1. Public Management Incentives and Motivations Friday, February 22, 2019
Hun Myoung Park, Ph.D.
Public Management & Policy Analysis Program Graduate School of International Relations

2. Big Question (Behn 1995) Micromanagement
Motivation: How can public managers motivate public employees to work energetically and intelligently towards achieving public purposes? How can the legislature control the executive, and how can political managers control civil servants (principal-agent problem)?
Measurement 2

3. Basic Questions
What do employees want to get from organizations and society?
Why do people want to work for government? 3

4. How To Motivate?
Organizations and their employees exchange (contribution and rewards)
Reward (carrot) and penalty (stick) based on fair and accurate performance appraisal
Need-incentive fit: What does he/she want to get?
Provide proper incentives/disincentives. 4

5. Need, Motive, and Value
Need is a resource or condition required for the well-being of an individual
Motive is a force acting within an individual that causes him to see to obtain or avoid some external object
Value is an enduring belief that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence.

6. Employees’ Needs Murray’s List of Basic Needs (1938)
Maslow’s Need Hierarchy (1954)
Alderfer’s ERG Model (1972)
Abasement
Achievement
Affiliation
Aggression
Autonomy
Counteraction
Defendance
Dominance
Exhibition
Harm avoidance
Nurturance
Order
Play
Rejection
Sentience
Sex
Succorance
Understanding
Self-actualization needs
Esteem needs
Belongingness social needs
Safety needs
Physiological needs
Growth needs
Relatedness needs
Existence needs 6

7. Incentive for Employees
Which incentives do organizations provide to their employees? 7

8. Types of Incentives 1 Incentive Type Definitions and Examples
Barnard (1938)
Specific Incentives
Material inducements
Personal, nonmaterialistic inducements
Desirable physical conditions of work
Ideal benefactions
General incentives
Associational attractiveness
Customary working conditions
Opportunity for feeling of enlarged participation in course of events
Condition of communion
Incentives “specifically offered to an individual”
Money, things, physical conditions
Distinction, prestige, personal power, dominating position
“Satisfaction of ideals about nonmaterial future or altruistic relations” (pride of workmanship, sense of adequacy, altruistic service for family or others, loyalty to organization, esthetic and religious feeling, satisfaction of hate and revenge)
Incentives that “cannot be specifically offered to an individual”
Social compatibility, freedom from hostility due to racial, religious differences
Conformity to habitual practices, avoidance of strange methods and conditions
Association with large, useful, effective organization
Personal comfort in social relations 8

9. Types of Incentives 2 Incentive Type Definitions and Examples
Simon (1948)
Incentives for employee participation
Incentives for elites or controlling groups
Clark and Wilson (1961) and Wilson (1973)
Material incentives
Solidary incentives
Specific solidary incentives
Collective solidary incentives
Purposive incentives
Salary or wage, status and prestige, relations with working group, promotion opportunities
Prestige and power
Tangible rewards that can be easily priced (wages and salaries, fringe benefits, tax reductions, changes in tariff levels, improvement in property values, discounts, services, gifts)
Intangible incentives without monetary value and not easily translated into one, deriving primarily from the act of associating
Incentives that can be given to or withheld from a specific individual (offices, honors, deference)
Rewards created by act of associating and enjoyed by all members if enjoyed at all (fun, conviviality, sense of membership or exclusive-collective status or esteem)
Intangible rewards that derive from satisfaction of contributing to worthwhile cause (enactment of a law, elimination of government corruption)

10. Incentive & Organization Type 1
Clark and Wilson (1961)
Material incentives: tangible rewards, often monetary – wages, fringe benefits, patronage
Solidary incentives: intangible rewards from the act of association – sociability, status
Purposive incentives: intangible rewards related to the goals of the organization – e.g., working on an election of a supported candidate 10

11. Incentive & Organization Type 2
Utilitarian organizations rely primarily on material incentives (business firms, labor unions).
Clark and Wilson predict they will have fairly precise-cost accounting machinery (Scott p. 172).
Managers will focus on obtaining necessary material incentives.
Conflicts will be about distribution.
Organizational goals will be secondary to incentives. 11

12. Incentive & Organization Type 3
Solidary organizations (service-oriented voluntary organizations and social clubs) are places where people make contributions in return for sociability and status.
Executive efforts at securing prestige, good fellowship
Organizational goals are non-controversial and socially acceptable.
These organizations tend to be less flexible and more public in actions and decisions. 12

13. Incentive & Organization Type 4
Purposive organizations rely on their stated goals to attract and retain people (Clark and Wilson, 1961).
Executives need to maintain inducements, but when goals are lofty this is difficult to sustain.
Often their efforts fail initially or intermittently (don't elect candidate, don't stop hunger, etc.).
Sometimes the goals are too vague or only support a minority of interests.

14. Motivation
Psychological forces that determine the direction of behavior, level of effort, level of persistence.
Motivation is NOT unchangeable
Preferences are not exogenous (given by outside) but endogenous (socialization) 14

15. Intrinsic vs. Extrinsic Motivation
Intrinsic motivation
Comes from doing the work itself
Extrinsic motivation
To acquire materials or social rewards
To avoid punishment
Workers’ own personal characteristics;
Nature of their job
Nature of organizations 15

16. Motives 1
Perry & Wise (1990)
Rational (instrumental) motives are grounded in enlightened self-interest and are present in individuals who believe that their interests coincide with those of the larger community. They personally identify with some programs and express a commitment to public policy or special interest advocacy. 16

17. Motives 2
Norm-based motives describe a desire to serve the public interest, a duty and loyalty to the government, and a concern for social equity.
Affective motives, such as altruism, are characterized by a willingness or desire to help others. 17

18. Lessons from Motivation Study
Given diversity of individual preferences, there is no one best incentive that fits all cases
Examine individual preferences and find out more salient ones in an institutional setting
Try to measure performance although acknowledging its difficulty and danger
Try to link performance and incentives
As individual preferences change (country, generation…), incentives need to change as well