Motivation: From Concepts to Applications

Motivation: From Concepts to Applications

Aqsa Khan Roll # 10701 M.Tofail Roll# Zeeshan Illyas Roll #

Motivation: From Concepts to Applications

MOTIVATING BY JOB DESIGN Job design suggest the ways the elements in a job are organized can act to increase or decrease motivation The Job Characteristics Model Developed by J. Richard Hackman. According to this model we can describe any job in term of five core job dimensions. Skill Variety Task Identity Task Significance Autonomy Feed Back Job Characteristics Model

Skill Variety Task Identity Task significance

Meaningfulness Of work

Autonomy

Responsibity for outcomes

High Motivation Performance Satisfaction

Feed back

Knowledge of Result of work

Motivation: From Concepts to Applications

Skill Variety: Refers to when job require a variety of activities so the worker can use a number of different skills and talent. Task Identity: Task identity Refers to when worker involved in all tasks of job from beginning to end of the production process. Task Significance: Refers to when the workers feel that the task is meaningful for the organization. Autonomy: When the employees has freedom to schedule tasks and carry them out. Feedback: When worker get direct information about how well the job is done. All these dimensions effect the motivation, satisfaction and performance of employees What is MPS? We can combine the core dimensions into a single predictive index, called Motivating Potential score It combines the core dimensions into single predictive index Math index describe degree to which a job is designed to motivate employees computed via questionnaire the lower the MPS, the more the job may stand to benefit from redesign Formula of MPS Skill variety+Task Identity+Task Significance *Autonomy*Feedback 3

Motivation: From Concepts to Applications

Jobs redesigning: Restructuring the elements including tasks, duties and responsibilities of a specific job in order to make it more encouraging. The process includes revising, analyzing, altering, reforming and reshuffling the job-related content and dimensions to increase the variety of assignments and functions to motivate employees and make them feel as an important asset of the organization. Ways of Job Redesign Job Rotation Job Enrichment Alternative Work Arrangement 1. Flex Time 2. Job Sharing 3. Telecommuting Job Rotation What is Job Rotation? Job rotation involves the movement of employees through a range of jobs in order to increase interest and motivation. Job rotation can improve multi-skilling Job rotation may offer the advantage of making it easier to cover for absent colleagues, It may also reduce productivity

Motivation: From Concepts to Applications

Why is Job Rotation Important? Job rotation is seen as a possible solution to two significant challenges faced by business: 1. Skills shortages and skills gaps, and 2. Employee motivation Skills shortages occur when there is a lack of skilled individuals in the workforce. Skills gaps occur when there is a lack of skills in a companys existing workforce which may still be found in the labor force as a whole. Job Enrichment

Motivation: From Concepts to Applications

Alternative Work arrangement Flextime Flextime is a scheduling arrangement that permits variations in an employees starting and departure times, but does not change the total number of hours worked in a week Job Sharing Alternative work schedule in which two employees voluntarily share the responsibilities of one full time job, and receive salary and benefits on pro-rata basis. Job Sharing avoids a total loss of employment in a layoff. Telecommuting The practice of working from home for a business and communicating through the use of a personal computer equipped with modem and communications software Employee Involvement Definition It is the participative process that uses Employees input to increase their commitment in the organizations success. Logic is that if we engage workers in decision making that will increase their autonomy and control over their work It will increase motivation Employee Involvement Programs Participative Management Representative Participation

Motivation: From Concepts to Applications

ORGANIZATIONAL REWARD SYSTEM

Definition of Reward Compensation or remuneration for services; a sum of money paid or taken for doing, or forbearing to do, some act.
To give in return, whether good or evil; -- commonly in a good sense; to requite; to recompense; to repay; to compensate An object or a situation that can serve to reinforce a response, to satisfy a motive, or to afford pleasure.

Something given in return for or got from work done, good behavior etc. Benefit resulting from some event or action Reward system Procedures, rules, and standards associated with allocation of benefits and compensation to employees. One of important attributes of organization is the ability to give reward to their members. Pay, promotions, benefits, and status symbols are perhaps the most important rewards. Because these rewards are important, the ways they are distributed have a profound effect on the quality of work life as well as on the effectiveness of organization.

