13-1 Chapter 13 Motivating Performance Applying Innovation By David O’Sullivan and Lawrence Dooley © Sage Publications 2008

13-2 Reflections  What is a team, and how does it differ from an organization or community?  What can organizations do to create a successful team environment?  Name the four different types of teams that can be used for managing projects.  Explain the terms fully empowered and enabled in regard to team members.  List a number of ways in which creativity can be improved in teams.  What technologies can be used to support virtual teams?  What is a community of practice?

13-3 Activities [Discussion of selected student ‘Activities’ from previous chapter]

13-4 Learning Targets  Examine the role of motivation in influencing individual behaviour  Understand the difference between intrinsic and extrinsic motivation  Outline the process of linking individual performance to organizational  performance  Describe a number of techniques for sharing rewards with all team members  Understand the performance appraisal technique  Explain the training and development approach in relation to motivation  Design a simple performance appraisal system

13-5 Motivation  Creativity: Expertise, Creative Thinking and Motivation (Amabile, 1998)  Maslow: self-fulfillment, ego or esteem, social, safety, and physiological needs.  Theory x – authoritarian  Theory Y – participative  Intrinsic and Extrinsic motivation

13-6 Intrinsic Motivation  From within the individual  The most powerful type of motivation  Inherent desire to perform better  Difficult to manage  Organizations need to hire self motivated people, provide training and opportunity and provide a challenging work environment

13-7 Forces against Intrinsic Motivation  People are often risk averse and tend to remain within a certain comfort zone rather than stretch beyond it.  The intrinsic needs of the person and those of the organization may not align.  People need to fulfill all of Maslow’s needs, and lower needs are not adequately met by intrinsic motivation and instead require extrinsic motivation.

13-8 Extrinsic Motivation  From outside the individual  Financial incentives, additional holidays, etc.  Useful up to a ‘saturation’ point beyond which free time and self-development become important  Popular systems: Gain sharing Profit Sharing Performance Appraisal

13-9 Gain Sharing  Group bonus scheme where entire organisation benefits from improved innovation  Individual remuneration linked with organisational performance  Some individuals rewarded for little effort  Based on an agreed formula: If labor costs are below 12% of sales then bonus awarded amounting to 60% of difference between actual costs and 12% target

13-10 Profit Sharing  Bonuses based exclusively on profits.  If profits increase then bonus awarded on agreed formula  Difficulty when profits are affected by factors outside control of organization Changing share prices Currency fluxuations Materials costs

13-11 Benefits of Gainsharing  Coordination, teamwork, and sharing of knowledge increase.  Social needs are recognized via participation and mutual reinforcing of group behavior.  Attention is focused on goals such as performance indicators.  Change due to technology, market, and new methods gains acceptance.  People demand better performance from each other.  Innovation increases.  Where unions are present, union–management relations become more flexible.

13-12 Performance Appraisal  Reward or recognition based on individual performance  Linking goals and actions to individuals i.e. individual responsible for particular goals or contributing to particular ideas or projects  Typical linkages around: Objectives Indicators Skills – technical, personal and interpersonal Ideas and Projects

13-13 Performance Appraisal - sample

13-14 Training and Development  Individuals developed through job design, task delegation, skills training and career development  Identification of skills available and required  Identification of mechanisms for improving skills E.g. courses, manuals, etc.  Planning development of skills within organisations through training plan

13-15 Summary  Examine the role of motivation in influencing individual behaviour  Understand the difference between intrinsic and extrinsic motivation  Outline the process of linking individual performance to organizational  performance  Describe a number of techniques for sharing rewards with all team members  Understand the performance appraisal technique  Explain the training and development approach in relation to motivation  Design a simple performance appraisal system

13-16 Activities

13-17 Search Online  Why Bad Things Happen to Good Technologies (John Sterman) Stuck: Why It’s So Hard to Do New Things in Old Organizations (Rebecca Henderson) Building Growth: Why Don’t We Use What We Know (Rebecca Henderson)

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