Human Behavior in Organization

Motivation and Rewards Management

Noel J. Maquiling, MBA CAR, MICB, RCA, CFMP

Facilitator
Benefits and Compensation Management

 Motivation
 Rewards Management
Motivation

What is Motivation?

 It is the word derived from the word motive which means needs,
desires, wants or drives within the individuals. It is the process of
stimulating people to actions to accomplish the goals.
 In the work goal context the psychological factors stimulating the
people’s behavior can be:
 Desire for money
 Success
 Recognition
 Job-satisfaction
 Team work, etc.
Motivation

Stages in the Process of Motivation:

 A felt need or drive

 A stimulus in which needs have to be aroused
 When needs are satisfied, the satisfaction or accomplishment of
goals
Abraham Maslow’s Hierarchy of Needs

Human behavior is goal-directed.

Motivation cause goal-directed
behavior. It is through motivation
that needs can be handled and
tackled purposely.

This can be understood by

understanding the hierarchy of
needs by manager. The needs of
individual serves as a driving force
in human behavior.
Abraham Maslow’s Hierarchy of Needs

Physiological Needs: These are the

basic needs of an individual which
includes food, clothing, shelter, air,
water, etc. These needs relate to the
survival and maintenance of human
life.
Safety Needs: These needs are also
important for human beings. Everybody
wants job security, protection against
danger, safety of property, etc.
Social Needs: These needs emerge
from society i.e. love, affection,
belongingness, friendship,
conversation, etc.
Esteem Needs : These needs relate
to desire for self-respect, recognition
and respect from others.
Self-Actualization Needs: These are
the needs of the highest order and
these needs are found in those person
whose previous four needs are
satisfied. This will include need for
social service, meditation.
Motivation Incentives: Incentives to Motivate Employees

The need of Incentives:

 To increase productivity
 To drive or arouse a stimulus work
 To enhance commitment in work performance
 To psychologically satisfy a person which leads to job satisfaction
 To shape the behavior or outlook of subordinate towards work
 To inculcate zeal and enthusiasm towards work
 To get the maximum of their capabilities so that they are exploited
and utilized maximally
Motivation Incentives: Incentives to Motivate Employees

Categories of Incentives:
 Monetary Incentives - Money has been recognized as a chief source
of satisfying the needs of people. Money is also helpful to satisfy
the social needs by possessing various material items.
 Non-Monetary Incentives - Incentives which can satisfy the ego
and self- actualization needs of employees.
 Security of service
 Praise and recognition
 Suggestion scheme
 Job enrichment
 Promotion opportunities
Motivation Incentives: Incentives to Motivate Employees

Importance of Motivation:
 Put human resource into action – Every concern requires physical,
financial and human resources to accomplish the goals. It is
through motivation that the human resources can be utilized by
making full use of it. This can be done by building willingness in
employees to work. This will help the enterprise in securing best
possible utilization of resources.
 Improves level of efficiency of employees – Filling in the gap
between ability and willingness which results to increase in
productivity, reducing cost of operations, improving overall
efficiency.
 Builds friendly relationship
 Leads to stability of workforce – The employees can remain loyal to
the enterprise only when they have a feeling of participation in the
management.
Motivation Incentives: Incentives to Motivate Employees

Importance of Motivation to Individual and Business:

Motivation is important to Individual as:
 Motivation will help him achieve his personal goals.
 If an individual is motivated, he will have job satisfaction.
 Motivation will help in self-development of individual.
 An individual would always gain by working with a dynamic team.

Motivation is important to Business as:

 The more motivated the employees are, the more empowered the team is.
 The more is the team work and individual employee contribution, more
profitable and successful is the business.
 During period of amendments, there will be more adaptability and
creativity.
 Motivation will lead to an optimistic and challenging attitude at work place.
Motivation Incentives: Incentives to Motivate Employees

Motivation and Morale: Relationship and Differences

Morale – The total satisfaction derived by an individual from his job, his work-
group, his superior, the organization he works for and the environment. It generally
relates to the feeling of individual’s comfort, happiness and satisfaction.
High Morale Low Morale

A keen teamwork on part of the employees Greater grievances and conflicts in

organization
Organizational Commitment and a sense of High rate of employee absenteeism and
belongingness in the employees mind turnover
Immediate conflict identification and Dissatisfaction with the superiors and
resolution. employers
Healthy and safe work environment Poor working conditions

Effective communication in the organization Employees frustration

Increase in productivity Decrease in productivity

Greater motivation Lack of motivation

Motivation Incentives: Incentives to Motivate Employees
Motivation and Morale: Differences
Motivation
An internal-psychological drive of an
individual which urges him to behave in a
specific manner
Higher motivation often leads to higher
morale of employees
An individual concept
Acquires primary concern in every
organization
Things tied to motivation are tied to the
performance of the individual
Morale
More of a group scenario
High morale does not essentially result in
greatly motivated employees as to have a
positive attitude towards all factors of
work situation may not essentially force
the employees to work more efficiently
A group concept
a secondary phenomenon because high
motivation essentially leads to higher
productivity while high morale may not
necessarily lead to higher productivity.
Things tied to morale are usually things
that are just part of the work environment
Motivation Incentives: Incentives to Motivate Employees

Workplace Motivation:

I am in this job because I have no other option

VS.
I love what I do

Whose responsibility is it to ensure that an employee loves his job?

 It’s both the employer and the employee who should work together
to make work fun for each other.
Motivation Incentives: Incentives to Motivate Employees

Workplace Motivation: What needs to be done for effective

motivation at workplace?

 Link Rewards directly to performance (Fair reward structure of the

organization)
 Compliment employees for a job well done
 Be transparent - While there may be some strategic decisions which you
might want to share with the employees at a later stage, make sure
employees do not give in to the rumors. Stay in touch with the employees.
 Work on your Personal Development Plan - Every employee is responsible
for his / her own career. Find out what are the training company offers and
which is best suited to his development needs.
 Participate and Network
Motivational Challenges

 Diverse workforce - Different employees have different beliefs,

attitudes, values, backgrounds and thinking. But all the
organizations are not aware of the diversity in their workforce and
thus are not aware and clear about different ways of motivating
their diverse workforce.
 Employees motives cannot be seen, they can only be presumed
 When the organizations have considerably changed the job role of
the employees
 The vigorous nature of needs i.e. extra time spent vs. social needs
Classical Theories of Motivation

 Maslow’s Hierarchy of Needs Theory

 Herzberg’s Two-Factor Theory of Motivation
 Theory of X and Y

Modern Theories of Motivation

 Alderfer’s ERG Theory

 McClelland’s Theory of Needs
 Goal Setting Theory
 Reinforcement Theory of Motivation
 Equity Theory of Motivation
 Expectancy Theory of Motivation