Human Resources: Motivation Carla Ortega, Pilar Gibaut, Paola Prat, Ivan y Eric

Table of Contents Financial Rewards Non-Financial Rewards Effects of Rewards Motivation Theories Maslow Taylor Herzberg Adams Pink Table of Contents

Introduction

Financial Rewards

Salary Advantages Disadvantages Security of income. Aids in costing - does not vary. It gives status. Disadvantages Not related with productivity or effort. Regular appraisal may be needed. Salary: annual income paid on a monthly basis (usually)

Boss-Employee Activity

Wage Advantages Disadvantages Encourages greater effort. Labour costs for each unit is determined in advance. Disadvantages Rushing can lead to falling quality. It provides insecurity. There are limits to a workers capability. Wage: payment to a worker made in function of the hours they work or the units they produce.

Wage Payments Time Wage Piece Wage Commission Payments depending on hours worked. Payments depending on pieces produced. Payments depending on sales done.

Bonuses Performance Related Profit Related Bonus scheme to reward staff for above average work performance. Profit Related A bonus scheme based on the profits that a business makes.

Fringe benefits (perks) Definition Non-cash payment. It includes things such as company cars, free insurance, discounts on company products...

Employee share-ownership schemes Description Profit-sharing scheme that uses shares of the same company as opposed to money. Becoming an owner of the company is proven to improve motivation to increase share value.

Non-financial Rewards

Job Enlargement Definition Job enlargement is an increase in job tasks and responsibilities to make a position more challenging. It is an horizontal expansion, which means that the tasks added are at the same level as those in the current position. Can also include job rotation and job enrichment.

Job Enrichment Benefits Reduce repetitive work. Increase the employee's feelings of recognition and achievement. Provide opportunities for employee advancement (promotions into jobs requiring more skills). Provide opportunities for employee growth (an increase in skills and knowledge without a job promotion). Redesigning jobs so that they are more challenging to the employee and have less repetitive work.

Job Rotation Definition It’s a management approach where employees are shifted between two or more assignments or jobs at regular intervals of time in order to expose them to all verticals of an organization. It’s a well-planned practice to reduce the boredom of doing same type of job everyday and explore the hidden potential of an employee.

Teamwork Definition The process of working collaboratively with a group of people in order to achieve a goal. People will try to cooperate, using their individual skills and providing constructive feedback, despite any personal conflict between individuals.

Empowerment Definition Employee empowerment means giving employees a certain degree of autonomy and responsibility for decision-making regarding their specific organizational tasks. This will contribute to their competence and satisfaction.

Effects of Rewards

Cultural differences and reward systems Is it inappropriate to use the same reward system in divisions of a business that operate in different countries around the world? Do employees everywhere respond in the same way to changes in the financial and non-financial reward system?

Cultural differences that impact the most Performance orientation: Performance improvement, innovation and thriving for excellence is encouraged. Future orientation: . On delaying immediate reward and engaging in future oriented behaviour. Investing in the future. Institutional collectivism: Organisations reward or encourage the distribution of resources to groups and focus on collective action.

Fringe benefits and cultural differences Any reward system given to the employees different in the countries or cultures. India Ticket for a Bollywood film. France Vouchers for a gourmet food chain. UK Vouchers for DIY stores.

Local feel and distribution of rewards Multiple languages in order to make the workers feel comfortable in the company. Rewards distributed locally as required.

Motivation Theories

Frederick Winslow Taylor

Scientific management Advise management on the best way to increase worker performance. He established an idea, recorded performance at work, altered methods... Approach= Scientific management 7 steps to improve productivity: Theory of “economic man”: humans were driven or motivated by money. Taylor supports the system “piece rate”. Paying workers a certain amount for each unit produced. Select workers. Observe them performing and take notes. Record the time taken for each task. Identify the quickest method recorded. Quickly train all workers. Supervise workers performing the task in the best way. Pay workers on the basis of results.

Relevance of Taylor´s approach to modern industry and limitations Relevance to modern industry Limitations Economic man Money as only way to motivate staff Money is not the only need of workers Select the right people for each job Relevant fact before Taylor identified it It requires an appropriate selection procedure Observe and record performance “Time and motion study” Workers regard it as a way of making them work harder Establish the best method of doing the job Efficiency depends on the best ways of working being adopted Considered to be undesirable. No feedback. Piece-rate payment systems- to maximise output through motivating workers to produce more No relevance. Difficult to identify the output of each employee. Quality may be sacrificed in the pursuit of quantity.

Abraham Maslow

Abraham Maslow Psychological point of view Interpretation: Start in lowest level. Once is satisfied, try to achieve next level. Once a need is satisfied, no longer motivate. Reversion is possible Self-Actualisation is not reached by many people.

Limitations of Maslow Not everyone has same needs It can be very difficult to identify the degrees that are being worked Money is necessary for physical needs, can play a role in status and esteem Self-actualisation is never permanently achieved

Frederick Herzberg

Frederick Herzberg Theory of motivation - hygiene Opposite of satisfaction is no satisfaction.

Limitations of Herzberg Overlook situational variables Satisfaction but no productivity Theory reliability is uncertain No comprehensive measure of satisfaction Not free from bias Ignores blue collar workers

John Adams

Equity theory Employer= demotivated-- inputs>outputs Fair balance Employees will respond with positive attitudes and high levels of motivation What employees give What employees receive

Daniel Pink

Elements of intrinsic motivation Autonomy Our self-direction is a natural inclination. Humans are built with inner drive. It can be offered by giving employees real control over various aspects of their work. Mastery A sense of progress contributes to humans´ inner drive. Measuring what employees must do by looking at what they can do. Tasks set at the appropriate level of difficulty and challenge. Goldilocks tasks Purpose Achieving deepest motivation= finding a purpose Purpose? Help employees connect to sth larger than themselves.

The end (finally)