employee motivation theory and practice

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Employee Motivation: Theory andpractice

The job of a manager in the workplace is to get things done through employees. To dothis the manager should be able to motivate employees. But that's easier said than done!

Motivation practice and theory are difficult subjects, touching on several disciplines.

In spite of enormous research, basic as well as applied, the subject of motivation is not

clearly understood and more often than notpoorly practiced. To understand motivation

one must understand human nature itself. And there lies the problem!

Human nature can be very simple, yet very complex too. An understanding and

appreciation of this is a prerequisite to effective employee motivation in the workplaceand therefore effective management and leadership.

These articles on motivation theory and practice concentrate on various theories

regarding human nature in general and motivation in particular. Included are articles on

the practical aspects of motivation in the workplace and the research that has beenundertaken in this field, notably by Douglas McGregor(theory y),Frederick Herzberg

(two factor motivation hygiene theory,)Abraham Maslow (theory z, hierarchy of needs),

Elton Mayo (Hawthorne Experiments) Chris ArgyrisRensis Likert and DavidMcClelland (achievement motivation.)

Why study and apply employee motivation principles?

Quite apart from the benefit and moral value of an altruistic approach to treating

colleagues as human beings and respecting human dignity in all its forms, research and

observations show that well motivated employees are more productive and creative. Theinverse also holds true. The schematic below indicates the potential contribution the

practical application of the principles this paper has on reducing work content in the

organization.
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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 orotherwise 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.

Positive reinforcement / high expectations
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Effective discipline and punishment

Treating people fairly

Satisfying employees needs

Setting work related goals

Restructuring jobs

Base rewards on job performance

These are the basic strategies, though the mix in the final 'recipe' will vary fromworkplace situation to situation. Essentially, there is a gap between an individuals 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. It is inducing others

in a specific way towards goals specifically stated by the motivator. Naturally, thesegoals as also the motivation system must conform to the corporate policy of the

organization. The motivational system must be tailored to the situation and to the

organization.

In one of the most elaborate studies on employee motivation, involving 31,000 men and

13,000 women, the Minneapolis Gas Company sought to determine what their potential

employees desire most from a job. This study was carried out during a 20 year period

from 1945 to 1965 and was quite revealing. The ratings for the various factors differedonly slightly between men and women, but both groups considered security as the highest

rated factor. The next three factors were;

advancement

type of work company - proud to work for

Surprisingly, factors such as pay, benefits and working conditions were given a low

rating by both groups. So after all, and contrary to common belief, money is not theprime motivator. (Though this should not be regarded as a signal to reward employees

poorly or unfairly.)

Next | Thetheorists and their theories (1 of 2)

Home / Employee Motivation / Theory and Practice / Theorists 1

Employee motivation, the organizational environment and productivity
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Motivation theorists and their theories (1 of 2)

Although the process of management is as old as history, scientific management as we

know it today is basically a twentieth century phenomenon. Also, as in some other fields,practice has been far ahead of theory.

This is still true in the field of management, contrary to the situation in some of the pure

sciences. For instance, Albert Einstein, formulates a theory, which is later proved by

decades of intensive research and experimentation. Not so in the field of management.

In fact this field has been so devoid of real fundamental work so far, that Herbert A.Simon is the first management theoretician to win the Nobel Prize for Economics in

1978. His contribution itself gives a clue to the difficulty, bordering on impossibility, of

real fundamental work in this field concerned with people. In order to arrive at a correctdecision, the manager must have all the information necessary relevant to the various

factors and all the time in the world to analyze the same.

This is seldom, if ever, the case. Both the information available and the time at the

managers disposal are limited, but he or she must make a decision. And the decision is,therefore, not the optimum one but a 'satisficing' one - in effect, a satisfactory

compromise under the real conditions prevailing in the management 'arena'.

Traditional theory 'X'

This can best be ascribed to Sigmund Freud who was no lover of people, and was farfrom being optimistic. Theory X assumes that people are lazy; they hate work to the

extent that they avoid it; they have no ambition, take no initiative and avoid taking any

responsibility; all they want is security, and to get them to do any work, they must berewarded, coerced, intimidated and punished. This is the so-called 'stick and carrot'philosophy of management. If this theory were valid, managers will have to constantly

police their staff, whom they cannot trust and who will refuse to cooperate. In such an

oppressive and frustrating atmosphere, both for the manager and the managed, there is no

possibility of any achievement or any creative work. But fortunately, as we know, this is

not the case.

Theory 'Y' - Douglas McGregor

This is in sharp contrast to theory 'X'. McGregor believed that people want to learn and

that work is their natural activity to the extent that they develop self-discipline and self-development. They see their reward not so much in cash payments as in the freedom to

do difficult and challenging work by themselves. The managers job is to 'dovetail' the

human wish for self-development into the organizations need for maximum productiveefficiency. The basic objectives of both are therefore met and with imagination and

sincerity, the enormous potential can be tapped.
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themselves. His prescription for human salvation is simple, but not easy: 'Hard work and

total commitment to doing well the job that fate or personal destiny calls you to do, or

any important job that "calls for" doing'.

Maslow has had his share of critics, but he has been able to achieve a refreshing synthesis

of divergent and influential philosophies of:

Marx - economic and physical needs;

Freud - physical and love needs;

Adler - esteem needs;

Goldstein - self-actualization.

Next | The theorists and their theories (2 of 2

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Motivation theorists and their theories (2 of 2)

Frederick Herzberg- Hygiene / Motivation Theory

This is based on analysis of the interviews of 200 engineers and accountants in the

Pittsburgh area in the USA. According to this theory, people work first and foremost in

their own self-enlightened interest, for they are truly happy and mentally healthy through

work accomplishment. Peoples needs are of two types:

Animal Needs (hygiene factors)

Supervision

Interpersonal relations

Working conditions

Salary

Human Needs (motivators)

Recognition

Work

Responsibility

Advancement
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Unsatisfactory hygiene factors can act as de-motivators, but if satisfactory, their

motivational effect is limited. The psychology of motivation is quite complex and

Herzberg has exploded several myths about motivators such as:

shorter working week;

increasing wages; fringe benefits;

sensitivity / human relations training; communication.

As typical examples, saying 'please' to shop-floor workers does not motivate them to

work hard, and telling them about the performance of the company may even antagonize

them more. Herzberg regards these also as hygiene factors, which, if satisfactory, satisfyanimal needs but not human needs.

