MOTIVATION STRATEGIES

Road Map

What is Motivation ?

Why study Motivation theories

What is morale?

Financial and non-financial motivational strategies

Challenges (including Multigenerational workforce )

the backbone of organisations is……..

Performance

Output

Productivity

High performance, high commitment and loyalty

are the primary expectations of organisations

What expectations do individuals enter organisations

with ?

“people join organizations for specific reasons and usually with some purpose in mind.” - Dr. Teresa Daniel

“Ordinary, everyday experience teaches us that the same people react quite differently to different circumstances “ “Or at the very least, there are different human natures which behave differently under different conditions.” - Peter Drucker

( what does this mean? ???? )

Hence motivation………

What is motivation?

The set of forces that cause people to behave in certain ways

It has to do with why behaviour gets started, is energised, is sustained, is directed, is stopped and what reaction is present in the person when all this is going on

Individual performance is the function of the product of ability and motivation

Performance= f ( ability X motivation)

Motivation is defined as an innate need or desire with a physiological or psychological basis that propels an individual to undertake an activity to satisfy the need or desire

Why study motivation theories?

Theories offer insight into how to motivate employees, what is important and what the rewards may be

The ultimate goal being improved and/or sustained performance by employees and the organization as a whole

Motivation is at the heart of performance, essential for success for both the organization and its workforce, as a group and as individuals

Theories

Maslow’s Needs Hierarchy theory

Hertzberg’s two factor theory

Alderfer’s ERG theory

McClelland’s Achievement theory

Vroom’s Expectancy theory

Adam’s Equity theory

Goal setting theory

Where are the theories used?-(Applications of motivational concepts)

Rewards and Incentives

Awards

Equity

Job designing (enlargement, enrichment)

Goal setting

Empowerment etc..

A motivational model

Felt need

Environmental

influence

Tensions

Incentives and goals

Expectations

Effort

and ability

Performance

External(praise,

promotion)

Internal(esteem)

Rewards(outcom

e)

Morale

Employee morale describes the overall outlook, attitude, satisfaction, and confidence that employees feel at work

It is defined by the employee's outlook, optimism, self-concept, and assured belief in themselves and their organization ( its mission, goals, defined path, daily decisions, and employee appreciation)

(how is it related to motivation??????)

When employees are positive about their work environment and believe that they can meet their most important needs at work, employee morale is positive or high

If employees are negative and unhappy about their workplace, and feel unappreciated and as if they cannot satisfy their goals and needs, employee morale is negative or low.

Faith in self and faith in their organization are both important factors in positive employee morale (intrinsic/extrinsic)

Carrot and Stick v/s Intrinsic/Extrinsic motivation

Carrot and stick doctrine

Dangling a reward in front of employees (carrot) as an incentive, in hope that what’s good will be achieved and gets repeated OR

Putting up a system of punishment (stick) in its various forms, in hope that what’s bad will be avoided and not get repeated

Is motivation so simplistic? Does the carrot and stick motivation work well?

Extrinsic or Intrinsic motivation

Motivation in an individual is the result of an intrinsic or extrinsic factor

Extrinsic: rewards-financial and non –financial

the rewards system becomes critical to employee performance and organisational success

Intrinsic: when individuals are self motivated, the rewards may take the form of satisfaction, commitment, enthusiasm or loyalty

Intrinsic Motivation

the desire to self-direct our own lives

the urge to get better and better at something that matters

the yearning to do what we do in the service of something larger than ourselves

With that I could understand much better why I do what I do, why I don’t, what really moves me, why I’m not motivated as much as I “should” by the external reward-punishment system in place

Components of employee remuneration

Wages and salaries

Incentives

Fringe benefits

Perquisite

Non-monetary benefits

Wages and salaries

Wages are hourly rates of pay, salary refers to the monthly

rate of pay

Both are subject to annual increments

Depend upon the job, type of industry, seniority and merit

Incentives

Also called ’payment by results” , paid in addition to salary

Depend on productivity, sales, profit

May be individual or group

Fringe Benefits

Include benefits such as PF, gratuity, medical care, hospitalisation, accident /health/group insurance, canteen, recreation etc

Perquisites

These are allowed to executives for the position they

hold

May include company car, club membership, paid

holidays, furnished house , stock option schemes

Non-monetary benefits

challenging job responsibilities, recognition ,

growth prospects, competent supervision,

comfortable working conditions, flexitime

Strategies for motivation

Motivational

practices

RewardsJob design

EmpowermentQuality of work life (QWL )

Others

Incentives

strategies

Other strategies

Flexible working hours (flextime)

Flexible benefits

Telecommuting (work away from the company’s main location)

Cross training Teaching workers more than one job : multi-skilling

1. Rewards and incentives

What are rewards?

How are they different from incentives?

Reward is….