Motivation: From Concepts to Applications

Types of Reward

Motivation: From Concepts to Applications

Intrinsic Vs. Extrinsic Reward Intrinsic Reward is the personal satisfaction one drives from doing the job. These are self-initiated rewards. An outcome that gives an individual personal satisfaction such as that derived from a job well done. Rewards that are associated with the job itself, such as the opportunity to perform meaningful work, experience variety, receive professional development training, enjoy good relations with co-workers and supervisors. Extrinsic reward include money, promotions and benefits provided by the employer. Rewards for doing a job which are external to the individual, such as wages, bonuses, incentives, fringe benefits, job promotions, and so on. A reward that is expected by an employee and does not lead to his or her greater satisfaction. Financial vs. Non-financial Rewards which enhance the employees well-being e.g. wages, bonuses or profit sharing is called financial reward. Non-financial reward does not directly increase the employees direct financial position but rather add attraction in the job. As far as nonfinancial reward is concerned it is not necessary that one want something may be the desire of others also. Non-financial reward varies person to person. organization allocate reward based on either based on performance or membership criteria. Reward system as followed by Organizations :

Reward system always link reward to performance. Workers who work hard and

Motivation: From Concepts to Applications

produce more or give better quality results would receive greater rewards than poor performers. Also the criteria for receiving rewards are clear and employees know whether they are going to receive rewards for quality performance, innovation, effort or attendance. Management must ensure that workers perceive distribution of rewards equitable. Furthermore, organizations to attract, motivate and retain qualified and competent employees, they be offered rewards comparable to their competitor. Financial Rewards: Organization design financial incentive to provide direct motivation do this and you will get that. Financial rewards provide a tangible form of recognition and can therefore serve as indirect motivators, as long as people expect that further achievement will produce worthwhile results. Financial incentives aim to motivate people to achieve their objectives, improve their performance on enhance their competence or skills by focusing on specific targets and priorities. Financial rewards provide financial recognition to employees for their achievement in the shape of attaining or exceeding their performance targets or reaching the level of competence skill. Achievement bonus, team based lump sum payment our organization provides in this category. Competency related Pay: Competency related pay may be defined as a method of rewarding people wholly or partly by reference to the level of competence they demonstrate in carrying out their roles. Organization promotes competence-related pay for effective use of competence to generate value. Competence related pay works through the process of competence analysis of individual competences and level of competence.

Motivation: From Concepts to Applications

Skill Based Pay: Skill based pay links pay to the level of skills used in the job and, sometimes, the acquisition and application of additional skills by the person carrying out the job. The term is sometimes used interchangeably with competence-related pay. But skill-based pay is usually concerned with the skills used by manual workers, including fitters, fabricators, and operators. In competence related pay scheme the behaviors and attributes of an individual has to use to perform a role effectively are assessed in addition to pure skill. Organization evaluate the potential cost of skillbased pay as well as its benefits rigorously before its introduction. Team based rewards: Team-based rewards as followed by the organization are payments or other forms of non-financial rewards provided to members of a formally established team which are linked to the performance of that team. Team based rewards are shared amongst members of the teams in accordance with a scheme or ad hoc basis for exceptional achievement. Rewards for individuals may also be influenced by assessments of their contribution to team results. To develop and manage team based rewards it is necessary to understand the nature of teams and how they function. Team based rewards are not always easy to design or manage. Profit sharing: As organization is a no profit based organization it keeps no profit or shares all the profit to employees and growth of the organization. Profit sharing is better known, older and more widely practiced which is associated with participative management theories. Profit sharing is a group based organization plan. The fundamental objectives of profit sharing are (a) to encourage employees to identify themselves more closely with the organization by developing a common concern for its progress. (b) To stimulate a greater interest among employees in the affairs

Motivation: From Concepts to Applications

of the organization as a whole, and (c) to encourage better co-operation between management and employees.

Merit Pays: Merit pay is the most widely used in our organization for paying performance. Merit pay system typically gives salary increases to individuals based on their supervisors appraisal of their performance. The purpose of merit pay is to improve motivation and to retain the best performers by establishing a clear performance reward relationship. Organization takes care of the right performance appraisal through an open and transparent appraisal system, which eliminates the organizational level-based biasedness.