Chris Argyris

According to Argyris, organization needs to be redesigned for a fuller utilization of the

most precious resource, the workers, in particular their psychological energy. Thepyramidal structure will be relegated to the background, and decisions will be taken by

small groups rather than by a single boss. Satisfaction in work will be more valued than

material rewards. Work should be restructured in order to enable individuals to developto the fullest extent. At the same time work will become more meaningful and

challenging through self-motivation.

Rensis Likert

Likert identified four different styles of management:

exploitative-authoritative;

benevolent-authoritative;

consultative;

participative.

The participative system was found to be the most effective in that it satisfies the wholerange of human needs. Major decisions are taken by groups themselves and this results in

achieving high targets and excellent productivity. There is complete trust within the

group and the sense of participation leads to a high degree of motivation.

Fred Luthans

Luthans advocates the so-called 'contingency approach' on the basis that certain practiceswork better than others for certain people and certain jobs. As an example, rigid, clearly

defined jobs, authoritative leadership and tight controls lead in some cases to high

productivity and satisfaction among workers. In some other cases just the opposite seems
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to work. It is necessary, therefore, to adapt the leadership style to the particular group of

workers and the specific job in hand.

Victor Vroom

Vroom's 'expectancy theory' is an extension of the 'contingency approach'. The leadershipstyle should be 'tailored' to the particular situation and to the particular group. In some

cases it appears best for the boss to decide and in others the group arrives at a consensus.

An individual should also be rewarded with what he or she perceives as important ratherthan what the manager perceives. For example, one individual may value a salary

increase, whereas another may, instead, value promotion. This theory contributes an

insight into the study of employee motivation by explaining how individual goals

influence individual performance.

We have discussed above only a selection of the motivation theories and thoughts of the

various proponents of the human behavior school of management. Not included here are,

among others, the thoughts of:

Seebohm Rowntree - labor participation in management;

Elton Mayo - the Hawthorne Experiments;

Kurt Lewin - group dynamics; force field theory;

David McClelland - achievement motivation;

George Humans - the human group;

William Whyte - the organization man.

What does it all add up to? Back to 'square one'? Yes, indeed, the overall picture is

certainly confusing. This is not surprising, for the human nature and human mind defy a

clear-cut model, mathematical or otherwise.

In some of the theories and thoughts presented, however, one can see some 'glimpses' of

the person and how, perhaps, he or she could be motivated. This is rewarding in itself.

But, as noted earlier, practice has been ahead of theory in this field, so let us now move tothe practical side of management of human behavior and motivation in the workplace.

Next | Motivation theory into practice

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Application of employee motivation theory to the workplace

Management literature is replete with actual case histories of what does and what does

not motivate people. Presented here is a tentative initial broad selection of the variouspractices that have been tried in order to draw lessons for the future.

'Stick' or 'carrot' approach?

The traditional Victorian style of strict discipline and punishment has not only failed to

deliver the goods, but it has also left a mood of discontent amongst the "working class".

Punishment appears to have produced negative rather than positive results and hasincreased the hostility between 'them' (the management) and 'us' (the workers). In

contrast to this, the 'carrot' approach, involving approval, praise and recognition of effort

has markedly improved the work atmosphere, leading to more productive work placesand giving workers greater job satisfaction.

Manager's motivation 'toolkit'

The manager's main task is to develop a productive work place, with and through those

he or she is in charge of. The manager should motivate his or her team, both individually

and collectively so that a productive work place is maintained and developed and at thesame time employees derive satisfaction from their jobs.

This may appear somewhat contradictory, but it seems to work. The main tools in the

manager's kitbag for motivating the team are:

approval, praise and recognition trust, respect and high expectations

loyalty, given that it may be received

removing organizational barriers that stand in the way of individual and groupperformance (smooth business processes, systems, methods and resources - see

outline team building program)

job enrichment

good communications

financial incentives

These are arranged in order of importance and it is interesting to note that cash is way

down the ladder of motivators. Let's look at a couple of examples taken from real lifesituations.

The Swedish shipbuilding company, Kockums, turned a 15 million dollar loss into a 100

million dollar profit in the course of ten years due entirely to a changed perception of the

workforce brought about by better motivation. At Western Electric there was a dramaticimprovement in output after the supervisors and managers started taking greater interest

in their employees.
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Don't coerce - persuade!

Persuasion is far more powerful than coercion, just as the pen is mightier than the sword.

Managers have a much better chance of success if they use persuasion rather thancoercion. The former builds morale, initiative and motivation, whilst the latter quite

effectively kills such qualities. The three basic components in persuasion are:

suggest;

play on the person's sentiments; and

appeal to logic.

Once convinced, the person is so motivated as to deliver the 'goods'. The manager will

have achieved the goal quietly, gently and with the minimum of effort. It is, in effect, an

effortless achievement.

There has been a considerable amount of research into persuasion / motivation in the field

of advertising and marketing. The research is entirely of the applied type, which can andhas been used to great practical advantage. Some of the findings in this field were firstpublished in the fifties in a book with the title, The Hidden Persuaders, which became a

bestseller.

More contemporary 'persuaders' used by advertising and marketing people include:

Faster talk is found to be more effective, since it is remembered better.

Brain emits fast beta waves when a person is really interested in a particularpresentation. These waves can be detected by an instrument.

Subliminal approach using short duration presentation, whereby the message is

transmitted below the level of awareness.

Can these findings be used in actual work conditions? AT&T (The American Telephoneand Telegraph Co.,) recognizing the importance of hidden needs, at one time succeeded

in promoting long distance calls by use of the simple phrase: 'Reach out, reach out and

touch someone'. Managers will need to adapt this persuasion / motivation technique totheir own situation.

Next | Motivation theory in to practice 2

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Application of employee motivation theory to the workplace

Job satisfaction - is there a trend?
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This is the title of a study carried out by the US Department of Labor among 1500

workers, who were asked to rate the job factors, from a list of 23, which they considered

important starting from the most important factor.

Their findings (Sanzotta (1977)) are contained in the table below.

Job Satisfaction Findings

White-collar workers Blue-collar workers

A. Interesting work A. Good pay

B. Opportunities for development B. Enough help and resources

C. Enough information C. Job security

D. Enough authority D. Enough information

E. Enough help and resources E. Interesting work

F. Friendly, helpful coworkers F. Friendly, helpful co-workers

G. See results of own efforts G.Clearly defined responsibilities

H. Competent supervision H.See results of own workI. Clearly defined responsibilities I. Enough Authority

J. Good pay J. Competent supervision

It is interesting that out of the 23 job factors listed for the survey, yet with the exceptionof two items (white-collar workers' choice (B) and blue-collar workers' choice (C))

groups selected the same top ten factors, although with different rankings. It is significant

that good pay was considered as the most important factor by the blue-collar workers, butit ranked as the least important for white-collar workers.

