gradually tapers off.

Page 5: Motivation

Physiological or Body Needs: - The individual move up the ladder responding first to the physiological needs for nourishment, clothing and shelter. These physical needs must be equated with pay rate, pay practices and to an extent with physical condition of the job.

Safety: - The next in order of needs is safety needs, the need to be free from danger, either from other people or from environment. The individual want to assured, once his bodily needs are satisfied, that they are secure and will continue to be satisfied for foreseeable feature. The safety needs may take the form of job security, security against disease, misfortune, old age etc as also against industrial injury. Such needs are generally met by safety laws, measure of social security, protective labour laws and collective agreements.

Social needs: - Going up the scale of needs the individual feels the desire to work in a cohesive group and develop a sense of belonging and identification with a group. He feels the need to love and be loved and the need to belong and be identified with a group. In a large organization it is not easy to build up social relations. However close relationship can be built up with at least some fellow workers. Every employee wants to feel that he is wanted or accepted and that he is not an alien facing a hostile group.

Ego or Esteem Needs: - These needs are reflected in our desire for status and recognition, respect and prestige in the work group or work place such as is conferred by the recognition of one’s merit by promotion, by participation in management and by fulfilment of workers urge for self expression. Some of the needs relate to ones esteem e.g.; need for achievement, self confidence, knowledge, competence etc. On the job, this means praise for a job but more important it means a feeling by employee that at all times he has the respect of his supervisor as a person and as a contributor to the organizational goals.

Self realization or Actualization needs: - This upper level need is one which whenSatisfied provide insights to support future research regarding strategic guidance forOrganization that are both providing and using reward/recognition programs makes the employee give up the dependence on others or on the environment. He becomes growth oriented, self oriented, directed, detached and creative. This need reflects a state defined in terms of the extent to which an individual attains his personnel goal. This is the need which totally lies within oneself and there is no demand from any external situation or person.

3. J.S Adams Equity Theory

Employee compares her/his job inputs outcome ratio with that of reference. If the employee perceives inequity, she/he will act to correct the inequity: lower productivity, reduced quality, increased absenteeism, voluntary resignation.

4. Vrooms Expectation Theory

Page 6: Motivation

Vroom’s theory is based on the belief that employee effort will lead to performance and performance will lead to rewards (Vroom, 1964). Reward may be either positive or negative. The more positive the reward the more likely the employee will be highly motivated. Conversely, the more negative the reward the less likely the employee will be motivated.

5. Two Factor Theories

Douglas mcgregor introduced the theory with the help of two views; X assumptions are conservative in style Assumptions are modern in style.

X Theory (pessimistic)

Individuals inherently dislike work. People must be coerced or controlled to do work to achieve the objectives. People prefer to be directed

Y Theory (optimistic)

People view work as being as natural as play and rest People will exercise self direction and control towards achieving objectives

they are Committed to People learn to accept and seek responsibility.

Types of Motivation.

Intrinsic motivation occurs when people are internally motivated to do something because it either brings them pleasure, they think it is important, or they feel that what they are learning is morally significant. Extrinsic motivation comes into play when a student is compelled to do something or act a certain way because of factors external to him or her (like money or good grades)

Incentives

An incentive is something which stimulates a person towards some goal. It activates human needs and creates the desire to work. Thus, an incentive is a means of motivation. In organizations, increase in incentive leads to better performance and vice versa.

Need for Incentives

Man is a wanting animal. He continues to want something or other. He is never fullySatisfied. If one need is satisfied, the other need arises. In order to motivate the Employees, the management should try to satisfy their needs. For this purpose, both financial and non financial incentives may be used by the management to motivate

Page 7: Motivation

the workers. Financial incentives or motivators are those which are associated with money. They include wages and salaries, fringe benefits, bonus, retirement benefits etc. Non financial motivators are those which are not associated with monetary rewards. They include intangible incentives like ego-satisfaction, self-actualization and responsibility.

