Motivation Incentive and Performance 152

download Motivation Incentive and Performance 152

of 34

Transcript of Motivation Incentive and Performance 152

  • 8/6/2019 Motivation Incentive and Performance 152

    1/34

    Motivation,

    Incentive &

    Performance

  • 8/6/2019 Motivation Incentive and Performance 152

    2/34

    Motivation Some components

    Inclination what I feel I want to do active/passive,conscious/sub-conscious Direction what I am trying to do Action what I do do Effort how hard I try Persistence how long I keep trying

    How we construe expectations, needs, drives, efforts and results(actual & 'rationalised'/felt) - self & others

    The employment concerns? How to "motivate people to give theirall"

    Effort, performance, retention, loyalty, membership, commitment, trust,empowerment, participation, work design

    Extrinsic & intrinsic rewards Expectancy & equity

    Rhetoric vs. reality of management practice

    Self-awareness & delusion "Mirror, mirror on the wall".

    Motivation & "normal" behaviour vs. the well-motivated criminal.

  • 8/6/2019 Motivation Incentive and Performance 152

    3/34

    Who wants what from motivation?

    The person Health & well-being, safety/order, social affiliation/acceptance,recognition & rewards (extrinsic/intrinsic, stimulus & incentive.Feelings of self-worth/value, command of destiny, realisation ofpersonal aspirations/expectations. Equity. Power. Affiliation

    The employer

    Trusted, reliable employees who give their all, Ability to construe employee motivation, needs & drives + relate to:

    effort, economic efficiency, performance, retention, loyalty &commitment, membership culture, empowerment, obligation-duty,participation & contribution, work design, better teams

    Others

    Interpersonal confidence, liking and rapport, mutual confidence andcollaboration, shared values, not to be let down.

    What is the problem?

  • 8/6/2019 Motivation Incentive and Performance 152

    4/34

    Idiosyncrasies and patterns

    Idiosyncracies & perceptions of work, personal position andentitlements

    Individual differences - the unique self - my construction Common patterns of cognition, behaviour, attitude

    Group and cultural influences Me - myself, you

    "you scheming, conniving, persistent, grabbing, selfish,

    resentful person .. you . and .. you are a capitalist toboot...... one of 'them' ... a typical Lilliputian ...... I've read

    all about you in Cosmopolitan."

  • 8/6/2019 Motivation Incentive and Performance 152

    5/34

    Pay-offs in the Employer-Employee Relationship(after Mumford 1972)

    Task structureWork within firms policy, procedure & technical constraints. Jobroles, work arrangements & relationships

    Knowledge & skillEmployer wants know-how, competence, experience. Employee

    wants to be put to good use & be developed

    PsychologicalManagement & co-workers want committed, loyal, motivated staff.

    Individual wants satisfaction

    Efficiency/rewardsEmployer wants performance & output to a quality standard.

    Employee wants equitable, felt-fair rewards & opportunity

    EthicalValues & ambiguities/inconsistencies in right/wrong behaviour

  • 8/6/2019 Motivation Incentive and Performance 152

    6/34

    Evaluate the following propositions:

    Good pay helps to diminish problems of high absenteeism.

    The buzz of high morale & emphasis on teamwork means thatthere is moral pressure not to let workmates down. This isreinforced by prominently displaying

    costs of absenteeism

    discussing reasons for absence with absentees saying how fellow team members are hurt by absenteeism.

    There is no direct way motivation can be measured. Indicatorscan be obtained thru

    observation, conversation and the stories people tell

    attitude surveys

    productivity data

    absenteeism, retention

    moans & gripes

    analysis of performance reviews

  • 8/6/2019 Motivation Incentive and Performance 152

    7/34

    Role modelling theory Maier 1959

    Role ambiguity may result from uncertainty about How one's work is evaluated Scope for advancement

    Scope of responsibility

    Others expectations of one's performance

    It can cause Insecurity, lack of confidence,tension, irritation and even anger amongst

    members of a role set

    These will be communicated more often than satisfaction / feelings of beingwell motivated.

