Presentation on theme: "MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune"— Presentation transcript:
1 MOTIVATION CONCEPTS Prepared by: Abraham Sitompul Eva Marinne Sagune Hery HaryantoImam HaryantoPetrus MintowiyonoRusdi
2 DEFINING MOTIVATION Motivation Is the result of interaction between an individual and situationMotivation is the process concerning individual effort in term of:IntensityDirectionPersistenceto achieve a goal
3 EARLY THEORIES OF MOTIVATION Hierarchy of Needs Theory, by Abraham MaslowMotivation depend on level of the hierarchy that person is currently onRevised by Clayton Alderfer to ERG Theory that mention an individual could be focusing on all 3 needs categories (no rigid hierarchy)SelfActualizationEsteemSocialSafetyPhisologicalHigher order needsLower order needs
4 Theory X and Theory W, by Douglas Mc Gregor Theory X Negative Employees inherently dislike workHas to be directed or even coecced/forced to perform jobTheory Y PositiveEmployees like workThe average person can learn, accept, even seek responsibility
5 Two Factor Theory by Frederick Herzog (also called Motivation – Hyigene Theory)Determine job satisfaction and job dissatisfaction toward job.Intrinsic factors related to job satisfaction, such as: Advancement, recognition, responsibilities, and achievement.Extrinsic factors related to job dissatisfaction, such as: supervision, pay, company policies, working conditions (called hygiene factors)Factors that lead to job satisfaction are separate and distinct from those that lead to job dissatisfaction
6 Theory of Needs by McClelland Focuses on three needs: Need for Achievement (nAch)Need for Power (nPow)Need for Affiliation (nAff)High achiever perform test for probability of success 0.5 (dislike gambling)No ChallengePoor Change
7 CONTEMPORARY THEORIES Cognitive Evaluation TheoryGiving extrinsic reward (such as money) for work effort that was previously intrinsically rewarding tend to decrease overall motivation.Need to make the work interesting, provide recognition, and support growth and development, other than extrinsic reward.
8 According Edwin Locke: Goal Setting TheoryAccording Edwin Locke:Intention to work toward a goal are a major source of work motivationSpecific goals result higher performanceDifficult goals result higher performance, why? Difficult goals will:Direct people’s attention to the task in hand and away from irrelevant distractionsEnergize people to work harder to attain goalPeople persist to attain goal
9 Organizational Objectives Implementing Goal-Setting, using MBO (Management by Objectives) that emphasizes participatively set goals that are:TangibleVerifiableMeasurableCascading of Objectives:OverallOrganizational ObjectivesThe CompanyDivisionalObjectivesDivisionDivisionDepartmentalObjectivesDept.Dept.Dept.Dept.IndividualObjectives
10 Self-Efficacy Theory(also known as Social Cognitive Theory or Social Learning Theory refers to an individual belief that someone is capable of performing a task)High Self Efficacy respond to negative feedback with increased effort and motivation, whilst Low One are likely to lessen their effortGoal Setting Theory and Self efficacy complement each other
11 According to Albert Bandura, there are 4 ways self efficacy can be increased: Enactive masteryVicarious modelingVerbal persuasionArousalPygmalion Effect is a form self fulfilling prophecy in which believing something to be true can make it trueGalatea Effect occurs when high performance expectations are communicate directlySelf efficacy may simply be a by product in a smart person with a confident personality
12 Takes a behavioristic approach that being environmentally caused. Reinforcement TheoryTakes a behavioristic approach that being environmentally caused.The theory:Ignores the inner state of individual, such as feeling, attitude, expectation, and other cognitive variables that affect behaviorConcentrates solely on what happens to a person when he or she takes some actions
13 Equity plays in motivation Ratio Comparison Perception Equity TheoryEquity plays in motivationRatio Comparison PerceptionO/IA < O/IB Inequity due to being underrewardedO/IA = O/IB EquityO/IA > O/IB Inequity due to being overrewardedWhere O/IA represent the employee and O/IB represent relevant other
14 Model of Organizational Justice Equity Theory focused on distribution justiceDistribution JusticeOrganizationalJusticeProceduralJusticeInteractionalJustice
15 Expectancy Theory by Victor Vroom Strength of a tendency to act depend on the strength of an expectation given outcome to the individual123Individual effortIndividual performanceOrganizational rewardsPersonalgoal1Effort-performance relationship2Performance-reward relationship3Rewards-personal goal relationship
16 INTEGRATING CONTEMPORARY THEORIES High nAchJob designEquity comparison/Organizational justicePerformance evaluation criteriaOpportunityAbilityIndividualeffortIndividual performanceOrganizational rewardsPersonalgoalObjective performance evaluation systemReinforcementDominant needsGoals direct behavior
17 GLOBAL IMPLICATIONMost of theories are cultural bound, since developed in US by.Most related to US culture such as:RationalIndividual thoughtNeeds hierarchyWillingness to accept a moderate degree of riskConcern with performanceHighly sensitive to equity in reward allocationBut don’t assume there are no cross cultural consistencies like desire for interesting works seem important to almost all workers
18 MOTIVATION BY JOB DESIGN Job Characteristics Model (JCM)Hackman and Oldham’s concept that any job can be described through five core job dimensions:Skill variety – Requirements for different tasks in the job.Task identity – Completion of a whole piece of work.Task significance – The job’s impact on others.Autonomy – Level of discretion in decision making.Feedback – Amount of direct and clear information on performance.The way elements in a job are organized (job design) impacts motivation, satisfaction, and performance.
