Download - Employee Motivation
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Employee
Motivation
Presented To; GROUP OF EAGLES
Pr. Kashif Ammar NASIR KHAN
University of Sargodha AAMIR RAZA
SADIA GULL
MADEEHA ZUBAIR
AAMIR SAIF-ULLAH
M.B.A (Regular) Sec A
University of Sargodha
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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.
The definition of motivation is to give reason, incentive, enthusiasm, or interest that
causes a specific action or certain behavior. Motivation is present in every life function. Simple
acts such as eating are motivated by hunger. Education is motivated by desire for knowledge.
Motivators can be anything from reward to coercion. From the scientific viewpoint, by most
accounts, motivation is defined as an inner state of need or desire. That state of desire creates a
movement or activity towards satisfying that desire. In my never-ending quest to spread the word
about turning ideas into action, I view inspiration as the state of mind that primes us to come up
with great ideas, and motivation as the state of mind that spurs us to action.
Concept of Motivation
In order to understand the concept of motivation, we have to examine three terms :
motive, motivating and motivation and their relationship
Motive
―A motive is an inner state that energizes, activates, or moves and directs behavior towards
goals.‖
Motivating
―Motivating is a term which implies that one person includes another, to engage in action by
ensuring that a channel to satisfy the motive becomes available and accessible to the individ ual.‖
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Motivation
Dubin has defined motivation as;
―Motivation is the complex force starting and keeping a person at work in an organization.
Motivation is something that moves the person to action, and continues him in the course of
action already initiated‖
According to McFarland;
―Motivation refers to the way in which urges, drives, aspirations, strivings, or needs direct,
control, or explain the behavior of human being.
.NATURE OF MOTIVATION
1. Based on Motives: Motivation is based on individual‘s motives which are internal to the
individual. These motives are in the form of feelings that the individual lacks something. In
order to overcome this feeling, he tries to behave in a manner which helps in overcoming this
feeling.s
2. Affected by Motivating: Motivation is affected by way the individual is motivated. It can
also activate the latent needs in the individual, that is, the needs that are the less strong and
somewhat dormant, and harness them in a manner that would be functional for the
organization.
3. Goal–directed Behavior: Motivation leads to goal-directed behavior. A goal-directed
behavior is one which satisfies the cause for which behavior takes place.
4. Related to Satisfaction: satisfaction refers to the contentment experiences of an individual
which he derives out of need fulfillment. Thus satisfaction is a consequence of rewards and
punishments associated with past experiences.
5. Complex Process: Motivation is a complex process; complexity emerges because of the
nature of needs and the type of behavior that is attempted to satisfy those needs.
6. Person Motivated in Totality: A person is motivated in totality and not in part. Each
individual in the organization is a self-contained unit and his needs are interrelated. These
affect his behavior in different ways.
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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 behavior 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 behavior.
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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 and
Harness 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 with
Opportunities to fulfil their physiological and psychological needs. The workers will
Cooperate 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 and
Knowledge so that they are able to contribute to the progress of the organization. This will also
result in increased productivity.
3. The rates of labor‘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.
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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.
Motivation is the activation or energization of goal-oriented behavior;
Intrinsic
Extrinsic
From a practical standpoint, we can dig into our motives in order to get better results,
and move ourselves from point A to point B. For example, if you know what motivates you, you
can use those motives to get yourself to do things that you wouldn't do otherwise. These same
principles can be applied to motivating others as well.
Motivational techniques, therefore, are useful to teachers, leaders, parents, employers,
and really, almost anyone. The key is in understanding that you are not motivating someone else.
Instead, you are simply providing a circumstance that triggers that person to be motivation.
Intrinsic and Extrinsic Motivation
Intrinsic Motivation
Intrinsic motivation comes from rewards inherent to a task or activity itself - the
enjoyment of a puzzle or the love of playing. This form of motivation has been studied by social
and educational psychologists since the early 1970s. Research has found that it is usually
associated with high educational achievement and enjoyment by students. Intrinsic motivation
has been explained by Fritz Heider' attributional theory, Bandura's work on self effeciency,and
Ryan and Deci's cognitive evaluation theory. Students are likely to be intrinsically motivated if
they:
Attribute their educational results to internal factors that they can control (e.g. the amount
of effort they put in),
Believe they can be effective agents in reaching desired goals (i.e. the results are not
determined by luck),
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Are interested in mastering a topic, rather than just rote- learning to achieve good grades.
