MOTIVATION

Definition:

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

Individual performance is generally determined by three factors:

1. motivation (the desire to do the job),

2. ability (capability to do the job), and

3. The work environment (the resources needed to do the job).

If the employee lacks ability, the manager can provide training or replace the worker. If resources

are a problem, the manager can correct it. But if motivation is the problem, the task for the

manager is more challenging. Individual behaviour is a complex phenomenon, and the manager

may be hard-pressed to figure out the precise nature of the problem and how to solve it. Thus,

motivation is important because of its significance as a determinant of performance and because of

its intangible character.

The Motivation Framework

The motivation process progresses through a series of discrete steps. Content and process perspectives on motivation address different parts of this process.

The purpose of behaviour is to satisfy needs.

Needs are what you must have to survive and live. Needs are the essentials, the "must have's" in your life.

Need = must have's

Need or deficiency

Search for ways to satisfy need

Choice of behaviour to satisfy need

Determination of future needs and search/choice for satisfaction

Evaluation of need satisfaction

Wants are things that make your life easier or more enjoyable. Wants are not essential; they are the "would like to have's" or the "nice to have's" in life.

Want = like to have, nice to haveThe presence of an active need is expressed as an inner state of tension from which the

individual seeks relief.

The theories of motivation fall into two categories:

1. Content theories (focus on needs)

2. Process theories (focus on behaviours)

CONTENTCONTENT PERSPECTIVES ON MOTIVATION:

Deals with the first part of the motivation process- needs and need deficiencies. More specially,

content perspectives address the question: “What factors in the workplace motives people?”

Three widely known content perspectives on motivation are the Maslow’s Hierarchy of Needs

the Herzberg’s Two -Factor Theory and McClelland’s Acquired Needs Theory.

The Need Hierarchy Approach /Maslow’s Hierarchy of Needs.

Need hierarchies assume that people have different needs that can be arranged in a hierarchy of

importance. The best known is Maslow’s hierarchy of needs. Pioneering psychologist Abraham

Maslow argued that people are motivated to satisfy five need level.

GENERAL EXAMPLES ORGANISATIONAL EXAMPLES

ACHIEVEMENT CHALLENGING JOB

STATUS JOB TITLE

FRIENDSHIP FRIENDS AT WORK

STABILITY PENSION PLAN

FOOD BASIC SALARY

1. At the bottom of the hierarchy are the PHYSIOLOGICAL NEEDS- things like

ESTEEM

BELONGINGNESS NEEDS

SECURITY NEEDS

PHYSIOLOGICAL NEEDS

SelfActualisation

food, sex and air that represent basic issues of survival and biological function. In

organisations these needs are generally satisfied by adequate wages and the work

environment itself, which provide restrooms, adequate lighting, comfortable temperatures,

and ventilation.

2. SECURITY NEEDS : people have the need for a secure physical and emotional

environment. For example the need to be free from worry about money and job security.

These needs can be satisfied in the work place by job continuity (no layoffs), a grievance

system (to protect against arbitrary supervisory actions), and an adequate insurance and

retirement benefit package (for security against illness and provision of income in later

life).

3. BELONGINGNESS NEEDS relate to social processes. They include the need for love

and affection and the need to be accepted by one’s peers. These are satisfied for most

people by family and community relationships outside of work and friendship on the job. A

manager can help satisfy these needs by allowing social interaction and by making

employees feel like a part of a team or work group.

4. ESTEEM NEEDS : comprise of two different kids of needs- the need for a positive self-

image and self-respect and the need for recognition and respect from others. A manager

can help address these needs by providing a variety of extrinsic symbols of

accomplishment such as job titles, nice offices, and similar rewards as appropriate. At a

more intrinsic level, the manager can provide challenging job assignments and

opportunities for the employee to feel a sense of accomplishment.

5. SELF ACTUALISATION NEEDS : these involve realising one’s potential for continued

growth and individual development. The self-actualisation needs are perhaps that most

difficult for a manager to address. In fact, it can be argued that these needs must be met

entirely from within self-actualisation is possible. For instance, a manager could give

employees a chance to participate in making decisions about their work and the opportunity

to work and the opportunity to learn new things.

