Motivation, Incentive & Performance

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Chris Jarvis 1 Motivation, Incentive & Performance

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Motivation, Incentive & Performance. Motivation – Some components. Inclination – what I feel I want to do – active/passive, conscious/sub-conscious Direction – what I am trying to do Action – what I do do Effort – how hard I try Persistence – how long I keep trying - PowerPoint PPT Presentation

Transcript of Motivation, Incentive & Performance

Page 1: Motivation, Incentive & Performance

Chris Jarvis 1

Motivation,Incentive &Performance

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Motivation – Some components

Inclination – what I feel I want to do – active/passive, conscious/sub-conscious

Direction – what I am trying to do

Action – what I do do

Effort – how hard I try

Persistence – how long I keep trying

How we construe expectations, needs, drives, efforts and results (actual & 'rationalised'/felt) - self & others

The employment concerns? How to "motivate people to give their all" Effort, performance, retention, loyalty, membership, commitment, trust,

empowerment, participation, work design Extrinsic & intrinsic rewards Expectancy & equity Rhetoric vs. reality of management practice Self-awareness & delusion – "Mirror, mirror on the wall". Motivation & "normal" behaviour vs. the well-motivated criminal.

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Who wants what from motivation?

The person Health & well-being, safety/order, social affiliation/acceptance,

recognition & rewards (extrinsic/intrinsic, stimulus & incentive. Feelings of self-worth/value, command of destiny, realisation of personal aspirations/expectations. Equity. Power. Affiliation

The employer Trusted, reliable employees who give their all, Ability to construe employee motivation, needs & drives + relate to:

effort, economic efficiency, performance, retention, loyalty & commitment, membership culture, empowerment, obligation-duty, participation & contribution, work design, better teams

Others Interpersonal confidence, liking and rapport, mutual confidence

and collaboration, shared values, not to be let down.

What is the problem?

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Idiosyncrasies and patterns

Idiosyncracies & perceptions of work, personal position and entitlements

Individual differences - the unique self - my construction

Common patterns of cognition, behaviour, attitude

Group and cultural influences

Me - myself, you ……

"you scheming, conniving, persistent, grabbing, selfish, resentful person ….. you …. and ….. you are a capitalist to boot...... one of 'them' .….. a typical Lilliputian ...... I've read all about you in Cosmopolitan."

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Pay-offs in the Employer-Employee Relationship (after Mumford 1972)

Task structure Work within firm’s policy, procedure & technical constraints. Job roles, work arrangements & relationships

Knowledge & skill Employer wants know-how, competence, experience. Employee wants to be put to good use & be developed

PsychologicalManagement & co-workers want committed, loyal, motivated staff. Individual wants satisfaction

Efficiency/rewards Employer wants performance & output to a quality standard. Employee wants equitable, felt-fair rewards & opportunity

EthicalValues & ambiguities/inconsistencies in right/wrong behaviour

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Evaluate the following propositions:

Good pay helps to diminish problems of high absenteeism.

The buzz of high morale & emphasis on teamwork means that there is moral pressure not to let workmates down. This is reinforced by prominently displaying costs of absenteeism discussing reasons for absence with absentees saying how fellow team members are hurt by absenteeism.

There is no direct way motivation can be measured. Indicators can be obtained thru observation, conversation and the stories people tell attitude surveys productivity data absenteeism, retention moans & gripes analysis of performance reviews

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Role modelling theory – Maier 1959

Role ambiguity may result from uncertainty about How one's work is evaluated Scope for advancement Scope of responsibility Others expectations of one's performance

It can cause Insecurity, lack of confidence,tension, irritation and even anger amongst

members of a role set These will be communicated more often than satisfaction / feelings of being

well motivated. Natural critical/evaluative tendencies, blaming others, disgruntlement

Also consider role underload/overload capacity & stress demands, choices & constraints conflict & ambiguity

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Examination Question

Evaluate the truth of the following proposition. How well does it point the way to robust, theoretically sound principles that guide our understanding of employee motivation?