Extrinsic motivation
Extrinsic motivation comes from outside of the performer. Money is the most obvious
example, but coercion and threat of punishment are also common extrinsic motivations.
While competing, the crowd may cheer on the performer, which may motivate him or her
to do well. Trophies are also extrinsic incentives. Competition is in general extrinsic because it
encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the
activity. Social psychological research has indicated that extrinsic rewards can lead to over
justification and a subsequent reduction in intrinsic motivation. In one study demonstrating this
effect, children who expected to be (and were) rewarded with a ribbon and a gold star for
drawing pictures spent less time playing with the drawing materials in subsequent observations
than children who were assigned to an unexpected reward condition and to children who
received no extrinsic reward.
Motivation starts with you! As you aspire to be more successful in life, your attitude
towards yourself and others will play a huge role. Positive people learn how to handle life's
challenges differently and use these opportunities to grow. So can you!
Self Motivation
The self-control of motivation is increasingly understood as a subset of emotional
intelligence; a person may be highly intelligent according to a more conservative definition (as
measured by many intelligence test), yet unmotivated to dedicate this intelligence to certain
tasks. Yale School of Management Professor Victor Vroom's "expectancy theory" provides an
account of when people will decide whether to exert self control to pursue a particular goal.
Drives and desires can be described as a deficiency or need that activates behavior that is
aimed at a goal or an incentive. These are thought to originate within the individual and may not
require external stimuli to encourage the behavior. Basic drives could be sparked by deficiencies
such as hunger, which motivates a person to seek food; whereas more subtle drives might be the
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desire for praise and approval, which motivates a person to behave in a manner pleasing to
others.
Motivation Process
1. Identification of need
2. Tension
3. Course of action
4. Result –Positive/Negative
5. Feed back
TYPES OF NEEDS
There are many needs which an individual may have and there are various ways in which
these may be classified. The basic objective behind classification of needs into different
categories is to find out similarity and dissimilarity in various needs so that incentives are
grouped to satisfy the needs falling under one category or the other. Thus needs may be grouped
into three categories.
1. Primary Needs: Primary needs are also known as psychological , biological , basic or
unlearned needs . These needs are common to all human beings , though their intensity
may differ . Some of the needs are food , sleep , air to breathe etc. These needs arise out
of the basic physiology of life and are important for survival and preservation of species
These needs are conditioned by social practice .
2. Secondary Needs: As contrast to the primary needs, secondary needs are not natural but
are learned by the individual through his experience and interaction .Therefore, these
are also called learned or derived needs. Emergence of these needs depends on learning .
There may be different types of secondary needs like need of power, achievement,
status, affiliation, etc.
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3. General Needs: There are a number of needs which lie in the grey area between the
primary and secondary classifications. In fact, there are certain such needs for
competence, curiosity, manipulation, affection etc.
Motivation and Behavior
Motivation causes goal-directed behavior. Feeling of a need by an individual generates a
feeling that he lacks something. This lack of something creates tension in the mind of individual.
To overcome this state he engages himself in a behaviour to satisfy his needs. This is goal-
directed behaviour.
Goal-directed behavior leads to goal- fulfillment and the individual succeeds in fulfilling
his needs and thereby overcoming his tension in the favorable environment. Behavior ends the
moment tension is released. However, satisfaction of one need leads to feeling of another need.
Thus goal-directed behavior is a continuous process.
NEED TENTION
GOAL- DIRECTED
BEHAVIOUR
GOAL-FULFILMENT/
NEED SATISFACTION
FAVOURABLE
ENVIRONMENT
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FACTORS AFFECTING INDIVIDUAL PERFORMANCE
1. Motivation: Level of motivation derives an individual for work Motivation is based on
motive which is a feeling that an individual lacks something. This feeling creates some sort of
tension in his mind. In order to overcome this tension, he engages in goal-directed behavior.
Thus motivation becomes a prime mover for efforts and better work performance.
