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    Chapter 4 Motivation and Rewards Final

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    This document discusses various theories of motivation in the workplace. It describes Maslow's hierarchy of needs and how it was updated. It also outlines theories by Herzberg, McClelland, Vroom, Adams, Locke, and McGregor on what motivates employees. The key factors discussed include rewards, incentives, goals, fairness, and job design. Motivation is seen as an ongoing process that depends on needs, drives, performance, and receiving valued outcomes from one's efforts.

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    Chapter 4 Motivation and Rewards Final

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    This document discusses various theories of motivation in the workplace. It describes Maslow's hierarchy of needs and how it was updated. It also outlines theories by Herzberg, McClelland, Vroom, Adams, Locke, and McGregor on what motivates employees. The key factors discussed include rewards, incentives, goals, fairness, and job design. Motivation is seen as an ongoing process that depends on needs, drives, performance, and receiving valued outcomes from one's efforts.

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    This document discusses various theories of motivation in the workplace. It describes Maslow's hierarchy of needs and how it was updated. It also outlines theories by Herzberg, McClelland, Vroom, Adams, Locke, and McGregor on what motivates employees. The key factors discussed include rewards, incentives, goals, fairness, and job design. Motivation is seen as an ongoing process that depends on needs, drives, performance, and receiving valued outcomes from one's efforts.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    158 views63 pages

    Chapter 4 Motivation and Rewards Final

    Uploaded by

    132345usdfghj
    This document discusses various theories of motivation in the workplace. It describes Maslow's hierarchy of needs and how it was updated. It also outlines theories by Herzberg, McClelland, Vroom, Adams, Locke, and McGregor on what motivates employees. The key factors discussed include rewards, incentives, goals, fairness, and job design. Motivation is seen as an ongoing process that depends on needs, drives, performance, and receiving valued outcomes from one's efforts.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    The key takeaways are the different theories of motivation like Maslow's hierarchy of needs, Alderfer's ERG theory and Herzberg's two-factor theory. It also discusses different types of reward systems.

    The different theories of motivation discussed are Maslow's hierarchy of needs, Alderfer's ERG theory and Herzberg's two-factor theory.

    According to Alderfer's ERG theory, the different levels of needs are Existence, Relatedness and Growth.

    CHAPTER 4:

    MOTIVATION AND
    REWARDS
    Motivation- is the inert drive to become
    successful and reach as specific goal. Whether it is a need to
    satisfy basic necessity or ego wanting to prove something,
    motivation can come from the inside of a person or may be a
    stimulus from the outside environment.
    • The Motivation process starts with a need.

    NEEDS AND DRIVES


    TENSION
    ENVIRONMENT OPPORTUNITY

    NEEDS AND
    TENSION EFFORT PERFORMANCE
    DRIVES

    GOALS AND
    ABILITY REWARDS
    INCENTIVES

    NEED SATISFACTION
    • In Business organization, such motivation is built
    within the structure, process and system that put
    rewards and incentives according to goals and
    performance. As the employee confronts office
    tension with the ability to do the job and recognize
    opportunities for self growth, the goals of the
    company are fulfilled and the concerned employee
    is rewarded with incentives. This is a self-repeating
    process that nurtures a win-win situation for both
    the organization and the employee.
    MASLOW’S
    HIERARCHY OF
    NEEDS
    MASLOW’S HIERARCHY OF NEEDS

    • Physiological needs- are the basic needs such as food, clothing, and shelter
    • Safety and security needs-are the needs to be free from threats and danger and to have
    a safe work environment and job securiry.
    • Social needs-are the needs for affiliation, love, and belongingness.
    • Esteem needs include the need for self-esteem or self worth.
    • Self-actualization includes the need to maximize ones potentials.
    • Kenrick, Griskevicious, Neuberg, and Schaller (2010) updated Maslow’s hierarchy of
    needs and reflected the more important facts about human nature.
    • The theorists believed that self-actualization is no longer important and is replaced by
    three motives which believed were neglected by Maslow.
    in the new pyramid, the reproduction of genes is considered as one of the
    nature’s most biologically fundamental desire and aspiration.
    Subconsciously, it is in human nature that there is a need to raise children.
    In addition, the new interpretation and revision of Maslow’s hierarchy of
    needs provide the idea that if a person has satisfied a need and goes to the
    next need, he/she may find it necessary to go back to the previous need.
    ALDERFER’S
    ERG THEORY
    ALDERFER’S ERG THEORY

