Motivation

Something that drives (pushes) you

towards goal
Something that attracts (pulls) you
towards goal
Motivation is that internal force
which drives for the persistent
behavior directed toward
achievement of goal/s

McGregors two factor theory

Employees dislike
work,
Are lazy
Dislike undertaking
responsibilities,
And therefore, will
work only when
coerced
This is known as X

Basically, people
like to work,
They are creative,
Seek responsibility,
And therefore, will
work when self is
directing them
This is known as Y

Understanding motivation at work

Why are we
motivated
(content theories
of motivation
such as
Need hierarchy
Two factor)

How to motivate
(process theories
of motivation
such as
Expectancy
Equity theory)

Maslows need hierarchy theory

Physiological
Safety and security
Social
Ego/self esteem
Self actualization

Herzbergs two factor theory

am motivated because of

am motivated because of

Security
Status
Relationship
Personal life
Salary
Working conditions
Supervision
Company policy &
administration

Growth
Advancement
Responsibility
Work itself
Recognition
Achievement

Motivational force= Valence x expectancy (Vroom, 1964)

Valence is strength of persons preference for a

particular outcome (-1 to +1)
Expectancy is probability (0-1) that a particular
action or effort will lead to an outcome
Instrumentality refers to the degree to which a
first level outcome will lead to a desired second
level outcome
Inequity

REWARDS
DIRECT FINANCIAL (salary/perks)
INDIRECT FINANCIAL (benefits/non-cash)
WORK CONTENT (variety, challenge,
autonomy, meaningfulness, feedback)
AFFILIATION (support, culture/environment)

CAREER (advancement,
growth, training, retirement)

REWARDMANAGEMENT CONTEXT

INTERNAL ENVI.
STRUCTURE
RELATIONSHIP
CULTURE
TECHNOLOGY

EXTERNAL ENVI.
BUSINESS
COMPETITION
GLOBALIZATION
INFLATION

OPERATIONAL PROCESS
MANAGEMENT
PRACTICES
EMPLOYMENT
PRACTICES

CHANGING WORKFORCE

ECONOMIC TRENDS
SKILL SHORTAGE

GOVERNMENT POLICIES

COMPANY LAWS

Individual incentive plans (piecework, standard hour plan, bonuses, merit

pay, lump-sum merit pay, sales incentives, and executive compensation)

Group incentive plans

Team compensation
Gainsharing incentive plans
Scanlon plan (Es should offer
ideas to improve productivity
and in turn be rewarded for
their constructive efforts)
The Rucker Plan or the shareof-production plan (SOP)
Improshare (improved
productivity through sharing)
Earning at risk plans (portion
of basic pay at the risk)

Organizational
Incentive plans
Profit sharing
plans
Stock options
Employee Stock
Ownership plans
(ESOPs)

REDESIGN OF REWARD SYSTEM: RELATIONSHIP

BETWEEN PERFORMANCE AND REWARD

Performance based compensation system

recognizes, rewards, and retains talent
Create a proper mix of individual, team, and
organizations performance measures
Use compensation teams to create the new
system
Reward teams that deliver value to customers
frequent distribution of rewards