1. Foundations of Employee Motivation
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2. Employee Motivation and Engagement at Standard Chartered
Through goal setting, strengths-based feedback, community involvement, and fun activities in the workplace, Standard Chartered Bank has significantly improved employee engagement and motivation throughout its operations, most of which are in Asia and India.
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3. © 2010 The McGraw-Hill Companies, Inc. All rights reserved
Motivation Defined
The forces within a person that affect the direction, intensity, and persistence of voluntary behaviour
Exerting particular effort level (intensity), for a certain amount of time (persistence), toward a particular goal (direction)
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4. © 2010 The McGraw-Hill Companies, Inc. All rights reserved
Employee Engagement
Emotional and cognitive motivation, self-efficacy to perform the job, a clear understanding of one’s role in the organisation’s vision and a belief that one has the resources to perform the job.
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5. Drives and Needs
Drives (primary needs, fundamental needs, innate motives)
Neural states that energise individuals to correct deficiencies or maintain an internal equilibrium
Prime movers of behaviour by activating emotions
Self-concept, social norms, and past experience
Drives
(primary needs)
and emotions
Needs
Decisions and behaviour
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6. Drives and Needs Needs Goal-directed forces that people experience
Drive-generated emotions directed toward goals
Goals formed by self-concept, social norms, and experience
Self-concept, social norms, and past experience
Drives
(primary needs)
and emotions
Needs
Decisions and behaviour
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7. Maslow’s Needs Hierarchy Theory
Self-actualisation
Seven categories capture most needs
Need to
know
Need for beauty
Five categories placed in a hierarchy
Esteem
Belongingness
Safety
Physiological
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8. Maslow’s Needs Hierarchy Theory
Self-actual-isation
Physiological
Safety
Belongingness
Esteem
Need to
know
Need for beauty
Lowest unmet need has strongest effect
When lower need is satisfied, next higher need becomes the primary motivator
Self-actualisation – a growth need because people desire more rather than less of it when satisfied
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9. Evaluating Maslow’s Theory
Self-actual-isation
Physiological
Safety
Belongingness
Esteem
Need to
know
Need for beauty
Lack of support for theory
People have different hierarchies – don’t progress through needs in the same order
Needs change more rapidly than Maslow stated
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10. What Maslow Contributed to Motivation Theory
More holistic
Integrative view of needs
More humanistic
Influence of social dynamics, not just instinct
More affirmational
Pay attention to strengths, not just deficiencies
Abraham Maslow
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11. What’s Wrong with Needs Hierarchy Models?
Wrongly assume that everyone has the same (universal) needs hierarchy
Instead, it is likely that each person has a unique needs hierarchy
Shaped by our self-concept – values and social identity
Abraham Maslow
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12. © 2010 The McGraw-Hill Companies, Inc. All rights reserved
Learned Needs Theory
Needs are amplified or suppressed through self-concept, social norms, and past experience
Therefore, needs can be ‘learned’ (ie. strengthened or weakened through training)
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Three Learned Needs
Need for achievement
Need to reach goals, take responsibility
Want reasonably challenging goals
Need for affiliation
Desire to seek approval, conform to others’ wishes, avoid conflict
Effective executives have lower need for social approval
Need for power
Desire to control one’s environment
Personalised versus socialised power
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Four-Drive Theory
Drive to acquire
• Drive to take/keep objects and
experiences
• Basis of hierarchy and status
Drive to bond
• Drive to form relationships and
social commitments
• Basis of social identity
Drive to learn
• Drive to satisfy curiosity and
resolve conflicting information
Drive to defend
• Need to protect ourselves
• Reactive (not proactive) drive
• Basis of fight or flight
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15. Features of Four Drives
Innate and hardwired
Everyone has them
Independent of each other
No hierarchy of drives
Complete set
No drives are excluded from the model
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16. How Four Drives Affect Motivation
Four drives determine which emotions are automatically tagged to incoming information
Drives generate independent and often competing emotions that demand our attention
Mental skill set relies on social norms, personal values, and experience to transform drive-based emotions into goal-directed choice and effort
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17. Four Drive Theory of Motivation
Drive to acquire
Social norms
Personal values
Past experience
Drive to bond
Mental skill set resolves competing drive demands
Goal-directed choice and effort
Drive to learn
Drive to defend
Social norms, personal values, and experience transform drive-based emotions into goal-directed choice and effort.
