FOUNDATION OF EMPLOYEE MOTIVATION

WHAT THE DIFFERENCES BETWEEN 1. MOTIVATION 2. REWARD

- Return or recompense for service or merit. FOUNDATION OF EMPLOYEE MOTIVATION Motivation : - Is the force within a person that affect his/ her direction intensity, and persistence of voluntary behavior. REWARD : - Return or recompense for service or merit.

Maslow’s Needs Hierachy Mcclelland’s Learned Needs Theory Theories of Motivation Maslow’s Needs Hierachy Alderfer’s ERG Theory Herzberg’s Motivator Hygiene Theory Mcclelland’s Learned Needs Theory Motivators Achievement Personal growth Responsibility Advancement Recognition Actualization Need for Achievement Growth Esteem Need for affiliation Belonging Relatedness Hygiene Supervision relation Co-worker relation Job security policies working condition Safety Need for power Physiological Existence

MASLOW’S NEEDS HIERARCHY MASLOW : There are instinctive needs arranged in hierarchy, where by people are motivated to fulfill a higher need as a lower one becomes gratified. Physiological need : The need for satisfaction to biological requirement for food, air, water and shelter. Safety need : Need for secure and stable environment and the absent of pain, threat, or illness. Belongingness : Need for love, affection and interaction with other people. Esteem : Need for self esteem ( personal achievement ) as well as social esteem ( recognition ) and respect from other. Self-actualization : Need for self fulfillment.

ALDERFER’S ERG THEORY ERG’S Theory : There are three instinctive needs arranged in hierarchy, in which people progress to the next higher need when a lower need is fulfilled, and regress to a lower need if unable to fulfill a higher need. Existence needs : Include a person’s physiological and physically related safety need such as food, shelter, and safe working conditions. Relatedness : Include a person’s need to interact with other people, receive public recognition, and feel secure around people. Growth need : Include both self-esteem and self actualization in MASLOW’S needs.

HERZBERG’S MOTIVATOR-HYGIENE This theory states that employees are primarily motivated by growth and esteem needs, not by lower need level needs.

McClelland’s theory of learned needs Need for achievement : People with nAch want to accomplish their goals through their own effort, prefer to work alone. Need for affiliation : People desire not to have conflict and confrontation and want to form positive relationships with others. Need for power : Refer to a desire to control one’s environment, including people and material resources. Always want to be leader and exercise power over others.

PROCESS THEORY Equity Theory Goal Setting Expectancy Theory

2. PROCESS THEORIES OF MOTIVATION A/ Expectancy theories Outcome Effort Performance Outcome Outcome

Effort-to-performance ( E-P ) : Individual perceives that a particular level of effort will result in a particular level of performance. Performance-to-outcome : Individual’s perceived that a specific behavior or perceived will lead to specific outcome.

B/ Equity theories - Input - Outcome - Comparison with others

CONSEQUENCES OF INEQUITY - What will happen when INEQUITY exists in an organization. 1. Changing input – reduce their efforts 2. Changing Outcome - Salary 3. Changing Perception - Input, Outcome in order to retain equity

4. Leaving the field or get away from the situation. 5. Acting on the comparison other - changing by comparing other Inputs/ Outcome 6. Changing the comparison other compare with some one who have more compatible outcome/ Inputs

C/ GOAL SETTING Goal : The immediate or ultimate objectives that employees are trying to accomplish from their work effort. Goal Setting : The process of motivating employees and clarifying their role perceptions by establishing performance objectives.

Job enrichment Job enlargement Job rotation WORK MOTIVATION THEORY JOB DESIGN Job enrichment Responsibility for scheduling, coordinating and planning their own work Job enlargement Number of tasks employees perform within their job Job rotation ( Moving employees from one job to another )

Pay, Careers, and Changing Employment Relationships It’s also important to understand how key aspects of the employment relationship can serve to encourage and maintain high level of motivation.

Three factors that plays a central role in this exchange relationships: 1- Performance appraisal 2- Pay and employment relationship 3- Career.