Types of Incentives

Financial Incentives

Wages and Salaries Bonus Medical reimbursement Insurance Housing facility Retirement benefits

Non-financial incentives

Competition Group recognition Job security Praise Knowledge of result Workers participation Suggestion system Opportunities for growth

Motivation is the key to performance improvement

There is an old saying you can take a horse to the water but you cannot force it to drink; it will drink only if it's thirsty - so with people. They will do what they want to do or otherwise motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they must be motivated or driven to it, either by themselves or through external stimulus. Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for motivation is a skill which can and must be learnt. This is essential for any business to survive and succeed. Performance is considered to be a function of ability and motivation, thus:

Job performance =f (ability) (motivation)

Ability in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may not even know where to start. As a guideline, there are broadly seven strategies for motivation.

Page 8: Motivation

There are broadly seven strategies for motivation.

Positive reinforcement / high expectations Effective discipline and punishment Treating people fairly Satisfying employees needs Setting work related goals Restructuring jobs Base rewards on job performance

Essentially, there is a gap between an individual’s actual state and some desired state and the manager tries to reduce this gap. Motivation is, in effect, a means to reduce and manipulate this gap.

Role of monetary and non monetary incentives in the workplace

Managers are constantly searching for ways to create a motivational environment where associates (employees) to work at their optimal levels to accomplish company objectives. Workplace Motivators include both monetary and non-monetary incentives. Monetary incentives can be diverse while having a similar effect on associates. One example of monetary incentives is mutual funds provided through company pension plans or insurance programs. Because it has been suggested thatAssociates, depending on their age, have different needs pertaining to incentives, traditional incentive Packages are being replaced with alternatives to attract younger associates. This paper will discuss how monetary and non-monetary incentives are influenced by career stages and the problems associated with monetary and non-monetary incentives.

Monetary Incentives

The purpose of monetary incentives is to reward associates for excellent job performance through Money. Monetary incentives include profit sharing, project bonuses, stock options and warrants, Scheduled bonuses (e.g., Christmas and performance-linked), and additional paid vacation Time. Traditionally, these have helped maintain a positive motivational environment for associates (Kepner, 2001).

Non-Monetary Incentives

The purpose of non-monetary incentives is to reward associates for excellent job performance through opportunities. Non-monetary incentives include flexible work hours, training, pleasant work Environment, and sabbaticals.

Page 9: Motivation

Incentives across Generations

Research suggests that desired monetary incentives differ for associates based on career stage and generation. Surveys by the American Association of Retired Persons (AARP) have shown that most workers will work past retirement age if offered flexible schedules, part-time hours, and temporary employment (Nelson, 1999). The generations covered in the AARP surveys include “Mature Workers” (those born between 1930 and 1945), “Baby Boomers” (those born between 1946 and 1963), “Generation x'ers” (those born between 1964 and 1981), and “Generation y'ers” (those born after 1982). The information presented below shown non-monetary incentives that are important to each generation covered in the surveys (Nelson, 1999).

Problems with Monetary Incentives

Alfie Kohn (1993) argues that monetary incentives encourage compliance rather than Risk-taking because most rewards are based only on performance. As a result, associates are discouraged from being creative in the workplace. Another argument Kohn presents is that monetary incentives may be used to circumvent problems in the workplace. For example, incentives to boost sales can be used to compensate for poor management. Employers also may use monetary Incentives as an extrinsic rather than an intrinsic motivator. In other words, associates are driven to doThings just for the monetary reward versus doing something because it is the right thing to do. This can disrupt or terminate good relationships between associates because they are transformed from Co-workers to competitors, which can quickly disrupt the workplace environment (Kohn, 1993).

Adoption of Non-Monetary Incentives

Generational non-monetary incentive differences shown below are affected by career stage and proximity to retirement. The older the associate, the more the focus is placed on retirement or supplementing Retirement income with part-time or temporary jobs. The younger the associate, the more the focus is placed on job satisfaction and the work environment. The bottom line is that incentives must be tailored to the needs of the workers rather than using the "one-size-fits-all” approach, which is impersonal and sometimes ineffective.