22 Alternative Work Arrangements FlextimeJob SharingThe practice of having two or more people split a 40-hour-a-week jobTelecommutingEmployees do their work at home at least two days a week on a computer that is linked to their office.
23 The Virtual Office Typical Telecommuting Jobs Employees work out of their home on a relatively permanent basis.Typical Telecommuting JobsProfessional and other knowledge-related tasksRoutine information-handling tasksMobile activities
24 Reasons for and against Telecommuting AdvantagesDisadvantagesLarger labor poolHigher productivityLess turnoverImproved moraleReduced office-space costsEmployerLess direct supervision of employeesDifficult to coordinate teamworkDifficult to evaluate non-quantitative performanceEmployeeMay not be as noticed for his or her efforts
25 Motivation Is Not the Whole Story Performance(P)Motivation(M)(A)AbilityOpportunity to Perform(O)P = f(A x M x O)
26 Employee InvolvementA participative process that uses the input of employees to increase their commitment to the organization’s success.By increasing worker autonomy and control over work lives (involvement), organizations:Increase employee motivationGain greater organizational commitmentExperience greater worker productivityObserve higher levels of job satisfaction
27 Types of Employee Involvement Programs Participative ManagementSubordinates share a significant degree of decision-making power with their immediate superiorsRepresentative ParticipationWorks councilsGroups of nominated or elected employees who must be consulted for any personnel decisionsBoard representativeAn employee sits on a company’s board of directors and represents the interests of the firm’s employeesQuality CircleA work group of employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions, and take corrective actions
28 Motivational Theory Links to EI Programs Theory YEmployees want to be involvedManagerial viewpointTwo-Factor TheoryIntrinsic MotivationGrowthResponsibilityInvolvementERG TheoryStimulate nAchRecognitionSelf-esteem
29 Four Major Strategic Reward Decisions What to pay? (pay structure)How to pay individuals? (variable pay plans and skill-based pay plans)What benefits to offer? Do we offer choice of benefits? (flexible benefits)How to build recognition programs?
30 What to Pay – Pay Structure Internal equityThe worth of the job to the organizationDetermined by job evaluationsExternal equityThe competitiveness of the company’s pay relative to pay elsewhere in the industryDetermined through pay surveysChoose organizational positionPay leadersGreater employee loyaltyAttracts better-quality employeesPay laggards – accept high turnover for low hourly costs
31 How to Pay - Variable Pay Programs Types of Variable Pay ProgramsA portion of an employee’s pay is based on some individual and/or organizational measure of performancePiece Rate:Workers are paid a fixed sum for each unit of production completedWeakness: not feasible for many jobsMerit-Based:Based on performance appraisal ratingsGap increasing between average and top-performersWeaknesses: validity of system based on annual appraisals, pay pool can be small, unions strongly resistBonuses:Rewards recent performanceWeakness: employees consider this a pay
32 How to Pay - Skill-Based Pay Programs Types of Skill-Based Programs:Also known as competency- or knowledge-based pay - sets pay based on skills or number of jobs an employee can performProfit Sharing:Organization-wide programs that distribute compensation based on some established formula designed around a company’s profitabilityGain Sharing:An incentive plan in which improvements in group productivity determine the total amount of money that is allocatedEmployee Stock Ownership Plans (ESOPs)Company-established benefit plans in which employees acquire stock as part of their benefits
33 Evaluation of Variable and Skill-based Pay To some extent, variable pay does increase motivation and productivityBenefits of Skill-based Pay PlansProvide staffing flexibilityFacilitate communication across the organizationLessen “protection of territory” behaviorsMeet the needs of employees for advancementLead to performance improvementsDrawbacks:Lack of additional learning opportunitiesContinuing to pay employees for obsolete skillsPaying for skills of no immediate use to the organizationPaying for a skill, not for performance of the skill
34 What Benefits to Offer - Flexible Benefits Employees tailor their benefit program to meet their personal need by picking and choosing from a menu of benefit options.Modular PlansPredesigned benefits packages for specific groups of employeesCore-Plus PlansA core of essential benefits and a menu-like selection of other benefit optionsFlexible Spending PlansAllow employees to use their tax-free benefit dollars to purchase benefits and pay service premiums
35 How to Build Recognition Programs Intrinsic Rewards: Stimulate Intrinsic MotivationPersonal attention given to employeeApproval and appreciation for a job well doneGrowing in popularity and usageBenefits of ProgramsFulfill employees’ desire for recognitionInexpensive to implementEncourage repetition of desired behaviorsDrawbacks of ProgramsSusceptible to manipulation by management
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