Home work:

1. Evaluate the limitations of Maslow’s theory.

2. Read up on the Two -Factor Theory

6. Physiological needs: relate to the normal functioning of the body. They include the needs

or water, food, rest, sex, and air. Until theses needs are met, a significant portion of an

individual’s behaviour will be aimed at satisfying them. In the organisational setting, these

are reflected in the needs for adequate heat, air, and base salary to ensure survival. Once

the needs are satisfied, however, behaviour is aimed at satisfying the needs of the next level

of the Maslow’s Hierarchy.

7. Security or safety needs: relate to the individual’s desire to be free from harm, including

both bodily and economic disaster. Traditionally, Organisation has best helped employees

satisfy their security needs through safe jobs, fringe benefits and job security.

8. Social or belongingness needs: include the desire for love, companionship, and friendship.

These needs reflect a person’s desire to be accepted by others. In the organisation, these

needs influence the desire for good relationships with co-workers, participation in a work

group, and positive relationship with supervisors. As they are satisfied, behaviour shifts to

satisfying esteem needs.

9. Esteem needs: are concerned with the desire for respect. They are generally divided into

two categorises: self-respect and respect from others. Within Organisations, esteem needs

reflect a motivation for recognition, an increase in responsibility, high status and credit for

contributions to the organisation .Once esteem needs are satisfied, the individual moves to

the pinnacle of the hierarchy and emphasizes satisfying self-actualization needs.

10. Self –actualization needs: refers to the desire to maximize whatever potential an

individual possess. This need can be met in the organisation by providing people with

opportunities to grow, be creative, and acquire training for challenging assignments and

advancement.

B. The Two-Factor Theory.

Fredrick Herzberg developed this theory. Herzberg argues that the process of motivating

employees comprises of two stages. The two- factor theory of motivation suggests that people’s

satisfaction and dissatisfaction are influenced by two independent sets of factors- motivation

factors and hygiene factors.

First, managers must ensure that the hygiene factors are not deficient. Pay and security must be

appropriate, working conditions must be safe, technical supervision must be acceptable etc. By

providing hygiene factors at an appropriate level, managers do not stimulate motivation but they

merely ensure that employees are ‘not dissatisfied.’ Employees whom managers attempt to

‘satisfy’ through hygiene factors alone will usually do just enough to get by. Thus, managers

should proceed to stage 2- giving employees the opportunity to experience motivation factors such

as achievement and recognition. The result is predicted to be a high level of satisfaction and

motivation. Herzberg also goes a step further than most theorists and describes exactly how to use

the two factor theory in the work place. Specifically, he recommends job enrichment. He argues

that jobs should be redesigned to provide higher levels of the motivation factors.

MOTIVATION FACTORS.MOTIVATION FACTORS.

·· AchievemenAchievementt

·· RecognitionRecognition

·· The work The work itselfitself

·· ResponsibilitResponsibilityy

·· AdvancementAdvancement and growthand growth

HYGIENE FACTORSHYGIENE FACTORS·· SupervisorsSupervisors

·· Working Working conditionsconditions

·· InterpersonInterpersonal relationsal relations

·· Pay and Pay and securitysecurity

·· Company Company policies and policies and administratiadministrationon

Satisfaction No satisfaction Dissatisfaction No dissatisfaction

Although widely accepted by many managers, Herzberg’s two-factor theory is not without critics.

One critism is that the findings of Herzberg’s initial interviews are subject different explanations.

Another critism is that is sample was not represented by a large population and that subsequent

research often failed to uphold the theory.

The theory has had a major impact on managers, however, and has played a key role in increasing

their awareness of motivation and its importance in the workplace.

In addition to these theories, research has also focused on specific individual human needs that are

important in organisations. Theses three most important individual needs are achievement,

affiliation and power.

· Need for achievement: the desire to accomplish a goal or task more effectively than in the

past. People with a high need for achievement have a desire to assume personal

responsibility, a tendency to set moderately difficult goals, a desire for specific and

immediate feedback, and a preoccupation with their task.

· Need for Affiliation: the desire for human companionship and acceptance. People with a

strong need for affiliation are likely to prefer and perform better in a job that entails a lot of

social interaction and offers opportunities to make friends.

· Need for Power: the desire to be influential in a group and to control one’s environment.

People with a strong need fro power are likely to be superior performers, have good

attendance records, and occupy supervisory positions.

MASLOW’S HIERARCHY OF NEEDSMaslow states that human beings possess the five basic needs, and theorises that these five basic

needs can be arranged in a hierarchy of importance – the order in which individuals generally

strive to satisfy them.

