Motivating Employees in Organization

Rewards People join organizations expecting rewards Firms distribute money and other benefits in exchange of employee’s availability,competencies and behavior.

Organizational rewards Membership and seniority Task performance Competency Job status

Membership and seniority based rewards – Benefits depend on firm that the employee joins E.g. Wipro,Infosys are good brand names Job status based rewards –Depends on job status (relative worth ) of the job an individual holds. e.g. jobs that require more skills and efforts,have more responsibility and have difficult working conditions would have more value and would be placed higher

Job status based rewards Depends on the status of the job an individual holds. Job status (relative worth ) is determined with help of job evaluation. A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.

Competency based rewards – Competency -Competencies refer to skills or knowledge that lead to superior performance. These are formed through an individual/organization’s knowledge, skills and abilities and provide a framework for distinguishing between poor performances through to exceptional performance. When rewards are linked to competencies what emerges is a skill based pay. In a skill based pay –employees are rewarded on basis of number of jobs they are capable of discharging or on basis of depth of their knowledge.

Performance based rewards – Link pay to performance rather than seniority Organizational rewards Profit sharing Stock options Team rewards Special bonuses Individual rewards Piece rate Commission Bonus Merit pay

Is money a real motivating factor ? View is favor Money is fundamental to completion of task Money is a vehicle by which employees can buy numerous need satisfying goods and services of desire Money is one of the hygiene factors for most Money is a score card –people evaluate how much am I worth ? Reinforcement and expectancy theories attest to the value of money as motivator

View against Money is not important to all people People fail to see a direct linkage between performance and reward Government organizations – D.A. and seniority based pay and performance Money kills risk taking appetite

Non monetary tools for employee motivation

Job Design It aims at outlining and organizing tasks, duties and responsibilities into a single unit of work for the achievement of certain objectives. It also outlines the methods and relationships that are essential for the success of a certain job. What ? How much ? How many ?

Skill Variety Task Identity Task Significance Autonomy Feedback JOB DESIGN INFLUENCES MOTIVATION

Skill variety –the degree to which job includes difficult activities and use of multiple skills and talents for employees. Task identity –The degree to which the job requires whole and identifiable piece of work. Task Significance – The degree to which the job has substantial impact on likes of work or other people. Autonomy – The degree to which job provides the employees with freedom.

Job Characteristics Model (Richrd Hackman and G.R.Oldham)

Empowerment IS the process of enhancing feeling of self efficiency and a sense of ‘owning ‘a job. Empowerment can motivate people to a large extent. In team based organizations – empowerment is very important. Teams are vehicles of empowerment.

Participative management When subordinates are involved in decision making at all levels,the resultant concept is participative management. E.g. – Participation at board level – Participation through share ownership – Participation through joint councils,committees – Participation through quality circles – Participation through empowered teams.

Dealing with problem employees Four principles need to be satisfied Everyone has motivational energy –it may not show up in work but may be present in other parts of life. motivational energy may be blocked because of frustration, broken dreams etc. Removing blockages of energy require people participation. Beyond a point –no need to show mercy

Other motivational techniques MBO Flexible working hours Two tier pay system Flexible benefits Trust and transparency Employee communication