Proposition

"The acquisition and development of employee skills through sophisticated and systematic selection, induction, training and appraisal has a positive impact on quality & productivity. It will lead to better motivation within the company"

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Would I really work for you without reward?

fundamental to employee contract

traditional economic exchange model. Pay-effort determinism

"rate for the job" occupational norms, expectations and choices

expediency - "suitable for my life package at the moment"

Etzioni & organisational membership Systems employers use

Coercive - Remunerative - Normative

Employee responsesAlienated - Instrumental - Moral involvement

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The person-as-economist expects........

ROI - time, effort, commitment

"What's in it for me?" calculation Conscious subconscious (self image and comparisons)

Fairness (equitable socio-economic exchange) interpret rewards/pay-offs of others

judge what is fair/unfair

satisfaction if each party achieves a balance (relative equality)

Psychological extension to neutral, economic model Construing the value & importance of input-output

Social, psychological - individual & group

Validation of personal perceptions & comparisons clear/distorted

internal/external

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Design Features of Reward Systems

Monetary

Time-based (not directly related to performance)

Performance-linkedOutput, %, PRP, merit pay, commission, skill-basedcollective-output schemes Corporate performance-related bonuses + profit sharing

Monetary-equivalent

Car, phone, holidays, loans, accommodation, fees, vouchers

Deferred (promotion, pension)

Non-monetary / intrinsic benefits - safety, status, recognition, plaques, contribution and empowerment

Negatives pressure, penalties, harassment, side-lining, dismissal

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Pay by time schemes - Components

simple to administer

defined time – F/T, P/T, mixed-time, casual

no attendance, no pay? Hourly, weekly, monthly

premiums – 1.5T, 2T, nights

Flexi-time schemes

“Door knob syndrome”

job grading/evaluation - evaluate the job not the person doing it

control mechanisms & tools – clocks, supervision, time sheets?

performance assumptions

trust, competence, diligence, fidelity, care, good-will, cooperation

work for Er in Er time ……vs ……...in your time?

supervision & monitoring - “When the cats away”?

Is actual presence necessary? Off-site working.

life increments - pay & career progression, security?

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PRP, merit pay, skill-based schemes

Requires

targeting, information & measurement

manager appraisal & judgement

problems of "big scheme" rules and controls

Pay linked to

individual merit (behaviours, traits & competencies: flexibility, cooperation, punctuality, effort, skills/abilities).

concrete individual or group targets

Staff appraisal criteria, rating, and exchange/intervention process

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Performance-Related Pay (PRP)

extensive but partial & sectoral

little research data on effectiveness

pay linked to specific aspect of performance intensity of MbO approach problem of defining the group + outputs what if key results not achieved? how is control and consistency achieved? fairness + validation of "the manager's judgment" merit pay or bonus addition to salary for this appraisal

round only?

The neurosis of "targetitis"

"Fat cat bonuses" – envy + "global market for stars" + formulae + intervention?

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Defining jobs

how can a manager operate effectively if he/she does not understand & cannot define staff jobs?

shared understanding about what the job is

reliable, factual definition of scope of job & responsibilities

useful for organisational design & analysis of change?

help to clarify role & provide a reference point for induction, recruitment, performance assessment & grading?

a basis for the job advert & recruitment literature?

indicates competence required - generic + job specific

confining, time consuming, out-of-date in a flexible organisation

Contractual?"Job descriptions - - Burn the lot of 'em" Robert Townsend, Up the Organisation"Job descriptions - - Burn the lot of 'em" Robert Townsend, Up the Organisation

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Job definition elements

Job definition

Title, reporting relationships (up, down, sideways, external)

job summary, responsibilities, duties, scope of authority

MbO/R: key result areas, yardsticks of performance, evaluation data

contractual provisions

Competence specification

levels, range of situations, performance indicators, knowledge/wisdom, experience, skills (psycho-motor, technical, analytical, literary, spoken, numeric, social & emotional)

The competences this organisation values

Role & performance analysis

Personnel specification (person profile)

characteristics of ideal candidate

Essentials - desirables - disqualifiers. Motivators

Psychometric-objective selection - fit person to job

Biodata, interviews, various tests, references

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MbO Record

Name Job/Role Date

Key Job Area

Objective/Target to be Achieved

Data for

Monitoring

Training/Learning Needs

1.

