Chapter 4b: Motivation Applications Flashcards
2 applied performance practice awards
Describe them a bit (2)
- Membership/Seniority Based Rewards
- A fixed part of compensation package (pay, benefits, etc) that increases with seniority
Pros: wages can attract applicants
Seniority increases reduce turnover
Con: Does not increase job performance, decreases number of poor-performers form leaving
- Performance based rewards
- a part of compensation where the pay is based on performance
Individual Rewards
1) 3 types, what are they?
2) Weakness of the individual rewards systems
1) Piece-rate pay plans and commissions
- Strong performance-reward relationships
- not possible for a lot of jobs
2) Merit based pay
- an increase on top of base pay based on performance
3) Merit based bonuses (“lump sum bonuses”)
- One time reward for certain work than something that’s ongoing
2) )
- Biased appraisal system
- rewards only recent performance
- unhealthy competition
- people who cheat, manipulators etc
What is employee recognition? (2)
- Cheap way of strengthening performance-reward link
- Satisfy higher level needs (Maslow’s hierarchy) like recognition, growth, ESTEEM
Organizational Level variable pay planes
1) what are they 3 THINGS!
- Profit Sharing
- Company wide-program: an formula to spread profits based on profits - Employee stock ownership plans (ESOPS)
- Stocks as part of benefit plans for employees - Stock options
- lets employees buy company stocks at a predetermined price.
1) GOOD of organizational rewards (2)
2) The bad? (2)
1) Creates “ownership culture”, aligns goals of managers and organizational goals
- Your pay is adjusted with company profits
(Also related to ownership culture)
2) Super weak connection between individual effort and rewards (hugely based on profit and stock prices)
- reward amounts are affected by external sources
How to improve effectiveness of organizational rewards
- Link rewards to performance
MOTIVATION IS HIGH WHEN STRONG RELATIONSHIP BETWEEN PERFORMANCE AND REWARDS - Make sure rewards are valuable
- If it’s merit/performance based, make sure the rules are fair to employees
- If merit/performance based, watch out for distortions, unhealthy competition, cheaters
FIZED POOL OF MONEY MAKES THE GAME ZERO-SUM
How does external rewards affect intrinsic motivation? (2)
- Providing Extrinsic motivation
To activities that were previously intrinsically driven are less so now. - Later removing the external reward would reduce overall motivation (once if you give it, it’s tough to not give it again)
SELF DETERMINATION THEORY (SDT)
1) what is it?
Three things that constitute it
- A theory that all humans have 3 innate needs that forms the basis of self motivated Behavior
- Relatedness (wanting to interact and be embedded)
- Competence - wanting to be good at stuff
- Autonomy - wanting to do things on your own, controlling your environment rather than feeling pressured to do things by external things
COGNITIVE EVALUATION THEORY
1) What is it?
2) Two Main premises
1) A sub theory of the self determination theory that focuses on INTRINSIC motivation and the effect of EXTERNAL rewards (extrinsic) on intrinsic motivation.
2) Main:
- Intrinsic motivation maintained when people feel COMPETENT and AUTONOMOUS
- External rewards can reinforce feelings of competence but results in feelings of loss of control over one’s own Behavior
COGNITIVE EVALUATION THEORY
1) The two effects of external rewards
2) The overall effect of external rewards?
3) tangible VS intangible rewards?
1) Controlling aspect - > autonomy increases/decreases (intrinsic motivation decreases/increases)
2) Informational aspect -> increased/decreased perception of competence, intrinsic motivation decreases/increases
3) Depends on which is stronger (controlling VS informational)
VERBAL REWARDS (informational aspect) TEND TO INCREASE INTRINSIC MOTIVATION AND TANGIBLE REWARDS TEND TO REDUCE IT
Contingencies of COGNITIVE EVALUATION THEORY?
2 Things
1) affect of external awards on intrinsic motivation is weaker when rewards are not really connected to performance.
2) UNEXPECTED REWARDS do NOT have a negative impact on intrinsic motivation.
OVERJUSTIFICATION EFFECTS:
1) 3 conditions?
When a expected reward decreases someone’s intrinsic motivation
1) expected reward
2) Unexpected reward
3) No reward
GIVING SOMEONE INCENTIVE DECREASES INTRINSIC MOTIVATION.
JOB CHARACTERISTICS MODEL
(Hackman & Oldham
1) 5 core job dimensions
1) Skill variety
(Requirements for different tasks)
2) Task identity
(Completion of whose piece of work)
3) Task significance
(Job’s impact on others)
4) Autonomy
(Level of discretion in decision making)
5) Feedback
(Amount of direct and clear information on performance)
JOB CHARACTERISTICS MODEL:
1) Motivating potential model equation:
1/3(Skill variety+Task identity+task significance) * Autonomyfeedback
PROPER JOB DESIGN HAS POTENTIAL TO INCREASE “INTEREST” IN THE JOB
- If you feel more responsible for the outcome of the work.
How to increase intrinsic motivation?
Base on SDT and JCM
- Sense of choice /responsibility
Opportunity to select what you do - Sense of competence
Feeling of accomplishment for a good job! - Sense of meaningfulness
You doing what matters. - Sense of progress
Feeling like you’re making progress on a task.