2. Sense of Competence : Sense of competence denotes the extent to which an individual
consistently regards himself as capable of doing a job. Sense of competence of an individual
depends to a very great extent on his locus of control. Locus of control means whether people
believe that they are in control of events or events control them.
3. Ability: Ability is expressed in the form of the following equation:
Ability = knowledge x skill
Knowledge refers to the possession of information and ideas in a particular field which may be
helpful in developing relationships among different variables related to that field . Skill refers to
expertness, practical ability or facility in action or doing something.
4. Role Perception: A role is the pattern of actions expected of a person in activities involving
others . Role reflects a person‘s position in the social system with its accompanying rights and
MOTIVATION
SENSE OF
COMPETENCE
ABILITY RESOURCES
REWARD PERFORMANCE
ROLE PERCEPTION
EXTRINSIC
INTRINSIC
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obligations. Role perception is how he thinks he is supposed to act in his own role and how
others act in their role. There are two types of problems which emerge in role specification:
Role ambiguity and role conflict. Role ambiguity denotes the state in which the individual is
not clear what is expected from him in the job situation. Role conflicts are the situation in which
the individual engages in two or more roles simultaneously and these roles are mutually
incompatible.
5. Organizational Resource: Organizational Resources denote various types of facilities –
physical and psychological – which are available at the work place Physical facilities include la –
physical and psychological – which are available at the work place. Physical facilities include
layout of the work place and physical environment.
Role of Motivation
Motivation is one among the various factors affecting individual performance. All
organizational facilities will go waste in the lack of motivated people to utilize the facilities
effectively. The importance of motivation in an organization may be summed up as follows:
1. High Performance Level: Motivated employees put higher performance as compared to
other employees. In a study it was found that motivated people employees worked close to 80-90
percent of their capability. High performance is a must for an organization being successful and
this performance comes by motivation.
2. Low Employee Turnover: Motivated employees stay in the organization and their
absenteeism is quite low. High turnover and absenteeism creates many problems in the
organization.
3. Acceptance of Organisational Changes: Organisations are created in the society. Because
of changes in society, organisation have to incorporate those changes to cope up with the
recruitment of the time. When thesechanges are introduced in the organisation, there is a
tendency to resist these changes by the employees. However if they are properly motivated, they
accept, introduce, and implement these changes keeping the organisation on the right track of
progress.
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THEORIES OF MOTIVATION
1. Herzberg's theory of motivators and hygiene factors:
Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people's
attitudes about work. He concluded that such factors as company policy, supervision,
interpersonal relations, working conditions, and salary are hygiene factors rather than
motivators. According to the theory, the absence of hygiene factors can create job dissatisfaction,
but their presence does not motivate or create satisfaction.
In contrast, he determined from the data that the motivators were elements that enriched a
person's job; he found five factors in particular that were strong determiners of job satisfaction:
achievement, recognition, the work itself, responsibility, and advancement. These motivators
(satisfiers) were associated with long-term positive effects in job performance while the hygiene
factors (dissatisfiers) consistently produced only short-term changes in job attitudes and
performance, which quickly fell back to its previous level.
In summary, satisfiers describe a person's relationship with what she or he does, many
related to the tasks being performed. Dissatisfies, on the other hand, have to do with a person's
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relationship to the context or environment in which she or he performs the job. The satisfiers
relate to what a person does while the dissatisfies relate to the situation in which the person does
what he or she does.
2. Maslow's hierarchy of needs (Deficient theory of Motivation)
In 1954, Maslow first published Motivation and Personality, which introduced his theory
about how people satisfy various personal needs in the context of their work. He postulated,
based on his observations as a humanistic psychologist, that there is a general pattern of needs
recognition and satisfaction that people follow in generally the same sequence. He also theorized
that a person could not recognize or pursue the next higher need in the hierarchy until her or his
currently recognized need was substantially or completely satisfied, a concept called prepotency.
Maslow's hierarchy of needs is shown in Table 1. It is often illustrated as a pyramid with the
survival need at the broad-based bottom and the self-actualization need at the narrow top.