1. Physiological needs: relate to the normal functioning f the body. They include the needs or

water, food, rest, sex, and air. Until theses needs are met, a significant portion of an

individual’s behavior will be aimed at satisfying them. Once the needs are satisfied,

however, behavior is aimed at satisfying the needs of the next level of the Maslow’s

Hierarchy.

2. Security o safety needs: relate to the individual’s desire to be free from harm, including

both bodily and economic disaster. Traditionally, management has best helped employees

satisfy their physiological and security needs through adequate wages and salaries, which

employees use to purchase such things as food and housing.

3. Social needs: include the desire for love, companionship, and friendship. These needs

reflect a person’s desire to be accepted by others. As they are satisfied, behavior shifts to

satisfying esteem needs.

4. Esteem needs: are concerned with the desire for respect. They are generally divided into

two categorises: self-respect and respect from others. Once esteem needs are satisfied, the

individual moves to the pinnacle of the hierarchy and emphasizes satisfying self-

actualization needs.

5. Self –actualization needs: refers to the desire to maximize whatever potential an

individual possess. For example, in the school system a Principal who seeks t satisfy self-

actualization needs would strive to become the best Principal possible. (reflecting the

human desire to maximise personal potential)

PROCESSES· PROCESS PERSPECTIVES ON MOTIVATION:

· The process approach emphasizes how and why people choose certain behaviours in order

to meet their personal goals. Process theories focus behaviours that people choose to

meet their needs. Four useful process theories on motivation are the Needs –Goal Theory,

Vroom expectancy theory, Equity theory, Theory X and Theory Y (Douglas

McGregor), Porter – Lawler theory.

PROCESS PERSPECTIVES ON MOTIVATION:

The process approach emphasizes how and why people choose certain behaviours in order to

meet their personal goals. Process theories focus on external influences or behaviours that people

choose to meet their needs. External influences are often readily accessible to supervisors

Process perspectives are concerned with how motivation occurs. Rather than attempting to identify

motivational stimuli, process perspectives focus on why people choose certain behavioural options

to satisfy their needs and how they evaluate their satisfaction after they have attained these goals.

Four useful process perspectives on motivation are the

· Needs –Goal Theory· Vroom expectancy theory

· Equity theory· Theory X and Theory Y ( Douglas McGregor)· Porter – Lawler theory.

The Needs- Goal Theory of Motivation: is the most fundamental of the motivation theories. Mo-

tivation begins with an individual feeling a need. This need is then transformed into behaviour dir-

ected at supporting, or allowing, the performance of goal behaviour to reduce the felt need. Theor-

etically, goal- supportive behaviour and goal behaviour itself continue until the felt need has been

significantly reduced.

FEEDBACK GOAL

SUPPORTIVE

BEHAVIOUR

For example, when an individual feels hunger, this need is typically transformed first into beha-

viour directed at supporting the performance of the goal behaviour of eating. This supportive beha-

viour could include such activities as buying, cooking and serving the food to be eaten. The goal

supportive behaviours and the goal behaviour itself- eating- generally continue until the indi-

vidual’s hunger substantially subsides. When the individual experiences hunger again, the entire

cycle is repeated.

Expectancy theory

Expectancy theory: ·

Vroom's Expectancy Model suggests that people choose among alternative behaviours because

they anticipate that particular behaviours will lead to one or more desired outcomes and that other

behaviours will lead to undesirable outcomes. Expectancy is the belief that effort will lead to first-

order outcomes, any work-related behaviour that is the direct result of the effort an employee ex-

pends on a job.

FELT NEED

GOAL BEHAVIOUR

OrganisationalWards

Ex1.

Suppose that, late one Friday afternoon, John Dillip’s boss asks him to develop a presentation of six-month

budget results. The presentation is due the following Monday. John realises he can complete the four-hour

project in one of two ways: he can stay at the office and do the work, or he can take the work home over the

weekend.

John evaluates the first option, staying at work for the needed four hours. He realises that staying will result in

a completed presentation by Monday (effort- performance link). He knows from past experience that a

completed project will result in recognition from the boss (performance reward link). John has a high regard

for this recognition, because it will eventually lead to a promotion. Working late on Friday will, however,

interfere with existing plans and my cause domestic problems. (The domestic problems affect the

attractiveness of the reward).

As John evaluates the second option, taking work home, he realises that the effort-performance link and the

performance reward link will be the same as option 1. But, by taking the work home, John can avoid the

negative consequences of interfering with social plans. (This makes the reward seem more attractive).John

chooses the second option.

