REWARDS AND MOTIVATION PREPARED BY, R. MOHAMMED YASIK

REWARDS Reward system exists in order to motivate employees to work towards achieving strategic goals which are set by entities. Reward management is not only concerned with pay and employee benefits. It is equally concerned with non-financial rewards such as recognition, training, development and increased job responsibility.

Types of rewards EXTRINSIC REWARDS: concrete rewards that employee receive. Bonuses Salary raise Gifts

INTRINSIC REWARDS: tend to give personal satisfaction to individual. Information / feedback Recognition Trust/empowerment

Internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, or to make an effort to attain a goal.

Motivation In Action: Ten Methods For Motivating Employees 1.Set Goals 2.Use Pay for Performance 3.Improve Merit Pay 4.Use Recognition 5.Use Positive Reinforcement

Con.. 6.Use Behavior Management 7.Empower Employees 8.Enrich the Jobs 9.Use Skill-Based Pay 10.Provide Lifelong Learning

Motivational techniques JOB DESIGN: The design of an employee’s job can have a significant effect on their job motivation. Job design includes designing jobs that create both a challenging and interesting task for the employee and is effective and efficient for getting the job done. Job design Four approaches to job design are:

JOB SIMPLIFICATION: The goal of this job design approach is to standardize and specialize tasks. Unfortunately this approach does not always lead to increased motivation as the jobs can become mundane. JOB ENLARGEMENT : The goal of this job design approach is to combine tasks to give the employee a greater variety of work.

JOB ROTATION: The goal of this job design approach is to move workers to different tasks periodically. JOB ENRICHMENT: The key to job design employee motivation, this approach aims to enhance the actual job by building up the employee through motivational factors.

EXAMPLE:

APPLICATION OF THEORIES OF MOTIVATION

Needs and Motivation Abraham Maslow’s Hierarchy of Needs – Five increasingly higher-level needs: physiological (food, water, sex) security (a safe environment) social (relationships with others) self-esteem (a sense of personal worth) self-actualization (becoming the desired self) – Lower level needs must be satisfied before higher level needs can be addressed or become of interest to the individual.

Needs and Motivation (cont’d) Herzberg’s Hygiene–Motivator theory – Hygienes (extrinsic job factors) Inadequate working conditions, salary, and incentive pay can cause dissatisfaction and prevent satisfaction. – Motivators (intrinsic job factors) Job enrichment (challenging job, feedback and recognition) addresses higher-level (achievement, self- actualization) needs. – The best way to motivate someone is to organize the job so that doing it helps satisfy the person’s higher-level needs.

Needs and Motivation (cont’d) Edward Deci – Intrinsically motivated behaviors are motivated by the underlying need for competence and self-determination. – Offering an extrinsic reward for an intrinsically- motivated act can conflict with the acting individual’s internal sense of responsibility. – Some behaviors are best motivated by job challenge and recognition, others by financial rewards.

Instrumentality and Rewards Vroom’s Expectancy Theory – A person’s motivation to exert some level of effort is a function of three things: Expectancy: that effort will lead to performance. Instrumentality: the connection between performance and the appropriate reward. Valence: the value the person places on the reward. – Motivation = E x I x V If any factor (E, I, or V) is zero, then there is no motivation to work toward the reward. Employee confidence building and training, accurate appraisals, and knowledge of workers’ desired rewards can increase employee motivation.