A prize that you give to your employees for doing an exceptional job at work

Can be monetary or non-monetary

pay ,bonuses, promotions, time off, special assignments, awards, paid vacations, verbal praise, plaques, parties or even just a pat on the back to say "great job."

To show appreciation to the employee to encourage him to continue achieving

Incentive is… A way to motivate employees to do a

better job going forward

Extra pay for extra performance in addition to regular wages for a job

To encourage better performance from workers who may not be meeting desired goals

Common incentives include offering sales commissions, stock options or the promise of a bigger office space etc.

Put in simple terms, a reward is something which is actually given to an employee, whereas an incentive is a motivating factor

For example, if you give one of your employees a gift for their hard work, that is a reward

However, if that same employee works hard and exceeds your expectations because of the thought of receiving a reward, that is an incentive

Profit sharing, signing bonus and stock options

Thanking employees, praising employees, presenting employees with a certificate of achievement, or announcing an accomplishment at a company meeting

Employee referral awards that some companies use to encourage employees to refer job candidates

Company parties and celebrations, company paid family activity events, birthday celebrations, sporting events, paid group lunches, and sponsored sports teams ……..are all incentives

Rewards can be based on…..

Job status

Competency ( skill-based pay)

Performance

Seniority

Rewards- job status based (traditional method)

Based on the status of the job held (not on the incumbent)

Job Evaluation system used (a decision process to determine a job's relative position in the internal hierarchy of jobs)

More efforts, duties, responsibility, difficult working conditions = jobs having more value=higher pay grades

Was developed for static /hierarchical organizations; that is to say, jobs and work systems not subject to frequent changes.

Motivated employees to compete for higher position

Rewards- competency based (new model)

Skills + knowledge+ traits =competency

Rewards linked to competencies leads to skill based pay

The new model focuses on the individual and his or her capabilities

only the most competent can expect to progress to the highest levels (purpose is to motivate to acquire additional skills)

Rewards- performance basedOrganisational Rewards ESOPs

Profit sharing

Team Rewards Special bonus

Gain sharing

Individual Rewards Piece rate

Commission

Merit pay

Bonuses

Rewards-membership & seniority based

For joining that particular firm

On experience- seniority

Used to attract job applicants (joining bonus etc)

May not directly motivate

Rewards-examples

PepsiCo India - the "Aha-Standards of excellence" and "Star Spot Awards" to acknowledge outstanding employee contributions at work

The "Star Spot Awards" are given to individuals who have contributed value to the organisation by going beyond the call of duty

Sends the top two or three achievers to New York where they receive awards at the hands of the Chairman of Pepsi's parent arm

Contd……

LG- achievers and their families are given a free holiday trip abroad

High performers get an LG product of their choice free

LG also bestows "best employee" awards periodically-Outstanding employees speak on their achievement so that others can get inspired

It also has team awards whereby the entire team is sent abroad

Jacques Creeten, MD, sales & marketing for FedEx India, Middle East and Africa says Fed Ex always compliments employees who do a good job

The boss can hand out theater tickets, diner certificates and cash up to $100 to the deserving employee on the spot

FedEx too has awards like 'Circle of Excellence,' 'Customer Service Center of the Year,' 'Club FedEx' among others

2. Job design

The process of assigning tasks to a job including interdependency of those tasks with other jobs (eg.production,banks)

Some jobs have few tasks requiring limited skills..others more complex requiring trained professionals

From the organisation’s point of view- increases productivity and reduces cost when similar /continuous tasks are grouped

Benefits of job Design for employee

Poorly designed job =low productivity, boredom, employee turnover, absenteeism, complaints, resignations etc.

For employee-Motivation is affected by the match between job factors (content, qualifications, rewards) and personal needs

Job Design -popular approaches

Job rotation –moving employees from job to job

Job engineering-tasks to be performed, methods to be used, layout, performance standards are re-evaluated (industrial engineering, ergonomics- IV eg))

Job enlargement – expansion of the number of tasks performed (horizontal loading)

Job enrichment –adding more responsibility to make it more exciting, challenging, creative, rewarding(vertical loading)

Job enrichment

Means adding depth( increasing difficulty) to a job to increase motivation and interest in performing the job

Provides the employee an opportunity for greater recognition, achievement, growth, greater responsibility (lack of which can cause worker alienation)

In short, it involves modifying jobs so that they appeal more to employee’s higher order needs

(Eg. allowing secretaries to sign their own outgoing letters and to be responsible for content and quality)

Empowerment

Empowerment occurs when individuals in an organization are given autonomy, authority, trust, and encouragement to accomplish a task

Employee empowerment means making the employee/s able to run the show by himself/themselves

Forms of empowerment Quality Circles (QCs): - work group of

employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions and take corrective actions

QC is formed to achieve the following objectives:

Improvement in quality of product manufactured, in methods of production.

Development of employees participating in QC.

Promoting morale of employees

CONTD…

Empowered Teams: also referred to as self-directed or self managing teams.

