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431239867-MOTIVATION-REWARD-SYSTEM-ppt.ppt

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This document discusses motivation and reward systems. It begins by defining motivation and explaining that people are motivated to achieve goals that they believe will lead to valued rewards. It then covers several motivation theories including Maslow's hierarchy of needs, ERG theory, expectancy theory, and equity theory. The key messages are that motivation comes from both intrinsic rewards like interesting work and extrinsic rewards like pay. Motivation is higher when employee needs, goals, and the link between performance and rewards are clear. Companies can motivate employees through job design, rewards, incentives, and focusing on engagement and commitment.

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MOTIVATION & REWARD SYSTEM Prof. Meera Madhavan Dhruva College of Management Presented by: LEIZEL B. DOBLON-CONSTANTINO
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.
4 Need Theories: A Comparison 1. Physiological needs 2. Safety needs 3. Social needs Deficiency Needs 4. Esteem needs 5. Self-actualization needs Growth needs • Growth needs • Relatedness needs • Existence needs Maslow’s need hierarchy theory Alderfer’s ERG theory
ERG Theory (Aldefer) Relatedness Needs Growth Needs Existence Needs Satisfaction/Progression Frustration/Regression Satisfaction/Strengthening
Motivation theories and their practical implications Theory Theorist Summary of Theory Practical Implications Instrumentality Taylor People will be motivated to work if rewards and penalties are tied directly to their performance. Conceptual basis of incentive and pay-for- performance schemes Needs Maslow Unsatisfied needs create tension and is equilibrium. To restore the balance a goal is identified that will satisfy the need, and a behavior pathway is selected that will lead to the achievement of the goal. Only unsatisfied needs motivate. Identifies a number of key needs for consideration in developing total reward policies.
Motivation theories and their practical implications Theory Theorist Summary of Theory Practical Implications Two-factor Herzberg The factors giving rise to job satisfaction (and motivation) are distinct from the factors that lead to job dissatisfaction. Any feeling of satisfaction resulting from pay increases 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.
Motivation theories and their practical implications Theory Theorist Summary of Theory Practical Implications Expectancy Vroom Motivation is likely only when: 1) a clearly perceived and usable relationship exists between performance and outcome; and 2) the outcome is seen as a means of satisfying needs. Provides the foundation for good practice in the design and management of contingent pay. The basis for the concept is the ‘line of sight’, which emphasizes the importance of establishing a clear link between the reward and what has to be done to achieve it.
Motivation theories and their practical implications Theory Theorist Summary of Theory Practical Implications Goal Latham and Locke Motivation and performance are higher when individuals are set specific goals, when the goals are difficult but accepted, and when there is feedback on performance Provides a theoretical underpinning for performance management processes to ensure that they contribute to motivation through goal setting and feedback. Equity Adams People will be better motivated if they are treated equitably and demotivated if they are treated inequitably. Emphasizes the need to develop an equitable reward system involving the use of job evaluation
THE KEY MESSAGES OF MOTIVATION THEORY The key practical messages delivered by motivation theory are summarized below. Extrinsic and intrinsic rewards • Extrinsic rewards provided by employers in the form of pay will help to attract and retain employees and, for limited periods, may increase effort and minimize dissatisfaction. • Intrinsic non-financial rewards related to responsibility, achievement and the work itself may have a longer-term and deeper impact on motivation. • Reward systems should therefore include a mix of extrinsic and intrinsic rewards.
THE KEY MESSAGES OF MOTIVATION THEORY The significance of needs • People will be better motivated if their work satisfies their social and psychological needs as well as their economic needs. • Needs theory underpins the concept of total reward, which recognizes the importance of the non-financial rewards as motivators. • Performance management processes provide a basis for redesigning jobs or roles and for agreeing and implementing development programmes.
Discussion: Considering these theories, how might companies motive their employees • What types of incentives would motivate employees? • How can employers satisfy employees’ needs? • Would the same type of incentives or rewards satisfy all employees?
