Motivating and Rewarding Employees

1. Motivating and Rewarding Employees FOM9-1

2. Motivation • Willingness • High level of effort • Satisfaction of individual need FOM9-4

3. A need is an internal state that makes certain outcomes appear attractive. An unsatisfied need creates tension, which an individual reduces by exerting effort. Individual needs need to be compatible with the organization’s goals. When the two do not match, individuals may exert high levels of effort that run counter to the interests of the organization Ex: Social needs interfere with organizational goals. Job satisfaction: Canada 40% US 47% Danish 54%

4. The Motivation Process Unsatisfied Need Search Behaviour Tension Reduction of Tension Satisfied Need Drives FOM9-5

5. Maslow’s Hierarchy of Needs Self Esteem Social Safety Physiological FOM9-6

6. Little Ambition Theory X Employees Dislike Work Avoid Responsibility Self-Directed Theory Y Employees Enjoy Work Accept Responsibility FOM9-7

7. Herzberg’s Motivation-Hygiene Theory Hygiene Factors Motivators • Quality of supervision • Salary and benefits • Company policies • Working conditions • Relations with others • Security and status • Career advancement • Recognition • Work itself • Responsibility • Advancement • Growth High Job Dissatisfaction 0 Job Satisfaction High FOM9-8

8. The Three- Needs Theory Achievement (aAch) Affiliation (nAff) Power (nPow) FOM9-9

9. Equity Theory Employee’s Assessment Perceived Ratio Comparison* Outcomes A Inputs A Outcomes A Inputs A Outcomes A Inputs A Outcomes B Inputs B Outcomes B Inputs B Outcomes B Inputs B < Inequity (Under-Rewarded) = Equity > Inequity (Over-Rewarded) *Where A is the employee, and B is a relevant other or referent. FOM9-10

10. What happens when an employees perceives an inequity? • Distort their own or others ip/oc • Behave in a way to induce others to change their ip/oc • Behave in some way to change their own ip/oc • Choose a different comparison person • Quit their jobs • Whenever empolyees perceive an inequity, they will act to correct the situation. The result might be high or lower productivity, improved or reduced quality of output, increased absenteeism, voluntary resignation.

11. Equity Theory Propositions Given payment by time, overrewarded employees will produce more than equitably paid employees Given payment by quantity of production, overrewarded employees will produce fewer but higher-quality units than equitably paid employees Given payment by time, underrewarded employees Will produce les or poorer-quality output Given payment by quantity of production, underrewarded employees will produce a larger number of low-quality units in comparison with equitably paid employees FOM9-11

12. The Job Characteristics Model Skill Variety Task Identity Task Significance Autonomy Feedback FOM9-12

13. Guidelines for Job Redesign Combine Tasks Create Natural Work Units Establish Client Relationships Expand Jobs Vertically Open Feedback Channels FOM9-15

14. 1. Effort-performance relationship 2. Performance-rewards relationship 3. Attractiveness relationship Expectancy Theory Individual Effort Individual Performance Organizational Rewards 1 2 3 Individual Goals FOM9-16

15. Reinforcement Theory Says that behavior is influenced by consequences. Reinforcement theory argues that behavior is externally caused by reinforcers. Reinforcers are consequences , that when given immediately following a behavior, increases the probability that the behavior will be repeated. Reinforcers are used on positive behaviors, negative behaviors are ignored, not punish, unfavourable behavior.

16. Integrating Contemporary Theories of Motivation High nAch Ability Equity Comparison Task Complexity Task Complexity Performance Evaluation Criteria Individual Effort Individual Performance Organization Rewards Individual Goals Reinforcement Performance Criteria Dominant Needs Goals Direct Behaviour FOM9-17

17. Motivating a Diverse Workforce • Flexibility • Recognize differences • Accommodate FOM9-18

18. Motivating Minimum-Wage Employees • Employee recognition • Praise • Empowerment FOM9-21

19. Motivating Professional and Technical Employees • New assignments • Challenges • Autonomy • Training and educational opportunities • Recognition • Simplify non-work life FOM9-22

20. Motivating Contingent Workers What are contingent workers? These are part-time, contract workers and other forms of temporary work. They do not have the same stability or security as permanent employees. • Some contingent workers like the freedom of temporary status. • Other workers want to belong with the organization, so the opportunity to become a permanent employee. • Pool of temps.

21. Flexible Work Options • Compressed work week • Flex-time • Job sharing • Telecommuting FOM9-23

22. Additional Suggestions for Motivating Employees • Recognize individuals • Match people to jobs • Use goals • Make goals attainable FOM9-24

23. Further Suggestions for Motivating Employees • Individualize rewards • Link rewards to performance • Check the system for equity • Don’t ignore money FOM9-25