Motivation & Reward : Motivation & Reward DANH NGUYEN NGUYEN, PhD.
RODERIC J. MURRAY, MA. Slide 2: Dimensions of Performance Maslow : Maslow Performance Dynamics : Performance Dynamics Slide 5: Training, learning, development opportunities; Rewards, recognition, pay for contribution; Challenging job and growth opportunities; Technology support; Support for employability, marketability; Support for personal and family needs; - and: Professional HR support. ‘Employers’ could offer employees: Slide 6: ‘Employees’ could offer companies: Commitment to work, teamwork, and customer; Work skills in keeping with changing jobs; Contribution focused on business objectives; Personal ownership of development and growth; Flexibility; Effective people management; - and: Attitude. Motivation Dynamics : Roles/tasks
Satisfaction Organization <> Employee Motivation Dynamics Motivation Dynamics : Motivation Dynamics A Motivated Employee? : A Motivated Employee? Reaction to Job Dissatisfaction : Reaction to Job Dissatisfaction EXIT VOICE NEGLECT LOYALTY Active Passive Destructive Constructive Happy workers are more productive worker! Job Dissatisfaction Reactions : Job Dissatisfaction Reactions Job Performance index : Job Performance index Job performance =
f ((KSA + other background) x (motivation)). What is your real motivation? : What is your real motivation? Slide 14: A Gallup Survey, Germany, 1999. Engaged: devoted
somehow, but not
reasons to oppose. Motivation at Work Behavior attributes : Behavior attributes Conditions for High Performance : Conditions for High Performance Motivation factors Human
structural Motivation tools MBO
etc. Slide 17: Types of Behavior Norms Pivotal norms: people must adhere to them if they
want to remain in the organization.
Peripheral norms: is desirable but not essential for
members to follow them, e.g.: clothes.
- Rejection of both (- -): active rebellion
- Acceptance of both ( + +): conformity --> “the
organization man”, “bureaucrat”, “apparatchik”
- Acceptance of pivotal norms, but rejection of
peripheral norms (+ -): creative individualism. Dr. Truong Quang School of Management Attributes to Bad Performance : Attributes to Bad Performance Healthcare managers Surfing the Web at Work : Surfing the Web at Work A recent survey indicated that 90% of employees said they surfed for non-work related sites during the day. 70% read the news
45% make travel arrangements
40% make purchases
37% do job searches
34% check stock prices
28% coordinate social events; and
4% visit pornographic sites Slide 20: Individual Development Process Childhood and
adolescence Early Adult Transition Entering the
Adult World Age 30 Transition Settling down Midlife Transition Entering
Middle Adulthood Age 50 Transition Culmination of
Middle Adulthood Late Adult Transition Late Adulthood 17 22 28 33 40 45 50 55 60 65 Early Adulthood Middle Adulthood Slide 21: Career Development Process Career
withdrawal Performance Low High Middle
Adulthood Life Stage Source: Douglas T. Hall (1976) Young
Adulthood 15 20 25 30 35 40 45 50 55 60 65 70+ Monetary Reward : Monetary Reward Positive Workplace Trend : Positive Workplace Trend More employee participation
More sensitive to family issues
More sharing of the wealth
More friendliness and fun
More trust between management and employee
Hard-style/Fear Management ? Slide 24: What is Socialization? Definition
refers to the “teaching” of
the organization’s goals,
norms, values, and preferred
ways of doing things. Objectives
innovation and cooperation.
higher motivation and
and low turnover. Slide 25: Socialization Process - I Slide 26: Socialization Process - II Step 1 Employees learn a set of appropriate role behaviors.
e.g.: define their jobs, establish priorities, learn how
to allocate time and energies; how to deal with conflicts,
etc. Step 2 Employees must develop new work skills and
abilities. Step 3 Socialization entails some degree of acceptance of
group norms and values. Source: Fieldman, 1981 Motivation ‘Package’ : Motivation ‘Package’ Example of ‘Package’ : Example of ‘Package’ Slide 29: Motivational Inducement System Slide 30: Intrinsic Process Motivation:
Individuals primarily motivated by intrinsic process will only engage in activities which they consider fun. These individuals are often diverted from tasks that are relevant to goal attainment in order to pursue tasks which are intrinsically more enjoyable. Thus, as long as tasks are enjoyable, these individuals will be motivated to continue working effectively. Since they are relatively indifferent to task and social feedback, such feedback will not serve to motivate continued performance on part of an intrinsically motivated person. Slide 31: Instrumental Motivation:
Instrumental rewards are a motivating source when individuals believe that behaviors they engage in will lead to outcomes such as pay, praise, etc. Rooted exchange theory; basic assumption is that individuals and organizations constitute an exchange relationship. Slide 32: External Self Concept-based Motivation:
Self concept motivation is externally based and the individual is primarily other-directed. The individual attempts to meet expectations of others by behaving in ways that will provide social feedback consistent with self perceptions. When positive feedback is obtained, the individual finds it necessary to communicate these results to members of the reference group. The individual behaves in ways which satisfy reference group members, first to gain acceptance, and after achieving that, to gain status. The individual continually strives to earn the acceptance and status of reference group members. This status orientation usually leads to a self evaluation, that it is important for the individual to be first, best and/or superior. Slide 33: Internal Self Concept-based Motivation:
Self concept motivation will be internally based when the individual is primarily inner-directed. Internal self concept motivation takes form of the individual setting internal standards that become the basis for the ideal self. The individual tends to use fixed rather than ordinal standard of self measurement. He/she attempts first to reinforce perceptions of competency, and later achieve higher competency level. The motivating force for such individuals is motivated by their self concept as task feedback. It is important also that their efforts are vital in achieving and that their ideas and actions are instrumental in performing a job well. Slide 34: Goal Internalization:
Behavior is motivated by goal internalization when an individual adopts attitudes and behaviors because their content is matching their value system. The individual believes in a cause, and is willing to work towards goals supporting same cause. 7 strategies for motivation: : 7 strategies for motivation: Positive reinforcement / appropriate expectations.
