Motivation, Incentive

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Motivation,Incentive Performance
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Motivation Some components

• Inclination what I feel I want to do
  active/passive, conscious/sub-conscious
• Direction what I am trying to do
• Action what I do do
• Effort how hard I try
• Persistence how long I keep trying
• How we construe expectations, needs, drives,
  efforts and results (actual 'rationalised'/felt)
  - self others
• The employment concerns? How to "motivate people
  to give their all"
• Effort, performance, retention, loyalty,
  membership, commitment, trust, empowerment,
  participation, work design
• Extrinsic intrinsic rewards
• Expectancy equity
• Rhetoric vs. reality of management practice
• Self-awareness delusion "Mirror, mirror on
  the wall".
• Motivation "normal" behaviour vs. the
  well-motivated criminal.

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Who wants what from motivation?

• The person
• Health well-being, safety/order, social
  affiliation/acceptance, recognition rewards
  (extrinsic/intrinsic, stimulus incentive.
  Feelings of self-worth/value, command of destiny,
  realisation of personal aspirations/expectations.
  Equity. Power. Affiliation
• The employer
• Trusted, reliable employees who give their all,
• Ability to construe employee motivation, needs
  drives relate to effort, economic efficiency,
  performance, retention, loyalty commitment,
  membership culture, empowerment, obligation-duty,
  participation contribution, work design, better
  teams
• Others
• Interpersonal confidence, liking and rapport,
  mutual confidence and collaboration, shared
  values, not to be let down.
• What is the problem?

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Idiosyncrasies and patterns

• Idiosyncracies perceptions of work, personal
  position and entitlements
• Individual differences - the unique self - my
  construction
• Common patterns of cognition, behaviour, attitude
• Group and cultural influences
• Me - myself, you
• "you scheming, conniving, persistent, grabbing,
  selfish, resentful person .. you . and .. you
  are a capitalist to boot...... one of 'them' ...
  a typical Lilliputian ...... I've read all about
  you in Cosmopolitan."

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Pay-offs in the Employer-Employee Relationship
(after Mumford 1972)

• Task structure Work within firms policy,
  procedure technical constraints. Job roles,
  work arrangements relationships
• Knowledge skill Employer wants know-how,
  competence, experience. Employee wants to be put
  to good use be developed
• PsychologicalManagement co-workers want
  committed, loyal, motivated staff. Individual
  wants satisfaction
• Efficiency/rewards Employer wants performance
  output to a quality standard. Employee wants
  equitable, felt-fair rewards opportunity
• EthicalValues ambiguities/inconsistencies in
  right/wrong behaviour

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Evaluate the following propositions

• Good pay helps to diminish problems of high
  absenteeism.
• The buzz of high morale emphasis on teamwork
  means that there is moral pressure not to let
  workmates down. This is reinforced by prominently
  displaying
• costs of absenteeism
• discussing reasons for absence with absentees
• saying how fellow team members are hurt by
  absenteeism.
• There is no direct way motivation can be
  measured. Indicators can be obtained thru
• observation, conversation and the stories people
  tell
• attitude surveys
• productivity data
• absenteeism, retention
• moans gripes
• analysis of performance reviews

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Role modelling theory Maier 1959

• Role ambiguity may result from uncertainty about
• How one's work is evaluated
• Scope for advancement
• Scope of responsibility
• Others expectations of one's performance
• It can cause
• Insecurity, lack of confidence,tension,
  irritation and even anger amongst members of a
  role set
• These will be communicated more often than
  satisfaction / feelings of being well motivated.
• Natural critical/evaluative tendencies, blaming
  others, disgruntlement
• Also consider
• role underload/overload
• capacity stress
• demands, choices constraints
• conflict ambiguity

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Examination Question

• Evaluate the truth of the following proposition.
  How well does it point the way to robust,
  theoretically sound principles that guide our
  understanding of employee motivation?
• Proposition
• "The acquisition and development of employee
  skills through sophisticated and systematic
  selection, induction, training and appraisal has
  a positive impact on quality productivity. It
  will lead to better motivation within the
  company"

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Would I really work for you without reward?