Table 1
Maslow's hierarchy of needs
Level Type of Need Examples
1 Physiological Thirst, sex, hunger
2 Safety Security, stability, protection
3 Love and
Belongingness
To escape loneliness, love and be loved, and gain a
sense of belonging
4 Esteem Self-respect, the respect others
5 Self-actualization To fulfill one's potentialities
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(i) Physiological needs:
These are important needs for sustaining the human life. Food, water, warmth, shelter,
sleep, medicine and education are the basic physiological needs which fall in the primary list of
need satisfaction. Maslow was of an opinion that until these needs were satisfied to a degree to
maintain life, no other motivating factors can work.
(ii) Security or Safety needs:
These are the needs to be free of physical danger and of the fear of losing a job, property,
food or shelter. It also includes protection against any emotional harm.
(iii) Social needs:
Since people are social beings, they need to belong and be accepted by others. People try
to satisfy their need for affection, acceptance and friendship.
(iv) Esteem needs:
According to Maslow, once people begin to satisfy their need to belong, they tend to
want to be held in esteem both by themselves and by others. This kind of need produces such
satisfaction as power, prestige status and self-confidence. It includes both internal esteem factors
like self- respect, autonomy and achievements and external esteem factors such as states,
recognition and attention.
(v) Need for self-actualization:
Maslow regards this as the highest need in his hierarchy. It is the drive to become what
one is capable of becoming; it includes growth, achieving one‘s potential and self- fulfillment. It
is to maximize one‘s potential and to accomplish something.
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3. ERG theory
Clayton Alderfer, expanding on Maslow's hierarchy of needs, created the ERG theory
(existence, relatedness and growth).
Physiological and safety , the lower order needs, are placed in the existence category,
while love and self esteem needs are placed in the relatedness category. The growth category
contains our self-actualization and self-esteem needs. In addition to the differences in
categorizing human needs, ERG theory adds a regression hypothesis to go along with the
progression hypothesis originally proposed by Maslow.
Alderfer‘s regression hypothesis helped explain people‘s behavior when frustrated at meting
needs at the next higher level in the hierarchy.
4. McClelland’s Theory of Needs:
David McClelland has developed a theory on three types of motivating needs :
1. Need for Power
2. Need for Affiliation
3. Need for Achievement
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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 the
Surroundings. Power motivations positive applications results in domestic leadership style, while
it negative application tends autocratic style.
Need for affiliation
It is the related to social needs and creates friendship. This results in formation of
informal groups or social circle.
Basically people for high need for power are inclined towards influence and control. They
like to be at the center and are good orators. They are demanding in nature, forceful in manners
and ambitious in life. They can be motivated to perform if they are given key positions or power
positions.
In the second category are the people who are social in nature. They try to affiliate themselves
with individuals and groups. They are driven by love and faith. They like to build a friendly
environment around themselves. Social recognition and affiliation with o thers provides them
motivation.
McClelland observed that with the advancement in hierarchy the need for power and
achievement increased rather than Affiliation. He also observed that people who were at the top,
later ceased to be motivated by this drives.
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5. “Theory X and Theory Y” of Douglas McGregor:
McGregor, in his book ―The Human side of Enterprise‖ states that people inside the
organization can be managed in two ways. The first is basically negative, which falls under the
category X and the other is basically positive, which falls under the category Y. After viewing
the way in which the manager dealt with employees, McGregor concluded that a manager‘s view
of the nature of human beings is based on a certain grouping of assumptions and that he or she
tends to mold his or her behavior towards subordinates according to these assumptions.
Assumptions of theory X:
Employees inherently do not like work and whenever possible, will attempt to avoid it.
Because employees dislike work, they have to be forced, coerced or threatened with
punishment to achieve goals.
Employees avoid responsibilities and do not work fill formal directions are issued.
Most workers place a greater importance on security over all other factors and display
little ambition.
Assumptions of theory Y:
Physical and mental effort at work is as natural as rest or play.
People do exercise self-control and self-direction and if they are committed to those
goals.
Average human beings are willing to take responsibility and exercise imagination,
ingenuity and creativity in solving the problems of the organization.
That the way the things are organized, the average human being‘s brainpower is only
partly used.
On analysis of the assumptions it can be detected that theory X assumes that lower-order
needs dominate individuals and theory Y assumes that higher-order needs dominate individuals.