Individualize motivation policies

It is well known that individual behavior is intensely personal and unique, yet companies

seek to use the same policies to motivate everyone. This is mainly for convenience andease compared to catering for individual oddities (Lindstone (1978)). 'Tailoring' the

policy to the needs of each individual is difficult but is far more effective and can pay

handsome dividends. Fairness, decisiveness, giving praise and constructive criticism canbe more effective than money in the matter of motivation.

Leadership is considered synonymous (Tack (1979)) with motivation, and the best form

of leadership is designated as SAL, situation adaptable leadership. In this style of

leadership, one is never surprised or shocked, leadership must begin with the chief

executive and it is more a matter of adaptation than of imparting knowledge. Ultimately,it is the leadership quality which leads to the success of a company throughteam building

and motivating its people.

'The one-minute manager'

A contemporary bestseller (Blanchard & Johnson (1983)) aimed at managers who seek tomake star performers of their subordinates. To start with, the manager sets a goal, e.g.
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Next | Employee rewards

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Introduction

The previous section dealt with motivation theory and practice. There is no doubt thatmotivation is the crux for good performance, but there is no clear cut answer to thequestion of how to motivate. The previous pages gave a glimpse of the answer through

various theories and practices.

Money is a factor in motivating people and this section concentrates on this.

Employee reward systems are discussed in general and later in specifics in terms of

payment by results. Various schemes for financial motivation are also described.

Money is important!

This is, perhaps, saying the obvious. But it still needs to be said, for a perusal of the

previous section may give the impression to the contrary, at least judging from Maslow's

concept. Refreshing as it is, if the theory was completely valid then, at least in affluentcountries, economic incentives should have lost all their force. This we know is not

correct.
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Properly used, money can be a motivating factor, but little money may have no effect

(Crystal (1970)). To achieve motivation of executives, therefore:

reward should be meaningful; and

reward should vary with performance.

The concept is simple, but its implementation is not easy. However, the job is well worth

trying. To be effective, the reward should be 'tailored' to each individual, but only as part

of the total compensation concept. It is essential (Moore (1968)) to develop an overallprogram within which each compensation package must be individualized.

Executive compensation elements

There is also need for constant search of new ideas in this respect. The essentials of an

effective company-wide executive compensation scheme are: sound salary-base structure,several fundamental compensation devices and considerable flexibility in its application.

The five basic elements (Ellig (1982)) of executive compensation are:

salary,

short-term incentives,

long-term incentives, employee benefits and

perquisites.

Any plan for executives should take into account the following factors:

Executives perceive others as working less and paid more. Appearance of a reward as important a factor as the reward itself.

Flexibility, but not at the expense of discretion.

Performance rating should support the pay action.

Correcting one inequity may lead to yet another.

A decision once announced is difficult to modify.

An arithmetic increase in the number of people involved results in a geometric

increase in the time required to reach agreement.

Motivating for high performance can cost a lot of money. Not everyone can be motivated

by money alone, however much. Incentive pay plans should be designed (Ivancevich

(1983)) not only to reward good performance but also to minimize the negative side-effects, such as conflict and grievance. At times it is difficult to develop a valid, equitable

and acceptable means of performance. Many pay plans fail because of either not being

suited to the particular situation or because of poor implementation. It is essential to

consider the following aspects before designing a pay plan to motivate performance:

preference of individual employees;

size of pay rewards for high performance;


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method of motivating individual job performance;

subjective

We have pointed out earlier that for effective and sustained motivation, the reward mustbe prompt and immediate. The example of Foxboro has been quoted. In its early days, the

company's very survival depended on technical innovation. Late one evening (Peters &Waterman (1982)) a scientist walked into the president's office with a working prototype.

The president was dumbfounded by the elegance of the solution and sought to rewardhim immediately and on the spot. Rummaging through the drawers of his desk, all he

could find was a banana and this had to suffice. This was the forerunner of the 'gold

banana' concept, a very apt and fitting reward. Likewise, Thomas Watson Snr. had madea practice of writing out a check on the spot for any unusual achievement that he

observed.

Executive pay - a caution

However, we must introduce a note of caution. There is a connection (White (1973))between executive pay and company size, in terms of turnover or number of employees,

but no connection between executive pay and improvement in profitability - the bigger

the company, the higher the pay, but efficiency is not necessarily higher. The highersalary is probably because of a larger number of levels in big companies. Of course, with

the large number of variables involved, it is difficult to correlate any two isolated factors,

such as executive pay and overall company efficiency.

There should be a direct correlation, but perhaps the yardsticks available for this purposeare inadequate to establish it. Let us, however, reiterate that individual executives have

different senses of values, of which money is one, and an important one at that. No

reward other than money is so flexible, so measurable or so controllable. But in usingfinancial motivation, the companies must be clear on what they wish to achieve, then

define what managers are expected to contribute towards the objectives and finally ensure

thatfinancial reward is linked to managerial performance.

Home / Employee Motivation / Employee Rewards/ Performance Related Pay

Employee Motivation, the Organizational Environment and Productivity

Employee rewardsPerformance related pay

Reward can act as the 'catalyst' for improved performance and better productivity. But

reward, as such, is not enough and in any case it is not a substitute for good management.
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Rather, it is a part of management. Certain basic criteria are essential for rewards to be

effective. These include:

Reward should be quick.

Reward should be significant.

The goals and rewards must be; known, understandable, and attainable. Reward must be distinctly and directly related to performance.

Reward should be irrevocable. Reward should be compatible with job measurement.

If the reward plan is seen to be unfair and unrealistic, for example promotion on the basis

of seniority or favoritism, it may have a definitely negative effect as a motivator. For

rewards to be effective, they have to be generous and significant as noted above, hencethey must be structured to attain a proper balance of motivating people to purpose and at

optimum effort.

Rewards are generally reckoned to improve productivity by somewhere of the order of 20to 30 per cent. This is nearly twice as much as that attained by goal-setting orjob-

redesign. But each incentive or reward system is likely to have value under certain

conditions only. Hence to be effective, the rewards must be 'tailored' and changed to suit

the specific conditions. There is no magic formula for all situations and at all times.

Productivity is usually but erroneously associated only with the workshop floor. But total

productivity which ultimately determines the profitability of the entire organization is the

sum total of the productivity at various levels right up to the CEO.

For if the workers are not given the right materials at the right place and at the right time,

their productivity will suffer due to no fault of theirs. The manager, therefore, plays avital role in the productivity of the workers and team.

