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Motivation: What It Is, Why It’s Important:

Motivation: What It Is, Why It’s Important Motivation the psychological processes that arouse and direct goal-directed behavior


MOTIVATIONAL TECHNIQUES Quality of Work Life Employee Involvement Motivation Techniques Reward Job Enrichment


WHY REWARD SYSTEM? The only way employees will fulfill your dream is to share in the dream . Reward systems are the mechanism that make this happen.

Two Basic Categories of Rewards:

Two Basic Categories of Rewards Extrinsic Rewards: It covers the basic needs of income to survive , a feeling of stability and consistency and recognition Intrinsic Rewards: Those beneficial factors related to the work situation and well-being of each employees. job satisfaction, a feeling of completing challenges competently, enjoyment, and even perhaps the social interactions which arise from the workplace

Intrinsic Vs. Extrinsic Rewards:

18 Intrinsic Vs. Extrinsic Rewards Intrinsic = Inside Feeling of Job Well Done Pride Sense of Achievement Extrinsic = Outside Praise Salary Increase Status Recognition Promotions Gifts

Merit Reward System:

Merit Reward System Pay is awarded to employees on the basis of the relative value of their contribution to the organization. Employees get annual salary increases depending on their overall job performance.

Incentive Reward System:

. Incentive Reward System One-shot rewards that do not become a permanent part of an employee’s base compensation. Monetary incentives Piece-rate incentive plans that pay a certain amount of money for every unit the employee produces. Nonmonetary incentives Days off, additional paid vacation time

Team and Group Reward System:

Team and Group Reward System Gain sharing Sharing the cost savings that result from productivity improvements. Profit sharing plans Provide an organization wide incentive in the form of an annual bonus to all employees based on corporate profits.

Effects of Organizational Rewards :

. Effects of Organizational Rewards Effect of Rewards on Motivation Employees will work harder when performance will be measured. Employees will work harder if performance is closely followed by rewards.

Effects of Organizational Rewards:

. Effects of Organizational Rewards Effect of Rewards on Attitudes Satisfaction is influenced by how much is received and how much the person thinks should have been received. Satisfaction is affected by comparison with others. The rewards of others are often misperceived .

Designing Effective Reward Systems:

Designing Effective Reward Systems Reward system must meet an individual’s needs. Rewards should compare favorably with other organizations. Distribution of rewards must be perceived to be equitable. Reward system must recognize different needs.

Golden Banana Award:

Golden Banana Award One of Hewlett-Packard’s most prestigious awards Origin – a manager gave an engineer a banana from his lunch for solving a difficult problem


EMPLOYYEE INVOLVEMENT A Participative process t hat uses the entire capacity of employees and is designed to encourage increased commitment to the organization’s success.


EMPLOYEE INVOLVEMENT Participative management Representative participation Works council Boards representatives Quality circle Employee stock ownership plans

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Participative management A process in which subordinates share a significant degree of decision making power with their immediate superiors. Representative Participation Workers participate in organizational decision making through a small group of represen - tative employees.

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Works Councils Groups of nominated or elected employees who must be consulted when management makes decisions involving personnel. Board Representatives A form of representative participation; employees sit on a company board of directors and represents the interests of the firm’s employees.

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Quality Circle A work group of employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions and take corrective actions. Employee stock ownership plans Company- established benefit plans in which employees acquire stock as part of their benefits.

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No. of Unit produced Before goal After goal Four-Week Periods 50 60 70 80 90 100 1 2 4 5 6 7 8 9 10 11 12 Seven Years Later Goal Setting: Some Impressive Effects There was a dramatic improvement in performance after a goal was set Performance at the goal level was sustained seven years after the goal was first set 3 Goal level

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Job Enrichment Designing jobs that include greater variety of work content; Require higher knowledge & skill; Give workers more autonomy & responsibility

Job enrichment bases:

Job enrichment bases Tasks Giving a person a whole, natural unit of work (module, exchange district, division, area, etc.) Assign specific or specialised task to individuals, enabling them to become expert. Making periodic reports directly available to the individual himself rather then to the supervisor Increasing the accountability of individuals for their own work Motivator involved Responsibility, achievement, recognition Responsibility, growth, advancement Internal recognition Responsibility, recognition

Suggested actions Core job dimensions:

Suggested actions Core job dimensions Combined Task Form natural work units Feedback Establish client relationship Expand job vertically Open feedback channels Autonomy Task significance Task identity Skill variety Guidelines for Enriching job

How jobs can be redesigned?:

How jobs can be redesigned? Arjun Singh- does same thing everyday, stand on that assembly line. Wait for an instrument panel to be moved into place. Unlock the mechanism and drop the panel into the Jeep Liberty as it moved by on the line, plugged in harnessing wires, repeated that for 8 hours & was paid INR 500. Got crazy & left the job. Now worked in a print shop and was paid INR 350 for 8 hours. Still he was satisfied by his job ….

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Contd… He was being motivated in new work, as this work- More challenging Diversify his activities Reduces boredom Adds variety to his daily work Continuous learning Helps him better to understand how his work contributes to organization.

Consequences of job Enrichment:

Consequences of job Enrichment Benefits Derives recognition, achievement, & self- actualisation Feels positively something contributing to the organisation Better intrinsically-motivated employees, better employee performance, lesser absenteeism and turnover and grievances. Limitations It is not the panacea for all behavioural problems Only a few workers dissatisfied from their present job Workers want more wages & job security It can not include highly skilled managers & professionals

Quality of Work Life:

Quality of Work Life Definition Quality of work life is concerned about the impact of work on people as well as on organisation effectiveness, and the idea of participation in organisational problem solving and decision making. Concerned with the overall climate of the work Purpose is to interface Human-Technological-Organisational for better quality of life

Factors of QWL and their impact:

Factors of QWL and their impact Individual factors Ability Work ethic Need pattern Job factors Nature of job Organisational factors Participation Communication Support Sense of competence Job involvement Job satisfaction Performance Productivity

Common practices for improving QWL :

Common practices for improving QWL Flexibility in Work Schedule Flexitime, Staggered working hours, and compressed work-week Autonomous Work Group Freedom to choose own team, freedom of decision making Job Enrichment Designing job interesting and challenging

Common practices for improving QWL (contd.):

Common practices for improving QWL (contd.) Opportunity for Growth Providing opportunity for growth and personality development Participation Participation in decision making related to working Communication Two way communication

Effects of QWL:

Effects of QWL Job Involvement Ego involvement. Sense of Competence Job design affects the sense of competence Job Satisfaction Job satisfaction affects job performance, employee turnover and absenteeism Job Performance & Productivity Job involvement, job satisfaction, and sense of competence affect job performance and productivity of employee.

Tips for Motivating Employees:

Thank employees for good job Listen to employees Give feedback Give rewards Keep them informed Allow for input Training opportunities Remember important dates Have and abide by policies Celebrate goal accomplishment 10- 43 Tips for Motivating Employees

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