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Rewards and Motivation

Date post: 19-Jan-2016
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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
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Page 1: Rewards and  Motivation

Chris Jarvis 1

Rewards and Motivation

Page 2: 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"

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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

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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

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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

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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?

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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

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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?

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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.

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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

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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

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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

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Abraham Maslow - Need Satisfaction

Needs

Behaviour/Action

Goals

achievedrive

satisfy

teleologygoal-orientation

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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

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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?

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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).

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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

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Expectancy Theory - Vroom et al

valence

A robust explanatory, predictive model?How the individual construes it all?

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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

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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

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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?


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