    Natural critical/evaluative tendencies, blaming others, disgruntlement

    Also consider

    role underload/overload capacity & stress

    demands, choices & constraints

    conflict & ambiguity

  • 8/6/2019 Motivation Incentive and Performance 152

    8/34

    Examination Question

    Evaluate the truth of the following proposition. How well does itpoint the way to robust, theoretically sound principles that guide

    our understanding of employee motivation?

    Proposition

    "The acquisition and development of employee skills through

    sophisticated and systematic selection, induction, training and

    appraisal has a positive impact on quality & productivity. It will

    lead to better motivation within the company"

  • 8/6/2019 Motivation Incentive and Performance 152

    9/34

    Would I really work for you without reward?

    fundamental to employee contract traditional economic exchange model. Pay-effort

    determinism

    "rate for the job" occupational norms, expectations and choices

    expediency - "suitable for my life package at the moment"

    Etzioni & organisational membership Systems employers use

    Coercive - Remunerative - Normative Employee responses

    Alienated - Instrumental - Moral involvement

  • 8/6/2019 Motivation Incentive and Performance 152

    10/34

    The person-as-economist expects........

    ROI - time, effort, commitment

    "What's in it for me?" calculation Conscious subconscious (self image and comparisons)

    Fairness (equitable socio-economic exchange) interpret rewards/pay-offs of others

    judge what is fair/unfair

    satisfaction if each party achieves a balance (relative equality)

    Psychological extension to neutral, economic model Construing the value & importance of input-output

    Social, psychological - individual & group Validation of personal perceptions & comparisons clear/distorted

    internal/external

  • 8/6/2019 Motivation Incentive and Performance 152

    11/34

    Design Features of Reward Systems

    Monetary

    Time-based (not directly related to performance)

    Performance-linked

    Output, %, PRP, merit pay, commission, skill-based

    collective-output schemes

    Corporate performance-related bonuses + profit sharing

    Monetary-equivalent

    Car, phone, holidays, loans, accommodation, fees, vouchers

    Deferred (promotion, pension)

    Non-monetary / intrinsic benefits - safety, status, recognition,

    plaques, contribution and empowerment

    Negatives pressure, penalties, harassment, side-lining, dismissal

  • 8/6/2019 Motivation Incentive and Performance 152

    12/34

    Pay by time schemes - Components

    simple to administer

    defined time F/T, P/T, mixed-time, casual

    no attendance, no pay? Hourly, weekly, monthly

    premiums 1.5T, 2T, nights

    Flexi-time schemes

    Door knob syndrome

    job grading/evaluation - evaluate the job not the person doing it

    control mechanisms & tools clocks, supervision, time sheets?

    performance assumptions

    trust, competence, diligence, fidelity, care, good-will, cooperation

    work forErin Er time vs ...in your time?

    supervision & monitoring - When the cats away?

    Is actual presence necessary? Off-site working.

    life increments - pay & career progression, security?

  • 8/6/2019 Motivation Incentive and Performance 152

    13/34

    PRP, merit pay, skill-based schemes

    Requires

    targeting, information & measurement

    manager appraisal & judgement

    problems of "big scheme" rules and controls

    Pay linked to individual merit (behaviours, traits & competencies:

    flexibility, cooperation, punctuality, effort, skills/abilities).

    concrete individual or group targets

    Staff appraisal criteria, rating, and exchange/intervention

    process

  • 8/6/2019 Motivation Incentive and Performance 152

    14/34

    Performance-Related Pay (PRP)

    extensive but partial & sectoral

    little research data on effectiveness

    pay linked to specific aspect of performance intensity of MbO approach

    problem of defining the group + outputs what if key results not achieved?

    how is control and consistency achieved?

    fairness + validation of "the manager's judgment"

    merit pay or bonus addition to salary for this appraisal roundonly?

    The neurosis of "targetitis"

    "Fat cat bonuses" envy + "global market for stars" +formulae + intervention?