Psychological Contracts (PC): Two types of Psychological Contracts Mutual Commitments Between employees and organization decrease Transactional contract Short-Term Narrow and Specific Limited Promises and promises and obligation Relational contracts Long term General and evolving Extensive and broad Mutual commitments between employee And organization increase

Determinants of Psychological Contracts: Three sources of information are influential in helping individual form their PC Direct Communication Observations Written document

Determinants of Psychological Contracts Direct Communication During recruitment of prospective employees On the job information from co-workers and supervisors Observation How employees behave and how they are treated by the organisation The nature of, and manner in which, important decision are made Written Documents Employee handbooks, organisational policies, HR documents Company Website Psychological Contracts Perceived exchange relationship between an employees and organisation Includes reciprocal promise and obligations

3 - Performance Appraisal A formal system of review and evaluation of individual or team task performance (HRM, Wayne Mondy, © 2005, p:252,,) Evaluating performance to encourage employee motivation and performance to provide information to be used in managerial decision making Performance Appraisal has two overarching goals: 1. To encourage high levels of employee motivation and performance 2. To provide accurate information to be used in managerial decision making

Process of developing an effective (PA) system: Choosing the mix of formal and informal appraisals Choosing what factors to evaluate (traits, behaviors, or results) Choosing methods of appraisal (graphic rating Scales, Choosing who appraise performance (supervisors, peers, subordinates, worker themselves, or customers/clients) Performance appraisal system

Pay and the Employee Relation: Managers and employees like – is the distribution of outcomes, such as pay benefits, vacation, promotion, and other career opportunities, job titles, offices, and privileges Compensation and benefits: Pay: Benefits Non financial rewards

Merit Pay Plan: A plan that based pay on performance This plan tend to be used most heavily at the upper levels in organization. It also effective for employees at lower levels in an organization. This plan to attract, motivate , and retain employees.

Should merit pay be based on individual, group, ororganizational performance? When individual performance can be accurately assessed the maximum motivational impact When employees are highly interdependent (Group of carpenters who jointly design and construct large, elaborate pieces of custom furniture. When organizational effectiveness depends on individuals working together. When a team of research scientists works together in a laboratory.

Merit pay be in the form of a salary increase or a bonus? The are two major ways to distribute merit pay: Salary increases and bonuses. Salary increase plan has three reason: 1- An individual’s current salary level is based on performance levels. 2- Current salary increases may be only partially are given to all employees. 3- Organizations rarely cut salaries, so salary levels across employees tend to very less than performance levels

Bonus Bonuses can vary considerably form time period to time period and from employee to employee, depending on performance levels. The Ethics of Pay Differentials and Comparable worth The principle of comparable worth suggests that job of equivalent value to an organization should carry the same pay rates regardless of differences in the nature of the work itself and the personal characteristics of the people performing the work.

Careers The Nature of Careers Career is the sum of work related experiences throughout a person’s lifetime Type of Careers (this fall into four general categories) 1- Steady-State Careers. Reflects a one-time commitment to a certain kind of job that is maintained throughout one’s working life. 2- Linear Careers. A person progresses through a sequence of jobs, and each job entails progress over the prior one in terms of responsibility, skills needed. 3- Spiral Careers. A person holds different types of jobs that build on each other but tend to be fundamentally different. 4- Transitory Careers. A person with a transitory career changes jobs frequently, and each job is different from the one before it.

Career Stages Preparation for work Organizational entry Early career Mid-career Late career 1. Preparation for work. What kind of career they want 2. Organizational Entry. People try to find a job that will be a good start to their chosen career. 3. Early Career. Starts once a person has obtained a job in a chosen career. First step is establishment, and the second step is achievement. 4. Mid-career. generally been in the workforce between 20 and 35 years and face the challenge of remaining productive 5. Late Career. Extends as long as an individual’s career is active, organizations to take some of the steps discussed earlier to overcome these problems and help older employees remain motivated, productive, and satisfied.