    • According to Alderfer, individuals have several unfulfilled needs


    • Higher-level needs are not paid much attention not until the
    predominant needs are satisfied .
    • If frustrations occur in satisfying the higher-level needs, individuals
    have the tendency to direct their efforts to satisfy the lower-level
    needs.
    LEVEL OF NEEDS

    A. EXISTENCE
    B. RELATEDNESS
    C. GROWTH
    • SATISFACTION-PROGRESSION
    • FRUSTRATION-REGRESSION
    HERZBERG’S
    TWO-FACTOR THEORY
    HERZBERG IDENTIFIES TWO TYPES OF FACTOR THAT
    DOMINATE THE WORKPLACE:

    A. EXTRINSIC (DISSATISFIER, HYGIENE) FACTOR


    B. INTRINSIC (SATISFIER, MOTIVATOR) FACTOR
    • Herzberg’s theory implies that organizations should create interesting
    jobs in order to motivate people.
    • An application of Herzberg’s theory is job enrichment. it involves
    designing of jobs which would improve employee’s personal growth
    such as their sense of responsibility and achievement
    METHODS OF JOB ENRICHMENT

    A. Direct feedback- this is the timely and direct evaluation of


    performance
    B. New learning- through trainings, an individual is provided an
    opportunity to grow.
    C. Uniqueness- each job emphasizes unique features and qualities.
    D. Control- the employee is given the power to be accountable to his
    job.
    MCCLELLAND’S
    LEARNED NEEDS
    THEORY
    PRIMARY LEARNED NEEDS
    A. Need for achievement (n-ach)- Individuals set goals and take risks.
    They take responsibility for solving problems and making decisions.
    B. Need for affiliation (n-affil)- people desire for social interaction
    C. Need for power (n-pow)- they obtain and exercise authority.
    • McClelland suggested that a strong n-affil or affiliation-motivation
    somewhat destroys a manager’s objectivity, because of their need to be liked.
    • A strong n-pow will produce a determined work ethic and commitment to the
    organization, but they may not have flexibility and people oriented skills.
    • McClelland argues that n-ach people make the best leaders, although they
    have the tendency to demand too much of their staff.
    • The achievers try their best to excel and appreciate people who would
    always give them frequent recognition on how well they are doing.

    • The affiliation seeker always seek for harmony.

    • The power seekers want power to control others.


    • Recent researchers have questioned McClelland in terms of the
    validity of his research. They questioned the used of projective
    personality tests and they also contend that the need for
    achievement cannot be learned.
    VROOM’S
    EXPECTANCY
    THEORY
    VROOM’S EXPECTANCY THEORY

    • Vroom defines motivation as a process governing choices among


    the alternative forms of voluntary activity.
    • “A person will be motivated to put forth a higher level of effort if
    they believe their efforts will result in higher performance and
    thus, better rewards.”
    VROOM’S EXPECTANCY THEORY

    Valence x Expectancy x Instrumentality= Motivation


    VROOM’S EXPECTANCY THEORY

    • First level outcomes - This is a result of doing the job.

    • Second level outcomes - This is a reward produced by the first level


    outcome.
    INSTRUMENTALITY

    • It is the belief that if you perform well, a valued outcome will be received.
    The degree to which a first level outcome will lead to the second level
    outcome.
    • Example: If I do a good job, there is something in it for me.
    VALENCE

    • It is the importance that the individual places upon the expected outcome.
    For the valence to be positive, the person must prefer attaining the outcome
    to not attaining it.
    • Example: Someone who is motivated by money might not value offers of
    additional time off.
    EXPECTANCY

    • Is the belief that increased effort will lead to increased performance.


