MOTIVATION means

• To stimulate
• To impel
• To move
• To induce
 The Basics of Motivation
Motivation is the result of the interaction
between a person’s internalized needs
and external influences that determine
behavior

“a reason to put forth your best effort”

 Theories of Motivation

• Classical Theory
• Maslow’s Hierarchy of Needs
• Two Factor Theory
• Theories X and Y (Human Resources
Model)
• Expectancy Theory
• Equity Theory
• Goal Theory
 Classical Theory
Theory holding that workers are motivated
solely by money
 Maslow’s Hierarchy of Needs
(1939-1943)
• Maslow argued that needs are
hierarchical and that lower level needs
must be met before a person will try to
satisfy higher level needs
• Once a need has been satisfied, it ceases to
motivate behavior
• People have different needs and are
motivated by different things
 Two Factor Theory (Hygiene)
Frederick Herzberg (1975)

• A managers poor handling of hygiene

(maintenance factors) is the primary
cause of unhappiness on the job.
• Motivation factors are the primary cause
of job satisfaction.
• The presence of maintenance factors will
not increase satisfaction.
 Maintenance Factors
• Salary
• Job Security
• Working Conditions
• Status
• Company Policies
• Quality of technical supervision
• Interpersonal relationships among peers
and supervisors
 Motivational Factors
• Achievement
• Recognition
• Responsibility
• Advancement
• The work itself
• Possibility of Growth
 Human Resources Model
(Theory X & Theory Y)

Douglas McGregor (1960)

Individual management philosophy reflects

one of two sets of assumptions about
workers

The two sets were called Theory X and

Theory Y
 Theory X
• People basically dislike work and avoid it
where possible
• People have to be closely supervised and
threatened with punishment
• Most people prefer to be told what to do,
have little ambition, and want security
• Most people have little creativity
• Most people have limited intellectual
potential
 Theory Y
• Most people find work natural as play or
rest and develop an attitude based upon
their experience with it
• People respond better with rewards than
punishment
• People will seek out responsibility
• People possess a high degree of
imagination
• People have high intellectual potential
 Expectancy Theory
Victor Vroom (1964)
Before choosing a behavior, an individual
will evaluate various possibilities on the
basis of anticipated work and reward

An individual will act in a certain way

based on the expectation that the act will
be followed by a given outcome and on
the attractiveness of that outcome to the
individual
 Equity Theory
• People’s behavior relates to their
perception of the fairness of treatment
they receive
• Most professional athletes… use equity
arguments to support their salary
demands
• Outcomes of perceived unfairness
 GOAL THEORY
Intentions to work towards a goal are a
major source of motivation

High goal will result in high level

performance

Participation facilitates acceptance

 Locke’s Goal Setting Model

Directing
attention

Regulating
effort
Goals Task
motivate performance
by... Increasing
persistence

Encouraging goal-
attainment strategies
 WHY BE CONCERNED
ABOUT RETENTION
• the cost of replacing an employee is
approximately 30% or above in normal
circumstances
• Higher skilled jobs may be up to 1.5 times their
annual salary
• In a business employing 1000 workers and the
average wage of $10 and assuming a 10% turn
over, the annual impact on profits would be
$840,000
HOW DO YOU RETAIN GOOD
EMPLOYYES
How to keep customers
How to keep employees
Prescription for retention
Simply by making a connection
and making them feel connected

Connection results in commitment and will

offer extra effort.
You are connecting when you understand the
needs of your employees.
 Remember the golden rule
Treating them like human beings day to day.

Treating them like you wish to be treated

(and not how you are being treated.

Treat with respect and dignity.

