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and reward
"Motivation is the process by which the behaviour of an individual is influenced by
others, through their power to offer or withhold satisfaction of the individual's needs
and goals". (BPP Learning Media, 2010) Motivation theories are divided into two
different viewpoints. See content and process theories of motivation in (Appendix 1).
Content theories emphasis what motivations are, whereas process theories
emphasise the real process of motivation. On the other hand reward is something
that workers achieve during their job. It can be financial when the company pays for
their performance and it can be non-financial which in this case means that the
company rewards employees by promotion, achievement and praise.
"Maslow puts forward a theory that there are five levels of human needs which
employees need to have fulfilled at work" (Mullins, 2005). See (Appendix 2).
Maslow mentions in his theory that managers following this theory deflect their
attentiveness to offering complementary pleasing relationships, more attractive
work, and more opportunities for self-fulfillment.
On the other hand, Herzberg in his theory suggests that there are two basic needs
of individuals such as hygiene factors (environmental factors) and motivation factors.
See (Appendix 3). Managers following Herzberg's theory reject money as a
motivator and pay attention to supplying more job enhancements.
According to McGregor's theory, managers may follow two different theories which is
theory X and theory Y. Pursuant to theory X, the average employee dislikes work
and will avoid it whether he/she knows what to do or not, that is why employers
suggest Theory Y which leads them to do excellent job and managers offer
opportunities to have a job done. However, McClelland focuses interest on providing
employees with the capability to persuade their needs for success, power, and
relationship.
Companies use both positive amplification and negative amplification to motivate
employees. Managers may use positive motivation techniques to persuade
employees to create good quality job. Some managers may use negative motivation
techniques to encourage employees and stop them from bad manners. However,
companies reward their employees with both touchable products, as well as admire.
Mangers may reward their employees by providing weekly or monthly bonus or free
lunches, many managers reward their top employees by praising them.
For example: Tesco uses two motivation theories - Maslow's and Herzberg's, see
both hierarchies in (Appendix 4). Tesco uses Maslow's theory because it suggests
the company if they achieve one level then it motivates them to achieve the next
one. Also Tesco aspire to motivate its staff both by paying interest to sanitation
factors and by enabling satisfiers. For example, Tesco motivates its staff by good
communication, by giving responsibility and involving employees in decision making.
Tesco allows the staffs to be part of the talks on pay rises. This shows credit of the
work that staff does and rewards them.
In Tesco, they reward staff for their works because it keeps motivating them at work
and will carry on applying different motivation theories at work. Monetary reward
uses by Tesco in a way of getting employees to welcome the complete value of their
benefits package. Tesco also follows pension system and this usually includes
pension assistance that the employer creates on the employee's behalf and being
process in payroll department. They also reward employees by giving them extra
benefits such as car insurance and private medical insurance, by special offers and
discounts. See Tesco's reward system in (Appendix 5).
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Undoubtedly, the most important factor is human in organizations. One of the main
management strategies of the organizations is to invest in employees.
Organizations are seeking to develop, motivate and increase the performance of
their employees in a variety of human resources applications. Therefore, the reward
management system has been the most considerable practices of the human
resource management system. Reward management system is a core function of
human resource discipline and is a strategic partner with company managements.
Besides, it has an important role on employee performance. [15] Barber and Bretz
(2000) mentioned that reward management systems have major impact on
organizations capability to catch, retain and motivate high potential employees and
as a result getting the high levels of performance. [7] On the other hand, it is crucial
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Presentation Transcript
MOTIVATION & REWARD:
MOTIVATION & REWARD Prof. Meera Madhavan Dhruva College of Management
Motivation defined :
Motivation defined A motive is a reason for doing something for moving in a certain direction. People
are motivated when they expect that a course of action is likely to lead to the attainment of a goal a
valued reward that satisfies their particular needs. Well-motivated people are those with clearly
defined goals who take action that they expect will achieve those goals.