    • This is the perception of the individual that a particular behavior will be
    followed by a particular outcome.
    EXAMPLE

    • Money can be a strong motivator. If an employee wants more money


    (valence), he believes that if he exerts much effort, he will be successful in
    giving a good performance (expectancy). He believes that more-money (pay
    increase) will follow a very good performance (instrumentality).
    ADAM'S EQUITY
    THEORY
    ADAM'S EQUITY THEORY

    • This theory asserts that people compare the rewards they get against other
    coworkers in similar work situations. They desire to be treated fairly.

    • performance = rewards.

    • These are called inputs and outputs.


    INPUTS

    • Inputs may include effort, loyalty, hard work, commitment, skill, ability,
    adaptability, flexibility, tolerance, determination, heart and soul, enthusiasm,
    trust in the boss and superiors, support of colleagues and subordinates, and
    personal sacrifice.
    OUTPUTS

    • Outputs are all financial rewards - salary, expenses, perks, benefits, pension
    arrangements bonus and commission - plus intangibles - recognition,
    reputation, praise and thanks, Interest, responsibility, stimulus, travel,
    training, development, sense of achievement and advancement, and
    promotion.
    ADAM’S EQUITY THEORY

    • This theory helps explain employee attitudes toward monetary rewards.


    Managers get insights on how should monetary rewards and incentives be
    equitably distributed.

    • People need to see a balance of these inputs and outputs.


    PROCEDURAL JUSTICE

    • refers to people's reaction to company decisions and processes that affect


    them. They are concerned with the fairness of these processes and
    procedures. The basis of procedural justice is distributive justice. It has a
    great impact on organizational commitment, trust with superiors, length of
    service, and job performance.
    LOCKE'S GOAL
    SETTING THEORY
    EDWIN LOCKE ASSERTS THAT THE PRIMARY DETERMINANTS OF
    BEHAVIOR ARE THE INDIVIDUAL'S GOALS AND OBJECTIVES.

    The important goal attributes are:


    a.Goal specificity - It is the degree of goal an individual wants to achieve.
    b. Goal difficulty -It is the amount of effort required to achieve the goal.
    c. Goal intensity -It is the process of determining how to achieve the goal.
    d.Goal commitment - It is the amount of effort used to achieve the goal.
    EXCHANGE
    THEORY
    • People engage in give-and-take relationships.
    • The psychological contract is an unwritten agreement between the
    individual and the organization that specifies the kind of exchange or
    expectations of the company and employee from each other.
    MCGREGOR'S
    THEORY X AND Y
    • Theory X - employs the authoritarian management style to get people
    motivated on the job.

    • Theory Y- employs the participative management style. Work is as


    natural as play.
    JOB ANALYSIS
    JOB ANALYSIS
    JOB ANALYSIS IS NEEDED ESPECIALLY IN APPLYING THE RIGHT TYPE
    OF MOTIVATIONAL TECHNIQUES THEIR EMPLOYEES NEED.
    • THE THREE BASIC ELEMENTS OF JOB ANALYSIS
    • 1. JOB CONTENT - THIS CONTAINS THE ACTIVITIES THAT THE
    EMPLOYEES SHOULD PERFORM ON THE JOB.
    • 2. JOB REQUIREMENTS - THESE CONTAIN THE MINIMUM
    QUALIFICATIONS NECESSARY TO PERFORM THE JOB.
    • 3. JOB CONTEXT - THIS PROVIDES THE WORKING CONDITIONS AND
    PHYSICAL DEMANDS OF THE JOB.
    The result of Job Analysis is called Job Design

    Three characteristics of Job Design


    1. Job Range - It is the number of tasks an employee performs.
    2. Job Depth - It is the amount of discretion an employee has in
    performing the job.
    3.Job Relationships - It distinguishes the jobs in the organization and
    across other organizations.
    • Job Rotation involves rotating the employee from one job to
    another which enhances variety in job content.