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18. Implications of Four Drive Theory
Provide a balanced opportunity for employees to fulfil all four drives
Employees continually seek fulfilment of drives
Avoid having conditions support one drive more than others
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19. Expectancy Theory of Motivation
E-to-P
expectancy
P-to-O
expectancy
Outcomes & valences
Outcome 1
+ or -
Outcome 2
+ or -
Effort
Performance
Outcome 3
+ or -
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20. Increasing E-to-P and P-to-O Expectancies
Increasing E-to-P Expectancies
Assuring employees they have competencies
Person-job matching
Provide role clarification and sufficient resources
Behavioural modelling
Increasing P-to-O Expectancies
Measure performance accurately
More rewards for good performance
Explain how rewards are linked to performance
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21. Increasing Outcome Valences
Ensure that rewards are valued
Individualise rewards
Minimise countervalent outcomes
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22. © 2010 The McGraw-Hill Companies, Inc. All rights reserved
Goal Setting
The process of motivating employees and clarifying their role perceptions by establishing performance objectives.
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23. Effective Goal Setting Characteristics
Specific – measureable change within a time frame
Relevant – within employee’s control and responsibilities
Challenging – raise level of effort
Accepted (commitment) – motivated to accomplish the goal
Participative (sometimes) – improves acceptance and goal quality
Feedback – information available about progress toward goal
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24. Characteristics of Effective Feedback
Specific – connected to goal details
Relevant – relates to person’s behaviour
Timely – to improve link from behaviour to outcomes
Sufficiently frequent
Employee’s knowledge/experience
Task cycle
Credible – trustworthy source
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25. Trouble Keeping Score in NZ Hospitals
The New Zealand government introduced a balanced scorecard system to measure and improve performance of public hospitals, but many public health staff experienced philosophical and practical problems with this goal setting and feedback process.
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Balanced Scorecard
Organisational-level goal setting and feedback
Attempts to include measurable performance goals related to financial, customer, internal, and learning/growth (i.e. human capital) processes
Usually includes several goals within each process
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27. Feedback Through Strengths-Based Coaching
Maximising the person’s potential by focusing on their strengths rather than weaknesses
Motivational because:
People inherently seek feedback about their strengths, not their flaws
Person’s interests, preferences, and competencies stabilise over time
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Multisource Feedback
Received from a full circle of people around the employee
Provides more complete and accurate information
Several challenges
Expensive and time-consuming
Ambiguous and conflicting feedback
Inflated rather than accurate feedback
Stronger emotional reaction to multiple feedback
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29. Evaluating Goal Setting and Feedback
Goal setting has high validity and usefulness
Goal setting/feedback limitations:
Focuses employees on measurable performance
Motivates employees to set easy goals (when tied to pay)
Goal setting interferes with learning process in new, complex jobs
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30. Keeping Pay Equitable at Costco
Costco Wholesale CEO Jim Sinegal (see photo) thinks the large wage gap between many executives and employees is blatantly unfair. “Having an individual who is making 100 or 200 or 300 times more than the average person working on the floor is wrong,” says Sinegal, whose salary and bonus are a much smaller multiple of what his staff earn.

31. Organisational Justice
Distributive justice
Perceived fairness in outcomes we receive relative to our contributions and the outcomes and contributions of others
Procedural justice
Perceived fairness of the procedures used to decide the distribution of resources
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32. Elements of Equity Theory
Outcome/input ratio
inputs – what employee contributes (eg. skill)
outcomes – what employee receives (eg. pay)
Comparison other
person/people against whom we compare our ratio
not easily identifiable
Equity evaluation
compare outcome/input ratio with the comparison other
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33. Correcting Inequity Feelings
Actions to correct inequity
Example
Reduce our inputs
Less organisational citizenship
Increase our outcomes
Ask for pay increase
Increase others’ inputs
Ask coworker to work harder
Reduce others’ outputs
Ask boss to stop giving others preferred treatment
Change our perceptions
Start thinking that others’ perks aren’t really so valuable
Change comparison other
Compare self to someone closer to your situation
Leave the field
Quit job
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Equity Sensitivity
Outcome/input preferences and reaction to various outcome/input ratios
Benevolents
tolerant of being underrewarded
Equity Sensitives
want ratio to be equal to the comparison other
Entitleds
prefer proportionately more than others
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35. Evaluating Equity Theory
Good at predicting situations involving unfair distribution of pay/rewards
Difficult to put into practice
Doesn’t identify comparison other
Doesn’t indicate relevant inputs or outcomes
Equity theory explains only some feelings of fairness
Procedural justice is as important as distributive justice
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Procedural Justice
Perceived fairness of procedures used to decide the distribution of resources
Higher procedural fairness with:
Voice
Unbiased decision maker
Decision based on all information
Existing policies applied consistently
Decision maker listens to all sides
Those who complain are treated respectfully
Those who complain are given full explanation
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37. Foundations of Employee Motivation
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