An organization that is run on Theory X lines tends to be authoritarian in nature, the word
―authoritarian‖ suggests such ideas as the ―power to enforce obedience‖ and the ―right to
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command.‖ In contrast Theory Y organizations can be described as ―participative‖, where the
aims of the organization and of the individuals in it are integrated; individuals can achieve their
own goals best by directing their efforts towards the success of the organization.
However, this theory has been criticized widely for generalization of work and human behavior.
6. Equity Theory
As per the equity theory of J. Stacey Adams, people are motivated by their beliefs about the
reward structure as being fair or unfair, relative to the inputs. People have a tendency to use
subjective judgment to balance the outcomes and inputs in the relationship for comparisons
between different individuals. Accordingly:
If people feel that they are not equally rewarded they either reduce the quantity or quality of
work or migrate to some other organization. However, if people perceive that they are rewarded
higher, they may be motivated to work harder.
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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.
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Need for Incentives
Man is a wanting animal. He continues to want something or other. He is never fully
Satisfied. 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 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
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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.
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
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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 that
Associates, 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.
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
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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 do
Things 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.
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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
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
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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 be
Used 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.
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 Workweek
Flexible work hours
Job sharing
Telecommuting
Pay of Performance System
Open-book management
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Rewards and Recognition
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
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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 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 o f 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.
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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.
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.
Employee Motivation using Team Rewards
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Motivation - the need for meaningful self- fulfillment, 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.
Honors‘ 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.
Costs the organization 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
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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
organization 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.
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)
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Employee Motivation
Why do we need motivated employees? The answer is survival (Smith, 1994). Motivated
employees are needed in our rapidly changing workplaces. Motivated employees help
organizations survive. Motivated employees are more productive. To be effective, managers
need to understand what motivates employees within the context of the roles they perform. Of all
the functions a manager performs, motivating employees is arguably the most complex. This is
due, in part, to the fact that what motivates employees changes constantly (Bowen &
Radhakrishna, 1991). For example, research suggests that as employees' income increases,
money becomes less of a motivator (Kovach, 1987). Also, as employees get older, interesting
work becomes more of a motivator.
Most companies have it all wrong. They don't have to motivate their employees. They
have to stop demotivating them.
The great majority of employees are quite enthusiastic when they start a new job. But in
about 85 percent of companies, our research finds, employees' morale sharply declines after their
first six months—and continues to deteriorate for years afterward. That finding is based on
surveys of about 1.2 million employees at 52 primarily Fortune 1000 companies from 2001
through 2004, conducted by Sirota Survey Intelligence (Purchase, New York).
The fault lies squarely at the feet of management—both the policies and procedures
companies employ in managing their workforces and in the relationships that individual
managers establish with their direct reports.
Three key goals of people at work
To maintain the enthusiasm employees bring to their jobs initially, management must
understand the three sets of goals that the great majority of workers seek from their work—and
then satisfy those goals:
Equity: To be respected and to be treated fairly in areas such as pay, benefits, and job
security.
Achievement: To be proud of one's job, accomplishments, and employer.
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Camaraderie: To have good, productive relationships with fellow employees.
According to various literature on motivation, individuals often have problems
consistently articulating what they want from a job. Therefore, employers have ignored what
individuals say that they want, instead telling employees what they want, based on what
managers believe most people want under the circumstances. Frequently, these decisions have
been based on Maslow's needs hierarchy, including the factor of prepotency. As a person
advances through an organization, his employer supplies or provides opportunities to satisfy
needs higher on Maslow's pyramid.
Frederick has tried to modify Maslow‘s need Hierarchy theory. His theory is also known
as two-factor theory or Hygiene theory. He stated that there are certain satisfiers and dissatisfiers
for employees at work. In- trinsic factors are related to job satisfaction, while extrinsic factors
are associated with dissatisfaction. He devised his theory on the question : ―What do people want
from their jobs ?‖ He asked people to describe in detail, such situations when they felt
exceptionally good or exceptionally bad. From the responses that he received, he concluded that
opposite of satisfaction is not dissatisfaction. Removing dissatisfying characteristics from a job
does not necessarily make the job satisfying. He states that presence of certain factors in the
organization is natural and the presence of the same does not lead to motivation. However, their
nonpresence leads to demotivation. In similar manner there are certain factors, the absence of
which causes no dissatisfaction, but their presence has motivational impact.