Motivation and Performance: Understanding the Impact of Motivation on Employee Performance, Slides of Business Management and Analysis

Download Motivation and Performance: Understanding the Impact of Motivation on Employee Performance and more Slides Business Management and Analysis in PDF only on Docsity! Motivation Docsity.com Chapter Overview • Employee performance depends on motivation to perform. – Motivation leads to good performance when it is accompanied by • ability, • skills, • equipment, • supplies, and • time. Docsity.com • All of the theories depend on the individual’s perception of what is a valued motivator. – What will be perceived as a motivator depends on the individual’s needs. Docsity.com • Some supervisors and other managers assume that the main thing employees want out of a job is money. – While money can be a motivator, it is not the only motivator, and for some people it is not the most important motivator. – For money to motivate, it must meet employee needs, and employees must believe they are able to achieve the financial rewards the organization offers. Docsity.com • Several financial incentives are discussed, including – piecework systems, – production bonus systems, – commissions, – suggestion plans, – group incentive plans, – profit-sharing, and – gainsharing. Docsity.com Relationship between Motivation and Performance • Motivation: Giving people incentives that cause them to act in desired ways. • The objective of motivating employees is to lead them to perform in ways that meet the goals of the department and the organization. • Because supervisors are largely evaluated on the basis of how well their group as a whole performs, motivation is an important skill for supervisors to acquire. Docsity.com • Employees ultimately decide how they are going to perform or not perform. – A supervisor can influence employees’ behavior through the use of rewards and other incentives. – Supervisors are a significant factor in creating the environment in which employees work. Docsity.com • Flextime: a policy that grants employees some leeway in choosing which eight hours a day or which 40 hours a week to work. • Job sharing: an arrangement in which two part-time employees share the duties of one full-time job. Docsity.com • Physiological needs are the ones required for survival. • Security needs involve keeping oneself free from harm. • Social needs are the desire for love, friendship, and companionship. • Esteem needs are the need for self-esteem and the respect of others. • Self-actualization needs describe the desire to live up to one’s full potential. • People may be seeking to meet more than one category of needs at a time. Docsity.com McClelland’s Achievement-Power- Affiliation Theory • This motivation theory is based on the assumption that through life experiences, people develop various needs. – The three needs include: • (1) The need for achievement – the desire to do something better than it has been done before. • (2) The need for power – the desire to control, influence, or be responsible for other people. • (3) The need for affiliation – the desire to maintain close and friendly personal relationships. Docsity.com • People have all of these needs to some extent. • The relative strength of the needs influences what will motivate a person. Docsity.com Process Theories of Motivation • Another way to explain motivation is to look at it as a process. • Two major process theories are expectancy- valence theory and reinforcement theory. Docsity.com Vroom ‘s Expectancy- Valence Theory • Victor Vroom assumes that people act as they do to satisfy needs they feel. • He sets out to explain what determines the intensity of people’s motivation. Docsity.com • He explains that motivation depends on two things: – (1) Valence • the value a person places on the outcome of a particular behavior. – (2) Expectancy • the perceived probability that the behavior will lead to the outcome. Docsity.com Skinner’s Reinforcement Theory • B. F. Skinner says that people behave as they do because of the kind of consequences they experience as a result of their behavior. – Broadly speaking, people keep doing things that lead to consequences they like, and avoid doing things that have undesirable consequences. • For example, praise feels good, so people tend to do things that get them praised. Docsity.com • Supervisors can encourage or discourage a particular kind of behavior by the way they respond to the behavior. – Consequences can be thought of as: • (1) Reinforcement – the desired consequence for behavior. » This term is used to indicate positive consequences for desired behavior. » This is also used to indicate the outcome for ceasing negative behavior. Docsity.com • (2) Punishment – an unpleasant consequence of a behavior a supervisor wants to end. » This is sometimes described as negative reinforcement Docsity.com Financial Incentives • Some supervisors and other managers assume that the main thing employees want out of a job is money. – Based on the content theories of motivation, it makes sense to say that money motivates people when it meets their needs. • When a person has high financial demands and relatively low income, money may be a motivator. • If an individual is financially comfortable, nonfinancial rewards, such as a sense of accomplishment, are increasingly important. Docsity.com Laffer Curver Time at Work $ Docsity.com Incentive Pay Plans • Financial Incentives: Payments for meeting or exceeding objectives. Docsity.com Production bonus system • Employees in a production department may receive a basic wage or salary plus a bonus that consists of a payment for units produced. – This method has been used extensively in manufacturing. • It is less common today. – inconsistent with producing quality because it emphasizes quantity – often includes a quality factor where a bonus is paid on good units produced Docsity.com Commissions • In a sales department, employees may earn commissions. – the payment linked to the amount of sales completed • Most organizations that pay a commission also pay a basic wage or salary. Docsity.com Payments for suggestions • In companies with suggestion programs, employees are paid for suggestions for improvements. – Typically, for the employee to receive payment, the suggestion must be adopted or save some minimum amount of money. – A common practice is for payment to be linked to the saving realized. Docsity.com Pay Information • In our society money is considered a private matter, and most people don’t talk about what they earn. • Does secrecy help or hurt? – To motivate employees, the organization must let them know what they hope to earn. • Organizations often publish pay ranges. Docsity.com • Making work interesting increases the likelihood of employees giving work their full attention and enthusiasm. • Some ways to make work more interesting are – job rotation, – job enlargement, and – job enrichment Docsity.com Job rotation • Job rotation involves moving employees from job to job so as to give them more variety. – Job rotation requires that employees have relatively broad skills. • This means the supervisor and organization must provide for cross-training or training in the skills required to perform more than one job. • The opportunity to learn new skills can in itself motivate employees. Docsity.com • When jobs are modified to make them more interesting, it is important for the organization and supervisor to remember that not all employees are motivated by the same things or at the same time. – Some employees will see job modification as a way to get them to do more for the same amount of money. • This may also be true of job rotation and job enlargement. Docsity.com • Another way to make work meaningful is to give employees some contact with the people who receive and use their products or services. – Sometimes the supervisor can arrange to have workers visit the users of the products or services. Docsity.com • For example, when a user of manufactured products is having trouble, a visit from employees may serve two purposes. – First, employees may be able to help the user of the product. – Second, employees will learn and understand more about the product from the users’ point of view. Docsity.com • The supervisor’s challenge is to determine what rewards will work for particular employees at particular times. – Although supervisors may not be able to control some rewards such as wages or benefits, • they have great freedom to administer rewards such as praise and recognition. • Supervisors may have discretion in job assignments and additional training opportunities. Docsity.com • Whatever rewards the supervisor uses, they should be recognized by the employee as linked to performance. – If there is a connection, employees should be aware of it and understand it. – Linking rewards to the achievement of realistic objectives is a way to help employees believe they can attain desired rewards. Docsity.com • If a supervisor is to succeed at motivating, he or she has to remember that employees will respond in varying ways. • As much as possible the supervisor should respond to individual differences. • Communication with employees is a necessary ingredient in learning about employees. • Encouraging employees to participate will help the supervisor learn more about the employee. • People also want to know how they are doing. Docsity.com