  • 8/6/2019 Motivation Incentive and Performance 152

    15/34

    Defining jobs

    how can a manager operate effectively if he/she does notunderstand & cannot define staff jobs?

    shared understanding about what the job is reliable, factual definition of scope of job & responsibilities

    useful for organisational design & analysis of change?

    help to clarify role & provide a reference point for induction,recruitment, performance assessment & grading?

    a basis for the job advert & recruitment literature?

    indicates competence required - generic + job specific

    confining, time consuming, out-of-date in a flexible organisation

    Contractual?"Job descriptions - - Burn the lot of 'em"

    Robert Townsend, Up the Organisation

    "Job descriptions - - Burn the lot of 'em"

    Robert Townsend, Up the Organisation

  • 8/6/2019 Motivation Incentive and Performance 152

    16/34

    Job definition elements

    Job definition Title, reporting relationships (up, down, sideways, external) job summary, responsibilities, duties, scope of authority

    MbO/R: key result areas, yardsticks of performance, evaluation data

    contractual provisions

    Competence specification levels, range of situations, performance indicators,

    knowledge/wisdom, experience, skills (psycho-motor, technical,

    analytical, literary, spoken, numeric, social & emotional)

    The competences this organisation values

    Role & performance analysis

    Personnel specification (person profile) characteristics of ideal candidate Essentials - desirables - disqualifiers. Motivators

    Psychometric-objective selection - fit person to job Biodata, interviews, various tests, references

  • 8/6/2019 Motivation Incentive and Performance 152

    17/34

    MbO Record

    Name Job/Role Date

    Key Job Area Objective/Target to beAchieved

    Data for

    Monitoring

    Training/LearningNeeds

    1.

    2.

    3.

    4.

    Progress Review Dates

    Notes on Achievements/Progress

    Signed: (Post-holder)Signed: (Post-holder) Signed: (Manager)Signed: (Manager)

  • 8/6/2019 Motivation Incentive and Performance 152

    18/34

    Emotional & social dynamics & expectations

    Important for employee belief & commitment Impact of rules-of the-scheme (formal contract) on

    individual sensitivity (psychological contract).

    personal expectations

    + formal/informal exchange Er Ee

    my manager as

    employer (by proxy)

    as a person I like/dislike, respect?

    How I "see" what others are getting - internally & externally

  • 8/6/2019 Motivation Incentive and Performance 152

    19/34

    Organisational "Culture" Problems

    conscious calculation & instrumentality? Take-it or leave it + "9-5" sub-optimisation rangible over non-tangible rewards organisational rationalisation of effort-reward

    relationship

    structural inflexibility of reward packages constructing & controlling the performance review and

    PRP system

    genuine involvement & participation delegation, reliance & confidence

  • 8/6/2019 Motivation Incentive and Performance 152

    20/34

    How well has work-motivation theory dealt with this?

    Maslow, Alderfer, McClelland - Herzberg- hygiene & motivators, job redesign

    Concern with individual needs/goals

    emphasis on what motivates

    general, universal

    Needs & satisfactions

    Content (What it is & its elements)

    Maslow, Alderfer, McClelland - Herzberg- hygiene & motivators, job redesign

    Concern with individual needs/goals

    emphasis on what motivates

    general, universal

    Needs & satisfactions

    Content (What it is & its elements)

    Attribution theory

    Adams - Equity theory

    Vroom, Lawler - Expectancy theory

    Hackman & Oldham - job characteristics

    McGregor: Theory X and Theory Y

    "on managing . this approach is better"

    dynamic, emphasis on process - how it occurs

    prescriptive responses

    Process

    Attribution theory

    Adams - Equity theory

    Vroom, Lawler - Expectancy theory

    Hackman & Oldham - job characteristics

    McGregor: Theory X and Theory Y

    "on managing . this approach is better"

    dynamic, emphasis on process - how it occurs

    prescriptive responses

    Process

    Behavioural

    Focus on behaviour

    Responses to stimuli - external

    Avoidance learning & punishment

    reinforcement & behaviour modification theory(operant conditioning)

    Behavioural

    Focus on behaviour

    Responses to stimuli - external

    Avoidance learning & punishment

    reinforcement & behaviour modification theory(operant conditioning)