In his decision making, John asked himself a series of questions. “Can I accomplish the task?” Yes, it will take

four hours, but I can do it. “What’s in it for me?” When I do the task it can bring both positive and negative

results (option1) or just positive results (option2). “Is it worth it” the positive is, but the negative isn’t.

Expectancy theory is based on four basic assumptions:

· It assumes that behaviour is determined by a combination of forces in the individual and in

the environment

· It assumes that people make decisions about their own behaviour in organisations

· It assumes that different people have different types of needs, desires and goals.

BehaviourMotivation

Individual EffortRequired

IndividualPerformance

Organisational Rewards

DomesticProblems

· It assumes that people make choices from among alternative plans of behaviour based on

their perceptions of the extent to which a given behaviour will lead to desired outcomes.

.According to this theory, a manager must understand what employees want such as pay,

promotions or status to begin to motivate them.

Equity theory

Equity theory: is the perception of fairness involved in rewards given. A fair or equitable situ-

ation is one in which people with similar inputs experience similar outcomes. Employees will

compare their rewards with the rewards received by others for their efforts. If employees perceive

that an inequity exists, they are likely to withhold some of their contributions, either consciously or

unconsciously, to bring a situation into better balance.

For example, if someone thinks he or she is not getting enough pay (output) for his or her work

(input), he or she will try to get that pay increased or reduce the amount of work he or she is doing.

On the other hand, when a worker thinks he or she is being paid too much for the work he or she is

doing, he or she tends to increase the amount of work. Not only do workers compare their own in-

puts and outputs; they compare their input/output ratio with the input/output ratio of other workers.

If one work team believes they are doing more work than a similar team for the same pay, their

sense of fairness will be violated and they will tend to reduce the amount of work they are doing. It

is a normal human inclination to want things to be fair.

The Equity Theory in action

Theory X and Theory Y

Comparison:Self to Others

Result: Equity

Result: Inequity

Motivation to Perform

Motivation to rationalise, Fight Inequality, or Quit.

Douglas McGregor developed this theory based on two assumptions. He called the two sets

Theory X and Theory Y.

Theory X is a philosophy of management with a negative perception of suborinates’ potential for

work and attitudes toward work.

Theory Y on the other hand, is a philosophy of management with positive perception of

subordinates’ potential for and attitude toward work.

Assumptions:

Theory X Theory Y

People basically dislike work and avoid it

whenever necessary

Most people find work as natural as play and

rest and develop an attitude toward work based

on their experience with it

Because most people dislike work, they have to

be closely supervised and threatened with

punishment to reach objectives

People do not need to be threatened with

punishment; they will work voluntarily toward

organisational objectives to which they are

committed

Most people prefer to be told what to do, have

little ambition, want to avoid responsibility, and

want security above all else.

The average person working in the environment

with good human relations will accept and seek

responsibility.

Most people have little creativity. They are not

capable of solving problems. Rather, they must

be directed

Most people possess a high degree of

imagination, ingenuity and creativity with

which to solve organisational problems

Most people have limited intellectual potential.

Contributions above basic job performance

should not be expected

Although people have intellectual potential,

modern industrial life utilises only part of it.

The Porter-Lawler Theory of Motivation:

Porter and Lawler suggest that there may indeed be a relationship between satisfaction and

performance but that it goes in the opposite direction- that is; high performance may lead to high

satisfaction.

.

INTRINSIC REWARD

(OUTCOMES

The model above summarises, Porter and Lawler’s logic. Performance results in rewards for an

individual. Some of these are extrinsic rewards such as pay and promotions; others are intrinsic

such as self esteem and accomplishment. The individual evaluates the equity, or fairness, of the

rewards relative to the effort expended and the level of performance attained. If the rewards are

perceived to be equitable, the individual is satisfied.

Reinforcement Perspectives:

Reinforcement theory argues that behaviour that results in rewarding consequences is likely

to be repeated, whereas behaviour that results

Reinforcement involves four types of consequence.

· Positive reinforcement creates a pleasant consequence by using rewards to increase the

likelihood that behaviour will be repeated.

· Negative reinforcement occurs when a person engages in behaviour to avoid unpleasant

consequences or to escape from existing unpleasant consequences.

· Punishment is an attempt to discourage a target behaviour by the application of negative

outcomes whenever it is possible.

