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Chapter 13 Motivating and Rewarding Employee Performance McGraw-Hill/Irwin Principles of Management © 2008 The McGraw-Hill Companies, Inc., All Rights.

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Presentation on theme: "Chapter 13 Motivating and Rewarding Employee Performance McGraw-Hill/Irwin Principles of Management © 2008 The McGraw-Hill Companies, Inc., All Rights."— Presentation transcript:


2 Chapter 13 Motivating and Rewarding Employee Performance McGraw-Hill/Irwin Principles of Management © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.

3 Learning Objectives 1.Diagram and summarize the MARS model. 2.Describe four-drive theory and explain how these drives influence motivation and behavior. 3.Describe the characteristics of effective goal setting and feedback. 4.Diagram the expectancy theory model and discuss its practical implications for motivating employees. 5.Discuss the advantages and disadvantages of the four reward objectives. 6.Discuss ways to measure employee performance more accurately. 7.Summarize the equity theory model, including how people try to reduce feelings of inequity. 8.Diagram the job characteristics model of job design. 9.Define empowerment and identify strategies to support empowerment.

4 Employee Engagement Employees emotional and rational motivation -Their perceived ability to perform the job -Their clear understanding of the organizations vision -Their belief that they have been given the resources to get the job done It encompasses the four main factors that contribute to employee performance

5 Motivation: True or False? I can motivate people Fear is a damn good motivator I know what motivates me, so I know what motivates my employees Increased job satisfaction means increased job performance Source:

6 MARS Model Ability Employee behavior and results Motivation (effort) *Direction *Intensity *Persistence Role Perceptions Situational factors

7 Ability & Role Perceptions Ability – consists of both the natural aptitudes and learned capabilities required to successfully complete a task -Important factor of employee development Role perceptions – they understand the specifics, importance, and preferred behaviors of the tasks. Ways to improve is through job description and ongoing coaching

8 Managing Employee Motivation 1. Drives and needs Employee behavior and results Motivation (effort) *Direction *Intensity *Persistence 2. Goals, expectations, and feedback 3. Extrinsic and intrinsic rewards

9 Maslows Needs Hierarchy Self- actualization Esteem Belongingness Safety Physiological Challenging tasks, freedom to try new ideas Job status, recognition, mastering the job Human interaction, being accepted as a team member Job security, employee benefits, safe workplace Work hours, nourishments, air quality, temperature

10 Called in Sick? Source: USA Today Snapshots

11 Question Money is a powerful motivator. If an organization wants to be motivate employees, all its managers need to do is give them more money. Do you agree? Explain.

12 Management Implications of Maslows Theory 1.Employees have different needs at different times 2.Employees have several interdependent needs, not just one dominant need 3.At some point, most employees want to achieve their full potential (self-actualization) 4.Employee needs are influenced by values and norms

13 Learned Needs Theory Need for Achievement (nAch) Need for Affiliation (nAff) Need for Power (nPow)

14 Four-Drive Theory Motivation Drive to acquire Drive to bond Drive to learn Drive to defend Mental skill set resolves competing drive demands Goal-directing choice and effort Social norms Personal values Past experience

15 Goal Setting The process of motivating employees and clarifying their role perceptions by establishing performance objectives A goal is a desirable future state that an organization or person attempts to realize Goal setting improves role perceptions and consequently clarifies the direction of employee effort

16 Question Raj, a new manager at Telcom International, in his first meeting at the company told his employees that the sales goals were significantly enhanced for this year and he expects all of his employees to buckle down and work hard to meet the goals. Rajs instructions violates which of the aspects of effective goal-setting? a.Precise and measurable b.Equitable c.Expectancy-oriented d.Timely

17 Expectancy Theory of Motivation Effort Outcome 1 + or - Performance E-to-P expectancy (probability that effort will result in a specific level of performance) P-to-O expectancy (probability that performance will result in specific outcomes) Outcome valence (the outcomes positive or negative value to the employee)

18 Rewards Extrinsic Rewards – anything received from another person that the recipient values and is contingent on his or her behavior or results -Paychecks, performance bonuses, praise, and other forms of recognition Intrinsic Rewards – a positive emotional experience resulting directly and naturally from the individuals behavior or results -Learning a new task, feeling of accomplishment, etc.

19 Motivation Through Extrinsic Rewards Membership & seniority- based rewards Nonfinancial rewards Job status-based rewardsImproving performance appraisals Competency-based rewardsRewards employees equitably Performance-based rewards

20 How to Accurately Evaluate Employee Performance? 1.Use more objective measures of performance 2.Use anchored performance appraisal instruments 3.Use multiple sources of performance information 4.Use performance appraisal training

21 Best Practices at Nucor Pay for performance – On average two-thirds of a Nucor steelworkers pay is based on a production bonus Listen to the frontline – According to the Execs, almost all of the best ideas come from the factory floor Push-down authority – minimizing layers of management Protect your culture –compatibility of culture with its egalitarian philosophy and team spirit is a big focus of its acquisition research Source: Business Week, May 1, 2006

22 Correcting Inequity Feelings Change Inputs Change Outcomes Change Perceptions Leave the Situation

23 Job Characteristics Model Critical psychological states Meaningfulness Responsibility Knowledge of results Individual differences *Knowledge and skill *Context satisfaction *Growth need strength Core job characteristics Skill variety Task identity Task significance Autonomy Feedback from job Outcomes Work motivation Growth satisfaction General Satisfaction Work effectiveness

24 Core Job Characteristics Skill variety – the use of different skills and talents to complete a variety of work activities Task identity – the degree to which a job requires completion of a whole or identifiable piece of work Task significance – the degree to which the job affects the organization and society Autonomy – provide freedom, independence, and discretion in scheduling work and procedures Job feedback – the degree to which employees can tell how well they are doing

25 Job enrichment A job design practice in which employees are given more responsibility for scheduling, coordinating, and planning their own work -Combine highly interdependent tasks into one job -Establishing client relationships -Give employees more autonomy over their work

26 Loyal vs. Trapped? Source: CIO, October 1, 2003

27 Empowerment A psychological concept represented by four dimensions: -Self-determination – they have freedom, interdependence, and discretion over their work activities -Meaning – they care about their work and believe that what they do is important -Competence – their ability to perform the work well and have a capability to grow with new challenges -Impact – Active participants in the organization; that is, their decisions and actions influence the companys success

28 Inspiring Employees Dont ask for worker input – use it. Tell your people you care about them. Show employees what they are learning Support people when they make a mistake. Set clear goals and celebrate accomplishments. Source: Business Week, May 1, 2006

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