1. 1 Motivation and Empowerment

2. The POWER of Motivation and Empowerment Here are the three factors that affect employee motivation as based on research: Alignment of employee’s directives with the company’s mission and vision.Alignment of employee’s directives with the company’s mission and vision. Employee’s faith and commitment.Employee’s faith and commitment. Trust in their direct supervisor.Trust in their direct supervisor.

3. 3 How to determine MOTIVATION I think education is power. I think that being able to communicate with people is power. One of my main goals on the planet is to encourage people to EMPOWER themselves. Oprah Winfrey

4. 4 How to determine MOTIVATION There's a basic philosophy here that by empowering...workers you'll make their jobs far more interesting, and they'll be able to work at a higher level than they would have without all that information just a few clicks away. Bill Gates

5. 5 Motivation The forces either internal or external to a person that arouse enthusiasm and persistence to pursue a certain course of action

6. 6 Ex. 8.1 A Simple Model of Motivation Need Creates desire to fulfill needs (money, friendship, recognition, achievement Behavior Results in actions to fulfill needs Rewards Satisfy needs: intrinsic or extrinsic rewards Feedback Reward informs person whether behavior was appropriate and should be used again

7. 7 Types of Rewards Intrinsic Rewards –Internal satisfactions a person receives in the process of performing a particular action Extrinsic Rewards –Rewards given by another person, typically a supervisor, such as pay increases and promotions Systemwide Rewards –Rewards that apply the same to all people within an organization or within a specific category or department

8. 8 Ex. 8.2 Examples of Intrinsic and Extrinsic Rewards ExtrinsicIntrinsic Individual Systemwide Large merit increase Insurance benefits Feeling of self- fulfillment Pride in being part of a “winning” organization

9. 9 Ex. 8.3 Needs of People and Motivation Methods Needs of people Conventional management Lower needs Carrot and stick (Extrinsic) Control people Adequate effort Leadership Higher needs Empowerment (Intrinsic) Growth and fulfillment Best effort

10. 10 Ex. 8.4 Maslow’s Hierarchy of Needs Need Hierarchy Self-actualization Needs Esteem Needs Belongingness Needs Safety Needs Physiological Needs Fulfillment on the Job Opportunities for advancement, autonomy, growth, creativity Recognition, approval, high status, increased responsibilities Work groups, clients, coworkers, supervisors Safe work, fringe benefits, job security Heat, air, base salary

11. 11 Ex. 8.5 Herzberg’s Two-Factor Theory Area of Satisfaction Area of Dissatisfaction Motivators influence level of satisfaction Hygiene factors influence level of dissatisfaction Motivators Achievement Recognition Responsibility Work itself Personal growth Hygiene Factors Work conditions Pay/security Co. policies Supervisors Interpersonal. relationships Highly Satisfied Neither Satisfied nor Dissatisfied Highly Dissatisfied

12. 12 Reinforcement Theory Behavior Modification – the set of techniques by which reinforcement theory used to modify behavior. Law of effect – positively reinforced behavior tends to be repeated and behavior that is not reinforced is not repeated.

13. 13 Reinforcement Theory Reinforcement – anything that causes a certain behavior to be repeated or inhibited. –Positive reinforcement: a pleasant and rewarding consequence following a behavior. –Negative reinforcement: the withdrawal of an unpleasant consequence once a behavior is improved. (avoidance learning)

14. 14 Reinforcement Theory Reinforcement –Punishment: the imposition of unpleasant outcomes following undesirable behavior. –Extinction: the withdrawal of a positive reward so that behavior is no longer reinforce and therefore less likely to occur in the future.

15. 15 Acquired Needs Theory McClelland’s theory that proposes that certain types of needs are acquired during an individual’s lifetime Three needs most frequently studied: –Need for achievement –Need for affiliation –Need for power

16. 16 Ex. 8.6 Key Elements of Expectancy Theory E > P expectancy Effort Performance P > O expectancy Performance Outcomes Valence – value of outcomes (pay, recognition, other rewards) Motivation Will putting effort into the task lead to the desired performance? Will high performance lead to the desired outcomes? Are the available outcomes highly valued?

17. 17 Equity Theory A theory that proposes that people are motivated to seek social equity in the rewards they expect for performance

18. 18 Equity Theory Equity = when my outcomes to inputs equals the ratio of other’s in work group. Inequity = when my outcomes to inputs to do not equal the ratio of other’s in work group. Outcomes: pay recognition, promotions and other rewards Inputs: education, experience, effort and ability

19. 19 Carrot Stick Controversy Extrinsic rewards diminish intrinsic rewards. Extrinsic rewards are temporary. Extrinsic rewards assume people are driven by lower needs. Organizations are too complex for carrot and stick approaches. Carrot and stick approaches destroy people’s motivation to work as a group.

20. 20 Managers Hope For But They Reward Teamwork and collaboration Innovative thinking and risk taking Development of people skills Employee involvement and empowerment High achievement Commitment to loyalty Long-term growth The Best individual performers Proven methods and not making mistakes Technical achievements and accomplishments Tight control over operations and resources Another year’s routine effort Shipping on time, even with defects Quarterly earnings

21. 21 Empowerment Power sharing; the delegation of power or authority or to subordinates in the organization.

22. 22 Elements of Empowerment Employees receive information about company performance Employees receive knowledge and skills to contribute to the company goals. Employees have the power to make substantive decisions. Employees understand the meaning and impact of their jobs. Employees are rewarded based on company performance.

23. 23 How To Diagnose the need for Empowerment: Do people seem uninterested in their work? Are absenteeism or turnover rates too high? Do people lack loyalty and team spirit? Is there a lack of communication among individuals? Is there a low level of pride in you company or group? Are costs too high – product waste – inefficiency? Is your product/service quality los?

24. 24 Steps to Empowerment that lead to an Engaged workforce: Show/demonstrate TRUST IN PEOPLE! INVEST in people RECOGNIZE accomplishments ( No Matter how small) EMPOWER decision making to your followers COMMUNICATE / COMMUNICATE/ COMMUNICATE!!

25. 25 Motivational Programs Employee ownership Gainsharing Pay for knowledge Pay for performance Job enrichment

26. 26 Engagement Being emotionally connected to the organization; being fully involved in and enthusiastic about his or her work and who cares about the success of the organization.

27. 27 Benefits of Delegation through EMPOWERMENT! 1. Delegation gives leaders time to carry out important responsibilities in the areas necessary to meet your Vision. 2.Delegation helps prepare employees for more difficult tasks and additional responsibility. 3.It builds pride into the employees work. 4.Delegation is the KEY to multiplying the effectiveness of the leader and group. (See Exercise 14.1 p 465)