Non-monetary incentives desired by different generations of employees

Mature Workers (1920 -1945) Flexible schedules Part-time hours Temporary hours

Baby Boomers (1946 -1963) Retirement planning Flexible retirement option Job training

Page 10: Motivation

Sabbaticals

Generation x’ers (1964 - 1981) Flexible work schedules Professional development Feed back Tangible rewards Work environment

Generation y’ers (post 1982) Flexible work schedules Professional development Feedback Tangible rewards Work environment Attentive employers

Conclusion

Monetary and non-monetary incentives vary in their roles, effectiveness, and appropriateness, Depending on the type of incentive. Alfie Kohn (1993) argues that incentives actually hamper Associates and companies by decreasing associates' motivation, interest, and job satisfaction. This is just the opposite of what incentives were created to do. Incentives must take into account the workers for whom they were created. A balance between monetary and non-monetary incentives should beUsed to satisfy the diverse needs and interests of associates. Creating a balance sheet is a simple exercise that can be used for evaluating incentive programs. On one side of the balance sheet list all the incentive programs (both monetary and non-monetary) of your organization. On the other side list all the outcomes (whether desired or not) that can be attributed to these incentives. Areas of improvement would be those outcomes identified as undesirable.

Page 11: Motivation

Techniques of Motivation

Recognition of work Job Security Team Spirit Competition Status

Desire for recognition

When people receive recognition or affirmation for their efforts it has a positive motivational effect on them.

Just a few words of encouragement are worth their weight in gold.

Current issues in Motivation

Compressed WorkweekFlexible work hours Job sharingTelecommutingPay of Performance SystemOpen-book management

Rewards and Recognition

Page 12: Motivation

Like a child being given a chocolate cupcake and a big hug after cleaning her room, rewards and recognition can be powerful tools for employee motivation and performance improvement. Many types of rewards and recognition have direct costs associated with them, such as cash bonuses and stock awards, and a wide variety of company-paid perks, like car allowances, paid parking, and gift certificates. Other types of rewards and recognition may be less tangible, but still very effective. These "non-monetary" rewards include formal and informal acknowledgement, assignment of more enjoyable job duties, opportunities for training, and an increased role in decision-making. This paper focuses on non-monetary rewards, and as we will see, these types of rewards can be very meaningful to employees and so, very motivating for performance improvement.

But first, let's take a quick look at the primary goals of rewards and recognition. Jack Zigon defines rewards as "something than increases the frequency of an employee action" (1998). This definition points to an obvious desired outcome of rewards and recognition: to improve performance. Non-monetary recognition can be very motivating, helping to build feelings of confidence and satisfaction (Keller 1999). Another important goal is increased employee retention. An ASTD report on retention research identified consistent employee recognition as a key factor in retaining top-performing workers. (Jimenez 1999).

To achieve desired goals, reward systems should be closely aligned to organizational strategies (Allen and Helms 2002). For example, a company focused on a product differentiation strategy could design their reward practices to foster innovation to provide unique products or services, while a company focused on a cost reduction strategy might focus on rewards for ideas to minimize or eliminate costs and employee stock awards to foster an on-going cost reduction emphasis.

Zigon offers a variety of ways to reward desired performance and increase the likelihood of it happening again, and more frequently than it would have, without these types of interventions. His web site lists ideas that give managers a lot of flexibility both to offer rewards at various cost levels and to find rewards that match what individual employees will find valuable. To be really effective, this takes time and effort on managers' parts, to get to know different employees' likes and dislikes.

How effective is non-cash recognition? Various anecdotal evidence reports non-monetary recognition as an important factor in retaining excellent employees and for improving performance. A quick search

Page 13: Motivation

of a news service database points to articles extolling various perks such as an in-house chiropractor, spa gift certificates, days off, fancy parties and the use of personal trainers. The givers of such perks see these rewards as a way to keep high performing employees in a shrinking job market; and certainly companies like Walt Disney World have documented the success of employee recognition programs (Lynch 2003). However I did not find any strong empirical evidence comparing the relative benefits of monetary versus non-monetary rewards. In the absence of such evidence, we can still consider non-monetary rewards as part of comprehensive performance improvement strategy.