• fundamental to employee contract
• traditional economic exchange model. Pay-effort
  determinism
• "rate for the job"
• occupational norms, expectations and choices
• expediency - "suitable for my life package at the
  moment"
• Etzioni organisational membership
• Systems employers useCoercive - Remunerative -
  Normative
• Employee responsesAlienated - Instrumental -
  Moral involvement

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The person-as-economist expects........

• ROI - time, effort, commitment
• "What's in it for me?" calculation
• Conscious ? subconscious (self image and
  comparisons)
• Fairness (equitable socio-economic exchange)
• interpret rewards/pay-offs of others
• judge what is fair/unfair
• satisfaction if each party achieves a balance
  (relative equality)
• Psychological extension to neutral, economic
  model
• Construing the value importance of input-output
• Social, psychological - individual group
• Validation of personal perceptions comparisons
• clear/distorted
• internal/external

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Design Features of Reward Systems

• Monetary
• Time-based (not directly related to performance)
• Performance-linked
• Output, , PRP, merit pay, commission,
  skill-based
• collective-output schemes
• Corporate performance-related bonuses profit
  sharing
• Monetary-equivalent
• Car, phone, holidays, loans, accommodation, fees,
  vouchers
• Deferred (promotion, pension)
• Non-monetary / intrinsic benefits - safety,
  status, recognition, plaques, contribution and
  empowerment
• Negatives pressure, penalties, harassment,
  side-lining, dismissal

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Pay by time schemes - Components

• simple to administer
• defined time F/T, P/T, mixed-time, casual
• no attendance, no pay? Hourly, weekly, monthly
• premiums 1.5T, 2T, nights
• Flexi-time schemes
• Door knob syndrome
• job grading/evaluation - evaluate the job not the
  person doing it
• control mechanisms tools clocks,
  supervision, time sheets?
• performance assumptions
• trust, competence, diligence, fidelity, care,
  good-will, cooperation
• work for Er in Er time vs ...in your time?
• supervision monitoring - When the cats away?
• Is actual presence necessary? Off-site working.
• life increments - pay career progression,
  security?

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PRP, merit pay, skill-based schemes

• Requires
• targeting, information measurement
• manager appraisal judgement
• problems of "big scheme" rules and controls
• Pay linked to
• individual merit (behaviours, traits
  competencies flexibility, cooperation,
  punctuality, effort, skills/abilities).
• concrete individual or group targets
• Staff appraisal criteria, rating, and
  exchange/intervention process

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Performance-Related Pay (PRP)

• extensive but partial sectoral
• little research data on effectiveness
• pay linked to specific aspect of performance
• intensity of MbO approach
• problem of defining the group outputs
• what if key results not achieved?
• how is control and consistency achieved?
• fairness validation of "the manager's judgment"
• merit pay or bonus addition to salary for this
  appraisal round only?
• The neurosis of "targetitis"
• "Fat cat bonuses" envy "global market for
  stars" formulae intervention?

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Defining jobs

• how can a manager operate effectively if he/she
  does not understand cannot define staff jobs?
• shared understanding about what the job is
• reliable, factual definition of scope of job
  responsibilities
• useful for organisational design analysis of
  change?
• help to clarify role provide a reference point
  for induction, recruitment, performance
  assessment grading?
• a basis for the job advert recruitment
  literature?
• indicates competence required - generic job
  specific
• confining, time consuming, out-of-date in a
  flexible organisation

Contractual?
"Job descriptions - - Burn the lot of 'em"
Robert Townsend, Up the Organisation
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Job definition elements

• Job definition
• Title, reporting relationships (up, down,
  sideways, external)
• job summary, responsibilities, duties, scope of
  authority
• MbO/R key result areas, yardsticks of
  performance, evaluation data
• contractual provisions
• Competence specification
• levels, range of situations, performance
  indicators, knowledge/wisdom, experience, skills
  (psycho-motor, technical, analytical, literary,
  spoken, numeric, social emotional)
• The competences this organisation values
• Role performance analysis
• Personnel specification (person profile)
• characteristics of ideal candidate
• Essentials - desirables - disqualifiers.
  Motivators
• Psychometric-objective selection - fit person to
  job
• Biodata, interviews, various tests, references

