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Rewards and Motivation. Motivation - a nagging concern. What is the problem? Effort, performance, retention, loyalty, membership, commitment, trust, empowerment, participation, work design Extrinsic and intrinsic rewards Expectancy and Equity Rhetoric versus reality

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motivation a nagging concern
Motivation - a nagging concern
  • What is the problem?
    • Effort, performance, retention, loyalty, membership, commitment, trust, empowerment, participation, work design
    • Extrinsic and intrinsic rewards
    • Expectancy and Equity
    • Rhetoric versus reality
    • How I construe my/your motivation, needs & drives
  • How to "motivate people to give their all"
would i really work for you without reward
Would I really work for you without reward?
  • Fundamental to employee contract
  • Traditional economic exchange model. Pay-effort determinism
  • "Rate for the job"
    • Occupational norms, expectations and choices
    • Expediency - "suitable for my life package at the moment"
  • Etzioni & organisational membership
    • Coercive - Remunerative - Normative
    • Alienated - Instrumental - Moral involvement
the person as economist expects
The person-as-economist expects
  • ROI - time, effort, commitment
  • "What's in it for me?" calculation
    • Conscious  subconscious (self image and comparisons)
  • Fairness (equitable social (economic) exchange)
    • interpret rewards/pay-offs of others
    • judge what is fair/unfair
    • satisfaction if each party achieves a balance (relative equality)
  • Psychological extension to neutral, economic model
    • Construing the value & importance of input-output
    • Social, psychological - individual & group
  • Validation of personal perceptions and comparisons
    • Clear/distorted
    • internal/external
design features of reward systems
Design Features of Reward Systems
  • Monetary
    • Time-based (not directly related to performance)
    • Performance-linked
      • Output, %, PRP, merit pay, commission, skill-based
      • collective-output schemes
      • Corporate performance-related bonuses + profit sharing
  • Monetary-equivalent
    • Car, phone, holidays, loans, accommodation, fees, vouchers
  • Deferred (promotion, pension)
  • Non-monetary / intrinsic benefits - safety, status, recognition, plaques, contribution and empowerment
  • Negatives pressure, penalties, harassment, side-lining, dismissal
pay by time schemes components
Pay by time schemes - Components
  • simple to administer
    • Defined time – F/T, P/T, mixed-time, casual
    • No attendance, no pay? Hourly, weekly, monthly
    • Premiums – 1.5T, 2T, nights
    • Flexi-time schemes
  • “Door knob syndrome”
  • Job grading/evaluation - evaluate the job not the person doing it
  • Control mechanisms & tools – clocks, supervision, time sheets?
  • Performance assumptions
    • Trust, competence, diligence, fidelity, care, good-will, cooperation
    • Work for Er in Er time ……versus ……...in your time?
    • Supervision and monitoring - “When the cats away”?
    • Is actual presence necessary? Off-site working.
    • Life increments - pay & career progression, security?
prp merit pay skill based schemes
PRP, merit pay, skill-based schemes
  • Requires
    • targeting, information & measurement
    • Manager appraisal and judgement
    • Problems of "big scheme" rules and controls
  • Pay linked to
    • Individual merit (behaviours, traits & competencies: flexibility, cooperation, punctuality, effort, skills/abilities).
    • concrete individual or group targets
  • Staff appraisal criteria and rating
performance related pay prp
Performance-Related Pay (PRP)
  • extensive but partial and sectoral
  • little research data on effectiveness
  • pay linked to specific aspect of performance
    • Intensity of MbO approach
    • Problem of defining the group + outputs
    • What if key results not achieved?
    • How is control and consistency achieved?
    • Fairness + validation of "the manager's judgment"
  • Addition to salary (merit pay or bonus) for this appraisal round.
  • The apparent exaggeration of "Fat cat bonuses" – the "global labour market for stars" + formulae?
emotional social dynamics expectations
Emotional & social dynamics & expectations
  • Important for employee belief and commitment
  • Impact of rules-of the-scheme (formal contract) on individual sensitivity (psychological contract).
    • personal expectations
    • + formal/informal exchange Er çè Ee
    • my manager as
      • employer (by proxy)
      • as a person I like/dislike, respect?
    • How I "see" what others are getting - internally and externally.
pay offs in the employer employee relationship after mumford 1972
Pay-offs in the Employer-Employee Relationship(after Mumford 1972)
  • Task structure Work within firm’s policy, procedure & technical constraints. Job roles, work arrangements & relationships
  • Knowledge & skill Employer wants know-how, competence, experience. Employee wants to be put to good use & be developed
  • PsychologicalManagement & co-workers want committed, loyal, motivated staff. Individual wants satisfaction
  • Efficiency/rewards Employer wants performance & output to a quality standard. Employee wants equitable, felt-fair rewards & opportunity
  • EthicalValues & ambiguities/inconsistencies in right/wrong behaviour
organisational culture problems
Conscious calculation & instrumentality?

