Motivation, Reward and Recognition System Management

Motivation
The force within us that activates our behavior. It is a function of three distinct components, Intensity, Direction, and Persistence.

Motivation

Intensity

Direction

Persistence

Motivation - Intensity
Intensity refers to the amount of mental and physical effort put forth by the person.

Motivation

Intensity

Direction

Persistence

Motivation - Direction
The extent to which an individual determines and chooses efforts focused on a particular goal.

Motivation

Intensity

Direction

Persistence

Motivation - Persistence
The extent to which the goal-directed effort is put forth over time.

Motivation

Intensity

Direction

Persistence

Motivation: Intrinsic vs. Extrinsic

Intrinsic
When doing the job is inherently motivating

Extrinsic
When rewards such as pay and formal recognition act as motivators

Two Basic Categories of Rewards

Compensation Rewards:
Those given in return for acceptable performance or effort. They can include nonfinancial compensation.

Non-Compensation Rewards:
Those beneficial factors related to the work situation and well-being of each person.

Types of Rewards

Intrinsic
Sense of Accomplishment Personal Growth Opportunities

Motivation

Extrinsic
Pay

Job security

Promotion
Recognition

Financial Compensation: Straight Salary

Advantages
-

Salaries are simple to administer Planned earnings are easy to project. Salaries are useful when substantial development work is required.

Disadvantages
-

Salaries offer little incentive for better performance. Salaries represent fixed overhead.

Financial Compensation: Pay for Performance

Reward Systems in most cases should be consistent with other HR systems. The Reward System is a key driver of: HR Strategy Business Strategy Organization Culture

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Need for Consistency with Other HR Systems

Skill-based pay Training Overtime pay rules in contract Culture Merit pay reinforces performance culture Performance Management

Labor Relations

Rewards

Sign-on Bonus

Employment Merit Pay

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Financial Compensation: Performance Bonuses

Advantages - Organization can direct emphasis to what it considers important. - Bonuses are particularly useful for tying rewards to accomplishment of objectives.

Disadvantages - It may be difficult to determine a formula for calculating bonus achievement if the objective is expressed in subjective terms.

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Non-financial Compensation
Opportunity for Promotion: The ability to move up in an organization along one or more career paths Sense of Accomplishment: The internal sense of satisfaction from successful performance

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Non-financial Compensation
Opportunity for Personal Growth:

Access to programs that allow for personal development (e.g., tuition reimbursement, leadership development seminars) The informal or formal acknowledgement of a desired accomplishment

Recognition:

Job Security:

A sense of being a desired employee that comes from consistent exceptional performance
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Understanding Reward & Recognition

Definitions:

A reward is an item or experience with monetary value that is provided for a desired behavior or performance, often with accompanying recognition Recognition is a positive consequence provided to a person for a behavior or a result in the form of acknowledgement, approval or the expression of gratitude Recognition is more of an activity or an association (a social or interpersonal activity) while a Reward is more of a thing (Money, Merchandise, Trophy, Travel etc)

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Why Reward & Recognise employees

By valuating and recognizing people, you harness the power of motivation, which is the single most powerful strategy used to promote performance and positive behaviors

Drives Stretch in Performance Enhances aspirations and creates Motivation Feeling Valued Builds Self Esteem and sense of Belonging Improves Individual Attitudes

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Reward is a Right; Recognition is a Gift..

Rewards at work

Recognition

Direct Financial (pay) Indirect Financial (benefits) Work Content (work) Careers (development) Affiliation (feeling of belonging) Study results: Surprisingly, all 5 types of rewards were considered equally important.

Praise Time Toys, Trophies & Trinkets Fun, Freedom & Food Small Money Others
Common thread Genuine, positive, emotion

* Gerald Ledford Jr. and Peter LeBlanc, World at Work 9, no.3 (Q3 2000):1-11

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What is Recognition?
Recognition is any thought, word, or deed towards making someone feel appreciated for who they are and recognized for what they do. 1 Recognition can be a strategic tool for shaping behavior and moving an organization in a desired direction. 2 Recognition is something a manager should be doing all the timeits a running dialogue with people. 3

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Making Recognition a Daily Event by Roy Saunderson, Recognition Management Institute

A Culture of Recognition; Building a System to Celebrate Great Performance by Rhonda Sunnarborg, BI Business Improvement Series
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Ron Zemke, Training magazine

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Why Focus on Recognition?

Employees identify recognition as one of the most effective motivators1 Even small increases in supportive practices are associated with decreased turnover and increased sales/profitability2 Employees who feel that their organization values them are more likely to value their customers2 Appreciation and/or praise are among the top three drivers of employee motivation and engagement across a variety of industries and companies3

The Conference Board, 1999 HR Executive Review: Employee Recognition Programs Pfeffer 2001 study Hewitt Associates
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2 3

Exercise

You are the HR Manager of an FMCG organisation which has 400 employees at their HO. You have been asked to develop an R&R program for your organisation to keep employees engaged and motivation levels high. A separate budget would be provided for the R&R activities. You and you team has to design a program and present it to your leadership team.

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