So what types of non-monetary rewards are the most effective? Bob Nelson, recognition consultant and self-proclaimed "Guru of Thank You" reports research indicating that the type of recognition employees appreciate most is to be recognized by people they work directly for. In fact, 78% of employees indicated that it was very or extremely important to be recognized by their managers when they do good work (Nelson 2004). The number one choice for recognition is sincere praise given in a timely manner with specific examples. Allen and Helms' (2002) research confirmed the importance of regular expressions of appreciation by managers and leaders to encourage behavior of employees to reach strategic goals; and this was true for each of the strategies they examined.

Mike Rushby, HR Vice President at Weyerhaeuser Company, sees developmental opportunities, such as assignments to special projects as a powerful form of non-monetary recognition (personal communication, February 17, 2004). Rushby believes that being chosen to work on a task team to accomplish a company initiative is motivating because it helps employees gain new skills and experiences, demonstrates trust in their abilities, and adds variety to an individual's work. Weyerhaeuser uses the Performance Management Process and Individual Development Plans to help identify strong candidates for developmental opportunities.

People are motivated to higher levels of job performance by positive recognition from their managers and peers (Keller). Creative use of personalized non-monetary rewards reinforces positive behaviors and improves employee retention and performance. These types of recognition can be inexpensive to give, but priceless to receive.

Page 14: Motivation

Employee Motivation using Team Rewards 

Team rewards present a great opportunity to help team bonding.  With the proper application of a reward and recognition program, we can help build a high-performance team.  But team rewards are not to be treated carelessly: misapplication could lead to unhealthy competition, lack of cooperation, and ultimately severe financial consequences for the organization. Team motivation and rewards programs should make up part of our overall employee recognition program. we need to consider a mix of team and individual rewards, and balance the mix between awards that encourage both cooperative and competitive behaviours.The desired outcome of recognition programs is to improve performance and improve employee retention.

Organisations that are following the non-monetary rewards and recognition say that:

Recognition is a basic requirement for creating a positive work culture in the organisation.

Recognition encourages and enthuses employees to believe in themselves and deliver quality.

Recognition is a powerful motivator that puts the recipient in the limelight which leads to better performance.

The practice by organisations of honouring the employee’s achievements, singling out top performers, and offering benefits to the families, inspire the employees to give their best. Motivation - the need for meaningful self-fulfilment, the need to create personal challenges isn't only about inspiring people to work harder, it is also an effective way to retain people and build loyalty. It is an important factor in fostering career progression.

Rewards:

Recognition for innovative ideas and entrepreneurial action from employees. Honours for unique contribution to sustained high performance by an

individual or a team. Membership to the exclusive club of top performers. Recognition to not only super achievers but also employees with long service.

Eligibility for ``Real Old Timers Club.''

Genius Awards for employee children who fare well in studies.

Merits:

Motivates employees to perform better.

Page 15: Motivation

Costs the organisation next to nothing. Builds tremendous self-esteem among the employees. Makes an employee and his family members proud of and loyal to the

organisation. Creates a positive atmosphere where change welcomed.

De-merits:

Remonstrates people if processes are not transparent. Could result in unhealthy competition among employees. May lead to shortsighted, hasty decision making. Work intrudes on the home life of employees. Will never work if monetary rewards are not substantial.

While recognition through non-monetary rewards facilitates participation, and instills responsibility in the employees, it is important to ensure that the selection process is fair and transparent. It is also imperative that the practicing managers accept the fact that recognition is a way of life and look for areas to award rewards.

The following are some of the areas of non-monetary recognition practices that an organisation can take note of.

Treats: Free lunches, festival bonus, coffee breaks, picnics, dinner with the boss, dinner for the family, birthday treats etc.