2.

3.

4.

Progress Review Dates

Notes on Achievements/Progress

Signed: (Post-holder)Signed: (Post-holder) Signed: (Manager)Signed: (Manager)

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Emotional & social dynamics & expectations

Important for employee belief & commitment

Impact of rules-of the-scheme (formal contract) on individual sensitivity (psychological contract). personal expectations

+ formal/informal exchange Er Ee

my manager as employer (by proxy) as a person I like/dislike, respect?

How I "see" what others are getting - internally & externally

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Organisational "Culture" Problems

conscious calculation & instrumentality?

Take-it or leave it + "9-5" sub-optimisation

rangible over non-tangible rewards

organisational rationalisation of effort-reward relationship

structural inflexibility of reward packages

constructing & controlling the performance review and PRP system

genuine involvement & participation

delegation, reliance & confidence

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How well has work-motivation theory dealt with this?

Maslow, Alderfer, McClelland - Herzberg - hygiene & motivators, job redesign

Concern with individual needs/goals

emphasis on what motivates

general, universal

Needs & satisfactions

Content (What it is & its elements)

Maslow, Alderfer, McClelland - Herzberg - hygiene & motivators, job redesign

Concern with individual needs/goals

emphasis on what motivates

general, universal

Needs & satisfactions

Content (What it is & its elements)

Attribution theory

Adams - Equity theory

Vroom, Lawler - Expectancy theory

Hackman & Oldham - job characteristics

McGregor: Theory X and Theory Y

"on managing …. this approach is better"

dynamic, emphasis on process - how it occurs

prescriptive responses

Process

Attribution theory

Adams - Equity theory

Vroom, Lawler - Expectancy theory

Hackman & Oldham - job characteristics

McGregor: Theory X and Theory Y

"on managing …. this approach is better"

dynamic, emphasis on process - how it occurs

prescriptive responses

Process

Behavioural

Focus on behaviour

Responses to stimuli - external

Avoidance learning & punishment

reinforcement & behaviour modification theory (operant conditioning)

Behavioural

Focus on behaviour

Responses to stimuli - external

Avoidance learning & punishment

reinforcement & behaviour modification theory (operant conditioning)

Cognitive

Consciousness/rationality

Goals & behaviour e.g. Locke - goal setting

Known & calculable

e.g. homo economicus

Learning

Cognitive

Consciousness/rationality

Goals & behaviour e.g. Locke - goal setting

Known & calculable

e.g. homo economicus

Learning

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Abraham Maslow 1954 - Need Satisfaction

Needs

Behaviour/Action

Goals

achievedrive

satisfy

teleologygoal-orientation

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Abraham Maslow - Hierarchy of Needs

Influential

Content of motivation (needs that motivate) theory - not personality

Classified needs lower needs must be satisfied

before higher needs are activated Chronic need deficiency

(neurosis?) motivations action gratified needs - equilibrium

snakes and ladders or

lower needs mediated by higher order consciousness?

simple descriptive, partial

nb: Alderfer ERG - existence, relatedness, growth)

cognitive & developmental

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What is Self Actualisation?

difficult to define

uniquely human motive?

a way of life > a goal.

not a need but on-going growth/development process.

Example characteristics accurate perception of reality.

accept selves & others.

spontaneous, open & natural

problem centred > self centred

pacific calm, serene in nasty situations.

don’t take things for granted.

peak experiences.

affection & regard for others

capable of deep satisfying relationships

democratic, ethical

creative, sense of humour.

independent of enculturisation

Example characteristics accurate perception of reality.

accept selves & others.

spontaneous, open & natural

problem centred > self centred

pacific calm, serene in nasty situations.

don’t take things for granted.

peak experiences.

affection & regard for others

capable of deep satisfying relationships

democratic, ethical

creative, sense of humour.

independent of enculturisation

Becoming Self-Actualised?

Be willing to change.

Take responsibility.

Examine your motives.

Experience honestly & directly.

Use positive experiences.

Be prepared to be different.

Becoming Self-Actualised?

Be willing to change.

Take responsibility.

Examine your motives.

Experience honestly & directly.

Use positive experiences.

Be prepared to be different.