One can even go as far to say that productivity is the only reason for the existence of the

manager. Individually the manager may be considered nonproductive, in that he or shedoes not contribute directly to the production, but is responsible for integrating the work

of his or her team into a total productivity effort, Thus, a manager can increase

productivity indirectly by aiding to produce more, and here too, financial motivationplays a major role.

Reward systems

The financial rewards are basically of three types:

profit sharing;

job evaluation; and merit rating.

Profit sharing
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Profit sharing could be on a macro basis or on a micro basis. The former relates to the

entire company as a whole and the latter to a particular section or group dealing with a

particular activity and/or product. On a macro level, it would be difficult to identify andreward outstanding performance. This is possible on a micro level by treating the

particular activity as a cost and profit center by itself. This is easier said than done, since

overheads and other common services have to be charged and this cannot be donecompletely objectively. The cost allocation in such cases is somewhat arbitrary and the

profit will therefore not be a true reflection of the performance of that particular group or

activity.

Job evaluation

In case of job evaluation, the various component factors have to be isolated and evaluatedfor purposes of inter-job comparison. Each factor is assigned a rating on the basis of a

scale agreed beforehand by the union and the management joint committee. The total

rating for each job then forms the basis of wage structure. However, there must be a base

level, representing, in effect, the 'minimum wage', depending on the nature of work andthe geographical area. In some cases and in some countries these are stipulated by law. A

typical, though somewhat broad, list of job factors is as follows:

working environment; physical characteristics;

mental characteristics;

extent of responsibility;

training and experience.

In case of managers, the factors are:

responsibility;

expertise;

human relations.

Merit rating

Merit rating has been used as an indicator of performance. Each employee is rated,

typically as excellent, good, average or poor, in respect of the following abilities:

communication;

human relations, including leadership and motivation; intelligence;

judgment;

knowledge.

The rating, unfortunately, tends to be carried out purely mechanically and it carries a

heavy bias of the rater who may be too lenient, may not be objective and may also have

favorites or otherwise in the group being rated.


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Next | The Glacier Project

Home / Employee Motivation / Employee Rewards/ Glacier Project


Employee rewards

The Glacier Project

This relates to a major scientific investigation in a real life situation.

The Glacier Metal Company (UK) was the largest manufacturer of plain bearings in

Europe employing some 4500 persons in six factories.

This was a unique experiment, commercially successful and probably without a parallel.

Task Approach Concept

The project began in 1948 with the assistance of theTavistock Institute of Human

Relationsand it sought to provide novel answers to baffling problems in industrial

organizations. Simply stated, once people get a job, they begin to lose interest in thework, hate their firm and soon organize themselves in order to pressurize the firm for

higher wages.

The Glacier project used the task approach concept, under which the task is carefully

analyzed and roles clearly defined in order to provide scope for peoples effectiveparticipation in the fulfilment of companies objective. Work is seen to have two

components:

prescribed; and

discretionary.

The latter is more difficult of the two. A supervisor, for example, has the discretion in

matters of priorities, allotment of work and development of his or her department. These

elements determine the extent of responsibility and are the basis of the theory of equitable

payment developed by the renowned psychoanalyst, Elliott Jaques.

According to this, wages should be related to the responsibility involved and this in turn

depends on the discretionary elements. Jaques developed a technique for measuring the

time-span for discretion for different types of work and formulated a scale of equitableearnings for a laborer, machine operator, supervisor and engineer. The Glacier model is
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far more comprehensive, but for our present purpose the quantification of wage

differential serves as a motivator for better performance.

Next | Payment by results

Home / Employee Motivation / Employee Rewards/ Payment by Results


Employee rewards

Payment by results

One of the earliest and best examples of this is the Rucker and Scanlon plans introducedin the USA in the depression of the 1930s. Joseph Scanlon was a union officer in the

Penn Steel Mill which, as a result of the depression, was on the brink of extinction.

The aim of the plan was to reduce waste and increase efficiency with consequent increase

of productivity and profits.

The savings and surplus resulting from implementation of the suggestions of the groupare shared. For equitable distribution, a committee has to administer the plan and the

company has to disclose (McBeath (1974)) a considerable amount of financial data and

be also prepared to share profits.

Development of the concept of payment by results

As a result the plan has not always been successful. In a survey (Gruneberg & Oborne

(1982)) of 44 cases, 30 were reported to be successful. Thus success has been achieved in

some companies and in some situations. But the concept is sound. The plan gives theparticipants a real sense of participation and self-esteem, and the group cohesion and

motivation are increased in anticipation of the reward. Other methods of payment by

results include:

time saved; piecework;

daily work measurement;

productivity index;

added value.
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In each case, the savings or increased production are quantified in monetary terms and

sought to be shared amongst the concerned people. Earlier schemes were based on

individual effort which could be appropriately rewarded.

However, modern technology and production methods are quite often based on a team

approach, hence new schemes for payment by results have to be tried and implemented, iffound effective. In this case individuals do not get rewarded as a result of their own effort

and it is the group performance which counts. This requires a change of attitude of theworkers, as also of the management.

Like the Scanlon plan, the management needs to be prepared to discuss openly with the

workers / unions the real change / improvement in the relevant indices and this requires

disclosure of otherwise confidential financial and production data.

In the long run, such an open attitude will benefit both.

Which scheme is best?

There is no such scheme! Each situation must be studied in depth and a suitable scheme

'tailored' for the specific situation. Also important is the history and culture of theorganisation concerned. Anything radically different and without active participation of

all concerned is bound to fail. It is advisable also not to introduce drastic changes

suddenly. The system must be properly formulated and after full and frank discussionwith the concerned people tried out on a 'mini' scale and refined in the light of the

experience gained.

The main factors involved in selection of a suitable scheme are:

micro versus macro level;

problems of implementation; and maintenance over a sustained period.

The micro versus macro aspect has been briefly touched on earlier in this section. Both

have their pros and cons and an ideal system may well be a combination of the two. It is

good to reward individual performance since it could act as an instant motivator. On theother hand certain benefits result only from a group action and therefore must be shared

among the entire group or even across the entire company.

Implementation of any scheme is the most important phase and it should not be rushedthrough. Sufficient time should be allowed for discussion and suggestions from the

concerned group. At this stage all problems that may arise during implementation stage

cannot be foreseen, but some of the obvious ones certainly can be anticipated.

Once implemented, both sides should be willing to modify the scheme in the light of theexperience gained. There should be no hesitation to refine the scheme until found

completely satisfactory. It will require full cooperation and complete honesty.