Knick-knacks: Disk accessories, company watches, tie-pins, broaches, diaries/planners, calendars, wallets, T-shirts.

Awards: Trophies, plaques, citations, certificates, scrolls, letter of appreciation.

Social acknowledgement: Informal recognition, recognition of office get-togethers, friendly greetings, smiles, e-mail, solicitation of advice, suggestions, use of company facilities for personal projects.

Office environment: Redecoration, office with a window, piped music, flexible hours.

On the job: More responsibility, job rotation, special assignment, training, representing the company at public for forums.

Tokens: Movie tickets, vacation trips, coupons redeemable at stores, early time off, anniversary, dating and Birthday allowances / presents.

Page 16: Motivation

Practical examples:

1. Microsoft

Motivation comes from recognition

“Compensation is a right, but recognition, however, is a gift which validates the importance of their work.” – Steve Ballmer (CEO)

2. Biocon

Kiran Mazumdar Shaw, CEO of BIOCON Industries believes in an open and supportive culture.

Motivation comes from Empowerment. Biocon is very successful in retaining employees

“We can’t think of working for another company. It’s either Biocon or nowhere.” -

Employees

Articles Abstracts

Monetary Incentives: Usually Neither Necessary Nor Sufficient?

Read (2005), in The Journal of Economic Methodology, took our target article in Behavioral and Brain Sciences (Hertwig & Ortmann 2001) as one point of departure to question the usefulness of monetary incentives for experimental work. In making his case, he misrepresents our analysis, and continues

Page 17: Motivation

the unfortunate ritual of opportunistic sampling of evidence. As in our target article, we call for an empirical analysis of the impact of monetary incentives.

Absract

Are increased costs worth paying to raise non-monetary utility?: Analysis of intrinsic motivation and fringe benefits

In standard agency models, only performance-based wages (monetary incentives) motivate an agent to work more. The present paper proposes a new agency model in which the principal makes an investment, in addition to the standard wage incentive, to raise non-monetary utility. We clarify two problems according to the type of non-monetary utility: the intrinsic motivation (IM) problem and the fringe benefits (FB) problem. The results of our analysis of both problems are as follows: (1) The results of the IM model and the FB model are similar regarding monetary payment. (2) Although IM is dependent on the attributes of a job and the worker, such as productivity or cost sensitivity, FB is not dependent on such factors.

Received 26 August 2005; received in revised form 9 May 2007 and 17 December 2007; accepted 5 January 2008

DIGITAL OBJECT IDENTIFIER (DOI)10.1111/j.1475-3995.2008.00633.x About DOI

Abstract

Performance Appraisal Reappraised: It’s Not All Positive

Todd Grubb, Troy University

Journal of Human Resource Education

Performance appraisal is a widespread, very expensive, counterproductive exercise. It is typically conducted with good intentions to manage and improve the performance of individual employees, and lead to enhanced overall organizational efficiency, effectiveness, and productivity. Unfortunately it is an exercise in futility. This paper explores why formal performance appraisal and performance pay fail in their objectives as components of an organization’s performance management program, and why they should be abolished.

Abstract

MOTIVATION STRATEGIES FOR KNOWLEDGE WORKERS: EVIDENCES AND CHALLENGES

Page 18: Motivation

 

Alberto Petronio, Pierluigio Colacino*

* Department of Industrial Engineering, University of Parma Viale delle Scienze, 181 /A 43I00-Parma(ltaly) [email protected] -Tel.: +390521905850 [email protected] -Tel.: +390521905850

Many studies have been performed previously to investigate different theories of motivation and, more specifically, how to motivate technical professionals.Through a questionnaire survey carried out on 376 development engineers, identified as "knowledge workers" by managers in their firms,this study identifies what methods are used in industry to motivate these individuals, what works and what does not.While many aspects of standard incentives and reward systems used to motivate technical professionals in general are also motivating for technical visionaries, these results indicate that they are motivated by additional factors not generally discussed in the literature.

