Motivation

1
Motivation

• Day 2

2
Management by Objectives

• Transforming organizational level goals to
  specific and achievable work goals for the
  individual employee
• Goals are set on a timetable, so employees have
  difficult but achievable deadlines
• Lead to fair and objective evaluation
• Employees should participate in goal setting

3
Behavior Modification

• Based on the simple learning principles of
  reinforcement and punishment
• Will only work when the target individual has
  access to new behaviors (important!!!)
• Threat of learned helplessness (Seligman)
• Warning You get what you reward for.

4
OB behavior Mod

• Changing behaviors that are pivotal for
  performance
• STEPS
• ID behavioral events of interest
• Gain a baseline so you can measure improvement
• Functional analysiswhat are the behavioral
  contingencies?
• Develop Intervention strategy
• Applymonitor feedback loop change as necessary
  (watch for Hawthorne effect)

5
Employee recognition and involvement programs

• Positive feedback can increase intrinsic
  motivation
• Small rewards should be sporadic and recognize
  attempts and improvements over successes
• Problems with offering cash incentivesintrinsic
  vs. extrinsic motivation

6
Types of Involvement programs

• Participative management employees are involved
  in decisions have power with immediate
  supervisors
• Requires talented employees
• Representative participation Representative
  participation and work councilspressure to
  represent all employees

7
Employee Stock Ownership Plans

• Employees get stock options as part of their
  benefits
• Increase involvement of employees
• Increase tenure (employees will stay until they
  are vested)
• Incredibly cheap to implement
• Downside over dispersion (.com), or
  undiversified employees

8
Variable Pay

• 72 of all companies use for non-execs.
• Piece-rate assembly jobs (you get what you reward
  forNike and quality control)
• Profit sharing plansall employees share in
  company profits
• Gainsharingget a piece of the improvement your
  work group created
• Executive bonusesENRON, Anyone?
• Should stock value be bottom line?

9
Skill-based pay

• Keeps employees active in their own development
• Large pool of talented employees to fill
  positions from within
• Greater interchangeability a flexibility for the
  organization
• You pay a premium for employees to have skills
  they may never use

10
Group vs. Individual Rewards

• Group rewards can
• Reduce cost of monitoring employees
• Reduce social loafing
• Lead members to share disseminated information
• Be useful when tasks are too interdependent to
  separate contributions

11
Downsides to group rewards

• Difficult to evaluate individual contributions
• Diagnostics of group problems may be difficult
• Can lead to groupthink behaviors of
  out-grouping, unanimous thinking, and illusions
  of invulnerability
• You may be paying to reward all members when one
  was responsible

12
Rules for group rewards

• Make sure individual/base pay is still majority
  of income
• Give group members voice about outcomes
• When in doubt, reward at the level you can
  observe at (if you can separate contributions of
  individuals, reward accordingly).