Show them you care or are interested in them.
Attitude, attitude, attitude

Show them though your actions that they are

special

Visit with them and show them that you are

genuinely interested
Stop using “I” or “my” or “me.”
Replace it with our, we, and us.
 Involve Employees
When possible include them in the decision
making process (even when you may have
made the decision)
Trust them
 Change managing style – move
away from Theory X and towards
Theory Y type management.
 Prepare for Change
Pull out all the stops and change management
style from the old role of management from
planning, organizing, implementing, and
measuring
to
counseling, coaching, facilitating employees
though processes,
and winning resources for employees
 One of the most important
motivational techniques is to
listen to them.
 Hire right, hire smart, find the
best-matched person for the job,
and participate in their success.
 ATTRACTING AND
RETAINING EMPLOYEES
 ATTRACT & RETAIN
EMPLOYEES
• Developing a Strategy
– Attracting asks the question, “Why would
anyone want to work at this company?”
– Retaining asks the question, “Why would
anyone want to stay at this company?”
 ATTRACTING EMPLOYEES
• Decide on what is important to attract the
best candidates. Money may not be the
most important factor.
• Decide on the content of your
advertisement and design it to arouse the
interest of potential candidates.
 ATTRACTING EMPLOYEES
• Mention other benefits of the position:
– Flextime
– Casual dress code
– Location
– Career development
– Team identification
– Great Benefits Enlightened Management
 ATTRACTING EMPLOYEES
• Resources for new employees: Internal
development and promotion, Local or
national help wanted ads, Recruiters, Other
employees, Internet, Temporary to regular
employment agencies, Interns, Recruitment
at colleges and universities, Government
agencies and programs.
 ATTRACTING EMPLOYEES
• Critical hiring criteria
– Intellectual competencies: Intelligence,
Analysis skills, Judgement/Decision making,
Conceptual ability, Creativity, Strategic skills,
Risk taking, Leading edge, Education,
Experience, Track record.
 ATTRACTING EMPLOYEES
• Personal Competencies: Integrity,
Initiative, Organization/Planning,
Excellence, Independence, Stress
management, Self awareness, Adaptability,
First impression, Listening, Customer
focus, Team player, Assertiveness, Oral
communications, Written communications,
Political savvy, Negotiation, Persuasion.
 ATTRACTING EMPLOYEES
• MANAGEMENT COMPETENCIES:
Coaching/Training, Goal setting,
Empowerment, Performance management,
Team Builder, Diversity, Vision, Change
leadership, Inspirational, Conflict
management, Energy, Enthusiasm,
Ambition, Compatibility.
 ATTRACTING EMPLOYEES
• Do Your Homework
– Perform thorough job analysis focusing on the
essential job functions.
– Write job descriptions that contain required
competencies.
– Be prepared to present and discuss job
descriptions to the candidates.
 RETAINING EMPLOYEES
• Does your organization have a strategy of
“a low rate of turnover is good for the
company”? Some companies prefer higher
rates of turnover because it tends to keep
their long term payroll costs lower and
brings in a regular supply of new blood.
 RETAINING EMPLOYEES
• If your company wants a low turnover rate
then you have to begin to analyze what can
be done to keep turnover to a minimum.
– Find out why employees are leaving: Exit
interviews or maybe even formal surveys.
– Key Points to be raised during interviews or
surveys:
 RETAINING EMPLOYEES
• Orientation: Does the company provide a
comprehensive orientation program that
eases the transition from applicant to
employee or from one job to the other?
• Career Paths/Promotional Opportunities:
Do employees feel that they have a future
with the organization? Has the company
given them reason to stay?
 RETAINING EMPLOYEES
• Salary Administration: Does the company
offer competitive salaries, bonuses, and
merit increases? Does the company offer
compensation programs that other local
employers don’t offer?
 RETAINING EMPLOYEES
• Benefit Plans: How important are such
benefits as vacation, flextime, part-time
work, scholarships, tuition reimbursement,
medical and life insurance plans, retirement
plans, long and short term disability plans,
paid holidays, sick leave, bereavement pay,
and jury duty pay.
 RETAINING EMPLOYEES
• The Work Environment; Is the physical
environment comfortable and pleasant? Is
the atmosphere relaxed and casual? Are the
office facilities and equipment up to date?
• Proper Motivation: Supervisory training,
Coaching, Involvement, Team building, and
Recognition.
 RETAINING EMPLOYEES
• Establish a Retention Strategy
– Management has to support that strategy.
– Management has to be visible and accessible to
employees and establish to the extent possible
the interpersonal interaction necessary to build
a long-term relationship.
– Offer upward mobility and give the employees
the means to strive for advancement.
 RETAINING EMPLOYEES
• The company must be willing to invest in
technology and equipment in order to allow
employees to increase efficiency and
productivity without increasing their
workload.
• The company must be competitive in their
own labor market.
 RETAINING EMPLOYEES
• The company must make the employee a
part of the solution.
• The company should be willing to commit
to training all employees and reward them
for their efforts. Give newly trained
employees the opportunity to apply what
they have learned.
Employee Retention
Common Sense Approaches
 RETENTION

Retaining employees should be a prime

concern of any organization because it has a

major impact on the bottom line. Recruiting,

training, compensating and motivating new

employees is expensive.
 1. Offer Competitive Compensation.

Competitive pay and benefits are a given. Do

make sure that your firm is competitive.

Although few departing employees cite

compensation as their top reason for
leaving, your company must provide a
competitive compensation and benefits
program.
 2. Culture Fit.
Hire the right person.

Much turnover is due to hiring mistakes and

issues of chemistry or fit within an
organization.

Recent studies show that nearly 80 percent of

turnover is due to hiring mistakes.
 3. Integrate for Success.

The first few weeks of employment are the

most critical time to lay the groundwork for
long-term employee commitment.

Implement a thorough, well-executed

orientation program. Demonstrate your
commitment to a new hire’s success early
on and you will gain trust and commitment
from the employee in the organization.
55
4. Align Competencies with Contributions
and Make it Interesting.

Try to make the necessary adjustments to

ensure that employees are interested or
best suited to what they’re doing and
effectively aligned with what the
company needs them to do.
 5. Adhere to the new rules to compete for top
talent.

There are different rules which govern a

new generation of employees who have
different needs.

Playing by the old rules can lead to losing

important resources to a competitor that
has already dealt with the new reality.
 6. Provide training and growth
opportunities.
Provide new employees with basic training
in the beginning of the relationship. As
they build time with the company, offer
further training in recognition of their
growth.
The irony of retaining good people is that
the more they feel they are able to grow
and become more marketable, the more
likely they are to stay.
 7. Involvement and Information.
Information is power, and employees want to
be empowered with the information they need
to know to do their jobs better and more
effectively.

And, more than ever, employees want to know

how they are doing in their jobs and how the
company is doing in its business.
 8. Offer praise, recognition and increased
visibility.
People want to feel what they do makes a
difference.

Employers often fail to realize that some

of the most effective things they can do
to develop and sustain motivated,
committed employees cost very little or
nothing at all.
 9. Reformat Evaluations.
Up front, ask key employees, “What
will it take to keep you motivated,
interested and linked?”
Key employees are more apt to stay
with organizations that are interested
in their unique situations.
Out of this conversation should come a
vulnerability report which leads to a
plan.
 10. Sweat the Exit Interview.
Ensure that the interviewer is someone the
exiting employee trusts, to capture the most
honest feedback.

Inaccurate explanations abound as to why

employees leave organizations. Leaders
must sort out fact from fiction, determine the
competitive situation within their industry, and
deal with the hard reality of their
organization’s strengths and weaknesses.
 11. Practice what you Preach.

People do not necessarily commit to an

organization; they commit to the employees and
culture that drive the organization.

Establish your corporate values, then make sure

you walk the talk.