Motivators at work Flashcards
What is Intrinsic motivation?
= internal motivation. This includes factors such as enjoyment, sense of satisfaction or achievement as motivators. This means that motivation comes from the performance and not the potential consequences of completing the task
What is extrinsic motivation?
= External motivation. Includes money, bonuses, promotion etc.
What are reward systems? (paper by Waal and Jansen 2011)
Examples of reward systems can be pay, bonuses, profit sharing and performance-related pay. These systems may not be available in all organisations as not all are set to make a profit.
What did De Waal and Jansen find as POSITIVE evidence?
YAO, 1997- Cited studies that showed that over half the growth in productivity in China State industries could be attributed to the use of bonuses.
BELFIELD AND MARSDEN, 2005- Demonstrated the positive effects of performance-related pay.
HOLLOWELL, 2005- Organisations that paid their senior executives with higher performance-related pay scaled did well on the stock market
What did De Waal and Jansen find as NEGATIVE evidence?
BLOOM, 1999- In organisations with very high inequalities, there is also a very high turnover of staff.
FATTORUSSO et al, 2007- Suggests any gains in productivity shown by the high performers are outweighed by the costs to low performers.
HOLLAND- no relationship between size of bonus payments and performances.
What are non-monetary rewards?
these include praise, respect, recognition, empowerment and a sense of belonging.
Difference between rewards and recognition
Rewards are promised from the start. This will act as extrinsic motivation- going to work to earn a certain salary.
Recognition is not promised from the start. It is earned through achievements and their contributions.
Explain non-monetary rewards
Praise, respect and recognition come from other people and can be extremely motivating. Can be a formal letter of thanks from their manager or from someone senior. More public forms of regonition can be in the form of award ceremonies or ‘emplyee of the month’ schemes.
Advantages
Can highlight desired behaviour and through recognition create role models for others to imitate. Staff turnover can be positively affected. Very low cost. Increases satisfaction ratings.