    Cognitive

    Consciousness/rationality

    Goals & behaviour e.g. Locke - goal setting

    Known & calculable

    e.g. homo economicus

    Learning

    Cognitive

    Consciousness/rationality

    Goals & behaviour e.g. Locke - goal setting

    Known & calculable

    e.g. homo economicus

    Learning

  • 8/6/2019 Motivation Incentive and Performance 152

    21/34

    Abraham Maslow 1954 - Need Satisfaction

    Needs

    Behaviour/

    Action

    Goals

    achievedrive

    satisfy

    teleology

    goal-orientation

  • 8/6/2019 Motivation Incentive and Performance 152

    22/34

    Abraham Maslow - Hierarchy of Needs

    Influential Content of motivation (needs that

    motivate) theory - not personality

    Classified needs lower needs must be satisfied

    before higher needs are activated

    Chronic need deficiency (neurosis?)motivations action

    gratified needs - equilibrium

    snakes and ladders or lower needs mediated by higher

    order consciousness?

    simple descriptive, partial nb: Alderfer ERG - existence,

    relatedness, growth)

    cognitive & developmental

  • 8/6/2019 Motivation Incentive and Performance 152

    23/34

    What is Self Actualisation?

    difficult to define

    uniquely human motive? a way of life > a goal. not a need but on-going

    growth/development process.

    Example characteristics

    accurate perception of reality.

    accept selves & others.

    spontaneous, open & natural

    problem centred > self centred pacific calm, serene in nasty situations.

    dont take things for granted.

    peak experiences.

    affection & regard for others

    capable of deep satisfying relationships

    democratic, ethical

    creative, sense of humour.

    independent of enculturisation

    Example characteristics

    accurate perception of reality.

    accept selves & others.

    spontaneous, open & natural

    problem centred > self centred pacific calm, serene in nasty situations.

    dont take things for granted.

    peak experiences.

    affection & regard for others

    capable of deep satisfying relationships

    democratic, ethical

    creative, sense of humour.

    independent of enculturisation

    Becoming Self-Actualised?

    Be willing to change. Take responsibility.

    Examine your motives. Experience honestly & directly. Use positive experiences. Be prepared to be different.

    Becoming Self-Actualised?

    Be willing to change. Take responsibility.

    Examine your motives. Experience honestly & directly. Use positive experiences. Be prepared to be different.

  • 8/6/2019 Motivation Incentive and Performance 152

    24/34

    Self-actualised? Human like everyone else..

    displays frailty & failings, ups & downs. emotional, critical attitudes towards others urge to decide for themselves

    may say "NO" & be unpredictable - own destiny.wants reasons without always wishing to conform. accepts need for conformity most of the time to serve

    their interests

    avoids being selfish & ego-centred (denying space toothers).

  • 8/6/2019 Motivation Incentive and Performance 152

    25/34

    wholeness (unity, tendency to oneness,interconnectedness)

    perfection (just-right-ness, suitability) completion (fulfilment, finis & telos) justice (fair, orderly,ought-to-be-ness)

    alive (process, self-regulation, full-functioning) richness (differentiation, complexity,

    intricacy)

    simplicity (honesty, openness, essentials)

    beauty (rightness, form, wholeness,perfection, honesty)

    goodness (rightness, ought-ness,benevolence)

    uniqueness (individuality) effortlessness (ease, at-one-ness graceful)

    playfulness (joy, humour, exuberance) truth, honesty, reality (open, clean,

    unadulterated, essential)

    self-sufficiency (autonomous, self-determining, transcendence)

    Much to live up to

    Maslow on (B)eing values - qualities of "ethical, virtuous person

    Toward a Psychology of Being (1968)

  • 8/6/2019 Motivation Incentive and Performance 152

    26/34

    Critique of Maslow

    simple, plausible, general useful descriptive value? fudgey, vague, nave, nice but untestable concepts hydraulic assumption : satisfy needs to boost bigger &

    better "motivated" tendencies

    pressures on people to Limit scope for self-actualisation

    Be self-actualised (self-development movement)

    cant predict behaviour in given situations. self actualisation : a positive, attractive, humanist concept We would all like to see ourselves as self-actualised.

