2.4 Motivation and Demotivation Flashcards
Motivation
The factors that stimulate people to take certain actions
Signs of motivation and demotivation
Motivation:
* higher productivity
* higher quality of good or service
* employees stay longer
* low levels of absenteeism
Demotivation:
* employees leaving
* poor customer service
* lower productivity
what are the types of financial rewards
- salary
- wages - time rate
- wages - piece rate
- commission
- performance-related pay (PRP)
- profit-related pay
- employees share ownership schemes
- fringe benefits (perks)
Types of Non-financial rewards
- job enrichment
- job enlargement
- job rotation
- empowerment
- opportunity to make a difference
- teamwork
types of training
- induction training
- on-the-job training
- off-the-job training
salary
fixed annual income that is usually paid monthly
Wage - time rate
Employees are paid per period of time worked
Wage - Piece rate
Employees are paid per unit of production
pros and cons of piece rate
Pros:
* rewards hard workers
* encourages higher productivity
Cons:
* encourages speed over quality
* less income stability for employees
Commission
An amount of money paid to an employee as a fee or percentage for a task or for bringing new business
Commission pros and cons
Pros:
* encourages employees to sell more
* rewards hard work and selling skill
* helps business control expenses
Cons:
* aggressive selling techniques
* might worsen team spirit
* less income stability for employees
Performance-related pay
employees are rewarded financially according to meeting certain objectives at work
PRP pros and cons
Pros:
* rewards higher performers
* can identify lower performers
Cons:
* performance might be difficult to measure
* might worsen team spirit
Profit-related pay
employees are financially rewarded according to the financial performance of the business
Employees share ownership schemes
Employees are financially rewarded by being given shares or share options in the business
share options mean the shares can be bought at a certain price
Profit related pay and share ownership pros and cons
Pros:
* employees feel connected to the success of the business
* encourages employees to stay longer to receive benefits
Cons:
* dilutes ownership of the business
* doesn’t identify individual high performances
Fringe benefits (perks)
non-cash forms of financial rewards
e.g. company car, low interest loans
non-financial rewards
methods of motivating employees that do not involve monetary payments
Job enrichment
changing an employee’s job to include more challenging and demanding tasks
e.g. adding new, more complex tasks
Job enlargement
changing an employee’s job by adding more tasks similar to what they are already doing
e.g. adding new, similar tasks
Job rotation
moving a employee to different jobs in the business at a similar level of complexity
e.g. adding new tasks in different areas
Job enrichment pros and cons
Pros:
* employees can develop new skills
Cons:
* may require employee training
job enlargement pros and cons
Pros:
* variety of tasks
Cons:
* employee may just see it as extra work
Empowerment
allowing employees some autonomy over their jobs - what they do and how they do it
laissez-faire leadership
Empowerment Pros and Cons
Pros:
* Employees feel trusted - higher motivation
* development of new skills
Cons:
* training costs
* employees might not have the skills to choose best
Purpose/opportunity to make a difference
The opportunity ot help the lives of other and to make a difference in the world
Teamwork
the job is organized so that groups of workers can work together
training
procedure where employees gain knowledge and skills relevant to their role in the business
professional development
Induction Training
The training received when employees start a new job
On-the-job training
training of employees that takes place at the workplace
Off-the-job training
training of employees that takes place away from the workplace
Pros and cons of training
Pros:
* employees feel valued - higher motivation
* development of new skills and knowledge
* employees become more productive
Cons:
* training costs
* time not working to attend training
* might not be beneficial/emploee may leave
Taylor’s Motivation theory
People are motivated by money
1. based on maximizing productivity by experiment with different ways to perform a task - known as scientific management
2. belief in the ‘economic man’ - man is solely motivated by money
3. payments should be linked directly to output through a piece rate system of payment
Maslow’s motivation theory
- based on the theory that we are motivated by what we need
- after a need has been satisfied it will no longer motivate us
- once all needs on a level have been met, we will start to aim for needs at the next level
Maslow’s hierarchy of needs - breakdown of the levels
Hertzberg’s motivation theory
based on:
* motivators motivate when present
* hygiene (demotivators) demotivate when absent
Motivating factors (Hertzbergs)
- higher motivation when present
- psychological factors that motivate employees
- maslow - self actualization, esteem
Hygiene factors (Hertzbergs)
- do not motivate employees
- but demotivate if they are not met
- maslow - physiological, safety, belonging
Implication (hertzbergs)
- high salaries can lower dissatisfaction but will not lead to higher levels of motivation - cus high salaries are taken for granted
- real motivation comes through interesting work
- need to remove dissatisfaction and then create satisfaction
McClellands motivation theory
= acquired needs theory / three needs
* everyone is driven and motivated by 3 types of needs
Need for achievement (Mcclelland)
- to successfully complete tasks
- take on tasks of moderate difficulty
- not too easy or difficult
Need for power (Mcclelland)
- need for prestige, status and being able to influence others or the org.
- may involve competition
need for affiliation (Mcclelland)
- need to feel accepted and respected by a group
- working as part of a team to collaborate on tasks and goals
implication (Mcclelland)
- people tend to favor one of the three
- show managers how to motivate EEs
Deci and Ryan motivation theory
Self-determination theory
* autonomy
* competence
* relatedness
Autonomy (D&R)
- ability to control one’s situation and have freedom
- give EEs more choice and agency rather than being told what to do
Competence (D&R)
- feeling of being accomplished at something
- provides opps to learn and training
Relatedness (D&R)
- interacting and feeling connected to others
- provide team work opps
implication (D&R)
the focus is on instrinsic motivation - employees enjoying the work for what it is
fulfilling autonomy, competence, relatedness can improve and EEs self-determination and motivation
Adams equity theory
to be motivated, employees need to feel that what they get out of the job (output) is equal to what they put in (input)
e.g. not rewarded enough?
rewarded too much?
Vrooms expectancy theory
employees will only be motivated if they see that their efforts will lead to the desired outcome
expectancy - whether employees feel they have the ability to complete the task
instrumentality - whether employees believe they will be rewarded if the task is completed
valence - whether employees value the reward upon completion of the task
labour turnover
number of employees leaving an organization over a period of time as a % of the total workforce
number of workers leaving x100
average number of staff
low labour turnover pros
- indicator of high morale and effective management
- lower costs of recruiting and induction training
- better relations with customers
high labour turnover pros
- potentially lower salaries/wages
- bring fresh ideas and thinking into the business
- low performing employees might leave
appraisal
method of evaluating the performance of an EE according to the job contract
formative appraisal
continual process whereby the focus is on focusing the strengths and weaknesses of the EE in a view to improving their performance over time
Summative appraisal
definitive judgement about the performance of the employee, accompanied with rating
requires goal-setting and benchmarks
360 degree feedback appraisal
EEs performance is given by collection of opinions from various people with whom they work
self-appraisal
EE gives their own opinion about their performance
recruitment
process of hiring new EEs into an org.
process of recruitment
- job opening
- job description
- person description
- identify candidates
- receive applications
- shortlist candidates
- selection process - interviews etc
- offer the job
- sign the contract
internal recruitment
hiring an EE who already works within the org.
external recruitment
hiring an EE from outside the org.
internal recruitment pros
- EE already knows the culture and rules within the business
- org. already has experience working with the individual
- higher employee morale - other EEs may see promotion opps in the future
- might be cheaper if can avoid the need for lengthy recruitment process
external recruitment pros
- access to wider pool of candidates
- bring fresh dieas and thinking into the business
- promoting interanlly might lead to resentment from other employees “left behind”
- potentially lower training costs - if person recruited has already worked in a similar role
