1. 2.5 Motivation

2. What motivates employees?
Intrinsic motivation Satisfaction derived from working on and completing a task.
Extrinsic motivation Satisfaction from external rewards associated with working on task such as pay or other benefits.

3. F.W. Taylor and Scientific Management
This was the first attempt to analyze worker motivation.
Early mass production factories used his method.
Aim: reduce inefficiency and improve productivity.

4. F.W. Taylor and Scientific Management
Taylor’s Scientific approach:
Select workers to perform the task
Observe them performing the task and take notes
Record the time it takes to do each part of the task
Identify the quickest method recorded
Train all workers on the quickest method and do not allow changes
Supervise workers to ensure the “best way” is always followed and time checks examined
Pay workers on the results – “economic man”

5. F.W. Taylor and Scientific Management
What is the “economic man”
The idea that man is driven or motivated by money alone!
Therefore – motivate workers by pay Do you think this is true?

6. F.W. Taylor and Scientific Management
Taylor’s Approach
Relevance Today
Economic Man
Is pay the only way to motivate employees?
Select the right people for the job
Is staff selection for the job a current consideration?
Observe and record the performance of staff
“Time and motion study” Still utilized but done with cooperation of employees.
Establish the best method of doing a job – method study
Efficiency studies are still used to determine “best practices”
Piece-work payment systems
Is this a popular method?

7. Maslow’s Hierarchy of Human Needs
Needs start at the lowest level
Once a level is reached and satisfied, we will strive for the next level
Once a need is satisfied, it will no longer motivate a person to action
Self-actualization isn’t achieved by everyone, but everyone can reach their potential
Self-Actualization Reaching one’s full potential
Esteem Needs Respect from others; status recognition of achievement
Social Needs Trust; acceptance; friendship; belonging to a group;
Safety Needs Protection from threats; job security; health and safety at work
Physical Needs Food; shelter; water; rest

8. Maslow’s Hierarchy of Human Needs
Level of Need
Business Conditions
Self- Actualization
Challenging work that stretches an individual
Esteem Needs
Recognition for a job well done
Social Needs
Working in teams or groups
Safety Needs
Job security
Physical Needs
Income to meet daily essentials
Self-Actualization
Esteem Needs
Social Needs
Safety Needs
Physical Needs

9. Maslow’s Hierarchy of Human Needs
Limitations
Not everyone has the same needs
How do you identify which level your employee’s are on?
Money can satisfy other levels than physical needs (social or status)
Self-Actualization is not permanent

10. Herzberg and the “two-factor” Theory
Factors that lead to positive feelings about a job (MOTIVATORS)
Achievement, recognition, work itself, responsibility, advancement
Factors that lead to negative feelings about a job but do not provide motivation. (HYGIENE FACTORS)
Company policy & administration, supervision, salary, relationships with others, working conditions

11. Herzberg and the “two-factor” Theory
Job Satisfaction Motivators (intrinsic)
Job Dissatisfaction Hygiene Factors (extrinsic)
Achievement
Company policy and administration
Recognition for achievement
Supervision
The work itself
Salary
Responsibility
Relations with others
Advancement
Working Conditions

12. Results of Herzberg’s Theory
Herzberg and the “two-factor” Theory
Results of Herzberg’s Theory
1. Pay and working conditions can be improved to help remove job dissatisfaction but it will not, on its own, provide motivation to an employee. (Hygiene Factors)
2. Motivators need to be in place for workers to willingly do their best. (Job Enrichment)
3. Higher pay may get the job accomplished but does NOT actually motivate (Movement).

13. Herzberg and the “two-factor” Theory
Motivators
Hygiene Factors
Achievement
Recognition
Work itself
Responsibility
Advancement
Motivators have the ability to increase job satisfaction.
Company Policy & Administration
Supervision
Salary
Relationships with others
Working conditions
Hygiene Factors cannot improve job satisfaction on their own but can create job dissatisfaction.

14. Herzberg and the “two-factor” Theory
Today's impact:
1. Team work is now more common
2. Workers tend to be made more responsible for the quality of their work rather than being closely supervised
3. Most firms are looking for ways to improve communication, group meetings with 2-way communication is favored.

