MOTIVATIONAL STRATEGIES BOH4M

WHAT DOES THIS MEAN TO YOU? “Management means helping people to get the best out of themselves, not organizing things”

JOB PERFORMANCE Job Performance = function(ability and motivation) Ability depends on education, experience, and training all of which takes time.

Motivation is easily improved, and therefore job performance increases more quickly with improved motivation. In the long run, increased training will also improve job performance.

MINNEAPOLIS GAS COMPANY STUDY 20 year study that involved 31 000 men and 13 000 women. The study determined that other than job security the next most significant motivating factors are:

advancement, type of work, and a proud employee of a great company. ***Money is not the primary motivator. However employees who can't meet basic life needs will not be highly motivated.

7 BASIC MOTIVATIONAL STRATEGIES

Team Work Personal Involvement Work Enhancement Rewards Mutual Exchange Competitive Measures Punishment and Fear

INCENTIVE COMPENSATION SYSTEMSSalary A set amount of pay per year. Must be set in

keeping with the skill level of the job.

Pay for Knowledge

Organizations want to encourage improvement in their human capital. They will pay more for people who have training or are willing to learn how to do more than one job in the organization. Workers expand their skills, are challenged, and the organization gains a flexible workforce.

Bonus Pay

Bonuses are paid as lump sums after reaching a target performance within a specified timeline. Bonuses can be based on individual, group, or department goals.

INCENTIVE COMPENSATION SYSTEMSProfit Sharing

Profit sharing plans distribute a portion of company earnings to employees. The rate of profit sharing usually varies with the job category.

Gain Sharing

Employees share in any savings or gains the organization realizes after their efforts reduce costs and increase productivity.

Employee Stock Ownership

Employees are often offered “Stock Options” which allow them to purchase company stock at a stated price in the future. The employee is motivated to perform well so the organizations stock price increases. When it does they exercise their stock option.

INCENTIVE COMPENSATION SYSTEMSBenefits

Organizations can offer benefit packages that increase as employees move up the organizational ladder. Most benefits plans cover dental, life, and disability insurance programs.

Perks Organizations can offer perks like all expenses paid holidays, car allowances, gift cards, and other forms of compensation.

THE KEY FOR MANAGERS… To motivate employees:1. Tailor the motivation and incentive programs to the individual. 2. The best motivation programs take time and commitment from

managers.

MANAGEMENT JOURNAL 1. “As the CEO of your company the five most important things I learned in this activity that will make my company more successful are. . .” Complete this statement and justify your answer.

2. Why do you think people are motivated by things other than money in their jobs? What would be the most important motivator for you? Be honest!

___________/10 marks – Thinking