2. Motivation at work

3. The Satisfaction or Needs Identify the Need/Motivation Incentive Revise Satisfaction Result / Outcome

4. If an individual’s needs are not satisfied, worker will not be MOTIVATED to work Motivation: the force which drives a person to take a specific action Negative Motivation: employees are forced to maintain their effort just because  they are watched closely; fear of wage cuts or redundancy

5. Maslow’s Hierarchy of Needs 1. Maslow’s Theory  The classes of needs were: a. Physiological needs: obtaining food, drink, air b. Safety needs: protection from physical threats c. Love and belonging: working with colleagues that support your at work d. Esteem needs: being given recognition for doing a job well e. Self-actualization: being promoted and given more responsibility

6. Self- actualization needs Esteem needs Social needs Safety needs Physiological needs –Challenging work, autonomy –Authority, status, bonuses, promotion, opportunities –Social gatherings, informal groups –Job security, freedom from arbitrary treatment, healthy and safe working environment –Reasonable remuneration, holidays, work breaks, fringe benefits

7. Needs at different levels NeedsExamplesMeans PhysiologicalFood, water, shelter, restReasonable remuneration, holidays, work breaks, fringe benefits SafetyFreedom from danger and threatsJob security, freedom form arbitrary treatment, healthy and safe working environment SocialBelonging, loveSocial gatherings, informal groups EsteemRecognition, respectAuthority, status, bonuses, promotion opportunities Self-actualizationSelffulfillment, realizing one’s potential Challenging work, autonomy

8. Needs at the bottom of the pyramid are basic needs  These needs must be satisfied before a person can move to the next level (i.e. people will take action to satisfy the first-level needs until the needs are satisfied) Once each level is satisfied  needs at this level become less important (no longer be the motivator) Each level of needs is dependent on the levels below Basic needs are much easier to satisfy then then higher level needs Individual differences are greatest at self-actualization level

9. 2. Implications of Maslow’s Theory Managers find out which level each individual is at and decide on suitable rewards, I.e. try to provide the means of satisfying the needs For employees at different rankings / positions  different means of motivation Social needs should not be overlooked by managers Questions: what would be the result if physiological needs can’t be satisfied? (e.g. salary level is too low)

10. 3. Associated Problems Some levels do not appear to exist for certain individuals Some rewards appear to fit into more than one class How to decide when a level has actually been “satisfied” Different employees have different needs  impossible to satisfy all of them

11. Herzberg’s Two-factor Theory (Dual Factor Theory) 1. Herzberg’s two-factor Theory 1966 Herzberg  attempted to find out what motivated people to work, I.e. to find the various factors related to job satisfaction and job dissatisfaction divided the causes of job satisfaction into 2 categories / factors

12. I. Motivators (Motivational factors) Factors which give workers Job Satisfaction (e.g. recognition for their effort) Increasing these motivators  higher job satisfaction  higher productivity

13. II. Hygiene Factors (Maintenance factors) These are factors that can lead to workers being dissatisfied (e.g. pay or conditions) i.e. if these factors are absent / inadequate, workers easily feel dissatisfaction Improving hygiene factors should remove dissatisfaction However, an improvement in hygiene factors alone is not likely to motivate an individual

14. Examples of maintenance factors and motivational factors Maintenance factors –Generous remuneration packages –Comprehensive fringe benefits –Comfortable working environment –Harmonic social environment –Job security –Technical support Motivational factors –Promotion opportunities –Recognition of performance –Equitable rewards for performance –Sense of achievement of the job –Autonomy with the job

15. Essence of Herzberg’s Two-factor Theory Motivational factors No dissatisfaction Maintenance factors + Satisfaction Good morale and high productivity

16. 2. Implications Both maintenance and motivational factors exist  dissatisfaction of workers will be relieved and they will be satisfied as well  good morale and high productivity Similar to Herzberg’s and Maslow’s ideas  Both point to needs that have to be satisfied for the employee to be motivated Linked with job enrichment (have their jobs “expanded”)

17. 3. Associated Problems Job enrichment may also be expensive for many firms Whether people are satisfied or dissatisfied are too subjective Improving pay or conditions may be taken for granted

18. Theory X & Theory Y 1960 McGregor Gives different reasons why people work

19. 1. Theory X A motivational theory which assumes that most people are lazy and dislike work. Management should threaten them with disciplinary action Assumes i. People are lazy ii. The only way to get people to work is by using strict control Managers who hold Theory X are autocratic leaders