15. Adams and Equity Theory
Premise:
If workers feel their input/effort is greater than output such as pay, recognition, and security.....
They will be demotivated and adjust the imbalance.
Once there is a balance, they will respond with positive attitudes.

16. Daniel Pink Autonomy: Self-direction
Mastery: Everyone gets better with practice
Purpose: Connecting with a cause larger than oneself
These 3 elements create MOTIVATION!
Ted Talk:
Daniel Pink, 2009 The puzzle of motivation 19 min

17. Financial Payment Hourly Wage Rate (also called “time based rate”)
Wage is determined by an hourly rate X the number of hours worked…usually paid weekly.
Security of payment
Speed of work completion is NOT rewarded.
Slow work could encourage overtime pay.

18. Financial Payment Piece Rate
Wage is determined by number of units produced X a fixed amount
Level of payment rate is critical in order to not overpay or under pay the worker.
Speed of work is encouraged – quality could suffer.
Slow work can be encouraged when a worker reaches a satisfactory wage level.

19. Financial Payment Salary Flat amount paid regardless of hours worked.
Common for management and supervisory staff.
Salary level is fixed so companies can budget.
Banding is common.
Job Grade
Salary Band
E: Regional Heads
$75,000 - $175,000
D: Department Heads
$40,000 - $60,000
C: Office Managers
$35,000 - $45,000
B: Secretaries
$28,000 - $39,000
A: Junior Clerical Staff
$25,000 - $32,000

20. Financial Payment Commission
Wage usually determined by percentage of sales.
Can be added to a base salary or can be 100% commission
Workers may be encouraged to use high-pressure sales tactics.
Slow work can be encouraged when a worker reaches a satisfactory wage level.
Does not encourage team work.

21. Financial Payment Performance-Related Pay (PRP)
Usually paid out in bonuses in addition to a basic salary.
Targets are set and management determines if targets are met.
Issues
Additional pay does not motivate workers in the long-term (according to Herzberg’s theory).
There is no change in the work performed – no motivators for work improvement.
The emphasis on individual performance does not encourage team work.
Bonuses are often inadequate to improve worker’s efforts.
Since management determines if targets are met, claims of favoritism are often made.

22. Financial Payment Profit-Related Pay
Paying workers a portion of the profit made by the company.
A worker may be motivated to work harder or be active in cost-saving measures.
The reward is not based on an individual effort.
Small profits earned may not be worth the “effort”

23. Financial Payment Employee Share-Ownership Schemes
Paying employees with shares of company stock.
Establishes workers as part owners of the company.
In reality – workers typically sell the stock quickly.

24. Financial Payment Fringe Benefits (Perks) Non-cash rewards to workers
Company car
Life Insurance, Disability Insurance, Health Insurance
Pension
Employee discounts

25. Non-Financial Motivators
Job Enlargement Increasing the scope or amount of work
Job Enrichment Increasing the responsibility, decreasing supervision, offer challenging tasks
Job Rotation Moving employees among several different jobs with similar levels of difficulty to avoid boredom
Team Work Working in groups
Delegation Giving work to others to perform

26. Cultural Impact on Rewards
How a culture perceives rewards can have great impact on methods of rewards selected.
Performance Orientation: improvement, innovation and strive for excellence
Future Orientation: individuals are focused on delaying immediate rewards for future gains; individual incentives work well (Germanic Europe, UK, China; weak in Latin America)
Institutional Collectivism: encourage distribution of resources so the group is effective; team and profit sharing work well
(Nordic Europe, Germanic Europe; weak in Asia)

27. Cultural Impact on Fringe Benefits
What constitutes a reward or a fringe benefit varies from culture to culture
France: Employees appreciate vouchers for gourmet food
India: A ticket to Bollywood is popular
Asia: Clocks are NOT acceptable. It means management is watching time and you are not putting in the effort desired
United States: No cost medical insurance, in most other countries that is provided by the government.

28. Cultural Impact on Non-financial
United States: It is acceptable to recognize employees of the month or recognize an employee's contribution.
Asia: Singling out an individual can be embarrassing as they prefer team recognition.
In Asia, a demotion could motivate an employee to perform better. In the U.S., this could cause the employee to look for another job!