1. MOTIVATION: BASIC CONCEPTS
LESSON 4

2. MOTIVATION
The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining goal

3. EARLY THEORIES OF MOTIVATION
Hierarchy of Needs Theory
Theory of X and Y
Two Factor Theory
McClelland's Theory of Needs

6. Two factor Theory

8. CONTEMPORARY THEORIES OF MOTIVATION

9. SELF DETEMINATION THEORY
Proposes that people prefer to feel they have control over their actions, so anything that makes a previously enjoyed task feel more like an obligation than freely chosen activity will undermine motivation.

10. GOAL SETTING THEORY
In general, managers should make goals specific and difficult- managers should set the highest goals to which employees will commit.

11. SELF EFFICACY THEORY
Refers to an individual’s belief that he or she is capable of performing task.

13. EXPECTANCY THEORY
Employees will be motivated to exert high level of effort when they believe it will lead to a good performance appraisal.

14. Components: Effort-performance relationship
Performance reward relationship
Rewards-personal goals relationship

15. EMMPLOYEE INVOLVEMENT
Participative process that uses employees input to increase their commitment to the organizations success

16. EXAMPLES OF EMPLOYEE INVOLVEMENT PROGRAM

17. Participative Management
Joint decision making in which subordinates share significant degree of decision making power with their immediate superiors

19. Representative Participation
Letting workers be represented by a small group of employees that participate in decision making

20. USING REWARDS TO MOTIVATE EMPLOYEES
Through Variable –Pay Programs
Types are as follows:

21. Piece-rate pay- paying a fixed sum for each unit of production completed
Merit-based pay- pays for individual performance based on appraisal ratings
Bonuses- usually being provided annually, it is higher than merit pay

22. Skill- based pay- pay levels on how many skills employees have or how many jobs they can do.
Profit-sharing plans- distributes compensation based on some established formula designed around company's profitability.

23. Gainsharing- formula-based group incentive plan that uses improvements in group productivity from one period to another determine the total amount of money allocated.
Employee stock ownership plan- employees acquire stock, often at below market price as part of their benefits