These groups are given a large degree of decision-making autonomy and expected to control their own behavior and results

They plan, set goals, supervise progress, prepare their own budgets ,coordinate with other departments, take responsibility for achieving quality in their products and services

Under Tejaswini, Tata motivates its female employees to join technical jobs by training & improve their position in the organization

Beyond Tejaswini, Tata has an Adventure Foundation in Tata Steels. Tata has succeeded to have a team of self motivated female employees

Bachendri Pal, the first Indian lady to climb Mount Everest, is from Tata Steel Adventure Foundation & now she is the Head of the Foundation

Encourages women for these daring activities but also motivates them to hold the jobs, which are said to be only for men

QUALITY OF WORK LIFE (QWL)

Favorableness or un-favorableness of a total job

environment for people

Will increase productivity Turnover might decrease Able to attract better workers more easily Morale might improve

Some methods of improving QWL

Job enrichment,enlargement,rotations

Cross training

Feedback and reinforcement

Well pay and floating holidays

Empowerment

Ergonomics changes

Wellness programs

Today’s challenge- sustaining the motivational levels of their employees

Why is it a challenge?

Paradigm shift in organisations today…

De-layering (hierarchies reduced)

Downsizing

Cultural diversity

Job hopping

Increased focus on individual competencies etc

Multigenerational workforce

the bottom line is employees need to perform

Multigenerational workforce

Today four generations are working side by side in the workplace

Many organizations are trying to balance a generation gap of more than 30 years between the oldest and youngest employees

Although there is no consensus of the exact birth dates that define each generation, they are generally broken into four distinct groups

The Traditionalist - born between 1927 and 1945

The Baby boomers- born between 1946 and 1964

Generation X – born between 1965 and late 1970

Generation Y- born early 1980s to the early 2000 (also known as Millenials)

The diverse perspectives, motivations, attitudes and needs of these four generations have changed the dynamics of the workforce

Motivating the Millennial Generation

What is the challenge ?

Does motivation differ across generations?

How to motivate ?

Some of their traits

Tech- savvy – Armed with smartphones, laptops, tablets and other gadgets, Generation Y is plugged-in 24 hours a day, 7 days a week. This generation prefers to communicate through e-mail and text messaging rather than face-to-face contact

Work-life balance-willing to trade high pay for fewer billable hours, flexible schedules and a better work/life balance

Achievement oriented-confident, ambitious and achievement-oriented. They have high expectations of their employers, seek out new challenges and are not afraid to question authority.

Team oriented-As children, Generation Y participated in team sports, play groups and other group activities. They value teamwork and seek the input and affirmation of others.

Attention – craving-craves attention in the forms of feedback and guidance. They appreciate being kept in the loop and seek frequent praise and reassurance. Generation Y may benefit greatly from mentors who can help guide and develop their young careers

Indian workplace is a blend of 3 to 4 generations

the business leaders and the CEOs of baby boomer generations (45 plus)

management teams and senior professionals from Gen X (23 to 45)

young Gen Y professionals (23-28 )

This generation gap has lead to differences in working styles and communication styles as well as motivation

Situation….. Kathy has been with the company longer than any of your

other employees. She joined the company as a Sales representative. Although she has no sales background, she possessed an innate ability to sell. Over the years, she consistently met or exceeded her sales quotas for her region. She likes her region and knows her customers well.. Although she has had several opportunities to transfer to a larger region, she has always declined the offer, stating that her preference was to stay where she was. For the first time in her career, for the past six months, she has consistently missed her sales quota. Until now, you have chosen to ignore the problem. Initially, you thought it was temporary phase that would simply go away. Your rationale was based on the fact that Kathy has always been a good performer. You assumed that she was either encountering temporary personal problems that was disrupting her productivity or that sales were slow in her region. You now realize, with mounting pressure from your employees and concerns from upper management, that you must address the situation immediately

situation

It’s happened gain. As you walk through your work area a half our after starting time, you notice that Sam’s desk is empty for the second time this week. This has become an ongoing problem for him over the past several months. Because he didn’t ask for any time off, there is only one conclusion you can come to-he is late again. The area gets quiet as you glance around and notice that everyone is watching you in anticipation. To dampen your employee’s suspicions, you walk over to Sam’s desk, pick up a piece of paper and look at it to show them that that is why you came into the work area in the first place. You then quickly make your exit. Twenty minutes later, you catch Sam sneaking in through the back door and scrambling to his desk. This has got to stop !!

situation

George is good at what he does , but he needs to slow down. He has just one speed- fast. Whenever you give him an assignment, you can count on the fact that he will show up at your office door, telling you he’s done with the project a few days early, asking for another project. The problem confronting you is that several employees in your organization have complained about George’s work tactics. If he asks them for something he needs to complete an assignment and they can’t give it to him immediately , he goes behind their backs and takes whatever he needs. How can you motivate George to become more diplomatic without destroying his empowered drive?