    • Job Enlargement is a way of increasing the number of tasks a


    job holder performs.
    JOB SATISFACTION
    Four factors that help employees achieve Job Satisfaction.
    1. Mentally Challenging Work
    2. Equitable Rewards
    3. Supportive Working Conditions
    4. Supportive Colleagues
    PERFORMANCE
    EVALUATION
    PERFORMANCE EVALUATION IS
    DEFINED AS A FORMAL AND
    PRODUCTIVE PROCEDURE TO
    MEASURE AN EMPLOYEE'S WORK
    AND RESULTS BASED ON THEIR JOB
    RESPONSIBILITIES.

     PERFORMANCE EVALUATION ALSO
    PLAYS A DIRECT ROLE IN PROVIDING
    PERIODIC FEEDBACK TO
    EMPLOYEES, SUCH THAT THEY ARE
    MORE SELF-AWARE IN TERMS OF
    THEIR PERFORMANCE METRICS.
    • Develop an evaluation form.
    5 STEPS TO A • Identify performance measures.
    PERFORMANCE • Set guidelines for feedback.
    EVALUATION • Create disciplinary and termination
    SYSTEM procedures.
    • Set an evaluation schedule.
    Performance evaluations measure
    progress and help a person set professional
    CHARACTERISTICS goals.
    OF AN EFFECTIVE • Explain the appraisal process.
    PERFORMANCE • Clarify job expectations.
    EVALUATION
    • Review and update job skills.
    • Review accomplishments and goals.
    • Final steps and rewards.
    • The purposes of the annual performance
    evaluation process are to promote
    WHAT IS THE communication and provide useful
    PURPOSE OF feedback about job performance, to
    PERFORMANCE facilitate better working relationships, to
    EVALUATION? provide an historical record of
    performance and to contribute to
    professional development.
    REWARD SYSTEM
    • THE REWARD SYSTEM IS A GROUP OF
    NEURAL STRUCTURES RESPONSIBLE FOR
    INCENTIVE SALIENCE (I.E., MOTIVATION
    AND "WANTING"; DESIRE OR CRAVING FOR
    A REWARD),ASSOCIATIVE LEARNING
    (PRIMARILY POSITIVE REINFORCEMENT
    AND CLASSICAL CONDITIONING), AND
    POSITIVELY-VALENCED EMOTIONS,
    PARTICULARLY ONES INVOLVING
    PLEASURE AS A CORE COMPONENT.

    REWARD IS THE ATTRACTIVE AND


    MOTIVATIONAL PROPERTY OF A STIMULUS
    THAT INDUCES APPETITIVE BEHAVIOR,
    ALSO KNOWN AS APPROACH OR
    CONSUMMATORY BEHAVIOR.
    • Monetary Reward Systems
    TYPES OF • Non-Monetary Reward Systems
    REWARD • Employee Assistance Programs

    SYSTEM • Employee Recognition Programs


    Reward strategy concerns the design and
    implementation of reward policies and practices
    REWARD which support and advance the objectives of the

    STRATEGIES organization. All organizations have choices


    about how to reward employees.
    • Get employees involved
    HOW DO YOU • Tie rewards to company goals
    IMPLEMENT A • Be specific and consistent
    REWARD
    • Reward behaviors
    SYSTEM?
    • Reward teams
    EFFECTIVE When employees are motivated to work at higher
    levels of productivity, the organization as a
    REWARD whole runs more efficiently and is more effective
    at reaching its goals
    SYSTEM?
    Reward systems exist in order to motivate employees
    to work towards achieving strategic goals which are set
    by entities.
    WHAT IS THE
    Reward management is not only concerned with pay
    PURPOSE OF and employee benefits. It is equally concerned with
    REWARD? non-financial rewards such as recognition, training,
    development and increased job responsibility.
    In business, employee reward systems refer
    WHAT IS THE to programs set up by a company to reward
    performance and motivate employees on
    PURPOSE OF individual and/or group levels. They are
    REWARD? normally considered separate from salary
    but may be monetary in nature or otherwise
    have a cost to the company
    THANK YOU!

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