Effective discipline and punishment.
Treating people fairly and with respect.
Satisfying employees needs.
Setting work related goals.
Base rewards on job performance. Traditional company Loyalty : Traditional company Loyalty Everyone knows the “rules”:
‘Management gives employees a sense of "family," of job security. In exchange, workers abandon rights to question authority, to criticize the company and/or to do their jobs only in the "one right way" approved by Management.’ Today’s situation, re. Loyalty : Today’s situation, re. Loyalty Many international Management Gurus seem today to agree that modern business and modern ‘Employees’ require a different approach than “traditional loyalty”.
‘Employees’ can usually no longer expect lifetime employment; nor can they expect stability and frequent change has become fact of corporate life.
‘Employers’ seem to encounter more skeptical and more demanding ‘Employees’.
Many ‘Employees’ today seem not to believe that a company’s Management will guide their careers.
Modern ‘Employees’ seem to create own career paths, and, in most cases, consider job-hopping a normal route to professional success. Loyalty’s 2 dimensions: : Loyalty’s 2 dimensions: The internal or emotional level.
The external or behavioral aspect.
Loyalty at internal or emotional level is feeling of bonding, mutuality, affiliation or trust. Loyalty is often defined as: "true, constant or steadfast in duty", "faithful to person, ideal, custom obligation, duty or organization" and "devoted attachment and affection.".
Loyalty as external or behavioral aspect may manifest itself in various ways. Since emotions are invisible, it is through behavior that loyalty can be judged. Companies often have implied loyalty expectation rather than explicit. ‘Loyalty compact’ is implied set of mutual loyalty expectations between ‘Employer’ and ‘Employee’. Company loyalty in this research study thought to be:
"An emotion that manifests internally as caring and concern for a company”. Measuring Loyalty : Measuring Loyalty BASICS that ‘Employees’ expect from the company.
VALUES (beyond the BASICS) that ‘Employees’ expect from the company.
Issues that IRRITATE ‘Employees’ (although not enough to make them leave).
Issues that are UNIMPORTANT to ‘Employees’. Consequence of measuring Loyalty : Consequence of measuring Loyalty Employees’ opinion on what would or could motivate them to stay long-term represent the risk that the labor turnover worsen due to ‘Employees’’ disappointment over finally not receiving “requested”/answered benefits.
The key is therefore that Management beforehand principally agrees that an employee loyalty analysis must lead to changes; no matter if big or small ! Today’s creation of Loyalty - I : Today’s creation of Loyalty - I Involve employees into decision making; invite for regular meetings and listen.
Recognize good work; by financial and/or non-financial reward.
Offer good working conditions; do not compromise and show employees that the company is willing to invest into their well-being and safety etc..
Be open to change; not big changes each month, but at least small changes that can inspire employees to bring up ideas for such changes.
Pay properly; according to industry level or higher.
Offer benefits; even if they seem small (the more the merrier)
Train employees; internally and externally.
Offer career planning; even if company can not directly meet the “dream”.
Evaluate and review on regular basis; appraisal system is a mutual benefit.
Have fun(!); never forget that everybody needs fun! Slide 42: 1. Increase confidence in leadership.
Employees want to feel leaders know where to go, since employees have to follow suit.
2. Improve company culture.
Feeling company is more important than salary, to increase loyalty. People need fairness.
3. Increase trust.
Trust is key. A company with courage to consciously increase market value of staff through training and other means before redundancies occur would reap double benefits.
4. Create advancement opportunity.
Employees want progression. Companies must offer growth path; no matter if short/long.
5. Promote stability of company.
Job & company stability is important to most employees; make it a company advantage.
6. Provide autonomy and challenge.
Provide tough challenges for employees and get out of the way. When given the chance, many employees will rise to the challenges because they desire to make real contribution.
7. Provide stability of job.
Job-stability is helpful when everything around employees is changing.
8. Fairly compensate.
If companies take advantage of unemployment or people in need of income, by lowering compensation and offering “bad” jobs to employees; then reaching loyalty is impossible.
9. Provide flexibility.
Many hope for a balanced/happy life; make job a flexible part of that (any way possible).
10. Monitor benefits.
Not just salary matters for loyalty; also components such as health care, insurance, bank loan etc. are keys. Things impacting private life brings employee closer to company. Today’s creation of Loyalty - II Slide 43: "People will forget what you said; people will forget what you did, but people will NEVER forget how you made them feel." Slide 44: End of session