3. Motivation

Question 1

Executive Payment (Definition, 3 way of Motivating executives, potential risk and its solution)

Answer 1

= motivation for management / alignment of goals through executive payment

Different options to motivate executives:

1) Fixed salary
2) Salary contingent on performance
3) Fixed + contingent part
- Bonus payments
- Shares of company stock

→ often, the Principal-Agent problem is prevalent: therefore, executives regularly hold company stock to incentivize them

Question 2

The Nature of Motivation (3 Determinants of Motivation)

Answer 2

→ to create the right incentives, motivation of employees has to be well understood o

Motivation determines:

• The direction of a person’s behavior
• The effort, i.e. how hard the individual will work,
• The persistence, i.e. whether the individual will keep trying or give up

→ explains why people behave the way they do (in organizations)

Question 3

Motivation Theories: Expectancy Theory by Victor H. Vroom, 1960s (Assumption, When motivation will be high (2))

Answer 3

Assumption: Motivation of an individual will affect his behavior

Motivation will be high when workers believe that:

• High levels of effort will lead to high performance
• High performance will lead to the attainment of desired outcomes

Question 4

Motivation Theory: Need Theories (Definition “Need”, Basic Premise, Job of Manager)

Answer 4

Need = A requirement for survival and well being o Basics about Need Theories

Basic Premise: people are motivated to obtain outcomes at work to satisfy their needs

→ managers must determine what needs a worker wants satisfied and ensure that a person receives the outcomes when performing well

• They do not explain why specific actions are chosen in specific
• They do not easily account for individual differences

Question 5

Motivation Theories: Hierarchy Needs (Maslow, 1943) (Core Assumption, 5 Steps, Deficiencies (4))

Answer 5

Core Assumption: Needs on the higher steps become only relevant for the behavior if needs on the lower steps have been satisfied

Steps (from top to bottom):

1. Self Actualization (e.g. growth, self-fulfillment)
2. Esteem (e.g. respect, appreciation, recognition)
3. Belongingness (e.g. social interaction, friendship, love)
4. Safety (e.g. security, stability, safe environment)
5. Physiological (e.g. food, water, sleep)

Deficiencies:

• No clear delimitation in the terminology
• Situational factors not taken into account (e.g. age and career phase)
• Depends on social stratum and culture
• Not confirmed empirically

Question 6

Motivation Theories: Herzberg’s-Motivation-Hygiene Theory, 1960s (Focus, Preconditions for Theory (2), Employer’s Responsibility)

Answer 6

Focuses on outcomes that lead to higher motivation and job satisfaction, and those outcomes that can prevent dissatisfaction

• Motivator needs relate to the nature of the work itself – autonomy, responsibility, interesting work → intrinsic
• Hygiene needs are related to the physical & psychological context of the work – comfortable work environment pay, job security → extrinsic

Employer:

= an employer needs to create intrinsic and extrinsic motivation in order to have happy employees that are motivated and passionate about work
→ not confirmed by subsequent empirical studies (however it provides clear implications for practice)

Question 7

functionHR: What motivates employees? (Rational, Examples of what motivates, How one can find out of what motivates)

Answer 7

There are many things that motivate employees – it’s highly subjective and depends on the individual.

• Money
• Success
• Remote work
• Working in the office

→ One can only find out when asking the right questions, listening to employees and implementing the feedback → as well as start to analyze data!

Question 8

Employee Experience “Touchpoints” - Engagement / Motivation ( Influences for employee satisfaction (3), Topics Relevant to Employees (7))

Answer 8

Influences for employee satisfaction:

• Good leadership
• Relevant knowledge
• Smart targets

Topics relevant to employees:

• Development
• Salary
• Work Equipment
• Bureaucracy
• Corporate Culture
• Supervisor
• Working Time Scheme

Question 9

Employee Experience “Touchpoints” - Exit (Reasons for Employees to leave (3), Factors increasing churn risk (

Answer 9

Reason for employees leave from different sectors

• lack of development opportunities
• Salary and benefits
• Not satisfied with tasks

Employees that are at risk of churning:

Factors increasing churn risk:

• High value for work distance
• High value for time since promotion
• High value for time since job change

Factors decreasing churn risk:

• High value for team diversity: Age
• High value for leadership rating
• High value for employee age