Motivation and payment systems

Dr Joan HarveyDr George Erdos

MotivationComplex area- many theoriesStudied since early 1900sLargely based on American and

Western European theoristsTaylor and scientific management

was the firstThen Hawthorne studiesMaslowHerzberg, McGregorLater theories include goal theory,

equity theory, expectancy theories

Motivation theories

Intrinsic theories: Maslow Physiological- housing, clothing, food and drink Safety and security- job security, burglar alarms,

safety features on products Social, love and belongingness- friendships and social

support at work, team sports Self esteem- feeling of worth or importance-

recognition, promotion, luxury goods Self actualisation- doing what you really want to do at

work, education, skills development, ‘experience goods’

Motivators: which is most important to you? [based on Herzberg]

Hygiene factors Interesting work Recognition Stimulus to develop Responsibility Achievement Promotion/advancement

Motivation factors Good management style Pay Company policy Working conditions Work colleagues Job security

Motivation theories

Murray’s inventory of social needs Including superiority, achievement,

play, succourance, nurturance etc.Arousal theory

Failure to arouse will have little effect on performance

Priming to create arousalTheory X and theory Y and theory Z

X and Y relevant insofar as make statements which you can apply at work;

Z is Japanese style of management

Incentive and reinforcement theories

Studies of role of moneyInstrumentalityIndicative of statusProvides some independence and

autonomyPrinciples of incentive theories

Perceives reward to be worth the effort

Wants that rewardPerceives that action will lead to that

reward

Utility and related theories Based on nature of utility, usually a product of value

and probability, of both success and loss; e.g. more reward not seen to happen for working hard money, social, psychological, appearance, injury

Need for achievement nAch and fear of failure

Need for affiliation Need for power Equity theory Motivational calculus and expectancy theory

Modern intrinsic theories

Cognitive evaluation theoryCuriosity, incongruity and

discrepancyCompetence, mastery, efficacy and

challengePersonal control over environment

and self-determination

Other motivational issues

Unconscious motivationWork behaviours or products as

substitutes and fulfillmentsReinforces needs that one is

unaware ofSemiotics and the meaning of

NVBs, or goods, logos, symbolism and ritual gift giving

Motivational mixMultiple motivesApproach and avoidance issues [Lewin]Force of inertia

Strong in 50% of people, opposite to embracing change

Involvement Antecedents – what happened before Properties- feelings and behaviour when involvement

aroused Outcomes- depend on interaction of antecedents and

properties as abovePreferences for different types of motive:

e.g. when of equal value to employer, differences in what people prefer:

Pay increase.. or more holidays… or less hours… or more pension…. or health insurance… ??

Payment systems are based on:

Human asset Your skills are worth money, what you can do, not what you actually do

Job evaluation Job tasks rated on dimensions, such as effort, responsibility, working

conditions, skills. It is the job that is paid, not how much you do or your skills

Individual or group performance Incentive systems- direct transactional relationship with individual,

indirect and less clear relationship for group

Profit-based E.g. cooperatives; based on shared success

Measured work E.g. ‘job and finish’, or where minimum daily output is specified

Salaried Sliding scale within a grade with experience or age

Performance related pay Often driven by targets, many of which ignore the OCBs

HOWEVER…….These theories are all Western European and

especially American in natureThere are different motives in other cultures:

Maslow in totally different orderHarmony, not letting the team down, quality of work

as motivatorsBeing strongly motivated by money may be

unacceptable in some culturesSome theories, e.g. equity, goal-directed, expectancy,

even Hergberg need to be rethought

Motivation must always be considered in relation to the cultures involved

Thank you for listening

Joan HarveyGeorge Erdos