Abstract

CSpR (Corporate Spiritual Responsibilities) more important then CSR ( Corporate social responsibilities)

Abstract :

In present days of crisis it seems above the corporate social responsibilities the corporate need to save themselves and their employees for that they need another dimension of responsibilities is the Corporate Spiritual Responsibilities.

By

Shiba Prasad ParhiLecturer in ManagementMITCON Institute of ManagementPune

 Abstract

Fresh ideas energize reward programs

Article Abstract:

Page 19: Motivation

Companies are increasingly using performance incentives to reward and recognize outstanding employees. These incentives form part of the total quality programs of organizations and come in a variety of forms. American Airlines Inc uses monetary awards in its program, IdeAAs in Action, which rewards employees based on actual cost savings resulting from their suggestions. The restaurant industry's Marriott Corp, on the other hand, provides non-monetary awards in the form of engraved medallions to outstanding employees who are recipients of its J. Willard Marriott Award of Excellence. An unusual award is offered by the entertainment company A Party to Intrigue through interactive role-playing events.

author: Grant, Philip C., Stuart, PeggyPublisher: Crain Communications, Inc.Publication Name: Personnel JournalSubject: Human resources and labor relationsISSN: 0031-5745Year: 1992

Read more: file:///C:/Users/Sagir/Desktop/new%20article%20abstract/Fresh-ideas-energize-reward-programs-Rewards-the-pizzazz-is-the-package-not-the-prize.html#ixzz0ZDirOMOi

Abstract

Job challenge as a motivator in a principal–agent setting

Suresh Radhakrishnan1, a, * and Joshua Ronenb

a Leonard N. Stern School of Business, New York University, 429 Tisch Hall, 40 West 4th Street, New York, NY 10012, USA

b Leonard N. Stern School of Business, New York University, 300 Tisch Hall, 40 West 4th Street, New York, NY 10012, USA

Received 1 July 1997;

accepted 1 April 1998.

Available online 17 March 1999.

Page 20: Motivation

Abstract

We analyze the tradeoff between monetary and non-monetary incentives in a principal–agent framework where the principal chooses job-challenge (job-design) to provide non-monetary incentives. We capture the construct of job-challenge as a motivator based on Atkinson (1958). In: Atkinson, J.W. (Ed.), Motires in Fantasy, Action and Society, Van Nostrand, Princeton, NJ. Specifically, more challenging jobs reduce the probability of success but increase the marginal productivity of the agent's effort. This provides the agent with a sense of accomplishment from which the agent derives utility. We show that there are three effects of job-challenge when we consider information asymmetries. The substitution effect arises because non-monetary incentives can be used to substitute for monetary incentives. The risk effect arises because job challenge can be used to impose some of the risk needed to mitigate the impact of hidden-action, rather than having to impose risk through monetary incentives which could be costlier to the principal. The informativeness effect arises because the final outcome is more informative on the hidden-action of the agent and thus less risk needs to be imposed through the monetary incentives than in a model that does not feature job-challenge. The cost to the principal of designing challenging jobs arises from the decreased expected output.

Abstract

Grassroots motivation

Article Abstract:

An increasing number of managers in insurance firms are effecting their own incentive programs to motivate their core salespeople, in addition to the corporate incentive programs. These grassroots methods of motivation suggest the effectiveness of a 'personal touch' approach and they are a key in driving workers to attain a high level of performance. Recognition programs are a help in maintaining high morale and positive attitude among employees.

author: Zieger, AriPublisher: The Nielsen CompanyPublication Name: Incentive Managing & Marketing Through MotivationSubject: BusinessISSN: 0019-3364Year: 1999Insurance, Insurance Carriers and Related Activities, Employee Benefits & Services, Employee Relations, Human resource management, Labor relations, Employee benefit

Read more: file:///C:/Users/Sagir/Desktop/new%20article%20abstract/Selling-security-ARCNET.html#ixzz0ZDoBFpO4Abstract

Page 21: Motivation

Journal Article

Not for Bread Alone—Motivation Among Hospital Employees in Singapore

Patrick Low Kim Cheng1 and Robert W. Robertson

(1)  Kazakhstan Institute of Management, Economics & Strategic Research (KIMEP), Almaty, Kazakhstan

Received: 29 September 2005  Accepted: 19 December 2005  Published online: 10 August 2006

 Through a series of interviews and a literature review this paper uncovers the key sources of motivation among employees in hospitals in Singapore. The study examines the use of several non-monetary rewards Singaporean managers can rely on to motivate their employees in service industries. One vital finding of this study is that there should be value congruence and person/environment-fit.

