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PowerPoint Presentation:

What Is Motivation? Direction Persistence Intensity

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Why Rewards Often Fail to Motivate:

Why Rewards Often Fail to Motivate Too much emphasis on monetary rewards Rewards lack an “appreciation effect” Extensive benefits become entitlements Counterproductive behavior is rewarded Too long a delay between performance and rewards Too many one-size-fits-all rewards Use of one-shot rewards with a short-lived motivational impact Continued use of demotivating practices such as layoffs, across-the-board raises and cuts, and excessive executive compensation

Goal-Setting Theory:

Specificity Challenge Feedback Participation Commitment Self-efficacy Characteristics Culture Goal-Setting Theory

Insights from Goal-Setting Research:

Insights from Goal-Setting Research Difficult Goals Lead to Higher Performance. - Easy goals produce low effort because the goal is too easy to achieve. - Impossible goals ultimately lead to lower performance because people begin to experience failure. Specific Difficult Goals Lead to Higher Performance for Simple Rather Than Complex Tasks. - Goal specificity pertains to the quantifiability of a goal. - Specific difficult goals impair performance on novel, complex tasks when employees do not have clear strategies for solving these types of problems. Feedback Enhances The Effect of Specific, Difficult Goals. - Goals and feedback should be used together.

Insights from Goal-Setting Research (continued):

Insights from Goal-Setting Research (continued) Participative Goals, Assigned Goals, and Self-Set Goals Are Equally Effective. - Managers should set goals by using a contingency approach. Different methods work in different situations. Goal Commitment and Monetary Incentives Affect Goal-Setting Outcomes. - Difficult goals lead to higher performance when employees are committed to their goals. - Difficult goals lead to lower performance when employees are not committed to their goals. - Goal based incentives can lead to negative outcomes for employees in complex, interdependent jobs requiring cooperation.

Guidelines for Writing “SMART” Goals:

Guidelines for Writing “SMART” Goals S pecific M easurable A ttainable R esults oriented T ime bound

Managerial Implications of Expectancy Theory:

Managerial Implications of Expectancy Theory Determine the outcomes employees value. Identify good performance so appropriate behaviors can be rewarded. Make sure employees can achieve targeted performance levels. Link desired outcomes to targeted levels of performance. Make sure changes in outcomes are large enough to motivate high effort. Monitor the reward system for inequities.

Organizational Implications of Expectancy Theory:

Organizational Implications of Expectancy Theory Reward people for desired performance, and do not keep pay decisions secret. Design challenging jobs. Tie some rewards to group accomplishments to build teamwork and encourage cooperation. Reward managers for creating, monitoring, and maintaining expectancies, instrumentalities, and outcomes that lead to high effort and goal attainment. Monitor employee motivation through interviews or anonymous questionnaires. Accommodate individual differences by building flexibility into the motivation program.

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Cognitive Evaluation Intrinsic Motivators Extrinsic Motivators

The Job Characteristics Model:

The Job Characteristics Model Outcomes *High internal work motivation *High growth satisfaction *High general job satisfaction *High work effectiveness Critical psychological states *Experienced meaningfulness of the work *Experienced responsibility for outcomes of the work *Knowledge of the actual results of the work activities Core job characteristics *Skill variety *Task identity *Task significance *Autonomy *Feedback from job Moderators 1. Knowledge and skill 2. Growth need strength 3. Context satisfactions

Approaches to Job Design:

Approaches to Job Design 2. Motivational Approaches these techniques (job enlargement, job rotation, job enrichment, and job characteristics) attempt to improve employees’ affective and attitudinal reactions and behavioral outcomes. 3. Biological and Perceptual- Motor Approaches Biological techniques focus on reducing employees’ physical strain, effort, fatigue, and health complaints. The Perceptual-Motor Approach emphasizes the reliability of work outcomes by examining error rates, accidents, and workers’ feedback about facilities and equipment. 1. The Mechanistic Approach focuses on identifying the most efficient way to perform a job. Employees are trained and rewarded to perform their jobs accordingly.

Skills and Best Practices: Applying the Job Characteristics Model:

Skills and Best Practices: Applying the Job Characteristics Model Diagnose the level of employee motivation and job. satisfaction and consider redesigning jobs when motivation ranges from low to moderate. Determine whether job redesign is appropriate in a given context. Redesign jobs by including employees’ input.