20. 2. Theory Y A motivational theory which assumes that people can exercise self-control and are willing to accept responsibility. Management should let them participate in making decisions Assumes i. Most people are motivated by those things at the top of Maslow’s hierarchy ii. Be responsible, committed and enjoy having control over work Managers who hold Theory Y are participative leaders

21. Theory x –Workers are motivated by money –Workers are lazy and dislike work –Workers are selfish, ignore the needs of organizations, avoid responsibility and lack ambition –Workers needs to be controlled and directed by management Theory Y –Workers have many different needs which motivate them –Workers can enjoy work –If motivated, workers can organize themselves and take responsibility –Management should create a situation where workers can show creativity and apply their job knowledge

22. 3. Implications Affect the types of control and motivation used by management Most firms behave according to Theory Y Manager suggest that  they themselves (managers) are like Theory Y  workers are closer to Theory X

23. Expectancy Theory A motivational theory that explains the relationship between people’s behavior and their expectations of outcomes It explains the workers’ attitudes towards their jobs Workers’ confidence in Their performance Suitable AND adequate rewards Effective motivation +

24. Implications i.Assign tasks according to subordinates’ abilities ii.Make the performance standards attainable iii.Give encouragement to subordinates iv.Design rewards suitable for the subordinates v.Link the rewards to the subordinates’ performance

25. Equity Theory A motivation theory that explains the relationship of people’s behavior and their perceptions of fairness (equities) in treatment and rewards Inequities concerning money, work assignments, performance appraisals, disciplinary actions and promotion

26. Effects of Inequities on employees i.Workers will no longer have nay confidence and trust in the manager / company ii.Upset workers and lead to poor morale among them iii.Hurt productivity with the reduced performance iv.Pessimistic behavior and inappropriate behavior

27. Financial Vs Non-Financial Incentives

28. Components of a compensation programme Compensation Non-financial e.g.: Job enrichment Job enlargement Job rotation Flextime Participative management Job security Competent supervision Safe and comfortable working environment Recognition Training and development Effective communication Promotion opportunity Financial Indirect benefits e.g.: Medical plans Subsidies Canteens Housing loans Paid leave Direct benefits e.g.: Salaries Wages Bonuses Commissions

29. 1. Financial incentives The pay that employees receive in the form of money and fringe benefits (1) Direct benefits: salaries, wages, bonuses and commissions (2) Indirect benefits: e.g. medical plans, subsidies, canteens, housing loans, paid leave

30. 2. Non-Financial incentives Rewards given to employees which are not in the form of money but in other forms that can relieve their dissatisfaction or make them feel satisfied

31. I. Job redesign 1)Job enrichment Definition: the redesign of a job by increasing the authority, responsibility and autonomy of the job Attempts to give employees greater responsibility by “vertically” extending their role in the organization, e.g. planning a task, work supervision, quality control Example: other than accepting loan applications, the job of a bank loan officer is enriched by giving him the authority to evaluate the applications

32. Advantages i.Develop their “unused” skills ii.Encourage them to be more productive iii.Make workers feel they have been rewarded for their contribution to the company iv.Be provided with varied tasks  lead to future promotion Disadvantages i.For those who feel unable to carry out the “extra work” ii.Unlikely that all workers will react the same to job enrichment JOB ENRICHMENT

33. 2)Job enlargement –Definition: the redesign of a job by adding more tasks at a similar level to the job  Giving an employee more work to do of a similar nature  Expand the job “horizontally”  More efficient if workers are organized in groups  each worker can be trained to do all jobs in the group  job rotation

34. Advantages: Prevents boredom with one repetitive task Encourages employees’ satisfaction as they are completing the entire process Disadvantages: Horizontal loading  allowing employees to complete the entire process will reduce efficiency JOB ENLARGEMENT

35. 3) Job rotation - Definition: shifting workers routinely from job to job so that they can be motivated by being exposed to new challenges - Involves an employee changing hobs or tasks from time to time - E.g. moving to a different part of the production line or more from one department to another

36. Advantages –Reduce boredom –Enable a variety of skills and experience to be gained –More widely trained workforce Disadvantages –Workers need to learn new jobs and this take time to “settle in” –If simply switched from one boring job to another  motivation is not guaranteed –Some workers who do not like uncertainty may become dissatisfied JOB ROTATION

37. II. Flexible work schedules A flexible work schedule plan that permit employees to arrange their own arrival and department time Herzberg: motivator as it gives employees flexibility and autonomy in doing their job Associated problems: (1) control of employee; (2) co-ordination among different employees with different scheduld

38. III. Participative management IV. Job security V. Competent supervision VI. Safe and comfortable working environment VII. Recognition opportunity VIII. Training and development IX. Effective communication X. Promotion opportunity