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?