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Conclusions

Money is certainly a motivator and a major one at that. Success of companies such as of

Microsoft, IBM and other such tech companies is certainly, at least to some extent, aresult of such motivation. There are, of course, other factors particularly job satisfaction

as shown in the previous section.

Rewarding employees financially does improve levels of employee motivation and thus

improves productivity, which ultimately shows up in the 'bottom line', and part of theincreased profits must be circulated back to the workforce responsible for it.

Some of the schemes for reward systems and payment by results have are briefly

discussed. The novel Glacier project and the Scanlon plan are briefly described. There is

no such thing as the 'best scheme'. It must be formulated and 'tailored' to each specificcase.

Next | Informal group dynamics

\Home / Employee Motivation / Informal Group Dynamics

Introduction

Jeff Lane was at his wits end. As a newly appointed production manager, he had tried

virtually everything to get his work group to come up to production standard. The

equipment was operating properly, and the group had the training and experience to meetexpectations, yet it was not performing well. What was wrong? And what could he do to

correct the situation?
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Managers and supervisors frequently face such a dilemma-standards that should be met

but aren't for what seems like no apparent reason. What Jeff Lane and other managers/

supervisors sometimes fail to realize is that within every organization there are ofteninformal group pressures that influence and regulate individual behavior.

Informal groups formulate an implicit code of ethics or an unspoken set of standardsestablishing acceptable behavior In Jeff's department, the informal group may have

established a norm below that set by the organization, subtly exercising control over itsmembers regarding the amount of output.

Dynamics of informal groups

Informal groups almost always arise if opportunities exist.

Often, these groups serve a counter organizational function, attempting to counteract the

coercive tendencies in an organization. If management prescribes production norms that

the group considers unfair, for instance, the group's recourse is to adopt less demandingnorms and to use its ingenuity to discover ways in which it can sabotage management's

imposed standards.

Informal groups have a powerful influence on the effectiveness of an organization, andcan even subvert its formal goals. But the informal group's role is not limited to

resistance. The impact of the informal group upon the larger formal group depends on the

norms that the informal group sets. So the informal group can make the formalorganization more effective, too.

A norm is an implied agreement among the group's membership regarding how members

in the group should behave. From the perspective of the formal group, norms generallyfall into three categories-positive, negative, and neutral. In other words, norms eithersupport, obstruct, or have no effect on the aims of the larger organization.

For example, it the informal group in Jeff's shop set a norm supporting high output, that

norm would have been more potent than any attempt by Jeff to coerce compliance with

the standard. The reason is simple, yet profound. The norm is of the group members ownmaking, and is not one imposed upon them. There is a big motivational difference

between being told what to do and being anxious to do it.

If Jeff had been aware of group dynamics, he might have realized that informal groups

can be either his best friend or his worst enemy. He should have been sensitive to theinformal groups within his area and he should have cultivated their goodwill and

cooperation and made use of the informal group leadership.

That is, he should have wooed the leadership of the informal group and enlisted thesupport of its membership to achieve the formal organization's aims. The final effect of

his actions might have been positive or negative, depending upon the agreement or lack

of it between the informal group and himself.


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Harnessing the power of informal groups is no easy task. The requirements include:

an understanding of group dynamics and,

an ability to bring about changes in informal group norms that positively reinforcethe formal organization's goals.

As a starting point, managers and supervisors should at least be aware of the reasons

behind informal group formation and the properties and characteristics of these groups.

Next | Formation of informal work groups

Home / Employee Motivation / Informal Group Dynamics / Formation


Informal Group Dynamics

Formation of informal work groups

Individuals are employed by an organization to perform specific functions. Although the

whole person joins an organization, attention is usually focused on the partial person, thepart of the individual doing the job. Because people have needs that extend beyond the

work itself, informal groups develop to fill certain emotional, social, and psychologicalneeds.

The degree to which a group satisfies its members needs determines the limits within

which individual members of the group will allow their behavior to be controlled by the

group.

Sense of belonging

Several major functions are served by informal groups. For example, the group serves asa means of satisfying the affiliation needs of its members for friendship and support.

People need to belong, to be liked, to feel a part of something. Because the informal

group can withhold this attractive reward, it has a tool of its own to coerce compliancewith its norms.

Identity and self esteem
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Groups also provide a means of developing, enhancing, and confirming a person's sense

of identity and self-esteem. Although many organizations attempt to recognize these

higher needs, the nature of some jobs-their technology and environment-precludes thisfrom happening. The long assembly line or endless rows of desks reinforce a feeling of

depersonalization.

Stress reduction

Another function of groups is to serve as an agent for establishing and testing socialreality. For instance, several individuals may share the feeling that their supervisor is a

slave driver or that their working conditions are inadequate. By developing a consensus

about these feelings, group members are able to reduce the anxiety associated with theirjobs.

All for one, one for all

Finally, the informal group serves as a defense mechanism against forces that groupmembers could not resist on their own. Joining forces in a small group makes the

members feel stronger, less anxious, and less insecure in the face of a perceived threat.

As long as needs exist that are not served by the formal organization, informal groups

will form to fill the gap. Since the group fills many important needs for its members, it

influences member behavior.

Next | Leadership of informal workgroups

Home / Employee Motivation / Informal Group Dynamics / Leadership



Leadership of informal work groups

Informal groups possess certain characteristics that, if understood, can be used toadvantage. While many of these characteristics are similar to those of formal

organizations, others are unique. One attribute of informal groups is rotational leadership.

The informal leader emerges as the individual possessing qualities that the other members

perceive as critical to the satisfaction of their specific needs at the moment; as the needs


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change so does the leader. Only rarely does a single individual possess all of the

leadership characteristics needed to fill the various needs of the group.

Unlike the formally appointed leader who has a defined position from which to influenceothers, the informal leader does not possess formal power. If the informal leader fails to

meet the group's expectations, he or she is deposed and replaced by another. The informalgroup's judgment of its leaders tends to be quicker and more cold-blooded than that of

most formal groups.

Supervisory strategies

The supervisor can use several strategies to affect the leadership and harness the power of

informal groups. One quick and sure method of changing a group is to cause the leader to

change one or more of his or her characteristics. Another is to replace the leader withanother person.

One common ploy is to systematically rotate out of the group its leaders and its keymembers. Considering the rotational nature of leadership, a leader may emerge who hasaims similar to the formal goals of the organization. There are problems with this

approach, however. Besides the practical difficulties of this, this strategy is blunted by the

fact that group norms often persist long after the leader has left the group.