Abstract

Blood donors' motivation and attitude to non-remunerated blood donation in LithuaniaBMC Public Health 2006, 6:166doi:10.1186/1471-2458-6-166

The electronic version of this article is the complete one and can be found online at: http://www.biomedcentral.com/1471-2458/6/166

Received: 16 February 2006

Accepted: 22 June 2006

Published:

22 June 2006

© 2006 Buciuniene et al; licensee BioMed Central Ltd.This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/2.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

In the Soviet period, the blood donation system operated in Lithuania exclusively on a remunerative basis. After

joining the EU, Lithuania committed itself to meeting the EU requirements to provide all consumers within its

boundaries with safe blood products made from voluntary unpaid blood donations. However, the introduction of a

non-remunerated donation system may considerably affect donors' motivation and retention. Thus the aim of the

current research was to determine blood donation motives among the present donors and investigate their attitude

Page 22: Motivation

towards non-remunerated donation.

Abstract

Employee Motivation Strategies: Effective Solutions That Could Yield Maximum Profits

No Reader Ratings Available ?

Submitted Tuesday, January 17, 2006

When people think of honoring employees for jobs well done, they may typically think of monetary rewards. However, these may be neither necessary nor the best type of reward. Once offered, cash bonuses can come to be expected and quickly forgotten, especially if they are the only recognition employees receive

Abstract

Galt Global ReviewPraise is the New Cash: Revisiting Non-Monetary Rewards to Motivate Employees

By Chlo 렅 rnst, June 02, 2009

Paying someone a compliment produces a similar effect in the brain to giving the person cash. This was the finding of a Japanese study published in the science journal, Neuron, last year. A team at the National Institute for Physiological Sciences found the area of the brain that responds to compliments overlaps the area that responds to monetary rewards.

Given the perspective of today’s lean times, revisiting this study is a great reminder for managers and supervisors that non-monetary rewards pay off.

Abstract

Article Reference  (courtesy of..)Author:  Bob Nelson, Ph.D.www.nelson-motivation.com

The Effectiveness of Non Monetary Recognition Programs :

Although the concept of positive reinforcement and the related principle that you get what you reward are well-founded in the psychology literature, the effective use of positive reinforcement by practicing managers is uneven and often totally lacking in day-to-day business operations. This article explores the conditions that enable or inhibit the use by managers of non-monetary recognition (NMR).

Abstract

Page 23: Motivation

Toward an Economic Interpretation of the Nondistribution Constraint

Vladislav Valentinov1This article seeks to identify the integrative core of the theoretical understanding of the nonprofit sector. It argues that the nonprofit organization generally represents a response to the difficulties in the adaptation of some economic agents' monetary motivations to others' nonmonetary motivations. From this viewpoint, switching off the profit motive implies the elimination of the intermediating role of monetary motivation and, in turn, the implementation of activities aimed at directly satisfying nonmonetary motivations, through the adoption and advancement of a mission. Theories of the nonprofit sector indicate special cases where monetary and nonmonetary motivations are out of balance; the article proposes an alternative conceptualization of the demand-side and supply-side reasons for the existence of nonprofits

Abstract

Seminar,Conference AND Workshop Proceedings:employee

Motivation through a Performance based Reward Scheme:A case study from ITI,Sri Lanka

Published : 2004/3/23  

Nirmala M. Pieris1st Vice President, WAITROHead, Corporate Services Division, Industrial Technology Institute, Sri Lanka

Employee Motivation is considered crucial in any organization, as it is well known that motivation is the key to performance enhancement. Several strategies are generally used for motivation of employees. These include, approval, praise, recognition, trust, respect, high expectations, loyalty, job enrichment, good communications and financial incentives. No single strategy will be of benefit to all organizations and generally the motivational system must be tailored to fit a particular organization in a mix & match exercise.