TYPES OF MOTIVATION:
TYPES OF MOTIVATION There are two types of motivation as originally described by Herzberg, Intrinsic
motivation this was defined by Herzberg as motivation through the work itself. It takes place when
people feel that the work they do is, intrinsically interesting challenging and important and involves
the exercise of responsibility (having control over ones own resources) autonomy or freedom to act
scope to use and develop skills and abilities opportunities for advancement and growth
TYPES OF MOTIVATION:
TYPES OF MOTIVATION Extrinsic motivation what is done to or for people to motivate them. This
includes rewards such as increased pay, recognition, praise or promotion, and punishments such as
disciplinary action, withholding pay, or criticism.
TYPES OF REWARDS:
TYPES OF REWARDS
is likely to be short-lived compared with the long-lasting satisfaction from the work itself. Makes a
distinction between intrinsic motivation arising from the work itself and extrinsic motivation provided
by the employer, eg pay. A useful distinction is made between intrinsic and extrinsic motivation that
influences total reward decisions. The limited motivational effects of pay increases are worth
remembering when considering the part contingent pay can play in motivating people.
attachment to their job, colleagues and organization which profoundly influences their willingness to
learn & perform at work".
Employee Engagement:
Employee Engagement The factors that influence engagement Engagement will be affected by, work
and job design the quality of life provided by the working environment the quality of leadership The
role of reward in enhancing engagement A total rewards approach is required to increase engagement.
Financial rewards are insufficient and the major levers are provided by non-financial reward, especially
those provided by intrinsic motivation, the work environment and line managers.
COMMITMENT:
COMMITMENT Commitment Commitment, sometimes referred to as organizational commitment, refers
to identification with the goals and values of the organization, a desire to belong to the organization
and a willingness to display effort on its behalf.
reasonably expect from the organization? What should I reasonably be expected to contribute in
return?
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Reward Systems
The use of reward systems within an organization's management practices makes use of the principles
found in expectancy theory and reinforcement theory, two of the many motivational theories employed by
organizations. Expectancy theory examines how employees perceive the relationship between the efforts
they exert and the expected reward for reaching a goal. The higher the level of expectation, the more
motivated an employee becomes. Reinforcement theory uses incentives, such as promotions or pay
raises, as a way to reinforce good job performance. Reinforcement theory also uses negative
reinforcements to discourage poor job performance as well as inappropriate behavior, such as negative
attitudes.
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Sometimes, simply receiving a paycheck is not enough of an incentive to keep employees
dedicated and focused. Managers must think of new ways to hold an employee's attention
and interest on a project, or the company as a whole. Many companies employ motivational
tactics and rewards systems, both of which have advantages and disadvantages.
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Motivation
Companies use both positive reinforcement and negative reinforcement to motivate
employees. Many managers believe that using positive motivation techniques encourages
employees to produce more and better quality work. For example, some companies select
an employee as "Employee of the Week." This technique praises the winning employee,
while positively encouraging other employees to keep trying to do well. Other managers
believe negative reinforcement motivates employees to stop bad behavior. For example, a
company may issue a written-warning system, or threaten employees with termination to
get them to perform a certain way.
Rewards
Companies reward their employees with both tangible goods, as well as praise. For example,
a sales department may offer a monthly bonus to the highest earner. Not all tangible
rewards come in the form of money. Some companies host free lunches, or give away
company gear to good workers. Many managers choose to reward their best employees by
simply praising them for a job well done, or by recognizing the hard work they put in to a
project.
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Answer. Motivation in simple words may be understood as the set of forces that cause people to behave
in certain ways. It is a process that starts with a physiological deficiency or need that activities
behaviour or a drive that is aimed at a goal or an incentive.
The concept of motivation occupies a central place in the discipline of Organizational Behaviour. It is a
concept, which has received the maximum attention from the academicians and researchers alike.
Since a motivated employee is highly productive and highly quality oriented, the managers are also
interested the concept of motivation.