A less Machiavellian approach is for the supervisor to be alert to leaders sympathetic tothe supervisor's objectives and to use them toward the betterment of the formal group's

effectiveness. Still another method is to attempt to 'co-opt' informal leaders by absorbing

them into the leadership or the decision-making structure of the formal group. Co-opting

the informal leader often serves as a means of averting threats to the stability of the

formal organization.

Remember, though, a leader may lose favor with the group because of this association

with management, and group members will most likely select another leader.

Next | Communication in informal workgroups

Home / Employee Motivation / Informal Group Dynamics / Communications




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Communications network

The Grapevine

Another characteristic of the informal group is its communications network.

The informal group has communications processes that are smoother and less

cumbersome than those of the formal organization.

Thus its procedures are easily changed to meet the communication needs of the group. In

the informal group, a person who possesses information vital to the group's functioning

or well-being is frequently afforded leadership status by its members.

Also, the centrally located person in the group is in the best position to facilitate thesmooth flow of information among group members.

Knowing about informal group communication the supervisor can provide a strategicallyplaced individual with information needed by the group. This not only enhances the

stature of this individual perhaps elevating him or her to a leadership position but alsoprovides an efficient means of distributing information.

Providing relevant information to the group will also help foster harmony between the

supervisor and the informal group.

By winning the cooperation of informal group leaders the supervisor will most likely

experience fewer grievances and better relationships.

Next | Cohesion in informal workgroups

Home / Employee Motivation / Informal Group Dynamics / Cohesiveness



Group cohesivenessA third characteristic of informal groups is group cohesiveness-the force that holds agroup together. Group cohesiveness varies widely based on numerous factors-including

the;

size of the group

dependence of members upon the group


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achievement of goals

status of the group and

management demands and pressures.

For example group cohesiveness increases strongly whenever the membership perceives

a threat from the outside. This threat produces the high anxiety that strong groupcohesiveness can help reduce.

If the supervisor presses the group to conform to a new organizational norm that Isviewed as a threat to the security needs of group members The group will become more

unified in order to withstand the perceived threat. Thus management can limit its own

effectiveness by helping to increase the group's cohesiveness. With the passing of the

threat the group tends to lose its cohesiveness.

Perhaps paradoxically the most dangerous time for group cohesion is when things are

going well. Supervisors can use the factors that affect group cohesiveness to increase

their own effectiveness.

Decision making process involvement

For instance a supervisor can involve the informal group members in the decision-makingprocess. Input from group members will not only reduce their feeling of alienation but

also improve communication between the supervisor and subordinates thereby reducing

potential conflict.

Where group participation in decision making is not practical the supervisor should

carefully explain the reasons to play down what might be seen as a threat to the group. In

some cases the supervisor may want to increase the groups cohesiveness deliberatelydevising situations that put one group into competition with another. If this gambit iscarefully controlled the solidarity that results may bring a higher level of performance.

The danger of this strategy is that the supervisor may be unable to control the reaction of

the group. The ploy could backfire bringing competition and dissension within the group.

Next |Norms of Informal groups

Home / Employee Motivation / Informal Group Dynamics / Norms or Values



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Informal group norms or values

Unspoken rules

The final characteristic of informal groups is the establishment of the groups norms(values). As we discussed earlier, norms keep a group functioning as a system instead of

a collection of individuals.

Norms are of great importance to the informal group in controlling behavior and

measuring the performance of members. Because norm (values) violations threaten agroup's existence, departures from the norm usually carry severe sanctions. The members

must either conform or sever their group affiliation.

The latter action is unlikely, especially if the individual values group membership tosatisfy certain needs.

Two points are important to note about the norms of informal groups.

First, where both formal and informal norms exist, the informal norms transcend

the formal. At moments when norms conflict with organizational objectives,

organizational effectiveness suffers.

Second, members of an informal group may be unaware that the norms of the

group influence their behavior. Norms are particularly potent because without

knowing it members would not even think of acting otherwise-norms are that

ingrained into their behavior pattern.

Next | How tochange informal group norms

Home / Employee Motivation / Informal Group Dynamics / Changing Norms


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Changing group norms

A supervisor should attempt to encourage norms that positively affect the formal

organization's goals, and to alter those that are negative. If this is accomplished, theinformal group/ team will direct its energies toward desired goals.

How can a supervisor bring about a positive change in a group / team's norms?

Once a group / team has developed its norms, they are strictly enforced until changed.

But norms change frequently because the group / team must be responsive to changes in

its environment for self-protection.

When a perceived change occurs in the environment that affects the group / team, it

tightens, eases, or changes its norms.

There are three stages to fostering group / team / team norms that are congenial to the

organization.

First Stage

The first stage involves determining what the group/ team/ norms are, and then getting

group/ team members to recognize their existence and influence.

This can often be accomplished by observing the behavior patterns of the group / team,

interviewing group / team members, or asking the group/ team to identify its own norms.As noted earlier, people frequently respect and follow norms unconsciously.

A suggested way is to use ourTeam Building - Informal Group Organizational Norms

Employee Survey (available for purchase by clickinghere.) This instrument has ten

predetermined dimensions, these are (together with definitions,) as follows.

Organizational / Personal Pride. Satisfaction or pleasure taken in attainingpersonal or organizational achievements.

Performance / Excellence. Manner or quality of functioning when striving to

meet or beat standards of performance. This includes setting personal standardswhen none are set/ defined.

Teamwork / Communication. The perception that organizational goals andobjectives are communicated to and shared by members of the group. Theorganization has effectively shared its' vision or sense of purpose so that all

employees can articulate and subscribe to.

Leadership / Supervision. The style of management / supervision in engaging

employees to deliver willingly their best efforts towards organizational goals.

Profitability / Cost Effectiveness. Awareness of employees of their roles and

actions to the organizations 'bottom line'.
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Colleague / Associate Relations. Personal connections or dealings between or

among individuals and groups.

Customer / Client Relations. Personal and group attitude towards clients, bothinternal (i.e. other departments in the case of service departments) and external

suppliers and customers.

Innovation / Creativity. To be aware of, appreciate the need for and strive fornew ways of performing a function, process, procedure or the organization's

business model in terms of the need flowing from constant changes in the external

environment, the need to be competitive and the need to retain customer loyaltyand confidence.

Training / Development. The opportunities within the organization and the

climate set that promote personal growth and development.

Candor / Openness. The willingness to promote open, honest and direct dialogby all employees at all levels on issues that affect individuals, groups and the

organization as a whole. This includes the sharing of information, respect for the

diverse backgrounds and experiences of members, the absence of 'competition

over territory' and the agreement of goals and levels of performance/ quality.