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MbO Record
Name Job/Role Job/Role Date
Key Job Area Objective/Target to be Achieved Data for Monitoring Training/Learning Needs
1.
2.
3.
4.
Progress Review Dates Progress Review Dates Progress Review Dates Progress Review Dates
Notes on Achievements/Progress Notes on Achievements/Progress Notes on Achievements/Progress Notes on Achievements/Progress
Signed (Manager)
Signed (Post-holder)
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Emotional social dynamics expectations

• Important for employee belief commitment
• Impact of rules-of the-scheme (formal contract)
  on individual sensitivity (psychological
  contract).
• personal expectations
• formal/informal exchange Er çè Ee
• my manager as
• employer (by proxy)
• as a person I like/dislike, respect?
• How I "see" what others are getting - internally
  externally

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Organisational "Culture" Problems

• conscious calculation instrumentality?
• Take-it or leave it "9-5" sub-optimisation
• rangible over non-tangible rewards
• organisational rationalisation of effort-reward
  relationship
• structural inflexibility of reward packages
• constructing controlling the performance review
  and PRP system
• genuine involvement participation
• delegation, reliance confidence

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How well has work-motivation theory dealt with
this?
Attribution theory Adams - Equity theory Vroom,
Lawler - Expectancy theory Hackman Oldham - job
characteristics McGregor Theory X and Theory
Y "on managing . this approach is
better" dynamic, emphasis on process - how it
occurs prescriptive responses Process
Maslow, Alderfer, McClelland - Herzberg - hygiene
motivators, job redesign Concern with
individual needs/goals emphasis on what
motivates general, universal Needs
satisfactions Content (What it is its elements)
Behavioural Focus on behaviour Responses to
stimuli - external Avoidance learning
punishment reinforcement behaviour modification
theory (operant conditioning)
Cognitive Consciousness/rationality Goals
behaviour e.g. Locke - goal setting Known
calculable e.g. homo economicus Learning
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Abraham Maslow 1954 - Need Satisfaction
teleology goal-orientation
Behaviour/ Action
achieve
drive
Goals
Needs
satisfy
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Abraham Maslow - Hierarchy of Needs

• Influential
• Content of motivation (needs that motivate)
  theory - not personality
• Classified needs
• lower needs must be satisfied before higher needs
  are activated
• Chronic need deficiency (neurosis?) motivations
  action
• gratified needs - equilibrium
• snakes and ladders or
• lower needs mediated by higher order
  consciousness?
• simple descriptive, partial
• nb Alderfer ERG - existence, relatedness,
  growth)
• cognitive developmental

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What is Self Actualisation?

• difficult to define
• uniquely human motive?
• a way of life gt a goal.
• not a need but on-going growth/development
  process.

• Example characteristics
• accurate perception of reality.
• accept selves others.
• spontaneous, open natural
• problem centred gt self centred
• pacific calm, serene in nasty situations.
• dont take things for granted.
• peak experiences.
• affection regard for others
• capable of deep satisfying relationships
• democratic, ethical
• creative, sense of humour.
• independent of enculturisation

• Becoming Self-Actualised?
• Be willing to change.
• Take responsibility.
• Examine your motives.
• Experience honestly directly.
• Use positive experiences.
• Be prepared to be different.

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Self-actualised? Human like everyone else..

• displays frailty failings, ups downs.
• emotional, critical attitudes towards others
• urge to decide for themselves
• may say "NO" be unpredictable - own destiny.
• wants reasons without always wishing to conform.
• accepts need for conformity most of the time to
  serve their interests
• avoids being selfish ego-centred (denying space
  to others).