· Extinction is the absence of any reinforcement, either positive or negative, following the

occurrence of a target behaviour (used to weaken undesired behaviours by simply ignoring

PERCEIVED EQUITY

PERFORMANCE

EXTRINSIC REWARDS (OUTCOMES)

SATISFACTION

or not reinforcing that behaviour. Employees have questions about their jobs. Can I do

what management is asking me to do? If I do the job, will I be rewarded? Will the reward I

receive be satisfactory to me?

Reinforcement is based primarily on the work of B.F. Skinner, a psychologist, who experimented

with the theories of operant conditioning. Skinner's work shows that many behaviours can be con-

trolled through the use of rewards. In fact, a person might be influenced to change his or her beha-

viour by giving him or her rewards.

Employees who do an exceptionally good job on a particular project should be rewarded for that

performance. It will motivate them to try to do an exceptional job on their next project. Employees

must associate the reward with the behaviour. In other words, the employee must know for what

specifically he or she is being rewarded! The reward should come as quickly as possible after the

behaviour. The reward can be almost anything, but it must be something desired by the employee.

Some of the most powerful rewards are symbolic; things that cost very little but mean a lot to the

people who get them. Examples of symbolic rewards are things like plaques or certificates.

EFFECTS OF ORGANISATIONAL REWARDS.

Organisational rewards can affect attitudes, behaviours, and motivation. Thus is it important for

managers to clearly understand and appreciate their importance.

Effects of rewards on Attitudes: although employees’ attitudes such as satisfaction are not major

determinant of job performance, they are nonetheless important. They contribute ( or discourage)

absenteeism, affect turnover, and help establish the culture of the organisation.

Four major generalisations about employees’ attitudes and rewards:

· Employee satisfaction is influenced by how much is received and how much the individual

thinks he or she thinks should received.

· Employee satisfaction is affected by comparisons with what happens to others.

· Employees often misperceive the rewards of others. when employees believes that

someone else is making more money than that person really makes, the potential for

dissatisfaction increases.

· Overall job satisfaction is affected by how satisfied employees are with both the extrinsic

and the intrinsic rewards they derive from their jobs.

Effect of rewards on behaviours: an organisation’s primary purpose in giving rewards

is to influence employee behaviour. Extrinsic rewards affect employee satisfaction, which, in

turn, plays a major role in determining whether an employee will remain on the job or seek a new

job. Reward systems also influence patterns of attendance and absenteeism, and, if rewards are

based on actual performance, employees tend to work harder to earn those rewards.

Extrinsic and intrinsic rewards are related to job satisfaction. Extrinsic rewards are those that

the organisation provides based on employee performance and effort. Examples of extrinsic

rewards are pay rises, promotions, supervisor praise, job status symbols, and job security.

Intrinsic rewards are those that the employee experiences internally. For example, feelings of

competence, pride, and craftsmanship are intrinsic rewards of a job well done (Dailey 1988:43).

Topic: Motivation

Definition And PurposeMotivation is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal. In other words, motivation explains why people act as they do.

The better manager understands organization members’ behaviour, the more able that manager

will be to influence subordinates’ behaviour to make it more consistent with the accomplishment

of organizational objectives. In essence, since productivity is a result of the behaviour of

organization members, motivating organization members is the key to reaching organizational

goals.

The Role Of Individual Needs:

If managers have any success in motivating employees, they must understand the personal needs

of those employees. When managers offer rewards that are not relevant to employees’ personal

needs, the employees will not be motivated. Managers must be familiar with needs their employees

have and offer hem rewards that can satisfy these needs.

Motivating organization membersPeople are motivated to perform behaviour to satisfy their personal needs, therefore, from a

managerial point of view, motivation is the process of furnishing organization members with the

opportunity to satisfy their needs by performing productive behaviour within an organization. In

reality, managers do not motivate people. Rather, they create environments in which organization

members motivate themselves.

Strategies for motivating organization members.

Managers have various strategies at their disposal for motivating organization members. Each

strategy is aimed at satisfying subordinates’ needs through appropriate organizational behaviour.

These managerial motivation strategies are as follows:

· Managerial communication

· Theory X and Theory Y

· Job design

· Behaviour modification

· Monetary incentives

· Non-monetary incentives.

Managerial Communication: perhaps the most basic motivation strategy for managers is simply

to communicate well with organization members. Effective managerial- subordinate

communication can satisfy such basic human needs as recognition, a sense of belonging, and

security. Such a simple managerial action as attempting to become better acquainted with

subordinates can contribute substantially to the satisfaction of each of these three needs. Another

example is, a message praising a subordinate for a job well done can help satisfy the subordinates’

recognition and security needs.

