1. Chapter 16 motivating individuals and groups Qiang Jiang School of Business Sichuan University, China jiang.qiang@outlook.com

2. 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

3. 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

4. 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

5. 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

6. 1 Overview of motivation Theories of motivation – Content theories – Process theories

7. 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.

8. 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

9. 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.

10. 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

11. 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

12. 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.

13. 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

14. 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)

15. 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

16. 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

17. 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

18. 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)

19. 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

20. 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

21. 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.