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Rewards and Motivation. Motivation - a nagging concern. What is the problem? Effort, performance, retention, loyalty, membership, commitment, trust, empowerment, participation, work design Extrinsic and intrinsic rewards Expectancy and Equity Rhetoric versus reality - PowerPoint PPT Presentation
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Chris Jarvis 1
Rewards and Motivation
Chris Jarvis 2
Motivation - a nagging concern
What is the problem? Effort, performance, retention, loyalty,
membership, commitment, trust, empowerment, participation, work design
Extrinsic and intrinsic rewards Expectancy and Equity Rhetoric versus reality How I construe my/your motivation, needs &
drives
How to "motivate people to give their all"
Chris Jarvis 3
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 Coercive - Remunerative - Normative Alienated - Instrumental - Moral involvement
Chris Jarvis 4
The person-as-economist expects
ROI - time, effort, commitment
"What's in it for me?" calculation Conscious subconscious (self image and comparisons)
Fairness (equitable social (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 and comparisons Clear/distorted internal/external
Chris Jarvis 5
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
Chris Jarvis 6
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 ……versus ……...in your time? Supervision and monitoring - “When the cats away”? Is actual presence necessary? Off-site working. Life increments - pay & career progression, security?
Chris Jarvis 7
PRP, merit pay, skill-based schemes
Requires targeting, information & measurement Manager appraisal and 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 and rating
Chris Jarvis 8
Performance-Related Pay (PRP)
extensive but partial and 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"
Addition to salary (merit pay or bonus) for this appraisal round.
The apparent exaggeration of "Fat cat bonuses" – the "global labour market for stars" + formulae?
Chris Jarvis 9
Emotional & social dynamics & expectations
Important for employee belief and commitment
Impact of rules-of the-scheme (formal contract) on individual sensitivity (psychological contract). personal expectations + formal/informal exchange Er Ee my manager as
employer (by proxy) as a person I like/dislike, respect?
How I "see" what others are getting - internally and externally.
Chris Jarvis 10
Pay-offs in the Employer-Employee Relationship (after Mumford 1972)
Task structure Work within firm’s 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
Chris Jarvis 11
Organisational "Culture" Problems
Conscious calculation & instrumentality? Take-it or leave it + "9-5" sub-optimisation Tangible over non-tangible rewards Organisational rationalisation of effort-reward
relationship Structural inflexibility of reward packages Constructing and controlling the performance
review and PRP system Genuine involvement & participation Delegation, reliance and confidence
Chris Jarvis 12
How has work-motivation theory dealt with this?
Homo economicus Content theories - needs and factors:
Maslow, Alderfer, McClelland - Needs and satisfactions Herzberg - hygiene and motivators, job redesign
Process theories McGregor, Likert et al - on being managed Adams - Equity theory Vroom, Lawler - Expectancy theory Hackman & Oldham - job characteristics Locke - Goal setting
Reinforcement theory (operant conditioning) Positive (continuous, fixed and variable intervals/ratios) Avoidance learning and punishment
Chris Jarvis 13
Abraham Maslow - Need Satisfaction
Needs
Behaviour/Action
Goals
achievedrive
satisfy
teleologygoal-orientation
Chris Jarvis 14
Maslow's Need-Satisfaction Model
Content theory - the needs that motivate
simple description, partial account - not quantifiable
chronic deficiency drives (motivates) behaviour
gratified needs - equilibrium snakes and ladders or lower needs mediated by higher
order consciousness? nb: Alderfer ERG theory -
existence, relatedness, growth) cognitive and developmental
Chris Jarvis 15
more efficient perception of reality + comfortable with it
acceptance of self & others + social interest
problem-orientation, spontaneity and creativity
detachment - value privacy
autonomy - independence of culture & environment
resistance to enculturation
continued freshness of appreciation
mystic experience or oceanic feeling
interpersonal relations & democratic behaviour
sense of humour
This idealised, self-actualised person?
Chris Jarvis 16
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).
Chris Jarvis 18
Expectancy theory (the process of motivation)
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
•expectancy - If I tried could I do it? Get away with it?
• Instrumentality - if I did it will I attain the outcome?
•valence (subjective valuation) - do I really value what's available?
Expressed as probabilities. Path-goal relationships which “explain” motivation performance.
assoc.. with Vroom & Lawler/Porter
Chris Jarvis 19
Expectancy Theory - Vroom et al
valence
A robust explanatory, predictive model?How the individual construes it all?
Chris Jarvis 20
Equity & consistency - 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 … that’s it for me!”
Internal & external comparisons (groups & individuals)
Feelings & perceptions - not synonymous with equality
Proposition… better motivated if treated equitably & consistently distributive equity
how I perceive I am treated & rewarded in comparison to others procedural equity
how I see organisational procedures being applied
Chris Jarvis 21
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 employee’s viewpoint No personal bias Consistent application of criteria Early feedback on outcome of decisions Adequate explanation of decisions made
Chris Jarvis 22
Organisational initiatives
Job design & flexibility - matching people to jobs
MbO - defining expectations and feedback
Teams and semi-autonomous groups, empowerment
Concern for staff development, competencies and accreditation Effort to refine and deliver “reward packages” that "motivate" - PRP
Managerial behaviours
Constant organisational vigilance & sensitivity
A rewarding, supportive climate
Cultures that foster confidence and identification (one-ness with the firm) meaningful, practical commitment?