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Motivating Employees(Theory not covered here, but needed for exam)

Strategies

Incentive Schemes

Job Enrichment - Empowerment

2

MOTIVATION

Revisiting motivation…

Attraction

Development

Contribution

retention

3

Employee Engagement

• “… emotional connection - an employee

feels for organization that influences him

or her to exert greater discretionary effort

to work".

Some Key drivers…

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Some Key Drivers of EEcommon to many studies

• Trust and integrity – do managers communicate and 'walk the talk'.

• Nature of the job – mentally stimulating day-to-day?

• Line of sight between employee and company performance

• Career Growth opportunities • Pride in company – Association with Co a

source of Self Esteem• Coworkers/team members • Employee development • Relationship with one's manager

Consequences of EE – one study – highly engaged employees outperform disengaged by 2—28 % - one study

Older emp – rewards andrecognition

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MOTIVATION MUSINGS

• Role of unsatisfied needs

• Reward that satisfies (need) may be

Intrinsic or Extrinsic

• Individuals are motivated differently

• Perceived Inequity can de-motivate

– Different forms of inequity

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Motivation Musings

• Importance of creating valenciesImportance of creating valencies

• Importance of expectanciesImportance of expectancies

• Importance of Importance of - ability- ability

- self efficacy- self efficacy

• Importance of role, task clarityImportance of role, task clarity

Different Techniques - importance of money

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DOES MONEY MOTIVATE?

The problem with money…

• Amount should be significant

• Motivating if rooted in

performance

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The Problem with Money…

• Can create conflicts

– between employees

– between employees and

organisation

– Between attainment of

different goals

Types of money incentives

DESSLER CH 13 9

MONEY INCENTIVES MAY BE

• Individual or group

• White collar or blue collar

• Linked to output, Quality or

any parameter that reflects

a desired outcome

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INCENTIVES FOR OPERATIONS EMPLOYEES

• Straight piecework– Proportionate– Increasing rate– Decreasing rate

• Guaranteed piecework

• Standard Hour Plans - incentive on time

saved

Problems with incentives

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PROBLEMS WITH INCENTIVES

• Erosion of standards / wrong standards• allowances

• short ‘termism’

• conflict with other goals

• variability in earnings

• conflicts lack of team work

• require frequent review• When not linked to the individual’s performance???

Other types of incentives

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OTHER KINDS OF INCENTIVES

• PERFORMANCE RELATED PAY

• SALES INCENTIVES

• EXECUTIVE BONUSES

• PROFIT SHARING

• GAIN SHARING

• SHARE AWARDS

• REFERAL / RETENTION BONUSES

• SKILL INCENTIVES

• QUALITY INCENTIVES

Other motivational strategies

ARMSTRONG ED 6, PGS 379 -389

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SOME MOTIVATION STRATEGIES

• Incentives - cash/kind

• Status and benefits

• Leadership

• Security

• Congenial organisation climate

• Participation / Voice

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SOME MOTIVATION STRATEGIES

• Appreciation

• Enabling growth

• Training - Development

• stretch goals

• Flexibility

• Missions that motivate

• Job Design and

Empowerment…

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JOB DESIGN

The specification of

• Contents

• Methods

• Relationships of jobs

What does job design include…

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JOB DESIGN

• Tasks may be– Wide or narrow– Simple or complex– Individual or group

• Methods

• Responsibilities

• Authority - how much freedom?

• Interactions - Relationships

• FeedbackHow to design a job to make it meaningful

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What makes a Job meaningful?Job Characteristics Model of Hackman and

Oldman

Lead to productivity & quality

• Skill variety

• Task Identity

• Task significance

• Autonomy - responsibility and authority

• Knowledge of results

Approaches to job design

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Approaches to job design

• Job rotation

• Job enlargement

• Job enrichment

• Empowerment

• Self managing teamsAUTONOMOUS WORK GROUPS

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Autonomous Work Groups - Self Managing Teams

• planning work / Scheduling work

• decide who will do what

• controlling scrap

• obtaining supplies

• complete an agreed amount of work

• often - responsibility for product

quality

see notes pg 20

SMTs

• Sundaram Fastners Split manufacturing system into smaller modules - Zones of Autonomous Production - AIM

– Enhancing worker skills

– Increasing flexibility

• Telco - automation has reduced all

low end jobs. Workers are now

largely operate as self directed

teams and need less supervision

see notes pg 21

AUTONOMOUS WORK GROUPSat DR REDDY’S- Human Capital – Jan 2003

• Experiment at one Formulations Unit

• Team of 56 young people (PUC)

• Structure

– Handholding group

– Executives – SMT members

– Housekeeping Personnel

• Responsibility of SMT – Maintenance, HR,

Safety, Continuous / process improvement

• Was result of BPR

Other companies using SMT

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see notes pg 23

Other Companies that use SMT Human

Capital – Jan 2003

• EID Parry

• Godrej

• Dupont

• Godrej (Mercury)

• Pepsi

Barriers to implementing SMTs

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Barriers to implementing Autonomous Work Groups

• Training • Supervisor resistance• incompatible systems -

lack of planning• lack of management

support • lack of union support

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Intrinsic Motivation

• feeling of having accomplished something worthwhile

• Satisfaction from doing a job well

• Rewards like– More responsibility– Training for better job etc…– Appreciation

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EXPECTANCY THEORY

MOTIVATIONALFORCE =VALENCE*EXPECTANCY

OUTCOME 1

OUTCOME 2

2 B

2 A

1 B

1 A

INSTRUMENTALITYEXPECTANCY

VALENCE - +1 to - 1

EXPECTANCY 0 - 1

INSTRUMENTALITY 0 - 1

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PERFORMANCE SATISFACTION MODEL

INTRINSICREWARDS

VALUE OF REWARD

EFFORT

PERCEIVED EFFORT/REWARD PROBABILITY

ROLE PERCEPTIONS

PERFORMANCE

(ACCPMPLISHMENT)

ABILITIES ANDTRAITS

PERCEIVEDEQUITABLEREWARDS

EXTRINSICREWARDS

SATISFACTION

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What Job Enrichment Means

freedom to Plan, Implement and evaluate work

• Direct feedback

• client relationships

• new learning

• scheduling own work

• unique experience

• control over resources

• direct communication authority

• personal accountability

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EMPOWERMENT

Recognising and unleashing power of

individual Knowledge and Internal motivation

Empowerment requires

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EMPOWERMENT REQUIRES …

• commitment – part of a larger process

• Role clarity - so you know what to delegate

• Suitable communications and co-ordinating systems

• Huge amounts of training

Some issues in empowerment

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ISSUES IN EMPOWERMENT

• erodes junior/mid management roles - hence resistance

• Employee

– Desire– Capability

• can flatten organisation hierarchies,

• IT and empowerment??

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YES Bank says "Yes" to Red Box Rewards

YES Bank has engaged Red Box Rewards to manage rewards to be given to its employees for exceptional sales performance.The program aims to recognize and reward consistently good performance among its sales staff and increase overall productivity. Reward items range from cars to motor-bikes and white goods such as air conditioners and DVD players.

From Dirxions Jan 2008