Take-it or leave it + "9-5" sub-optimisation

Tangible over non-tangible rewards

Organisational rationalisation of effort-reward relationship

Structural inflexibility of reward packages

Constructing and controlling the performance review and PRP system

Genuine involvement & participation

Delegation, reliance and confidence

Organisational "Culture" Problems
how has work motivation theory dealt with this
Homo economicus

Content theories - needs and factors:

Maslow, Alderfer, McClelland - Needs and satisfactions

Herzberg - hygiene and motivators, job redesign

Process theories

McGregor, Likert et al - on being managed

Adams - Equity theory

Vroom, Lawler - Expectancy theory

Hackman & Oldham - job characteristics

Locke - Goal setting

Reinforcement theory (operant conditioning)

Positive (continuous, fixed and variable intervals/ratios)

Avoidance learning and punishment

How has work-motivation theory dealt with this?
abraham maslow need satisfaction
Abraham Maslow - Need Satisfaction

teleology

goal-orientation

Behaviour/

Action

achieve

drive

Goals

Needs

satisfy

maslow s need satisfaction model
Maslow's Need-Satisfaction Model
  • Content theory - the needs that motivate
  • simple description, partial account - not quantifiable
  • chronic deficiency drives (motivates) behaviour
  • gratified needs - equilibrium
  • snakes and ladders or
  • lower needs mediated by higher order consciousness?
  • nb: Alderfer ERG theory - existence, relatedness, growth)
  • cognitive and developmental
this idealised self actualised person
more efficient perception of reality + comfortable with it

acceptance of self & others + social interest

problem-orientation, spontaneity and creativity

detachment - value privacy

autonomy - independence of culture & environment

resistance to enculturation

continued freshness of appreciation

mystic experience or oceanic feeling

interpersonal relations & democratic behaviour

sense of humour

This idealised, self-actualised person?
self actualised human like everyone else
Self-actualised? Human… like everyone else…..
  • displays frailty & failings, ups & downs.
  • emotional, critical attitudes towards others
  • urge to decide for themselves
  • may say "NO" & be unpredictable - own destiny.
  • wants reasons without always wishing to conform.
  • accepts need for conformity most of the time to serve their interests
  • avoids being selfish & ego-centred (denying space to others).
expectancy theory the process of motivation
expectancy - If I tried could I do it? Get away with it?
  • Instrumentality - if I did it will I attain the outcome?
  • valence (subjective valuation) - do I really value what's available?
  • Expressed as probabilities. Path-goal relationships which “explain” motivation è performance.
Expectancy theory (the process of motivation)

assoc.. with Vroom & Lawler/Porter

Motivated to perform because of expectations relating to perceived payoffs from the performance.

______

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

______

Personal view of what is challenging or interesting, important to self + valuation of extrinsic payoffs - pay & material rewards

expectancy theory vroom et al
Expectancy Theory - Vroom et al

valence

A robust explanatory, predictive model?

How the individual construes it all?

equity consistency an impossible ideal
Equity & consistency - an impossible ideal?
  • “Felt-fairness” - how I am treated in relation to others
  • Equity balance sheet & "the last straw”
    • "What you gain on the swings….." Trust/good-will
    • “No more … that’s it for me!”
  • Internal & external comparisons (groups & individuals)
  • Feelings & perceptions - not synonymous with equality
  • Proposition… better motivated if treated equitably & consistently
    • distributive equityhow I perceive I am treated & rewarded in comparison to others
    • procedural equityhow I see organisational procedures being applied
equity and justice
Equity and Justice
  • Distributive justicehow rewards are distributed in accordance with
    • “my contribution” & need
    • what was promised.
  • Procedural equityhow reward decisions are made & managed
    • Adequate consideration of employee’s viewpoint
    • No personal bias
    • Consistent application of criteria
    • Early feedback on outcome of decisions
    • Adequate explanation of decisions made
organisational initiatives
Job design & flexibility - matching people to jobs

MbO - defining expectations and feedback

Teams and semi-autonomous groups, empowerment

Concern for staff development, competencies and accreditation

Effort to refine and deliver “reward packages” that "motivate" - PRP

Managerial behaviours

Constant organisational vigilance & sensitivity

A rewarding, supportive climate

Cultures that foster

confidence and identification (one-ness with the firm)

meaningful, practical commitment?

Organisational initiatives
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