As a general rule, managers should strive to communicate often with other organization members,

not only because communication is the primary means of conducting organization activities, but

also because it is a basic tool for satisfying the human needs of organization members.

THEORY X AND THEORY Y

Douglas McGregor identified two sets of assumptions:

Theory X involves negative assumptions about people that McGregor believes managers often use

as the basis for dealing with their subordinates (for example, the average person has an inherent

dislike for work and will avoid it whenever he/ she can)

Theory Y represents positive assumptions about people that McGregor believes managers should

strive to use (for example, people will exercise self-direction and self-control in meeting their

objectives)

McGregor implies that managers who use theory X are ‘bad’ and that those who use theory Y are

‘good’.

The basic rationale for using Theory Y rather than Theory X in most situations is that managerial

activities that reflect Theory Y assumptions generally are more successful in satisfying the human

needs of most organization members than are managerial activities that reflect Theory X

assumptions. Therefore, activities based on Theory Y assumptions are more apt to motivate

organization members than activities based on Theory X assumptions.

Homework: Find out about Theory Z

Job Design.

· A third strategy that managers can use to motivate employees involves designing jobs that

employees perform.

Job rotation: the first major step to overcome job boredom is job rotation. Job rotation is the

process of moving workers from one job to another rather than requiring them to perform only one

simple and specialized job over the long term. Although job rotation programs have been known to

increase organizational profitability, most of them are ineffective as motivation strategies because,

overtime, people become bored with all he jobs they are rotated into. Job rotation programs,

however, are often effective for achieving other organizational objective, such as training, because

they give individuals an overview of how the various units of the organization function.

Job Enlargement

Fredrick Herzberg has concluded from his research that the degree of satisfaction and

dissatisfaction organization members feel as a result of performing a job are two different

variables determined by two different sets of items. The items that influence the degree of job

satisfaction are called motivating factors, or motivators. Hygiene factors relate to the work

environment, and motivating factors to work itself.

Herzberg believes that when the hygiene factors of a particular job situation are undesirable,

workers will become dissatisfied. Making these factors more desirable for e.g. increasing

salary- will rarely motivate people to do a better job, but it will keep them from becoming

dissatisfied. In contrast, when the motivating factors of a particular job situation are high,

employees usually are motivated to do a better. In general, people tend to be more motivated

and productive as more motivators are built into a job situation. The process of incorporating

motivators into a job situation is called job enrichment.

Job Enrichment.

Job enrichment and productivity: Herzberg’s overall conclusions are that the most productive

workers are those involved in work situations that have both desirable hygiene and motivating

factors.

For example, the esteem needs can be satisfied by both types of factors. Esteem needs satisfied

by a hygiene factor is a private parking space- a status symbol and a working condition

evidencing the employee’s importance to the organization.

The esteem needs satisfied by a motivating factor is an award given for outstanding

performance- a public recognition of a job well done that displays the employee’s value to the

organization.

Behaviour modification:

A fourth strategy that managers can use to motivate organisation members is based on the

concept known as behaviour modification.

Although behaviour modification programs typically involve the administration of both

rewards and punishment, it is rewards that are generally emphasized because they are more

effective than punishments in influencing behaviour. According to the law of effect,, behaviour

that is rewarded tends to be repeated, while that which is punished tends to be eliminated.

Monetary incentives:

A number of firms make a wide range of money based compensation programs available to

their employees as a form of motivation. For example, lump-sum bonuses- one time cash

payments- and gain – sharing, a plan under which members of a team receive a bonus when

their team exceeds a goal.

Non –monetary incentives:

A firm can keep its employees committed and motivated by non-monetary means. For example

by promoting from within and emphasizing quality.

CASE STUDY-JOB SATISFACTION IS A MORE POWERFUL MOTIVATOR

THAN MONEY AT MICROSOFT.

Microsoft Corporation is a world- renowned developer of computer software. This is the

company that has developed such popular software packages as Microsoft windows, a

computer operating system; Microsoft word, word processing package, excel etc.