Abstract

The effect of non-pecuniary motivations on labor supplyYH Farzin. Quarterly Review of Economics and Finance. Greenwich: Nov 2009. Vol. 49, Iss. 4; pg. 1236

Abstract (Summary)

People value work not only as a means of earning income to satisfy their consumption needs but also as a direct source of satisfaction for its socio-psychological effects (non-pecuniary benefits). I show that once non-pecuniary effects of working time are incorporated in the standard labor-supply model: (i) the wage rate under-estimates (over-estimates) the true opportunity cost of non-work/leisure time when working time has non-pecuniary benefits (costs), (ii) non-pecuniary work motivations can substitute for monetary wages as work incentives,

Page 24: Motivation

(iii) at very low wage rates, work can become a net source of utility, and (iv) the implied shape of labor-supply curve differs starkly from those implied by standard theory. I identify conditions under which a greater non-pecuniary work motivation induces a larger supply of labor, and examine the effects of non-wage income on supplies of paid work and voluntary work when there are non-pecuniary benefits associated with both types of work. [PUBLICATION ABSTRACT]

http://proquest.umi.com/pqdweb?index=0&did=1897556021&SrchMode=1&sid=1&Fmt=2&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1260392184&clientId=129893

Abstract

Are increased costs worth paying to raise non-monetary utility?: Analysis of intrinsic motivation and fringe benefitsRyohei Matsumura, Norimasa Kobayashi. International Transactions in Operational Research. Oxford: Nov 2008. Vol. 15, Iss. 6; pg. 705

Abstract (Summary)

In standard agency models, only performance-based wages (monetary incentives) motivate an agent to work more. The present paper proposes a new agency model in which the principal makes an investment, in addition to the standard wage incentive, to raise non-monetary utility. We clarify two problems according to the type of non-monetary utility: the intrinsic motivation (IM) problem and the fringe benefits (FB) problem. The results of our analysis of both problems are as follows: (1) The results of the IM model and the FB model are similar regarding monetary payment. (2) Although IM is dependent on the attributes of a job and the worker, such as productivity or cost sensitivity, FB is not dependent on such factors. [PUBLICATION ABSTRACT]

http://proquest.umi.com/pqdweb?index=1&did=1587861821&SrchMode=1&sid=1&Fmt=2&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1260392184&clientId=129893

Abstract

MOTIVATION: Maintaining morale through the stormNicola Sullivan. Employee Benefits. London: Sep 2008. pg. S.11

Abstract (Summary)

Despite heightened insecurity about the job market, staff who believe their employer is either ignoring or is failing to meet their needs are more likely to look elsewhere for better reward packages. This may mean they need to rethink their reward programme, and in some cases, even have to invest more money in engaging staff. There are plenty of ways employers can link motivation schemes to staff performance, other than by using bonuses, which are often contractual. They could even come up with a scheme that helps engage staff through tough economic times.

Page 25: Motivation

The solution for some organisations may lie with a suggestion scheme that rewards staff for innovative ideas, says, Sheila Sheldon, director of European operations at Michael C Fina. Employers who are really feeling the pinch financially could consider a whole range of low-cost incentives, such as taking staff out for dinner, as well as giving out bottles of wine and bunches of flowers.

http://proquest.umi.com/pqdweb?index=4&did=1547631251&SrchMode=1&sid=2&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1260392276&clientId=129893

Page 26: Motivation

Abstract

The Benefits of Tangible Non-Monetary Incentives

Published by: Incentive Research Foundation

There is perhaps no subject debated more frequently (or as vehemently) by incentive program practitioners and their clients than the value of tangible, non-monetary (alsoreferred to as non-cash) incentives versus cash.