TYPES OF MOTIVATION (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 one’s own resources)  autonomy or freedom to act  scope to use and develop skills and abilities  opportunities for advancement and growth
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
The role of job design in motivation Intrinsic motivation is provided when jobs are well designed. This is the case when the job has the following characteristics: • autonomy, freedom of choice, self-control and responsibility; • variety; • use of abilities; • availability of constructive feedback; • belief that the work is significant.
The role of rewards and incentives in motivation • Rewards provide recognition to people for their achievements and contribution. If rewards are worth having and attainable and people know how they can attain them, they can act as motivators. Rewards can be either financial or non-financial. • Incentives are designed to encourage people to achieve objectives. They are intended to provide direct motivation: ‘do this and we will make it worth your while’. Incentives are generally financial but they can promise non-financial rewards such as recognition, promotion or a particularly interesting assignment.
The meaning of employee engagement • Employee engagement takes place when people are committed to their work and their employer and are motivated to achieve high levels of performance. • An "engaged employee" is one who is fully involved in, and enthusiastic about, his or her work, and thus will act in a way that furthers their organization's interests. • According to Scarlett Surveys, "Employee Engagement is a measureable degree of an employee's positive or negative emotional attachment to their job, colleagues and organization which profoundly influences their willingness to learn & perform at work".
Employee Engagement The factors that influence engagement • 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, 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.
Impact of employee engagement and organizational commitment
MODEL OF FACTORS AFFECTING ENGAGEMENT
Six steps to enhancing engagement through reward 1. Analyze the existing performance culture of the organization and develop an engagement. 2. Define the drivers of engagement (and disengagement) for different categories of employees. 3. Assess and define the reward elements that affect engagement and develop reward programmes that will enhance these different aspects of engagement. 4. Introduce a total rewards approach that brings together all the reward elements (pay and non-pay) that engage staff. 5. Segment total reward to take account of key employee differences. 6. Implement the total rewards approach and measure and evaluate its impact and success.
Posters work
431239867-MOTIVATION-REWARD-SYSTEM-ppt.ppt
"Winners must have two things; definite goals and a burning desire to achieve them."
431239867-MOTIVATION-REWARD-SYSTEM-ppt.ppt
Thank you for your attention!

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431239867-MOTIVATION-REWARD-SYSTEM-ppt.ppt

  • 1. MOTIVATION & REWARD SYSTEM Prof. Meera Madhavan Dhruva College of Management Presented by: LEIZEL B. DOBLON-CONSTANTINO
  • 2. 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.
  • 3. 4 Need Theories: A Comparison 1. Physiological needs 2. Safety needs 3. Social needs Deficiency Needs 4. Esteem needs 5. Self-actualization needs Growth needs • Growth needs • Relatedness needs • Existence needs Maslow’s need hierarchy theory Alderfer’s ERG theory
  • 4. ERG Theory (Aldefer) Relatedness Needs Growth Needs Existence Needs Satisfaction/Progression Frustration/Regression Satisfaction/Strengthening
  • 5. Motivation theories and their practical implications Theory Theorist Summary of Theory Practical Implications Instrumentality Taylor People will be motivated to work if rewards and penalties are tied directly to their performance. Conceptual basis of incentive and pay-for- performance schemes Needs Maslow Unsatisfied needs create tension and is equilibrium. To restore the balance a goal is identified that will satisfy the need, and a behavior pathway is selected that will lead to the achievement of the goal. Only unsatisfied needs motivate. Identifies a number of key needs for consideration in developing total reward policies.
  • 6. Motivation theories and their practical implications Theory Theorist Summary of Theory Practical Implications Two-factor Herzberg The factors giving rise to job satisfaction (and motivation) are distinct from the factors that lead to job dissatisfaction. Any feeling of satisfaction resulting from pay increases 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.
  • 7. Motivation theories and their practical implications Theory Theorist Summary of Theory Practical Implications Expectancy Vroom Motivation is likely only when: 1) a clearly perceived and usable relationship exists between performance and outcome; and 2) the outcome is seen as a means of satisfying needs. Provides the foundation for good practice in the design and management of contingent pay. The basis for the concept is the ‘line of sight’, which emphasizes the importance of establishing a clear link between the reward and what has to be done to achieve it.