Helping define norms is useful because it assists the group / team in clarifying its

thinking and frees members from behavior patterns that they may not really wish to

follow in the first place.

When group / team members actually become aware of negative norms, they commonly

reject them and seek alternative modes of behavior. And the supervisor can't begin to

change negative norms to positive ones until group / team members first become aware of

their existence.

Second Stage

Having identified the team's norms, the next stage is to measure the norms and establish a

norm profile. Using the Team Building - Informal Group Organizational NormsEmployee Survey instrument, each team member is posed a set of questions, related to the10 dimensions. As shown in the 'Group Norms Profile' graphic, the responses can be

averaged and plotted in order to obtain a norm profile for the group under review.

The difference between where the group / team is versus where the desired norms of the

group should be, denotes the normative "gap." These gaps provide the starting point for

determining where changes should occur.


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Third Stage

The final stage is to bring about normative change. A systematic change process consists

of six steps:

Demonstrate the importance of norms in achieving organizational and group/

team effectiveness. Create positive norm goals through cooperative effort.

Establish normative change priorities.


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Determine a plan of action to bring about change.

Implement and monitor the change strategy.

Review the effectiveness of the strategy periodically and modify where necessary.

This process emphasizes the creation of positive norms through cooperative effort that

benefits both the supervisor and the group/ team. Positive group/ team norms -increasethe effectiveness of the supervisor while providing an environment in which group/ team

members can satisfy their own needs.

The process also improves team communications and trust, reducing the anxiety

sometimes created by perceived threats from management.

If the informal group / team's norms are negative, they can negate the interests of an

organization many times the group / team's size. The process of change is a tool by whicha supervisor can deal with the informal group/ team stresses that exist within the

organization and that tend to de-motivate employees.

By fostering positive group norms, a supervisor can harness the power of informal groups

and release the energies of such groups to work together as a team to achieve desiredgoals.

Next | How leader perceptions influence performance. Theself-fulling prophecy

Home / Employee Motivation / Leader Perceptions

Better Management by Perception
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The Self-fulfilling Prophecy or Pygmalion Effect

In 1911 two researchers with the unlikely names of Stumpt and Pfungst began an

investigation of an even more unlikely horse named Clever Hans.

The unlikely thing about Hans was that he could add, subtract, multiply, divide, spell andsolve problems involving musical harmony. Any number of animals had been taught to

perform such tricks before, but they all had to be cued by their trainers.

The really clever thing about Clever Hans was that he could run through his repertoire

even when his owner a German mathematician named Von Osten, was not present. Thehorse would answer questions for anyone. Von Osten swore he was mystified by the

whole thing.

In 'Teachers and the Learning Process' (Prentice-Hall, 1971), Robert Strom describes

what Stumpt and Pfungst learned. "Among the first discoveries made was that if the horse

could not see the questioner, Hans was not clever at all. Similarly, if the questioner didnot himself know the answer to the question, Hans could not answer it either... A forward

inclination of the head of the questioner would start Hans tapping, Pfungst observed... asthe experimenter straightened up, Hans would stop tapping he found that even the raising

of his eyebrows was sufficient. Even the dilation of the questioner's nostrils was a cue for

Hans to stop tapping."

In other words, unwittingly, people were giving the horse the correct answers bycommunicating their expectations to him via physical signals. Hans was able to pick up

on those signals even subtle ones.

He was clever only when people expected him to be!

A management concept

As it is known and taught today in management and education circles, the notion of the

self-fulfilling prophecy was conceptualized by Robert Merton a professor of sociology at

Columbia University. In a 1957 work called 'Social Theory and Social Structure', Merton

said the phenomenon occurs when "a false definition of the situation evokes a newbehavior which makes the original false conception come true."

In other words, once an expectation is set, even if it isn't accurate, we tend to act in ways

that are consistent with that expectation. Surprisingly often, the result is that theexpectation, as if by magic, comes true.

An ancient myth

Magic certainly was involved in the ancient myth from which the idea of the self-

fulfilling prophecy takes its other common name. As Ovid told the story in the tenth book


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of Metamorphoses, the sculptor Pygmalion, a prince of Cyprus, sought to create an ivory

statue of the ideal woman.

The result which he named Galatea, was so beautiful that Pygmalion fell desperately inlove with his own creation. He prayed to the goddess Venus to bring Galatea to life.

Venus granted his prayer and the couple lived happily ever after.

A modern update

That's where the name originated but a better illustration of the "Pygmalion Effect" isGeorge Bernard Shaw's play Pygmalion, in which Professor Henry Higgins insists that he

can take a Cockney flower girl and, with some vigorous training, pass her off as a

duchess. He succeeds. But a key point lies in a comment by the trainee, Eliza Doolittle, to

Higgins' friend Pickering:

"You see, really and truly, apart from the things anyone can pick up (the dressing and the

proper way of speaking and so on), the difference between a lady and a flower girl is nothow she behaves, but how she's treated. I shall always be a flower girl to ProfessorHiggins, because he always treats me as a flower girl, and always will, but I know I can

be a lady to you because you always treat me as a lady, and always will."

The bottom line?

Consciously or not we tip people off as to what our expectations are. We exhibit

thousands of cues, some as subtle as the tilting of heads, the raising of eye brows or thedilation of nostrils, but most are much more obvious. And people pick up on those cues.

Next | Key principles

Home / Employee Motivation / Leader Perceptions / Key Principles


Better Management by PerceptionKey Principles

The concept of the self-fulfilling prophecy can be summarized in these four key

principles:

We form certain expectations of people or events
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We communicate those expectations with various cues

People tend to respond to these cues by adjusting their behavior to match them

The result is that the original expectation becomes true

This creates a circle of self-fulfilling prophecies.

Does it work?

A convincing body of behavioral research says it does.

In 1971 Robert Rosenthal, a professor of social psychology at Harvard, described an

experiment in which he told a group of students that he had developed a strain of super-intelligent rats that could run mazes quickly. He then passed out perfectly normal rats at

random, telling half of the students that they had the new "maze-bright" rats and the other

half that they got "maze-dull" rats.

The rats believed to be bright improved daily in running the maze they ran faster andmore accurately. The "dull" rats refused to budge from the starting point 29% of the time,

while the "bright" rats refused only 11% of the time.

This experiment illustrates the first of a number of corollaries to our four basic principles.

Next | Corollaries 1 & 2

Home / Employee Motivation / Leader Perceptions / Corollaries 1 & 2



Corollary 1

Rosenthal concluded that some students unknowingly communicated high

expectations to the supposedly bright rats.