Employee Ownership: A number of plans that exist help get some or all the stake ownership of our organization into the hands of employees. Unlike companies which offers stock option plans, stock purchase plans and employee stock ownership plans, Some organization provides the opportunity to qualified, loyal and high performing employee to be included in the board of Directors, and or given special designation as Promoters and hence the benefits there in. This is a great motivation for employees to contribute fully to organization.

Employee benefits: Employee benefits are elements of remuneration given in addition to the various forms of cash pay. Our organization provides a quantifiable value for individual employees which maybe deferred or contingent like a pension scheme, insurance cover or sick pay, or may provide an immediate benefit like an organization vehicle. It also includes elements that are not strictly remuneration, such as annual

Motivation: From Concepts to Applications

holydays. Benefits in general do not exist in isolation. They are a part of comprehensive compensation package offered by the organization. Importance of Rewarding Organizations typically rely on reward system to do four things: Motivate employees to perform effectively. Motivate employee to join the organization. Motivate employee to come to work, and Motivate individuals by indicating their position in the organization structure. Benefits represent a large share of total compensation and therefore, have a great potential to influence the employee, unit, and organizational outcome variables. The empirical literature indicates that benefits do indeed have effect on employee attitude, retention, and perhaps job choice. Further it appears that individual preferences may play a particularly important role in determining the employee reaction to benefit.

Motivation: From Concepts to Applications

Case Study: Reward System Star automobiles ltd. Pimpary is in the field of manufacture of two wheelers. They manufacture and market mopeds. These are available in the brand names 'arrow' and 'double arrow' where 'arrow' is their traditional product and 'double arrow' is the improved version. The company was started about 20 yrs ago. Their product 'arrow' enjoys a reasonably good reputation and they were comfortable in the market. However, with the entry of the new generation of fuel-efficient mopeds the company started loosing its market. They immediately started developing the improved 'double arrow' but by the time they came out with this new model the competitors had already strengthened their position in the market. The 'arrow' model was still acceptable by a segment of the market as it was the cheapest vehicle. 'Double arrow' is a new generation vehicle. It was costlier than Jet but its performance was much superior. It is compared favorably with the competitors' products; however it was yet to gain a foot hold in the market. The company had to refurbish the marketing activities in order to get back their market share. They employed young sales engineers to launch a strong sales drive. Mr. Ramesh Tiwari, Btech and a diploma holder in marketing got selected and was put on the job. Mr. Ramesh Tiwari started well in his new job. He was given a territory to contact the prospective customers and to book the orders. The company had introduced a new financial assistance scheme. Under this scheme, buyers were given easy loans. It was particularly advantageous for group booking by employees working in an organization. Mr. Ramesh Tiwari was able to contact people in different organizations, arrange for group bookings and facilitate the loans. His performance was good in the first year and in the second year of his service. The company had its own system of rewarding those whose performance happened to be good. They usually arranged a paid holiday trip for the good performer along with his wife. Mr. Ramesh Tiwari was accordingly informed by the marketing

Motivation: From Concepts to Applications

manager to go to Chennai with his wife on company expenses. Mr. Ramesh Tiwari asked him as to how much it would cost to the company. The marketing manager calculated and told him that it would cost about 8000/-. He quickly asked him whether he could get that 8000/- in cash instead of the trip as he had better plans. The marketing manager countered this saying that it might not be possible to do so. It was not the trading of the company, however he would check with the personnel manager. After a couple of days, Mr. Tiwari was informed that it would not be possible to give him a cash reward. Mr. Tiwari grudgingly went for the trip and returned. On his return, he was heard complaining to one of his colleagues his little daughter was also along with him. The marketing manager and the personnel manager thought he was a bit too fussy about the money and some of his colleagues also thought so. During the subsequent days Mr Ramesh Tiwari's performance was not all that satisfactory which showed his lukewarm attitude towards his job and the subordinates. Questions: 1. Where did the things go wrong? 2. Was Mr. Ramesh Tiwari too much money minded? 3. Was the company too bureaucratic? 4. Did the personnel manager handle the issue properly? 5. What is your recommendation to avoid such situations in future?