Chapter 16 motivating individuals and groups Qiang Jiang School of Business Sichuan University, China

Topic list 1 Overview of motivation 2 Content theories of motivation 3 Process theories of motivation 4 Choosing a motivational approach 5 Rewards and incentives 6 Pay as a motivator

1 Overview of motivation Motivation is a decision-making process through which the individual chooses desired outcomes and sets in motion the behaviour appropriate to acquiring them. – Goals or outcomes become desirable for a particular individual – The mental process of choosing desired outcomes – The social process other people motivate us to behave in the ways they wish

1 Overview of motivation Needs and goals – Childhood environment and experience :aspiration, family and career models formed at early stages of development – Age and position:gradual process of goal shift with age – Culture:collectivist cultures or individualist cultures – Self-concept:individual `s assessments of his own abilities and place in society affect relative strength and nature of his needs and goals

1 Overview of motivation Morale is a term drawn primarily from a military context, to denote the state of mind or spirit of a group, particularly regarding discipline and confidence. it can be related to satisfaction, since low morale implies a state of dissatisfaction. – Low productivity is not invariably a sign of low morale – High labour turnover is not a reliable indicator of low morale

1 Overview of motivation Theories of motivation – Content theories – Process theories

2 Content theories of motivation Content theories suggest that the best way to motivate an employee is to find out what his needs are and offer his rewards satisfy those needs.

2 Content theories of motivation Maslow's hierarchy of needs – Self-actualisation(push):promotion – Esteem needs(recognition):praise – love/social needs(contact):layout – Safety needs(shelter):pay – Physiological needs(food and water):pay

2 Content theories of motivation Herzberg` s two-factor theory – Identified two basic need systems : the need to avoid unpleasantness (demotivated; unmotivated; motivated) the need for personal growth. – Suggested factors which could be offered by organisations to satisfy both types of need; hygiene and motivator factors respectively.

3 Process theories of motivation Vroom` s expectancy theory – States the strength of an individual` s motivation to do something will depend on the extent to which he expects the results of his efforts to contribute to his personal needs or goals. – Suggested the strength of an individual` s motivation is the product of two factors – Valence (Does individual want reward) – Expectancy(Does individual believe to achieve it) – Expectancy equation – F=V×E

4 Choosing a motivational approach McGregor: theory X and theory Y – theory X:most people dislike work and responsibility and will avoid both Workers only do what they are told to Workers must be forced to work – theory Y:ordinary person does not inherently dislike work and can be motivated to seek challenge and responsibility in work Workers work on their own decisions Workers are self-motivated

5 Rewards and incentives Reward is a token (monetary or otherwise ) given to an individual or team in recognition of some contribution or success. Incentive is the offer or promise of a reward for contribution or success, designed to motivate the individual or team to behave in such a way as to earn it.

5 Rewards and incentives The human relation school of management theorists :regard work relationships as the main source of satisfaction and reward offered to the worker. later writers: a range of higher-order motivations – Job satisfaction, interest and challenge – Participation in decision-making Pay: part of the reward package

5 Rewards and incentives Reward types – Extrinsic rewards :separate from the job, dependent on the decisions of others. hygiene factors are examples.(pay, praise and benefit) – Intrinsic rewards: arise from the performance of the work, they are psychological. Motivator factors(job status, satisfaction and achievement)

5 Rewards and incentives Reward system – Encourage people to fill job vacancies and not leave – Increase the predictability of employees` behaviour – Increase willingness to accept change and flexibility – Foster and encourage innovative behaviour – Reflect the nature of jobs and the skills or experience required. – motivate

5 Rewards and incentives Job design as a motivator – Micro-design – Job enrichment(more interesting-theory Y) – Job enlargrment (more of same) – Job rotation(move people around low level jobs- theory X) – Job optimisation – Feedback as a motivator – Participation as a motivator – Inappropriate reward systems

6 Pay as a motivator How is pay determined – Job evaluation – Fairness – Negotiated pay scales – Market rates – Individual performance in the job – Resulting in merit pay awards

6 Pay as a motivator Performance related pay (PRP) is related to output (in terms of the number of items produced or time taken to produce a unit of work), or results achieved (performance to defined standards in key tasks, according to plan)

6 Pay as a motivator Benefits of PRP – Improves commitment and capability – Complements other HR initiatives – Improves focus on the business` s performance objectives – Encourages two-way communication – Greater supervisory responsibility – It recognises achievement when other means are not available

6 Pay as a motivator Problems – Subjectivity of awards for less measurable criteria – Encouraging short-term focus and target-hitting – Divisive /against team working – Difficulties gaining union acceptance

6 Pay as a motivator Rewarding the team – Group schemes ： appropriate for tasks where individual contributions cannot be isolated, and where team-building is particularly required – Profit-sharing schemes ： offer employees bonuses, directly related to profits or value added.