Most people understand the concept of intrinsic satisfaction or intrinsic motivation, i.e. when an
activity is satisfying or pleasurable in and of itself. Naturally, these activities are things we like and
want to do. For most of us, intrinsically enjoyable activities are things like eating, resting, laughing,
playing games, winning, creating, seeing and hearing beautiful things and people, being held lovingly,
having sex, and so on. To do these things we don't need to be paid, applauded, cheered, thanked,
respected, or anything--commonly we do them for the good feelings we automatically and naturally get
from the activity. Intrinsic rewards also involve pleasurable internal feelings or thoughts, like feeling
proud or having a sense of mastery following studying hard and succeeding in a class.
Many, maybe most, activities are not intrinsically satisfying enough to get most of us to do them
consistently, so extrinsic motivation needs to be applied in the form of rewards (positive
reinforcements), incentives, or as a way to avoid some unpleasant condition ("negative reinforcement"
or punishment). Examples: You work doing an ordinary job for pay. You study for good grades or to
avoid failing or to prepare for a good future. You do housework to get a clean, organized house and/or
a spouse's appreciation or to avoid her/his disapproval. A teenager comes home from a date on time in
order to avoid being grounded. These are all activities that are commonly sustained by external pay
offs, not because you love working, studying, cleaning, and coming home early.
Are rewards, particularly money rewards, really motivators? The answer to this question is YES and NO.
Money is understood to be powerful motivator for more than one reason. In the first place, money is
fundamental for completion of a task. The employee takes pay as the reward for his or her work, and
the employer views it as the price for using the services of the employee. Second, as a medium of
exchange. Third, money is one of the hygiene factors, and improving maintenance factors is the first
step in efforts directed towards motivation. Fourth, money also performs the function of a score card
by which employees assess the value that the organization places on their services and by which
employees can compare their values to others. Fifth, reinforcement and expectancy theories attest to
the value of money as a motivator. Sixth, money acts as a punctuation in ones life. It is an attention
getting and effect producing mechanism. Money, has therefore tremendous importance in influencing
employee behaviour. Seventh, money is easily vulnerable to manipulation. Finally, money will be a
powerful motivator for a person who is tense and anxious about lack o money. But behavioural
scientists think otherwise. They downgrade monetary rewards as a motivator. They prefer, instead,
other techniques such as challenging jobs, goals, participation in decision-making and other nonmonetary rewards for motivating employees.
working environment;
physical characteristics;
mental characteristics;
extent of responsibility;
training and experience.
Suggestion schemes aim to improve employee attitudes by directing their attention to the positive and
progressive aspects of their jobs. This helps to boost employee morale and increase job satisfaction. It
can be identified that if an employee is unhappy in his/her job it reflects on a negative attitude on
his/her performance and also with other people.
Experience in many companies has shown low employee morale reflects on low productivity and
increasing costly errors. Suggestion schemes play a useful role in increasing and maintaining morale.
Another method which is not related to pay is the performance appraisal system. This method is used
as a means of raising individual performance and identifying development needs. Appraisal systems
today are becoming part of the management culture, where managers feel it necessary to appraise and
be appraised.
Self Rating, this is a form of appraisal where the employee takes a look at themselves, avoiding any
negative feedback from traditional appraisals. Self rating is an effective way of trying to get the
employee to look at what their roles are in relation to business needs.
It is fair to state that employees are not motivated by money alone. Paying different wage rates to
employees doing the same jobs can cause more problems than benefits.
There are other incentives to reward employees, other than financial such as appraisals. Appraisals can
prove to be an effective means for looking at human resources, as they allow us to:
Ensure that the abilities and energies of individuals are being used effectively.
Allow employers to identify better uses of individuals talents and experience.
Training needs can also be identified.
Future decision making as data of abilities can be kept on file for future reference.
Other examples of incentives/motivators include:
Team briefings - Management tell sub-ordinates what needs to be achieved, this opens up the lines of
communication, and makes everyone aware of what needs to be done.
Team buildings - Employees are taken on outings to pursue some systematic group exercises led by a
trainer or time spent on social activities. The logic is to enthuse a team working ethic.
Quality circles - Regular meeting sessions where a group of employees discuss quality related issues.
It can be said that if managers are to be successful, they must focus on strategies that improve the
overall performance of the business by using employees as a vital resource which needs to be nurtured
and not just developing and implementing control systems to fix short term problems.