  • 8/6/2019 Motivation Incentive and Performance 152

    27/34

    Eric Trist - what people want from their jobs

    Reasonably demandingwork with some variety

    Opportunity to learn Some decision making

    Social support andrecognition Significance & meaning Some desirable future

    Job design principlesAt the level of the individual

    Respect

    Contribution to product

    Quantity & quality - feedback results

    quickly Meaningful whole task

    A whole job - plan, do, evaluate

    Variety

    Optimum cycle times

    At the level of the group? Whole, meaningful task

    Set standards, feedback on results

    Ways of discussing jobs

    Attractive future possibilities

  • 8/6/2019 Motivation Incentive and Performance 152

    28/34

    Work restructuring

    Workgroup

    empowerment

    job enrichment

    as enlargement

    role of supervisor

    rewardsystems

    role of service

    functions?

    information

    systems

    technology

    consultation unionisation?

    management

    style organisation

    structure

    organisation

    culture

    membership

    commitments

    out sourcingplace

    matrix

    Core - peripheral

  • 8/6/2019 Motivation Incentive and Performance 152

    29/34

    Job restructuring

    Tasks

    Add new & different tasks

    Increase cycle time

    Add ancillary & preparatory tasks

    Work organisation

    Job enrichment

    Empowerment

    Own work method

    Planning/organising

    Problem-solvingGoal setting

    Flexible pace and hours

    Flexible location

    Information feedback

    Opportunities

    Flexible rewards

    Further skills/learning

    Challenge

    Self supervision

    Networking

    Work/job attributes

    Work variety

    Use of skills/abilities

    Meaningful/worthwhile

    ContributionAdvancement prospects

    Accountability &

    responsibility

    Discretion & decisions

    Autonomy

    Implications

    Benefits

    Disadvantages

    Outsourcing?

    Call centres?

    Virtual teams?

    Teleworking?Social impact

  • 8/6/2019 Motivation Incentive and Performance 152

    30/34

    Expectancy theory (the process of motivation)

    Motivated to perform because ofexpectations relating to perceivedpayoffs from the performance.

    ______

    Desirability of payoffs (valence),perception of expectancy + force ofexpression - intrinsic to the person.

    ______

    Personal view of what is challengingor interesting, important to self +valuation of extrinsic payoffs - pay &

    material rewards

    expectancy - If I tried could I doit? Get away with it?

    Instrumentality - if I did it will Iattain the outcome?

    valence (subjective valuation) -do I really value what's

    available?

    Expressed as probabilities.

    Path-goal relationships whichexplain motivation

    performance.

    assoc.. with Vroom & Lawler/Porter

  • 8/6/2019 Motivation Incentive and Performance 152

    31/34

    Expectancy Theory - Vroom et al

    valence

    A robust explanatory, predictive model?

    How the individual construes it all?

  • 8/6/2019 Motivation Incentive and Performance 152

    32/34

    Adams & Equity - an impossible ideal?

    Felt-fairness - how I am treated in relation to others

    Equity balance sheet & "the last straw "What you gain on the swings.." Trust/good-will

    No more thats it for me!

    Internal & external comparisons (groups & individuals)

    Feelings & perceptions - not synonymous with equality

    Proposition better motivated if treated equitably & consistently

    distributive equity

    how I perceive I am treated & rewarded in comparison to others procedural equity

    how I see organisational procedures being applied

  • 8/6/2019 Motivation Incentive and Performance 152

    33/34

    Equity and Justice

    Distributive justicehow rewards are distributed in accordance with

    my contribution & need

    what was promised.

    Procedural equityhow reward decisions are made & managed

    adequate consideration of employees viewpoint

    no personal bias

    consistent application of criteria

    early feedback on outcome of decisions adequate explanation of decisions made

  • 8/6/2019 Motivation Incentive and Performance 152

    34/34

    Organisational initiatives

    job design & flexibility - matching people to jobs MbO - defining expectations and feedback teams & semi-autonomous groups, empowerment concern for staff development, competencies and accreditation

    effort to refine & deliver reward packages that "motivate" -PRP managerial behaviours constant organisational vigilance & sensitivity a rewarding, supportive climate and cultures that foster confidence & identification (one-ness with the firm)

    meaningful, practical commitment?