  • 8. Motivation theories and their practical implications Theory Theorist Summary of Theory Practical Implications Goal Latham and Locke Motivation and performance are higher when individuals are set specific goals, when the goals are difficult but accepted, and when there is feedback on performance Provides a theoretical underpinning for performance management processes to ensure that they contribute to motivation through goal setting and feedback. Equity Adams People will be better motivated if they are treated equitably and demotivated if they are treated inequitably. Emphasizes the need to develop an equitable reward system involving the use of job evaluation
  • 9. THE KEY MESSAGES OF MOTIVATION THEORY The key practical messages delivered by motivation theory are summarized below. Extrinsic and intrinsic rewards • Extrinsic rewards provided by employers in the form of pay will help to attract and retain employees and, for limited periods, may increase effort and minimize dissatisfaction. • Intrinsic non-financial rewards related to responsibility, achievement and the work itself may have a longer-term and deeper impact on motivation. • Reward systems should therefore include a mix of extrinsic and intrinsic rewards.
  • 10. THE KEY MESSAGES OF MOTIVATION THEORY The significance of needs • People will be better motivated if their work satisfies their social and psychological needs as well as their economic needs. • Needs theory underpins the concept of total reward, which recognizes the importance of the non-financial rewards as motivators. • Performance management processes provide a basis for redesigning jobs or roles and for agreeing and implementing development programmes.
  • 11. Discussion: Considering these theories, how might companies motive their employees • What types of incentives would motivate employees? • How can employers satisfy employees’ needs? • Would the same type of incentives or rewards satisfy all employees?
  • 12. TYPES OF MOTIVATION (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 one’s own resources)  autonomy or freedom to act  scope to use and develop skills and abilities  opportunities for advancement and growth
  • 13. 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.
  • 15. The role of job design in motivation Intrinsic motivation is provided when jobs are well designed. This is the case when the job has the following characteristics: • autonomy, freedom of choice, self-control and responsibility; • variety; • use of abilities; • availability of constructive feedback; • belief that the work is significant.
  • 16. The role of rewards and incentives in motivation • Rewards provide recognition to people for their achievements and contribution. If rewards are worth having and attainable and people know how they can attain them, they can act as motivators. Rewards can be either financial or non-financial. • Incentives are designed to encourage people to achieve objectives. They are intended to provide direct motivation: ‘do this and we will make it worth your while’. Incentives are generally financial but they can promise non-financial rewards such as recognition, promotion or a particularly interesting assignment.
  • 17. The meaning of employee engagement • Employee engagement takes place when people are committed to their work and their employer and are motivated to achieve high levels of performance. • An "engaged employee" is one who is fully involved in, and enthusiastic about, his or her work, and thus will act in a way that furthers their organization's interests. • According to Scarlett Surveys, "Employee Engagement is a measureable degree of an employee's positive or negative emotional attachment to their job, colleagues and organization which profoundly influences their willingness to learn & perform at work".
  • 18. Employee Engagement The factors that influence engagement • 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.
  • 19. 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.
  • 20. Impact of employee engagement and organizational commitment
  • 21. MODEL OF FACTORS AFFECTING ENGAGEMENT
  • 22. Six steps to enhancing engagement through reward 1. Analyze the existing performance culture of the organization and develop an engagement. 2. Define the drivers of engagement (and disengagement) for different categories of employees. 3. Assess and define the reward elements that affect engagement and develop reward programmes that will enhance these different aspects of engagement. 4. Introduce a total rewards approach that brings together all the reward elements (pay and non-pay) that engage staff. 5. Segment total reward to take account of key employee differences. 6. Implement the total rewards approach and measure and evaluate its impact and success.
  • 25. "Winners must have two things; definite goals and a burning desire to achieve them."
  • 27. Thank you for your attention!