W.3 Motivation and goal-setting Flashcards
What monetary rewards can and cannot do: How to show employees the money.
(Aguinis, Joo, & Gottfredson, 2013)
Objective performance improvements highest when employees
have monetary incentive (compared to those who got social recognition/performance feedback instead) (Aguinis, Joo, & Gottfredson, 2013)
Generous amounts of monetary incentives can fail to
motivate and even lead to counterproductive outcomes, ie financial misrepresentation activities (Aguinis, Joo, & Gottfredson, 2013)
When promised super high monetary incentives, employees
can suffer declined performance levels due to heightened fear of failure (Aguinis, Joo, & Gottfredson, 2013)
Employees can develop sense of entitlement
to certain payouts and payouts can fall short of expectations which create -ve reactions: pay dissatisfaction, intentions to quit company (Aguinis, Joo, & Gottfredson, 2013)
Types of monetary rewards include
base pay, cost of living adjustments, short/long-term incentives (Aguinis, Joo, & Gottfredson, 2013)
Studies found employee’s productivity increased
by 30% when individual monetary incentives were introduced (Aguinis, Joo, & Gottfredson, 2013)
Even though pay not acknowledged as a critical factor in most surveys it’s
super important for job acceptance
Aguinis, Joo, & Gottfredson, 2013
the reason monetary rewards so powerful in attracting & retaining top performers is that
they help meet variety of basic needs + higher level needs (seen as symbol of status & personal accomplishment)
(Aguinis, Joo, & Gottfredson, 2013)
what can’t monetary rewards do?
improve job-relevant rewards, skills and abilities (knowledge, skills and abilities). Bc of this, it’s counterproductive to rely on monetary rewards to improve KSAs instead of just a lack of motivation (Aguinis, Joo, & Gottfredson, 2013)
$ rewards don’t necessarily improve
job quality & job enrichment which comes from the personal meaning derived by individuals.
Ie, $ rewards won’t increase autonomy and participation in work-force, (Aguinis, Joo, & Gottfredson, 2013)
No way to prevent (Aguinis, Joo, & Gottfredson, 2013)
unethical practices by employees in their gain for monetary rewards
Overall, $ rewards can improve employee motivation & performance bc
they can satisfy a wide range of low& high level needs, but use of $ rewards doesn’t always lead to desirable outcomes.
Guidelines to Implementing Effective Monetary Reward Systems: Best-practice recommendations on how to use $ rewards effectively (Aguinis, Joo, & Gottfredson, 2013)
- Define and measure performance accurately
- Make rewards contingent on performance,
- Reward employees in a timely manner,
- Maintain justice in the reward system,
- Use monetary and nonmonetary rewards
(Aguinis, Joo, & Gottfredson, 2013) 1. Define and measure performance accurately
Specify what employees are expected to do, as well as what they should refrain from doing.
Align employees’ performance with the strategic goals of the organization.
Standardize the methods used to measure employee performance.
Measure both behaviors and results. But, the greater the control that employees
have over the achievement of desired outcomes, the greater the emphasis should be on measuring results
- Make rewards contingent on performance,
Ensure that pay levels vary significantly based on performance levels.
Explicitly communicate that differences in pay levels are due to different levels
of performance and not because of other reasons.
Take cultural norms into account. For example, consider individualism-collectivism when deciding how much emphasis to place on rewarding individual versus team performance.
- Reward employees in a timely manner,
Distribute fake currencies or reward points that can later be traded for cash, goods, or services.
Switch from a performance appraisal system to a performance management system, which encourages timely rewards through ongoing and regular evaluations, feedback, and developmental opportunities.
Provide a specific and accurate explanation regarding why the employee received the particular reward
- Maintain justice in the reward system,
Only promise rewards that are available.
When increasing monetary rewards, increase employees’ variable pay levels instead of their base pay.
Make all employees eligible to earn rewards from any incentive plan.
Communicate reasons for any failure to provide promised rewards, changes in the amount of payouts, or changes in the reward system.
- Use monetary and non-monetary rewards
Don’t limit the provision of non-monetary rewards to noneconomic rewards.
Rather, use not only praise and recognition, but also non-cash awards consisting of various goods and services.
Provide non-monetary rewards that are need-satisfying for the recipient.
Distribute non-monetary rewards based on the other four principles of using monetary rewards effectively.
Use monetary rewards to encourage voluntary participation in non-monetary reward programs that are more directly beneficial to employee or organizational performance.
“The Power of Small Wins”
(Amabile, & Kramer, (2011))
Progress principle is a workplace phenomenon: of all things that can
boost emotions, motivation & perceptions during a workday, the most important is making progress in meaningful work.