The other students communicated low expectations to the supposedly dull ones.

But this study went a step further.

According to Rosenthal, "Those who believed they were working with intelligent animals

liked them better and found them more pleasant.
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Such students said they felt more relaxed with the animals, they treated them more gently

and were more enthusiastic about the experiment than the students who thought they had

dull rats to work with."

Corollary 2

Better performance resulting from high expectations leads us to like someone

more

Lower performance resulting from low expectations leads us to like someone less

Rats not good enough for you?

In another classic experiment, Rosenthal and Lenore Jacobson worked with elementary

school children from 18 classrooms. They randomly chose 20% of the children from each

room and told the teachers they were "intellectual bloomers."

They explained that these children could be expected to show remarkable gains duringthe year. The experimental children showed average IQ gains of two points in verbal

ability, seven points in reasoning and four points in over all IQ. The "intellectual

bloomers" really did bloom!

How can this possibly work?

In 'Pygmalion in the Classroom' (Holt, Rinehart and Winston, 1968), Rosenthal replies:

"To summarize our speculations, we may say that by what she said, by how and when she

said it, by her actual facial expressions, postures and perhaps by her touch, the teachermay have communicated to the children of the experimental group that she expected

improved intellectual performance.

Such communication together with possible changes in teaching techniques may have

helped the child learn by changing his self concept, his expectations of his own behavior,and his motivation, as well as his cognitive style and skills."

There was no difference in the amount of time the teachers spent with the students.

Evidently there was a difference in the quality of the interactions. The teachers also found

the "bloomers" to be more appealing, more affectionate and better adjusted. Somestudents gained in IQ even though they had not been designated as "bloomers," but they

were not regarded to be as appealing, affectionate or well-adjusted.

Apparently, the bloomers had done what was expected of them and the teachers were

comfortable with them. The other students who did well surprised the teachers; they didthe unexpected and the teachers were not as comfortable with them. It may be that they

were thought of as overstepping their bounds or labeled as troublemakers.



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Corollary 3

We tend to be comfortable with people who meet our expectations, whether

they're high or low; We tend not to be comfortable with people who don't meet our expectations,

whether they are high or low.

As for our expectations of what will happen or how someone will behave, we form themin a thousand ways, many preconceived. We all are prejudiced in the literal sense of the

word; we 'prejudge' either positively or negatively.

We like to think we know what's going to happen before it happens, and we don't like to

be proven wrong. We want to feel that we can control things.

The impulse has given rise to religion, which says we can influence the gods with prayer,magic, which says we can manipulate events with secret powers; and science, which says

we can understand the logic behind events and use it to predict similar events.

Corollary 4

Forming expectations is natural and unavoidable

The simple truth is that almost all of us behave pretty much according to the way we're

treated.

If you keep telling a teenager, for example, that he's worthless, has no sense of right or

wrong and isn't going to amount to anything, he'll probably respond accordingly.

If you keep telling him (sincerely) that he's important to you that you have everyconfidence in his judgment as to what?s right or wrong and that you're sure he's going to

be successful in whatever he decides to do, he'll also tend to respond accordingly.

You transmit those expectations to him and he'll begin to reflect the image you've created

for him.



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Corollary 5

Once formed expectations about ourselves tend to be self-sustaining

Exactly how do we communicate the expectations responsible for the Pygmalion Effect?The process works in very similar ways with people as it did with Clever Hans.

In 'Educational Sociology: a realistic approach (Holt, Rinehart and Winston, 1980),

Thomas L. Good, Jere E. Brophy list a dozen ways in which teachers and managers maybehave differently toward students and workers.

Corollary 6

Good managers produce employees who perform well and feel good aboutthemselves;

Bad managers produce employees who perform poorly and feel badly aboutthemselves

Self-fulfilling prophecy in action

One of the critical tools a manager uses to influence employees is the performance

review. Most managers underestimate its importance. Certainly the review is used as areport card, as a means of calculating the size of raises, as a way to introduce areas

needing improvement and as a permanent record of what someone has accomplished.

Much more importantly, though, reviews influence future performance. They offer a

good example of how self-fulfilling prophecies work, for good or ill.

Take the case of a bright, young, aggressive employee. Let's assume she is abrasive,

disruptive and disrespectful at times. However, she can also be creative, hard-working

and full of enthusiasm. Given proper channeling, she can produce excellent results.

Some managers, required to assign her to a performance category, would call her"excellent" They're impressed by her strengths. Others, focusing on her weaknesses,

would call her "poor." Still others, weighing the pluses and minuses, would call her

"average." Even with the scant information you have, you can see that any of theseratings could be justified.

But what these managers are doing probably unknowingly, is helping to determine the

young woman's future performance. If she's rated "excellent," what will happen? She will

tend to be even more abrasive, disruptive and disrespectful. She will also probably bemore creative, enthusiastic and hard-working. She will do more of what she believes her

manager wants.
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What if she's rated "poor" She will likely be less abrasive, but she will also be less

creative and enthusiastic. Suppose she's rated "average" Depending on what her manager

says about the rating and why she got it, she may adjust her behavior slightly.

The variable here is the manager's rating. It is based on the manager's values, prejudices

and feelings. Most employees will take the cues and alter their future behavioraccordingly.


Corollary 7

Performance ratings don't just summarize the past, they help determine futureperformance

A manager cannot avoid communicating low expectations because the messages are oftennon-verbal and unintentional. As with observers communicating to Clever Hans and

teachers communicating to students, managers nod their heads, prolong or shorten eye

contact, express themselves in a certain tone of voice, etc.

Some managers refuse to admit they communicate negative expectations: "I never saidanything negative to him. I hardly spoke to him at all." (As if that doesn't send a powerful

message.)

The key is not what managers say, but the way they behave.

Corollary 8

The best managers have confidence in themselves and in their ability to hire,develop and motivate people; largely because of the self-confidence, they

communicate high expectations to others.

A manager increases or decreases initiative by the frequent or infrequent use of praise,

criticism, feed back information, etc. The manager, therefore, plays a highly significant

role in the success or failure of an employee. The various ways in which teacherscommunicate expectations to students can be broken down into four general categories.

The same categories suggest ways by which managers can influence the success ofsubordinates.

Climate

Managers create a warmer social and emotional mood for high-expectation

employees. They smile, more nod their heads approvingly and look into


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subordinates eyes more often. They are generally more supportive, friendly,

accepting and encouraging

Input

More assignments and projects are given to high-expect

employee motivation theory and practice

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