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Ratio Comparison* Employee’s Perception Outcomes A Inputs A Outcomes A Inputs A Outcomes A Inputs A Outcomes B Inputs B Outcomes B Inputs B Outcomes B Inputs B < = > Inequity (Under-Rewarded) Equity Inequity (Over-Rewarded) * Where A is the employee, and B is a relevant other or referent. Equity Theory

Negative and Positive Inequity:

Negative and Positive Inequity A. An Equitable Situation Self Other $2 1 hour = $2 per hour $4 2 hours = $2 per hour

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Negative and Positive Inequity (cont) $2 1 hour = $2 per hour $3 1 hour = $3 per hour B. Negative Inequity Self Other

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Negative and Positive Inequity (cont) $2 1 hours = $1 per hour C. Positive Inequity $3 1 hour = $3 per hour Self Other

Organizational Justice:

Organizational Justice Distributive Justice : The perceived fairness of how resources and rewards are distributed. Procedural Justice: The perceived fairness of the process and procedures used to make allocation decisions. Interactional Justice: The perceived fairness of the decision maker’s behavior in the process of decision making.

Research into Equity:

Research into Equity Amount and Allocation of Rewards Perceived Fairness of the Distribution Process Distributive Justice Procedural Justice

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Facts Biggest retailer in the world It was established by Walton in 1962 Biggest customer for many multi nationals 2008- revenue= 6.9% of the US gross domestic product Raised the standard of living of people by making goods cheap and available store managers not allowed to overburden employees

Motivational techniques:

Motivational techniques Profit sharing plan 2002- launched new program in the U.S. – ‘Critical Need Trust’. committed to improving the career prospects of its employees. leading employer of disabled people in the country. Unique cultural element was the ‘Wal –Mart cheer’,

The wal- mart cheer :

The wal- mart cheer Give me a W! Give me an A! Give me an L! Give me a Squiggly! Give me an M! Give me an A! Give me an R! Give me a T! What does that spell? Wal-Mart!! Whose Wal-mart is it? My Wal-Mart! Who’s Number one? The customer ! Always!

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Non Executive board members where, Ratan Tata- Chairman along with 6 more directors Executive board members S. Ramadorai- CEO & M.D N.Chandrashekaran- COO & E.D S.Mahalingham-CFO & E.D Phiroz. A- E.D

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TCS Culture Training And Education: Induction Training Programmes And Continuing Education Programme

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WHAT IT OFFERS ? Exposure To Business Excellence And Evolving Technologies Careers Across Business And Technology Areas Being at forefront of E-revolution Global Exposure – With Projects In Over 50 Countries And 800 Clients,many Of Them Fortune 500 Standouts Worldclass Training And The Oppurtunity To Learn Continously An Open Door, Energetic Environment With Worldclass Infrastructure

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Google founded in the year in 1998. No. of employees - >10000 all over the world. Eric Schmidt Chairman of the Board & Chief Executive Officer Larry Page Co-Founder & President, Products Sergey Brin Co-Founder & President, Technology

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Motivating Organisational Culture Informal work culture at googleplex Googlers were allowed to bring their pets into their workplace They are provided with free snacks and , lunch and dinner prepared by star chef like charlie ayers

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Recreational Facilities Such As Gym, Assorted Video Games, Pool Table, Ping Pong And Roller Skater Hockey Googlers Are Allowed To Spend Atleast 20% Of Their Time In Self-directed Projects Open Communication Across The Organisation

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Lunch Hour Discussion Complete Freedom Regarding The Projects Friday Afternoon Brief Meetings WAYNE ROSING,VP once said “ We have Management in engineering. And Structure was tending to tell people, ” No You can’t do that.’ so Google fired all the managers.


INFOSYS Infosys Technologies Ltd. (NASDAQ: INFY) provides consulting and IT services to clients globally. Over 72,000 employees worldwide N. R. Narayana Murthy is the Chairman of the Board and Chief Mentor of Infosys Technologies Limited He founded Infosys in 1981 along with six other software professionals and served as the CEO for 21 years

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Groupism was not encouraged in the organization . Narayan Murthy explained, “Everything is judged on merit .Ego doesn’t come into the picture. Our transactions are zero-based so there is no history sheet, Different people compete, then they have a discussion, one solution is accepted, one person wins, they smile and go out to lunch. Because the group of people is very smart, there has to be a uniform distribution of wins. There are no overt or covert prejudices”

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Motivational techniques of Infosys ESOP An annual excellence reward system Sharing of ideas Facilities provided to employees



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