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Self-actualised? Human… like everyone else…..

displays frailty & failings, ups & downs.

emotional, critical attitudes towards others

urge to decide for themselves

may say "NO" & be unpredictable - own destiny.

wants reasons without always wishing to conform.

accepts need for conformity most of the time to serve their interests

avoids being selfish & ego-centred (denying space to others).

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Critique of Maslow

simple, plausible, general

useful descriptive value?

fudgey, vague, naïve, nice but untestable concepts

hydraulic assumption : satisfy needs to boost bigger & better "motivated" tendencies

pressures on people to Limit scope for self-actualisation

Be self-actualised (self-development movement)

can’t predict behaviour in given situations.

self actualisation : a positive, attractive, humanist concept

We would all like to see ourselves as self-actualised.

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Eric Trist - what people want from their jobs

Reasonably demanding work with some variety

Opportunity to learn

Some decision making

Social support and recognition

Significance & meaning

Some desirable future

Job design principles

At the level of the individual

Respect

Contribution to product

Quantity & quality - feedback results quickly

Meaningful whole task

A whole job - plan, do, evaluate

Variety

Optimum cycle times

At the level of the group?

Whole, meaningful task

Set standards, feedback on results

Ways of discussing jobs

Attractive future possibilities

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Work restructuring

Workgroup

empowerment

job enrichment as enlargement

role of supervisor

rewardsystems

role of servicefunctions?

informationsystems

technology

consultation unionisation?

managementstyle organisation

structure

organisation culture

membershipcommitments

out sourcingplace

matrix

Core - peripheral

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Job restructuring

TasksAdd new & different tasksIncrease cycle timeAdd ancillary & preparatory tasks

Work organisationJob enrichmentEmpowermentOwn work methodPlanning/organisingProblem-solvingGoal settingFlexible pace and hoursFlexible locationInformation feedback

OpportunitiesFlexible rewardsFurther skills/learningChallengeSelf supervisionNetworking

Work/job attributesWork varietyUse of skills/abilitiesMeaningful/worthwhileContributionAdvancement prospectsAccountability & responsibilityDiscretion & decisionsAutonomy

ImplicationsBenefitsDisadvantagesOutsourcing?Call centres?Virtual teams?Teleworking?Social impact

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Expectancy theory (the process of motivation)

Motivated to perform because of expectations relating to perceived payoffs from the performance. ______Desirability of payoffs (valence), perception of expectancy + force of expression - intrinsic to the person.______Personal view of what is challenging or interesting, important to self + valuation of extrinsic payoffs - pay & material rewards

•expectancy - If I tried could I do it? Get away with it?

• Instrumentality - if I did it will I attain the outcome?

•valence (subjective valuation) - do I really value what's available?

Expressed as probabilities. Path-goal relationships which “explain” motivation performance.

assoc.. with Vroom & Lawler/Porter

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Expectancy Theory - Vroom et al

valence

A robust explanatory, predictive model?How the individual construes it all?

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Adams & Equity - an impossible ideal?

“Felt-fairness” - how I am treated in relation to others

Equity balance sheet & "the last straw” "What you gain on the swings….." Trust/good-will

“No more … that’s it for me!”

Internal & external comparisons (groups & individuals)

Feelings & perceptions - not synonymous with equality

Proposition… better motivated if treated equitably & consistently distributive equity

how I perceive I am treated & rewarded in comparison to others

procedural equityhow I see organisational procedures being applied

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Equity and Justice

Distributive justicehow rewards are distributed in accordance with “my contribution” & need

what was promised.

Procedural equityhow reward decisions are made & managed adequate consideration of employee’s viewpoint

no personal bias

consistent application of criteria

early feedback on outcome of decisions

adequate explanation of decisions made

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Organisational initiatives

job design & flexibility - matching people to jobs

MbO - defining expectations and feedback

teams & semi-autonomous groups, empowerment

concern for staff development, competencies and accreditation

effort to refine & deliver “reward packages” that "motivate" - PRP

managerial behaviours

constant organisational vigilance & sensitivity

a rewarding, supportive climate and cultures that foster

confidence & identification (one-ness with the firm)

meaningful, practical commitment?