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Much to live up to

• wholeness (unity, tendency to oneness,
  interconnectedness)
• perfection (just-right-ness, suitability)
• completion (fulfilment, finis telos)
• justice (fair, orderly,ought-to-be-ness)
• alive (process, self-regulation,
  full-functioning)
• richness (differentiation, complexity,
  intricacy)
• simplicity (honesty, openness, essentials)

• beauty (rightness, form, wholeness, perfection,
  honesty)
• goodness (rightness, ought-ness, benevolence)
• uniqueness (individuality)
• effortlessness (ease, at-one-ness graceful)
• playfulness (joy, humour, exuberance)
• truth, honesty, reality (open, clean,
  unadulterated, essential)
• self-sufficiency (autonomous, self-determining,
  transcendence)

Maslow on (B)eing values - qualities of
"ethical, virtuous person Toward a Psychology
of Being (1968)
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Critique of Maslow

• simple, plausible, general
• useful descriptive value?
• fudgey, vague, naïve, nice but untestable
  concepts
• hydraulic assumption satisfy needs to boost
  bigger better "motivated" tendencies
• pressures on people to
• Limit scope for self-actualisation
• Be self-actualised (self-development movement)
• cant predict behaviour in given situations.
• self actualisation a positive, attractive,
  humanist concept
• We would all like to see ourselves as
  self-actualised.

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Eric Trist - what people want from their jobs

• Job design principles
• At the level of the individual
• Respect
• Contribution to product
• Quantity quality - feedback results quickly
• Meaningful whole task
• A whole job - plan, do, evaluate
• Variety
• Optimum cycle times
• At the level of the group?
• Whole, meaningful task
• Set standards, feedback on results
• Ways of discussing jobs
• Attractive future possibilities

• Reasonably demanding work with some variety
• Opportunity to learn
• Some decision making
• Social support and recognition
• Significance meaning
• Some desirable future

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Work restructuring
empowerment
place
out sourcing
membership commitments
role of service functions?
Work group
job enrichment as enlargement
matrix
information systems technology
role of supervisor
Core - peripheral
consultation
unionisation?
reward systems
organisation culture
management style
organisation structure
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Job restructuring
Implications Benefits Disadvantages Outsourcing? C
all centres? Virtual teams? Teleworking? Social
impact
Opportunities Flexible rewards Further
skills/learning Challenge Self supervision Network
ing
Tasks Add new different tasks Increase cycle
time Add ancillary preparatory tasks
Work organisation Job enrichment Empowerment Own
work method Planning/organising Problem-solving Go
al setting Flexible pace and hours Flexible
location Information feedback
Work/job attributes Work variety Use of
skills/abilities Meaningful/worthwhile Contributio
n Advancement prospects Accountability
responsibility Discretion decisions Autonomy
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Expectancy theory (the process of motivation)
assoc.. with Vroom Lawler/Porter

• Motivated to perform because of expectations
  relating to perceived payoffs from the
  performance.
• ______
• Desirability of payoffs (valence), perception of
  expectancy force of expression - intrinsic to
  the person.
• ______
• Personal view of what is challenging or
  interesting, important to self valuation of
  extrinsic payoffs - pay material rewards

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Expectancy Theory - Vroom et al
valence
A robust explanatory, predictive model? How the
individual construes it all?
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Adams Equity - an impossible ideal?

• Felt-fairness - how I am treated in relation to
  others
• Equity balance sheet "the last straw
• "What you gain on the swings.." Trust/good-will
• No more thats it for me!
• Internal external comparisons (groups
  individuals)
• Feelings perceptions - not synonymous with
  equality
• Proposition better motivated if treated
  equitably consistently
• distributive equityhow I perceive I am treated
  rewarded in comparison to others
• procedural equityhow I see organisational
  procedures being applied

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Equity and Justice

• Distributive justicehow rewards are distributed
  in accordance with
• my contribution need
• what was promised.
• Procedural equityhow reward decisions are made
  managed
• adequate consideration of employees viewpoint
• no personal bias
• consistent application of criteria
• early feedback on outcome of decisions
• adequate explanation of decisions made

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Organisational initiatives

• job design flexibility - matching people to
  jobs
• MbO - defining expectations and feedback
• teams semi-autonomous groups, empowerment
• concern for staff development, competencies and
  accreditation
• effort to refine deliver reward packages
  that "motivate" - PRP
• managerial behaviours
• constant organisational vigilance sensitivity
• a rewarding, supportive climate and cultures that
  foster
• confidence identification (one-ness with the
  firm)
• meaningful, practical commitment?