Microsoft has paid its employees exceeding well over the years. For example, those with more

than six years’ seniority stand a very good chance of becoming independently wealthy. The

typical salaried employee received a grant of 1,500 shares of Microsoft stock in 1982, which,

with regular company stock additions, compounded and untouched, was valued at over $5

million in 1995. there are at present at least 10,000 rank and file employees in the company

who stand to gain over $3 billion altogether simply by exercising their options to buy almost

50 million shares of Microsoft stock.

Despite their incredibly high compensation, which makes many Microsoft employees

financially independent, these employees have remained startling creative and productive over

the years. Just what motivates them to continue to do superb job when they don’t need any

more money? According to Mike Murray, the vice president for human resources and

administration at Microsoft, the fact that these millionaire employees have remained highly

productive proves that providing personally satisfying and interesting jobs is a far more

effective motivator over the long run than simply handing out more and more money.

Empowerment and participation: represent important methods that managers must use to

enhance employee motivation.

· Empowerment is the process of enabling workers to set their own goals, make decisions,

and solve problems within their sphere of responsibility and authority.

· Participation is the process of giving employees a voice in making decisions about their

own work. Thus, empowerment is a somewhat broader concept that promotes participation

in a wide variety of areas, including but not limited to work itself, work context, and work

environment.

The role of participation and empowerment in motivation can be expressed in terms of both the

content perspectives and the expectancy theory. Employees who participate in decision making

may be more committed to executing decisions properly. Furthermore, the successful process of

making a decision, executing it, and then seeing the positive consequences can help satisfy one’s

need for achievement, provide recognition and responsibility, and enhance self esteem. Simply

being asked to participate in organisational decision making also may enhance an employee’s self-

esteem. In addition, participation should help clarify expectancies; that is, by participating in

decision making, employees may better understand the linkage between their performance and the

rewards they want most.

Job sharing: when two part-time employees share one full-time job. Job sharing may be desirable

for people who want to work only part time or when the job market is tight. For its part, the

organisation can accommodate the preferences of a broader range of employees and may benefit

from the talents or more people.

Telecommuting: allowing workers to spend part of their time working off-site, usually at home. By

using e-mail, the internet and other forms of information technology, many employees can

maintain close contact with their organisation and still get just as much work done at home as they

do at the office. The increased power and sophistication of modern communication technology is

making telecommuting easier and easier.

Effects of Organisational rewards.

· Effect of reward on attitudes: although employee attitudes such as satisfaction are not

major determinant of job performance, they are nonetheless important. They contribute to

or discourage absenteeism, affect turnover, and help establish the culture of the

organisation. Four major generalisation can be drawn about employees attitudes and

rewards.

1. employee satisfaction is influenced by how much is received and how much the individual

thinks should be received.

2. employee satisfaction is affected by comparisons with what happens to others

3. employees often misperceive the rewards of others. When an employee believes that

someone else is making more money than that person really makes, the potential for

dissatisfaction increases.

4. overall job satisfaction is affected by how satisfied employees are with both the extrinsic

and intrinsic rewards they desire from their jobs.

· Effect of reward on behaviour: an organisation’s primary purpose of giving rewards is to

influence employee behaviour. Extrinsic rewards affect the employee satisfaction, which,

in turn, plays a major role in determining whether an employee will remain on the job or

seek a new job. reward systems also influence patterns of attendance and absenteeism; and,

if rewards are based on actual performance, employees tend to work harder to earn those

rewards.

Questions (Motivation):

1. Briefly describe the concept motivation and explain the motivation process. describe a

situation that illustrates the idea that performance is a function of ability and working

conditions , as well as motivation.

2. Explain the hierarchy of needs theory. Assume that you are a manager of a large fast food

outlet. How could this theory help you motivate the various individuals who work for you?

3. Outline the hygiene factors and motivators identified by Herzberg. Why might

managers find this theory appealing and useful?

4. Explain the four main types of reinforcement. For each one, identify a situation in which

you have seen that type used and assess the outcome.

5. What does Maslow’s hierarchy of needs tell us about the relationship between personal

needs and work place needs?

6. Describe Theory X and Theory Y. What does each of these theories tell us about

motivating workers?

7. Describe the relationship of hygiene factors, motivating factors, and job enrichment.

8. List three non-monetary incentives that you personally would find desirable as an

employee. Why would these incentives be desirable to you?

Decision-making.

9. Identify each step in the decision making process and describe briefly what should

happen in each step.

10. What are three (3) strategies a manager can use to create a more effective decision

making environment?

Organisational Change.

11. Describe three reasons that people resist change, and explain what managers can do to

overcome resistance.