Motivation in Practice Flashcards
The Role of Money
Money is the most commonly used reward in organizations
Money helps some needs get met
money is not every employee’s top priority
- some emphasize
Relationships in the workplace
Opportunities for development
Linking pay to performance
Link incentive plans to performance for effectiveness.
Variable pay
a portion of the employees pay that is based on a measure of performance
Piece rate
- per unit of production
- Common in production
- A basic hourly wage + piece rate differential on top more common in production.
Potential Problems
- Quantity over quality
- Differences in resources to be avoided as expectancy relp impacted
- Individual reward’s impact on group cooperation
- Restriction of productivity (artificial limit on output)
Merit Pay Plans
systems that attempt to link pay to performance on white collar jobs
Potential problem with merit pay plans
Potential problems with merit pay
- Stimulates performance but usually not very effectively used in org. Many use other metrics linked to pay in reality, e.g. Seniority
- Managers don’t differentiate between good and poor performers
- Perceptual errors, esp if subjective measures of perf
Reward Follies
Reward follies occur when organizations “reward A while hoping for B”
e.g., want to encourage teamwork but reward the “best” individual team members
Reward Follies - why they happen
Stuck in old patterns of rewards and recognition
Don’t look at the big picture
Focus on short-term results
Make assumptions
Cognitive Evaluation Theory
Allocating extrinsic rewards for behavior that was previously intrinsically rewarded tends to decrease the overall level of motivation.
Cognitive Evaluation Theory Why does this occur?
Loss of control over behavior
Internal changes to external explanation
It was interesting” to “I did it for the money”
Some key points about rewards
- Recognize Individual Differences
- Employees have different needs.
- Don’t treat them all alike.
- Spend the time necessary to understand what’s important to each employee.
Link rewards to performance
- That which gets measured/rewarded gets done.
- Expectancy theory can provide insight into how to make rewards effective
- Make sure the rewards are “fair”
- Provide feedback and allow employees to participate in decisions that affect them